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CITI’s GLOBAL PROPERTY CEO CONFERENCE MARCH 2025
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2MARCH 2025 RLJ | INVESTMENT HIGHLIGHTS The evolution of RLJ’s portfolio over the last several years has positioned it to benefit from the upside in urban demand and to capitalize on unique internal and external growth catalysts INTERNAL GROWTH BALANCE SHEET Low leveraged balance sheet with a strong track record of returning capital ~$0.9B of liquidity providing optionality Repurchased $22.0M of shares in 2024 and increased quarterly dividend by 50% in 3Q Phase I and II initiatives to generate $14M to $18M of incremental EBITDA Conversion of Courtyard Pittsburgh University Center completed ahead of schedule in Q4 Conversions in Nashville and downtown Pittsburgh to be completed in 2025 Wyndham Boston Beacon Hill conversion to commence in 2026 Well-positioned to drive external growth Ability to execute all-cash transactions in a constrained lending environment Acquired Hotel Teatro in Denver for $35.5M in June 2024 EXTERNAL GROWTH HIGH-QUALITY PORTFOLIO High-quality portfolio with an attractive growth profile Urban-centric portfolio growth expected to exceed the Industry Urban markets represent over two-thirds of RLJ’s portfolio
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3MARCH 2025 THE PIERSIDE SANTA MONICA OPERATING PERFORMANCE
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4MARCH 2025 OPERATING PERFORMANCE | 2024 UPDATE RLJ’s urban-centric portfolio achieved RevPAR growth that outperformed the industry Achieved 2.2% RevPAR growth in 4Q, which was in top quartile of peers Urban hotels (two-thirds of portfolio) achieved 3.7% RevPAR growth Business transient increased ~8%, driven by improving demand and strengthening pricing power Group increased 3.1% with 2025 Pace up mid-single digits Leisure increased 6%, with Urban Leisure up 8% Total revenue increased 3.2% Comparable Hotel EBITDA increased by $0.5 million Margins contribution limited to 67 bps Successfully executed on strategic initiatives to enhance shareholder returns in 2025 Completed conversions of Hotel Tonnelle in New Orleans, DoubleTree Suites in Houston and Courtyard Pittsburgh Acquired Hotel Teatro in Denver and Boston Wyndham land Entered into a $500M Term Loan and addressed all near-term maturities Recycled proceeds from non-core asset sales into share repurchases Increased quarterly dividend by 50%
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5MARCH 2025 OPERATING PERFORMANCE | 2025 OUTLOOK RLJ’s urban-centric portfolio and multiple channels of growth well-positioned to continue to drive outperformance relative to the industry Urban markets are expected to benefit from positive growth in all demand segments Group is expected to remain strong due to continued demand from small group and favorable citywides RLJ group booking pace is up in the mid-single digits Expect further improvement in business transient and international travel demand Leisure should remain healthy, with urban leisure to benefit from special events Performance will benefit from a favorable footprint Expect divergence in individual market performance to emerge given citywide calendars and event locations etc. Q1 2025 Performance Update Q1 will benefit from Inauguration in DC, Super Bowl in NoLa and Easter shift to April January 2025 RevPAR increased 3.2% primarily driven by ADR growth Q1 Adjusted EBITDA expected to be in the range of $74.0M to $77.0M
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6MARCH 2025 RLJ | MULTIPLE CHANNELS OF GROWTH FUTURE PIPELINE OF CONVERSIONS BALANCE SHEET OPTIONALITY INITIAL CONVERSIONS / ACQUISITIONS URBAN CENTRIC PORTFOLIO ORGANIC GROWTH Multiple demand drivers Capture new normal Limited new supply Next leg of recovery Pacing ahead of underwriting External growth from high- growth markets Additional growth to stabilization Targeting two conversions per year Executing incremental revenue enhancement opportunities Strong Liquidity Generate significant free cash flow Optionality to drive external / internal growth Demonstrated ability to return capital to shareholders
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7MARCH 2025 MOXY DENVER CHERRY CREEK HIGH-QUALITY PORTFOLIO
