RLJ Lodging Trust Reports Third Quarter 2026 Results
RLJ Lodging Trust (RLJ) filed an SEC Form 8-K — Results of Operations and Financial Condition. Press Release RLJ Lodging Trust Reports Third Quarter 2026 Results Q3 RevPAR increased 9.7% Adjusted FFO per diluted common share and unit of $0.34 increased 25.9% Adjusted EBITDA of $85.2 million increased 17.3% Increasing full-year outlook Bethesda, MD, November 4, 2026 – RLJ L
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to attract buying, especially from investors seeking exposure to the hospitality sector's recovery.
Market read
RLJ's strong Q3 results and raised outlook provide a clear catalyst for the stock, with potential spillover to the broader hotel REIT space.
What to watch
Potential risks from future interest‑rate hikes affecting REIT financing costs.
RLJ Lodging Trust Reports Third Quarter 2026 Results; Q3 RevPAR increased 9.7%, Adjusted FFO per diluted common share and unit of $0.34 increased 25.9%, and Adjusted EBITDA of $85.2 million increased 17.3%.
Comparable RevPAR, Comparable Hotel Revenue, Comparable Hotel EBITDA, Adjusted EBITDA and Adjusted FFO per diluted common share and unit all increased year over year, while Comparable Hotel EBITDA Margin expanded 190 basis points and the Company increased its full-year outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Comparable ADRother | $203.35 | – | 6.4% |
| Q3 2026 Comparable Occupancyother | 75.4% | – | 3.1% |
| Q3 2026 Comparable RevPARother | $153.36 | – | 9.7% |
| Q3 2026 Total RevenueGAAP | $354.5M | – | 7.4% |
| Q3 2026 Room revenueGAAP | $288.4M | – | – |
| Q3 2026 Food and beverage revenueGAAP | $38.18M | – | – |
| Q3 2026 Other revenueGAAP | $27.93M | – | – |
| Q3 2026 Total property operating expensesGAAP | $238.4M | – | – |
| Q3 2026 Total operating expensesGAAP | $324.2M | – | – |
| Q3 2026 Interest expenseGAAP | ($29,831) | – | – |
| Q3 2026 Income tax expenseGAAP | ($294) | – | – |
| Q3 2026 Net income (loss)GAAP | $4.58M | – | 220.5% |
| Q3 2026 Net (loss) income attributable to common shareholdersGAAP | ($1,711) | – | – |
| Q3 2026 Diluted net (loss) income per share attributable to common shareholdersGAAP | $(0.01) | – | – |
| Q3 2026 FFOnon-GAAP | $46.17M | – | – |
| Q3 2026 Adjusted FFOnon-GAAP | $51.99M | – | 26.5% |
| Q3 2026 Adjusted FFO per common share and unit-dilutednon-GAAP | $0.34 | – | 25.9% |
| Q3 2026 EBITDAnon-GAAP | $79.12M | – | – |
| Q3 2026 EBITDArenon-GAAP | $79.11M | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $85.15M | – | 17.3% |
| Q3 2026 Comparable Hotel Revenuenon-GAAP | $354.5M | – | 9.1% |
| Q3 2026 Comparable Hotel EBITDAnon-GAAP | $93.86M | – | 17.5% |
| Q3 2026 Comparable Hotel EBITDA Marginnon-GAAP | 26.5% | – | 190 bps |
| Nine months 2026 Comparable RevPARother | $156.51 | – | 7.0% |
| Nine months 2026 Total RevenueGAAP | $1.08B | – | 5.5% |
| Nine months 2026 Net incomeGAAP | $35.55M | – | 27.0% |
| Nine months 2026 Diluted net income per share attributable to common shareholdersGAAP | $0.10 | – | – |
| Nine months 2026 Adjusted FFOnon-GAAP | $180.0M | – | 12.0% |
| Nine months 2026 Adjusted FFO per common share and unit-dilutednon-GAAP | $1.19 | – | 11.2% |
| Nine months 2026 Adjusted EBITDAnon-GAAP | $276.4M | – | 8.7% |
| Nine months 2026 Comparable Hotel EBITDAnon-GAAP | $303.0M | – | 10.1% |
| Nine months 2026 Comparable Hotel EBITDA Marginnon-GAAP | 28.2% | – | 80 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Comparable hotel portfolioComparable RevPAR increased by 9.7%, driven by ADR growth of 6.4% and a 230 basis point increase in occupancy. Non-room revenues increased by 6.5%, aided by strong growth in corporate transient and group demand. | $354.5M | – | 9.1% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY 2026 outlook
- NoteComparable RevPAR Growth: +5.75% to +6.25%
