RLJ Lodging Trust (NYSE:RLJ) Surpasses Earnings and Revenue Estimates

• RLJ Lodging Trust (NYSE:RLJ) reported EPS of $0.40, beating the estimated $0.35, and showcased a 14.29% surprise over expected figures.
• The company's revenue reached approximately $345.7 million, surpassing the estimated $343.1 million and marking a 0.74% increase over the Zacks Consensus Estimate.
• RLJ's strategic actions, including repurchasing 1.6 million shares and entering into a new $500 million term loan, highlight its financial health and growth prospects.

RLJ Lodging Trust (NYSE:RLJ) is a real estate investment trust (REIT) that focuses on acquiring premium-branded, focused-service, and compact full-service hotels. The company operates primarily in urban markets and dense suburban areas. RLJ competes with other hotel REITs like Host Hotels & Resorts and Pebblebrook Hotel Trust.

On November 7, 2024, RLJ reported earnings per share (EPS) of $0.40, surpassing the estimated $0.35. This performance aligns with the company's funds from operations (FFO) of $0.40 per share, which also exceeded the Zacks Consensus Estimate. The result represents a 14.29% surprise over the expected figures, showcasing RLJ's ability to outperform market expectations.

RLJ's revenue for the quarter was approximately $345.7 million, exceeding the estimated $343.1 million. This marks a 0.74% increase over the Zacks Consensus Estimate and a rise from the $334.41 million reported in the same quarter the previous year. The company has consistently surpassed consensus revenue estimates in the past four quarters, highlighting its strong financial performance.

The company's Portfolio Comparable RevPAR increased by 2.0% to $145.23, and Comparable Hotel Revenue rose by 3.0% to $344.7 million. Net Income reached $20.6 million, while Comparable Hotel EBITDA increased by 2.6% to $100.7 million. Adjusted EBITDA grew by 3.6% to $91.9 million, reflecting RLJ's operational efficiency and profitability.

RLJ's financial health is further supported by its strategic actions, such as repurchasing 1.6 million shares for approximately $14.8 million and entering into a new $500 million term loan. The company also increased its quarterly common share dividend by 50%, demonstrating confidence in its financial stability and future growth prospects.