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8MARCH 2025 RLJ | HIGH QUALITY PORTFOLIO 13% 37% 8% 41% Independent/Other RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels Portfolio Overview(1) Hotels 95 Rooms 21,156 ADR $199 RevPAR $145 EBITDA/Key $19k Brand Exposure(1) (1) Based on TTM pro forma EBITDA for the portfolio owned as of December 31, 2024; excludes Chateau LeMoyne which is unconsolidated
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9MARCH 2025 RLJ | HIGH QUALITY PORTFOLIO RESORT URBAN METROURBAN GATEWAY $25K EBITDA / KEY $16K EBITDA / KEY $22K EBITDA / KEY 14% of EBITDA 11% of EBITDA 11 # of HOTELS 18 # of HOTELS 36% of EBITDA 32 # of HOTELS URBAN LIFESTYLE $21K EBITDA / KEY 39% of EBITDA 34 # of HOTELS Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2024; excludes Chateau LeMoyne which is unconsol idated
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10MARCH 2025 URBAN LIFESTYLE PROPERTIES IN TOP URBAN SUBMARKETS THAT BENEFIT FROM SEVEN - DAY - A - WEEK DEMAND AND “BLEISURE” WITH HIGH LEISURE MIX 39% OF EBITDA (1) HYATT CENTRIC MIDTOWN ATLANTAMOXY DENVER CHERRY CREEKAC HOTEL BOSTON DOWNTOWN MARRIOTT LOUISVILLE DOWNTOWN THE KNICKERBOCKER NEW YORK THE BANKER’S ALLEY HOTEL NASHVILLE (1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2024; excludes Chateau LeMoyne which is unconsolidated
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11MARCH 2025 Breakout slide option 1 URBAN GATEWAY PROPERTIES LOCATED IN TOP HOTEL MARKETS IN THE U.S., THAT ARE ALSO THE NATION’S KEY ECONOMIC CENTERS 36% OF EBITDA (1) COURTYARD / RESIDENCE INN / SPRINGHILL SUITES HOUSTON DTWN CONV CTR SAN FRANCISCO MARRIOTT UNION SQUARE COURTYARD NEW YORK MANHATTAN UPPER EAST SIDE COURTYARD SAN FRANSISCOFAIRFIELD INN & SUITES DC DOWNTOWN HYATT PLACE WASHINGTON DC DTWN K ST HILTON GARDEN INN NEW ORLEANS CONV CTR (1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31 2024; excludes Chateau LeMoyne which is unconsol idated
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12MARCH 2025 RESORT PROPERTIES LOCATED IN RESORT DESTINATIONS WITH A HIGH LEISURE MIX 14% OF EBITDA (1) EMBASSY SUITES DEERFIELD BEACH RESORT DOUBLETRREE GRAND KEY RESORT FAIRFIELD INN & SUITES KEY WEST HILTON CABANA MIAMI BEACH ZACHARI DUNES ON MANDALAY BEACH-HOTEL & RESORT WYNDHAM SANTA MONICA AT THE PIER (1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2024; excludes Chateau LeMoyne which is unconsolidated
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13MARCH 2025 HYATT HOUSE SANTA CLARA EMBASSY SUITES MINNEAPOLIS AIRPORT MARRIOTT CHICAGO MIDWAY EMBASSY SUITES DALLAS LOVE FIELD HYATT PLACE MADISON DOWNTOWN URBAN METRO PROPERTIES LOCATED IN NICHE SUBMARKETS WITHIN MAJOR U.S. HOTEL MARKETS 11% OF EBITDA (1) (1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2024; excludes Chateau LeMoyne which is unconsolidated
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14MARCH 2025 RLJ | DIVERSIFIED FOOTPRINT RLJ’s footprint in top Urban markets is well-positioned to capture recovery in all segments Sunbelt markets represent +50% of RLJ’s Hotel EBITDA(1) Over 2/3rds of RLJ’s portfolio is concentrated in Urban markets (1) New York City Austin 6% Washington, D.C. 4% Houston Louisville South Florida Chicago 11% Atlanta Portland Boston Philadelphia Indianapolis Pittsburgh Charleston Tampa Orlando New Orleans Dallas Denver San Francisco CBD 13%SoCal 3% 5% Note: Shaded submarkets are included in larger percentages where applicable (1) Based on TTM pro forma EBITDA for the portfolio owned as of December 31, 2024; excludes Chateau LeMoyne which is unconsolidated Sunbelt Exposure Key West Seattle Birmingham Fort Lauderdale Miami Los Angeles San Diego Silicon Valley Minneapolis Phoenix West Palm Beach Waikiki Charlotte Madison Greater SoCal Greater San Francisco Nashville 3% 4% 5% 2%
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15MARCH 2025 MOXY DENVER CHERRY CREEK EXTERNAL GROWTH CATALYSTS
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16MARCH 2025 EXTERNAL GROWTH | HOTEL TEATRO ACQUISITION RLJ acquired the Hotel T eatro Downtown Denver in May 2024 Rooms - Oriented High Margins High Growth Market Heart of Demand Location Strong RevPAR - Converted boutique lifestyle hotel purchased for $35.5M, with 110 rooms - ~32% stabilized margins - Colorado is one of the fastest growing lodging markets, driven by tech and life science firms, venture capital, and population growth - Enviable location that caters to both leisure and business travelers, tapping into seven-day-a-week demand - Situated in the heart of Denver CBD and in close proximity to key attractions such as the recently expanded Colorado Convention Center. - In November 2024, Denver voters approved a $570M downtown development plan - Strategic positioning captures above market occupancy and rate - National leading RevPAR growth of +8.4% from 2009 - 2019 ~32% Stabilized Margins $323,000 Price Per Key $223 Stabilized RevPAR
