RLJ Lodging Trust, Bethesda, Maryland, reported Q121 earnings on Wednesday and beat consensus expectations. Here is a summary of results:
- Repaid US$200 million on Revolving Credit Facility
- Sold one non-core hotel for a gain of US$1.1 million
- 97 hotels open during the first quarter, representing 96% of the portfolio
- Total portfolio achieved 43% occupancy and open hotels achieved 46.4% occupancy
- Total revenue of US$119.6 million
- Net loss of (US$79.1) million
- Net loss per share of (US$0.51)
- Adjusted EBITDA of US$3.6 million
- Adjusted FFO per diluted common share and unit of (US$0.18)
- Continued to maintain a strong balance sheet with approximately US$648 million of unrestricted cash and over US$1 billion of liquidity
“We are encouraged by the acceleration in lodging demand that we saw throughout the first quarter and are pleased to see the relative outperformance of our portfolio unfold, as we had expected,” commented RLJ President and Chief Executive Officer Leslie Hale. “Our portfolio’s favorable positioning with respect to our brands, product type and geographic footprint allowed us to gain significant market share during the first quarter and enabled us to achieve positive corporate EBITDA for the first time since the pandemic unfolded. The strong start to the year has increased our confidence in the strength of the lodging recovery. Against this improving backdrop we are well positioned to unlock our embedded growth catalysts and to outperform throughout the recovery and beyond.”
Michael Bellisario, senior analyst with R.W. Baird, wrote of RLJ, “Trends continue to sequentially improve as expected, cash flow at the hotel level is now positive, and two large hotels appear to be reopening soon, which is an encouraging sign for the near-term outlooks in New York City and San Francisco.” He added that he expects to hear more about potential acquisition opportunities, the company’s continued non-core disposition efforts and an update regarding the planned Wyndham conversions in Charleston and Santa Monica.
C. Patrick Scholes of Truist Securities added, “While we were not surprised by 1Q’s beat, we see many RLJ-specific catalysts yet to come (permanent margin growth, Wyndham and other ROI CapEx, etc.).”