Mon, May 5, 7:35 PM (17 days ago)
**RLJ Lodging Trust (RLJ) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenues increased by $3.7 million to $328.1 million for Q1 2025, driven by a $1.0 million increase in room revenue, a $1.8 million increase in food and beverage revenue, and a $0.9 million increase in other revenue. - **Profit Margins:** Net income decreased by $1.574 million to a loss of $2,917,000 for Q1 2025, primarily due to increased interest expense and lower other income. - **Cash Flow:** Net cash flow provided by operating activities was $16.3 million for Q1 2025, down from $20.8 million in Q1 2024. Cash flow used in investing activities was $23.7 million, primarily due to capital improvements and a hotel property sale. Cash flow used in financing activities was $53.6 million, mainly for share repurchases and distributions. **Key Metrics:** - **Occupancy:** 69.2% for Q1 2025, slightly down from 69.5% in Q1 2024. - **Average Daily Rate (ADR):** $204.38 for Q1 2025, up from $200.17 in Q1 2024. - **Revenue per Available Room (RevPAR):** $141.39 for Q1 2025, up from $139.13 in Q1 2024. **Trends and Uncertainties:** - **Interest Rate Sensitivity:** RLJ has $1.2 billion in variable rate debt, with 72.8% of total indebtedness fixed or effectively fixed. A 1% increase in interest rates could decrease earnings by approximately $6.1 million annually. - **Share Repurchases:** RLJ repurchased 2.7 million common shares for $24.3 million in Q1 2025 and approved a new share repurchase program for up to $250.0 million from May 2025 to May 2026. - **Capital Expenditures:** RLJ maintains FF&E reserves for future capital expenditures, with approximately $24.9 million held in reserves as of March 31, 2025. **Future Operations Impact:** - **Debt Management:** RLJ refinanced a term loan to increase it to $300.0 million and extended the maturity to April 2028. They also exercised extension options on $181.0 million in mortgage loans. - **Hotel Sales and Acquisitions:** RLJ sold one hotel property for $24.3 million in Q1 2025 and acquired the fee simple interest in the Wyndham Boston Beacon Hill in Q1 2024. **Market Risk:** - **Interest Rate Risk:** RLJ's primary market risk is related to changes in interest rates on variable rate debt. They manage this risk through fixed rate debt instruments and interest rate swaps. **Controls and Procedures:** - **Disclosure Controls:** RLJ's management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025. - **Internal Control:** There have been no changes in internal control over financial reporting that materially affected or are reasonably likely to materially affect RLJ's internal control.