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17MARCH 2025 EXTERNAL GROWTH | RECENT ACQUISITIONS Since 2021, RLJ has accretively deployed capital into a number of high-quality acquisitions in top growth markets AC HOTEL BOSTON DOWNTOWN MOXY DENVER CHERRY CREEK 205 KEYS 2021 YEAR ACQUIRED $200 STABILIZED REVPAR ~7.5 - 8.0% STABILIZED NOI YIELD 170 KEYS 2022 YEAR ACQUIRED $170 STABILIZED REVPAR ~8.0 - 8.5% STABILIZED NOI YIELD 124 KEYS 2022 YEAR ACQUIRED $260 STABILIZED REVPAR ~8.0 - 8.5% STABILIZED NOI YIELD THE BANKER’S ALLEY HOTEL NASHVILLE HAMPTON INN & SUITES ATLANTA MIDTOWN 186 KEYS 2021 YEAR ACQUIRED $150 STABILIZED REVPAR ~7.5 - 8.0% STABILIZED NOI YIELD
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18MARCH 2025 INTERNAL GROWTH CATALYSTS THE SURFING FOX AT THE PIERSIDE
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19MARCH 2025 INTERNAL GROWTH | VALUE CREATION STRATEGY Remaining Opportunities ~$12M Revenue Enhancements ~$9M Conversions $7M Margin Enhancements Phase I U/W ($23M-$28M) $28M EBITDA (1) Initial Phase of opportunities only represents a fraction of the total portfolio of opportunities Phase I results have significantly outpaced initial underwriting (1) Achieved in FY23
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20MARCH 2025 INTERNAL GROWTH | PHASE 1 VALUE CREATION ACHIEVED Phase 1 Value Creation Initiatives are exceeding the top-end of initial underwriting with room for stabilized EBITDA to grow by an incremental $6M+ $23 - $28M 2021 U/W $28M (2) +$3M Incremental EBITDA $25M Initial Phase 1 (1) U/W $25M Initial Phase 1 U/W +$6M Incremental EBITDA (1) $25M Initial Phase 1 U/W $34M+ AT STABILIZATION $25M Initial Phase 1 (1) U/W $28M Actual EBITD A (2) (1) Shown at the midpoint of the range (2) Achieved in FY23
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21MARCH 2025 INTERNAL GROWTH | PHASE 2 CONVERSIONS Nashville is a strong growth market with a diversified economy benefiting from existing and emerging corporate expansions/relocation Opportunity to capture higher rated rewards members and drive market share by joining Hilton’s Tapestry Collection Hotel located across from the Texas Medical Center - home to 60 medical institutions, as one of the largest medical complexes in the world Rebranding captures significant lift in ADR, already in the market, as well as higher rated Hilton rewards members New Orleans is a top leisure, drive-to market with the hotel located in the heart of the Historic Garden District Repositioning as a Tribute Portfolio Hotel, joining Marriott’s family of independent boutique hotels to allow for capturing higher rated Bonvoy guests The 2023 conversions are at or nearing completion and poised to significantly exceed initial underwriting HOTEL TONNELLE NEW ORLEANS - COMPLETE DOUBLETREE HOUSTON MEDICAL CENTER - COMPLETE BANKERS ALLEY HOTEL NASHVILLE – ON TRACK +$25 - $30 ADR Lift(1) ~50 %+ Unlevered IRR(1) +$5M - $6M Incremental EBITDA(1) (1) Annual, upon stabilization based on underwriting
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22MARCH 2025 INTERNAL GROWTH | PHASE 2 CONVERSIONS Benefits from multiple demand drivers given prime location on university campus Courtyard affiliation expected to capture higher ADR Completed in Q4, ahead of schedule Iconic building in prime CBD location Autograph Collection expected to capture higher ADR On track for delivery in 2025 Announced two conversion in Pittsburgh in 2024 Completed the conversion of the Courtyard in Q4 – ahead of schedule AUTOGRAPH PITTSBURGH DOWNTOWN – ON TRACK COURTYARD AT THE UNIVERSITY OF PITTSBURGH - COMPLETE Conversion from Renaissance Pittsburgh Hotel Conversion from Wyndham Pittsburgh University Center (1) Annual, upon stabilization based on underwriting +$15 - $20 ADR Lift(1) ~50 % Unlevered IRR(1) +$2M - $3M Incremental EBITDA(1)
