Key Highlights

  • RLJ's $0.15 quarterly Dividend trades ex-date September 30, 2026, payable October 15, unchanged from recent quarters.
  • Second-quarter comparable RevPAR was $167.15, up 6.8%, with Adjusted EBITDA of $110.4 million, up 6.1%, and Adjusted FFO per diluted common share and unit of $0.52, up 8.3%.
  • Business transient Revenue grew 10% for the second consecutive quarter, led by a 6% increase in Demand and a 4% increase in rates.
  • The company raised full-year 2026 guidance to comparable RevPAR growth of 3.5%-4.5% and Adjusted FFO per diluted share of $1.37-$1.50, following the sale of one hotel during the quarter.

Overview

RLJ Lodging Trust's (NYSE:RLJ) $0.15 quarterly dividend yields approximately 10.03% and was declared alongside second-quarter Adjusted FFO growth of 8.3% to $0.52 per diluted share, supported by comparable RevPAR growth of 6.8%, which management said outperformed the broader industry by 110 basis points. The company raised its full-year outlook to reflect the quarter's outperformance, the sale of one hotel and continued positive demand trends.

Dividend Program and Shareholder Returns

RLJ's Board of Trustees declared a quarterly Cash Dividend of $0.15 per common share of beneficial interest on September 15, 2026, payable October 15 to shareholders of record September 30. The rate has remained $0.15 per share across recent quarters.

About the Company

RLJ Lodging Trust is a self-advised REIT that owns primarily premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels, with a portfolio of 92 hotels totaling approximately 21,000 rooms across 23 states and the District of Columbia.

Financial Performance Behind the Payout

RLJ reported second-quarter comparable RevPAR of $167.15, up 6.8% over the prior year, driven by ADR growth of 4.9%, with each month of the quarter exceeding the company's expectations. Comparable Hotel EBITDA grew 7.1%, and Adjusted EBITDA was $110.4 million, up 6.1%. Adjusted FFO per diluted common share and unit was $0.52, up 8.3%. Comparable Hotel EBITDA Margin was 31.3%, up 10 basis points. June was the strongest month of the quarter, with RevPAR up 12.4%, while preliminary July RevPAR growth approached 11%.

Business Travel Acceleration and Renovation Ramp Drive Outperformance

Business transient revenue increased 10% for the second consecutive quarter, led by a 6% increase in demand and a 4% increase in rates, a sustained recovery trend management highlighted as a key growth driver distinct from leisure or group segment performance. Renovations and conversions delivered significant gains, including 50% EBITDA growth at four high-impact renovated hotels and 8% revenue with 12% EBITDA growth at seven conversion properties, with the company beginning conversion renovations for Boston and Key West in the second half of 2026 that are expected to cause near-term displacement. During the quarter, the company opportunistically sold one hotel, a disposition the updated full-year guidance now incorporates alongside second-quarter outperformance.

Outlook

RLJ raised full-year 2026 guidance to comparable RevPAR growth of 3.5%-4.5%, comparable hotel EBITDA of $369-$389 million, corporate Adjusted EBITDA of $336-$356 million, and Adjusted FFO per diluted share of $1.37-$1.50. Management expects third-quarter performance to be stronger than the fourth quarter. Continued Business transient revenue growth relative to the 10% pace, renovation and conversion ramp-up relative to the Boston and Key West projects beginning in the second half, and RevPAR trends relative to the raised full-year guidance are the relevant considerations.