RLJ Lodging Trust’s shares fell 2.4% after earnings, a roughly flat reaction. The quarter showed faster revenue and margin growth, while the company’s outlook commentary was limited; management cited preliminary October RevPAR growth of 6%.
- Third-quarter RevPAR rose 9.7%, with occupancy up 230 basis points and ADR up 6.4%; growth exceeded the industry by 260 basis points.
- Business-transient revenue increased 15%, following 10% growth in each of the prior two quarters; leisure revenue rose 10%.
- EBITDA grew at twice the pace of revenue, with management citing significant margin expansion.
- Urban markets posted 10% RevPAR growth; Northern California was up more than 13% in the quarter and more than 16% year to date.
- October preliminary RevPAR growth was 6%, despite Dreamforce shifting into September.
Community Discussion