RLJ Lodging Trust (RLJ) · Nov 4, 2026 · Earnings
Beat — Adjusted FFO $0.34 vs ~$0.29 consensus
RLJ Lodging’s Q3 earnings beat expectations, with 9.7% RevPAR growth, 17.5% hotel EBITDA growth, and higher 2026 FFO guidance.
RLJ is an urban-centric owner of premium-branded focused-service and compact full-service hotels, using renovations and brand conversions as internal growth levers. Its prior setup already called for improving business travel, urban leisure demand, and higher 2026 earnings, so this filing matters because the operating acceleration arrived faster and with better flow-through than expected.
The quarter beat the published bar across the metrics that matter. Adjusted FFO per diluted share was $0.34 versus a published consensus of roughly $0.29, while revenue reached $354.5 million versus expectations around $339 million–$342 million. RevPAR rose 9.7%, ahead of the company’s already-improving trend, and comparable Hotel EBITDA grew 17.5%—nearly twice the pace of revenue. 〔0〕
| Metric | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Comparable RevPAR (Operational Overview) | $153.36 (+9.7%) | $139.82 | |
| Total revenue (Financial Overview) | $354.5M (+7.4%) | $330.0M | ~$339M–$342M |
| Comparable Hotel EBITDA (Financial Overview) | $93.9M (+17.5%) | $79.9M | |
| Comparable Hotel EBITDA margin (Financial Overview) | 26.5% (+190 bps) | 24.6% | |
| Adjusted FFO/share (Financial Overview) | $0.34 (+25.9%) | $0.27 | ~$0.29 |
| FY2026 adjusted FFO/share guidance (Outlook) | $1.47–$1.51 | $1.37–$1.50 prior |
The quality of the beat is better than a simple demand rebound. Occupancy improved alongside rate, and the 190-basis-point margin expansion shows that incremental hotel revenue is converting into disproportionate profit rather than being absorbed by costs. That supports RLJ’s strategy of focusing on high-margin urban hotels and extracting returns from conversions, renovations, and other property-level initiatives. 〔1〕
The guidance increase confirms management sees the strength continuing, not just a one-quarter spike. The new adjusted FFO range of $1.47–$1.51 is above the prior $1.37–$1.50 range, lifting the low end materially and the midpoint by roughly 4%. The filing also cites strong preliminary October results, although it does not provide October figures, so the durability of the step-up still rests partly on management’s early read. 〔2〕
The October asset sale adds liquidity but also trims the operating base. RLJ sold seven Chicago Midway-area hotels for $110 million at an attractive stated valuation, but provided $20 million of seller financing, so the immediate cash benefit is below the headline proceeds. The transaction is consistent with pruning assets and recycling capital, while the revised comparable outlook excludes those hotels.
Balance-sheet flexibility remains a support rather than the main news. RLJ reported more than $1 billion of liquidity against $2.2 billion of debt, broadly consistent with the balance-sheet setup established in the prior quarter rather than a new financing development.
Bottom line: This was a genuine operational beat, not just a favorable presentation: demand accelerated, margins expanded, and full-year FFO guidance moved higher. The filing strengthens RLJ’s existing urban-hotel recovery and internal-growth story, though the asset sale modestly reduces the portfolio base.
Q3 earnings call, November 5, 2026
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