RLJ Lodging Trust Q3 revenue beats estimates driven by strong business, leisure travel bookings

Overview

• US hotel REIT's Q3 revenue rose 7.4%, beating analyst expectations

• Adjusted FFO per diluted share rose 25.9% year-over-year

• Company raised full-year 2026 outlook after Q3 outperformance

Outlook

• Company raises full-year 2026 guidance following Q3 outperformance and positive October trends

• Company sees FY 2026 comparable RevPAR growth of 5.75% to 6.25%

• RLJ Lodging Trust expects FY 2026 comparable hotel EBITDA of $377 mln to $383 mln

Result Drivers

• BUSINESS, LEISURE & GROUP DEMAND - Co said increased business travel and continued strength in leisure and group bookings, especially in urban markets, drove RevPAR growth

• RENOVATIONS & CONVERSIONS - Co said hotel conversions and renovations contributed to growth in non-room revenues

• COST CONTROL - Co said disciplined expense management supported margin expansion and Hotel EBITDA growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for RLJ Lodging Trust is $12.00, about 4.7% below its November 3 closing price of $12.59

• The stock recently traded at 137 times the next 12-month earnings vs. a P/E of 4,136 three months ago

Reuters Recommended Reads

• Nov 4 - Park Hotels & Resorts Q3 RevPAR rises on group and leisure demand

• Nov 3 - DiamondRock Hospitality Q3 net income, adjusted FFO rise

• Nov 3 - Summit Hotel Properties Q3 revenue beats estimates on business travel recovery, strong group demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)