- NoteComparable Hotel EBITDA: $377M to $383M
- NoteAdjusted EBITDA: $352M to $358M
- NoteAdjusted FFO per diluted share: $1.47 to $1.51
- NoteNet interest expense: $101.0 million to $103.0 million
- NoteCash corporate G&A: $34.5 million to $35.5 million
- NoteCapital expenditures related to renovations: $80.0 million to $90.0 million
- NoteDiluted weighted average common shares and units: 151.7 million
Capital returns
- The Company’s Board of Trustees declared a quarterly cash dividend of $0.15 per common share of beneficial interest of the Company in the third quarter. The dividend was paid on October 15, 2026 to shareholders of record as of September 30, 2026.
- The Company's Board of Trustees declared a third quarter cash dividend of $0.4875 on the Company’s Series A Preferred Shares. The dividend was paid on October 30, 2026 to shareholders of record as of September 30, 2026.
- Potential future acquisitions, dispositions, financings, or share repurchases are not incorporated into the Company's outlook above and could result in a material change to the Company's outlook.
What drove it
- Business travel led operating-fundamentals acceleration, alongside sustained leisure and group strength, which disproportionately benefited urban markets.
- Comparable RevPAR growth reflected increases in both demand and rate: ADR grew 6.4% and occupancy increased 230 basis points.
- The ramp of conversions and renovations contributed to continued growth in non-room revenues.
- Robust revenue growth and disciplined expense management drove Comparable Hotel EBITDA growth of 17.5% and Comparable Hotel EBITDA Margin expansion of 190 basis points.
- The comparable statistics reflect the Company's 91 hotel portfolio owned as of September 30, 2026; comparable results include periods before ownership and exclude sold hotels.
Concerns
- Net income was $4,576, while net loss attributable to common shareholders was ($1,711) after $6,279 of preferred dividends.
- Interest expense was ($29,831) in the third quarter, compared with ($28,309) in the prior-year period.
- The full-year outlook excludes the seven Chicago Midway assets sold subsequent to the third quarter.
- The Company provided $20.0 million of seller financing in connection with the October 2026 Midway portfolio sale.
What to watch
- Whether the strong preliminary results for October and the Company's expectation that positive trends will carry into the remainder of the year support the updated FY 2026 outlook.
- Comparable RevPAR performance, including the respective contribution from ADR and occupancy.
- Comparable Hotel EBITDA Margin following third-quarter expansion of 190 basis points.
- Completion and financial effects of the sale of seven Chicago Midway hotels, which are excluded from Comparable RevPAR and Hotel EBITDA outlooks.
- Renovation capital expenditures, guided to $80.0 million to $90.0 million for FY 2026, and the operating contribution from conversions and renovations.
Balance sheet and cash flow
- As of September 30, 2026, the Company had over $1.0 billion of total liquidity, comprised of approximately $448.3 million of unrestricted cash and $600.0 million available under its revolving credit facility.
- Cash and cash equivalents were $448,342 as of September 30, 2026, compared with $410,160 as of December 31, 2025.
- Debt, net was $2,196,326 as of September 30, 2026, compared with $2,197,218 as of December 31, 2025.
- Gross debt was $2,209,241 as of September 30, 2026, with a weighted-average interest rate of 5.05%.
- In October 2026, the Company completed the sale of seven hotel properties located near the Chicago Midway Airport for $110.0 million and provided $20.0 million of seller financing. The sale represented a multiple of 13.8x forecasted 2026 Hotel EBITDA, or 16.1x including required capital expenditures.