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23MARCH 2025 CAPITAL ALLOCATION | 2024 ROIs EMBASSY SUITES DEERFIELD BEACH RESORT Re-imagined indoor / outdoor oceanfront bar to drive out-of-room spend Added new sundries market, providing a new profit center Completed comprehensive renovation of all suites Executed on a number of high return ROI projects to increase out-of-room spend by reimagining and optimizing non-revenue generating space EMBASSY SUITES LOS ANGELES INTERNATIONAL AIRPORT (LAX) SOUTH Created multi-functional social and small group meeting space as part of a transformational lobby renovation
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24MARCH 2025 CAPITAL ALLOCATION | 2024 ROIs (CONT.) D OUBLE T REE SUITES BY HILTON HOTEL AUSTIN Added new guestrooms and suites Activated the lobby bar, elevating guest experience RESIDENCE INN BETHESDA DOWNTOWN Created new rooftop bar with city views Added a new “Grab & Go” market as a profit center D OUBLE T REE SUITES BY HILTON ORLANDO AT DISNEY Reimagined lobby to incorporate a new market and expand bar as profit centers Enhanced restaurant / bar and elevated public spaces
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25MARCH 2025 INTERNAL GROWTH | PHASE 2 – AGGREGATE VALUE CREATION In addition to conversions, Phase 2 value creation will also benefit from $2M in incremental EBITDA from ROI projects $2M Revenue Enhancement Projects $7M - $9M Phase 2 Conversions Phase 2 Value Creation: Expected +$9M - $11M Of Incremental EBITDA ZACHARI DUNES MANDALAY BEACH
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26MARCH 2025 RLJ | INCREMENTAL EBITDA BRIDGE Portfolio EBITDA Expectations $34 M(1) $10 M $14M 2019 Hotel EBITDA(1) Phase 1 Phase 2 2021-2024 Acquisitions(2) Projected Comparable Hotel EBITDA $447M 2023 Actual EBITDA $28M Incremental 2024 – 2026 $6M $42M - $46M Aggregate Stabilized EBITDA from Phase 1 & 2 Phase 1 $34M Phase 2 $10M Acquisitions $14 M $447M 2019 Hotel EBITDA All figures are at the midpoint (1) Based on portfolio as of December 31 2024. (2) At stabilization $505M RLJ expects to generate significant incremental EBITDA over the next several years from its internal and external growth initiatives Initial Underwriting
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27MARCH 2025 RLJ is well positioned for continued value creation through incremental conversions and value-add opportunities INTERNAL GROWTH | EMBEDDED PIPELINE OF OPPORTUNITIES Boston Philadelphia New Orleans Austin San Diego NYC Houston Los Angeles WYNDHAMS ADDITIONAL CONVERSION OPPORTUNITIES VALUE - ADD Incremental 10-to-15 conversion and value-add opportunities in portfolio Atlanta Pittsburgh Charleston Key West Brand expirations Conversions with renovations Embedded real estate value creation potential in ‘Opportunity’ assets Incremental ROI opportunities Remix customer base Drive higher ADR Gain Market Share Expect to execute two incremental conversions per year
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28MARCH 2025 INTERNAL GROWTH | WYNDHAM BOSTON BEACON HILL Pulls forward an additional compelling conversion opportunity with significant upside potential Boston represents a top hotel market with a favorable growth outlook for the next several years Recent transaction in the market at $875k / key Property’s A+ location within Boston’s Beacon Hill neighborhood, surrounded by Massachusetts General Hospital which is currently undergoing a $1.8 billion expansion 8.5x Multiple on Acquisition Price 1 (1) Based on post-conversion stabilized EBITDA. Conversion capital expected to add 1.5x to multiple $411,000 Price Per Key >40% EBITDA Upside RLJ acquired the fee-simple ownership of the Wyndham Boston Beacon Hill in January of 2024
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29MARCH 2025 STRONG LIQUIDITY & BALANCE SHEET MARRIOTT LOUISVILLE DOWNTOWN
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30MARCH 2025 BEST-IN-CLASS BALANCE SHEET RLJ has a strong balance sheet and well-staggered debt maturity profile Debt Maturity Schedule Best-in-class balance sheet (1) Over $0.9B of liquidity, including $410M of cash and $500M availability on LOC ‒ No debt maturing until 2026 with weighted average maturity of 3.4 years ‒ Weighted average interest rate of 4.6% Recycled $22M of non-core disposition proceeds into share repurchases in 2024 Well covered dividend increased by 50% during 3Q (1) As of December 31, 2024 $181 $25 $225 $200 $500 $100 $500 $500 $500 2024 2025 2026 2027 2028 2029 Secured Term Loans Drawn LOC Undrawn LOC HY Bonds Amount Due ($ in millions) % of Debt Maturing - - 31% - 23% 46%
