| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 61 | 60.1x | 17.8x | Around median | |
Growth | 15 | 1.1% | 7.1% | Bottom tier | |
Quality | 20 | 2.8% | 4.5% | Bottom tier | |
Safety | 35 | 5.5x | 2.6x | Bottom tier | |
Capital Return | 63 | 5.51% | 2.12% | Around median | |
Momentum | 93 | 57.3% | 2.9% | Top tier | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
RLJ Lodging Trust operates an urban portfolio of 91 hotels, 83 of which were unencumbered by debt at the end of Q2 FY2026. Revenue depends on hotel stays driven by business, leisure, and group travel demand, alongside non-room spending such as food and beverages and event spaces. The company seeks to increase returns from its assets through renovations and conversions to lifestyle-oriented brands, including Autograph Collection, Tapestry Collection, and Compass by Margaritaville.
In Q2 FY2026, revenue reached $383.0 million, net income was $31.0 million, and earnings per share were $0.16, compared with revenue of $340.0 million and a net loss of $141 thousand in Q1 FY2026. RevPAR increased 6.8% to $167, supported by a 4.9% increase in average daily rate to $217 and a 130-basis-point rise in occupancy to 77%. Hotel EBITDA reached $119.5 million, growing 7.1%, while its margin improved 10 basis points to 31.3%.
Growth was broad-based across demand segments during Q2 FY2026; business travel revenue increased 10%, leisure revenue 7%, group revenue 6%, and non-room spending 7.1%. Markets not hosting the World Cup achieved RevPAR growth of 6.2%, while Austin recorded growth of 17%, Chicago 15%, Tampa 11%, and Northern California 9%, demonstrating that performance did not depend on a single market or event.
Automated analysis for informational purposes only — not investment advice.
Analyst consensus on RLJ is Neutral, with an average price target of $11.5 within a range of $11 to $13. The average is below the 52-week range high of $12.89, while clearly exceeding the range low of $6.54; this distance reflects a combination of operating improvement and raised FY2026 guidance on one hand, and limited visibility, expense pressure, and leverage on the other.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue reached $383.0 million, net income was $31.0 million, and earnings per share were $0.16. RevPAR increased 6.8% to $167, with average daily rate growing 4.9% to $217 and occupancy rising 130 basis points to 77%. Hotel EBITDA also grew 7.1% to $119.5 million, and its margin reached 31.3%.
Business travel revenue increased 10% and room nights in this segment rose 6% in Q2 FY2026, with the increase driven by national accounts, the GDS channel, and sectors including technology, finance, and defense. Leisure revenue increased 7% and group revenue 6%, while Q3 group pace reached 110% of the comparable period. Based on the strength of the quarter, the company raised its FY2026 comparable RevPAR growth forecast to a range of 3.5%–4.5%.
Seven completed conversions generated revenue growth of 8% and Hotel EBITDA growth of 12% during Q2 FY2026. The company completed the conversion of the Pittsburgh hotel into The Arrott under Autograph Collection and estimates the asset's earnings growth potential at approximately 35%. Management also estimates earnings growth potential of approximately 40% for the Boston asset and approximately 50% for the Key West asset after its conversion into Compass by Margaritaville and relaunch in 2027.
The company expects comparable RevPAR growth of between 3.5% and 4.5% and Hotel EBITDA of between $369 million and $389 million. Adjusted EBITDA guidance ranges from $336 million to $356 million, and Adjusted FFO per diluted share from $1.37 to $1.50. It also expects capital expenditures of between $80 million and $90 million and net interest expense of between $101 million and $103 million, with no assumption of additional acquisitions or dispositions.
Debt totaled $2.2 billion after repayment of the senior notes due on July 1, 2026, with no other maturities until 2029. The company has approximately $1 billion in liquidity, including $600 million of undrawn capacity under the credit facility, and 83 of its 91 hotels are unencumbered. The weighted average interest rate is 4.8%, while 72% of debt is fixed or hedged, and the company continues to pay distributions of $0.15 per share.
Management acknowledged that visibility is limited due to the short booking window and economic and geopolitical uncertainty, while Q4 FY2026 pace was below the comparable period due to Salesforce moving to September and the impact of the elections. Expenses per occupied room increased 4.9% and fixed costs rose 6.4%, while the improvement in Hotel EBITDA margin was limited to 10 basis points. Debt of $2.2 billion and expected interest expense of between $101 million and $103 million add a financial burden, while the Boston and Key West conversion work may cause temporary disruption before the targeted returns are realized.