Analysis
RLJ reported a strong third quarter marked by broad comparable-property momentum. Comparable RevPAR increased 9.7% to $153.36, with ADR up 6.4% to $203.35 and occupancy increasing to 75.4% from 73.1%. Comparable Hotel Revenue increased 9.1% to $354,470, while total revenue increased 7.4% to $354,476. Management attributed the operating acceleration to business travel, sustained leisure and group demand, and growth in non-room revenues.
The top-line performance translated into materially faster property-level earnings growth. Comparable Hotel EBITDA rose 17.5% to $93,859 and Comparable Hotel EBITDA Margin expanded 190 basis points to 26.5%. Adjusted EBITDA increased 17.3% to $85,150, ahead of the total-revenue growth rate. The release attributes this spread to robust revenue growth and disciplined expense management, while noting that conversions and renovations added momentum to non-room revenue.
GAAP net income was $4,576, compared with a net loss of ($3,798) in the prior-year quarter. Preferred dividends of $6,279 resulted in net loss attributable to common shareholders of ($1,711), although this improved from ($10,015). Adjusted FFO increased 26.5% to $51,994, and Adjusted FFO per diluted common share and unit increased 25.9% to $0.34. For the nine months, total revenue increased 5.5% to $1,077,441, net income increased 27.0% to $35,555, and Adjusted EBITDA increased 8.7% to $276,415.
Liquidity stood at over $1.0 billion as of September 30, 2026, including approximately $448.3 million of unrestricted cash and $600.0 million of revolver availability. Debt outstanding was stated as $2.2 billion, while the debt schedule reported gross debt of $2,209,241 at a 5.05% weighted-average interest rate. RLJ also completed the sale of seven Chicago Midway properties in October for $110.0 million and provided $20.0 million of seller financing. The Board declared a $0.15 common dividend and a $0.4875 Series A Preferred Share dividend.
The Company increased its FY 2026 outlook after third-quarter outperformance and strong preliminary October results. Guidance calls for Comparable RevPAR Growth of +5.75% to +6.25%, Comparable Hotel EBITDA of $377M to $383M, Adjusted EBITDA of $352M to $358M, and Adjusted FFO per diluted share of $1.47 to $1.51. The outlook excludes the seven Chicago Midway assets sold after the third quarter and assumes renovation capital expenditures of $80.0 million to $90.0 million. No prior outlook was supplied, so the degree of the guidance increase cannot be quantified from the provided documents.
Management, verbatim
We delivered another strong quarter, with results that once again exceeded our expectations across all metrics.
Leslie D. Hale, President and Chief Executive Officer
Operating fundamentals accelerated during the quarter, with business travel leading the way alongside sustained strength in leisure and group, which disproportionately benefited our urban markets.
Leslie D. Hale, President and Chief Executive Officer
Given our third quarter outperformance, strong preliminary results for October, and our expectation that positive trends will carry into the remainder of the year, we are raising our full-year guidance.
Leslie D. Hale, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook figures for comparison
- GAAP gross margin
- GAAP operating income
- Operating cash flow
- Free cash flow
- Share repurchases
- Discrete reportable operating segments beyond the comparable hotel portfolio
- GAAP and non-GAAP tax-rate metrics
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
RLJ Lodging Trust is a publicly traded REIT focused on urban hotels. The Q3 2026 filing includes operational and financial highlights and updates its full‑year outlook.
Ticker impact
RLJ Lodging Trust issued its Q3 2026 earnings, reporting a 25.9% increase in adjusted FFO per share and raising its full‑year outlook.
likely upward pressure as the market prices in the raised guidance and strong earnings
The company posted higher revenue, EBITDA and FFO, and explicitly raised its full‑year guidance, which typically drives buying interest.
Market effects
Strong performance may lift sentiment in the REIT and hospitality sector.
Positive outlook for urban hotel markets could benefit other US hotel REITs.
Limited to US hospitality REITs; no broader macro impact.
Counterpoint
If the raised guidance is already priced in, the stock may face limited upside.
Key entities
- ExecutiveLeslie D. Hale
President and CEO of RLJ Lodging Trust, quoted on the results.