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31MARCH 2025 COURTYARD WAIKIKI BEACH CORPORATE RESPONSIBILITY
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32MARCH 2025 RLJ ESG | CORPORATE RESPONSIBILITY APPROACH Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value D R I V E Drive revenue growth by following a disciplined investment strategy and through aggressive asset management Reduce cost through investments in energy and water conservation and other “greening” efforts Improve our human capital by championing our corporate culture of diversity and inclusivity, to boost motivation, attract top talent and retain associates Validate our sustainability commitments through external benchmarking and transparent reporting Expand our engagement with our partners, suppliers and the communities in which we operate
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33MARCH 2025 RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value ENVIRONMENTAL In recognition of the strategic importance of increasing environmental efficiency we… Achieved cost reductions through investment in energy, carbon and water efficiency projects across our portfolio Routinely track asset efficiency profile to monitor progress and identify opportunities for continued cost and energy reductions 100 % of our properties have undergone an energy efficiency assessment in the past three years 76 % of our properties utilize an environmental management system, while 73% have low-flow toilets, faucets, or showerheads 62 % of properties have installed bulk dispensers or non-plastic alternatives to replace mini toiletries 8.07 6.02 6.21 6.27 6.33 2019 2020 2021 2022 2023 Grenhouse Gas Intensity (kgCO2e) 132.2 195.17 153.74 135.85 131.11 2019 2020 2021 2022 2023 Water Intensity (Gal) 25.83 18.55 21.41 23.11 22.99 2019 2020 2021 2022 2023 Energy Intensity (kWh) - 22% Reduction from 2019 base - 11% Reduction from 2019 base ~ - 1% Reduction from 2019 base
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34MARCH 2025 RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value Our commitment and leadership on social responsibility continues with… Supporting communities through inclusive labor practices, policies and philanthropic volunteer and donation programs that encourage a culture of generosity and community engagement Maintaining a diverse and inclusive culture at all levels of our organization from associate to board membership SOCIAL 35% 13% 5% 1% 46% Associate Ethnicity African American Asian Hispanic Other White 56 % of trustees are ethnically diverse, with 33 % female Over half of RLJ’s corporate employees are ethnically diverse, with 49 % female RLJ is active in social contribution with over $ 4 million in donations PARTNERSHIPS High School and Corporate Work Study Program
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35MARCH 2025 RLJ ESG | CORPORATE RESPONSIBILITY Our sustainability strategy aligns our ESG objectives with our commitment to generate long-term stakeholder value GOVERNANCE We are strengthening our approach to governance by… Maintaining transparency with investors on our strategic approach to ESG performance Having formed a Corporate Responsibility Committee, reporting to the Board of Trustees Maintain a highly diverse and independent Board, and committed to continuing refreshment − 7 of 9 trustees are independent, including all members of our Board Committees − 3 of 9 trustees are women − 5 of 9 trustees are ethnically diverse − Trustee skills, qualifications and experience matrix are disclosed in proxy statements Robust Code of Business Conduct and Ethics to consistently guide and set our ethical standards across our Company Robust policy development centered around ethics and risk mitigation In 2024, RLJ submitted its inaugural GRESB report, allowing the company to benchmark our ESG progress with the GRESB framework Continued alignment with United Nations Sustainable Development Goals
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36MARCH 2025 This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” “may,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which will be filed on February 26, 2025, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission. FORWARD - LOOKING STATEMENTS