Executive Summary

Q4 2024 was steady: Total revenues rose 3.2% to $330.0M, comparable RevPAR increased 2.2% to $137.53, Adjusted EBITDA grew 2.4% to $81.1M, and Adjusted FFO/share was $0.33; hotel EBITDA margin compressed 67 bps YoY to 27.4% amid cost pressures but improved sequential cost trends late in the year .
Demand mix was the bright spot: ADR-led gains with Business Transient revenue +8% YoY (ADR +7%), group revenue +3% (ADR +2%), urban leisure strength, and out-of-room spend +6.3% supported revenue outpacing RevPAR; January RevPAR +3.2% YoY maintains momentum into 2025 .
2025 outlook implies low-single-digit growth with prudent cost control: Comparable RevPAR +1%–3%, Comparable Hotel EBITDA $378–$408M, Adjusted EBITDA $345–$375M, Adjusted FFO/share $1.46–$1.66; net interest $94–$96M, cash G&A $34–$35M, capex $80–$100M (includes renovation displacement and Austin convention center closure) .
Balance sheet and capital returns remain supportive: ~$0.9B liquidity, $2.2B debt, 2024 buybacks of 2.3M shares ($22M) and additional 1.2M shares ($12M) in early 2025; Q4 common dividend maintained at $0.15/share .
Wall Street consensus from S&P Global was unavailable at the time of writing due to access limits, so we cannot quantify beats/misses; key stock catalysts are the conversions ramp (>10% RevPAR lift at converted assets), urban demand, and continued buybacks against a discounted equity value backdrop .

What Went Well and What Went Wrong

What Went Well

ADR-led revenue outperformance and urban strength: “Top quartile RevPAR growth” with urban markets (2/3 of portfolio) up 3.7% in Q4 and multiple markets posting double-digit RevPAR (e.g., New Orleans +27%, Chicago CBD +19%, Houston +18%, New York +11%) .
Conversions creating outsized value: Courtyard Pittsburgh Q4 RevPAR +14% YoY (+24% vs. 2019), and the six completed conversions generated robust RevPAR growth (Phase 1 assets RevPAR +12% YoY; Phase 2—New Orleans +40%, Houston +8%), with unlevered IRRs “north of 50%” on incremental capital .
Cost moderation into year-end: Total hotel operating cost growth just 3.9% in Q4; property insurance premiums decreased “over 10%” upon November renewal and property tax appeals supported moderation .

What Went Wrong

Margin compression: Comparable Hotel EBITDA margin fell 67 bps YoY to 27.4% in Q4 (and full-year down 122 bps to 29.1%), reflecting lingering fixed-cost pressures and mix; management expects rate-driven growth to flow better to margins in 2025 .
Slight YoY decline in Adjusted FFO/share: $0.33 in Q4 vs. $0.34 prior year due to expense headwinds and mix; full-year Adjusted FFO/share $1.57 vs. $1.66 in 2023 .
Macro/event headwinds: November RevPAR growth was muted at +0.3% amid election-related softness, and the transaction market remains “choppy” with a wide bid-ask spread, tempering external growth visibility .

Financial Results

Core P&L and Lodging KPIs (sequential trend)

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenues ($M)	$369.297	$345.744	$329.989
Net Income to Common, Diluted EPS ($)	$0.20	$0.09	$(0.01)
Adjusted FFO per Diluted Share ($)	$0.51	$0.40	$0.33
Adjusted EBITDA ($M)	$109.0	$91.9	$81.1
Comparable Hotel EBITDA Margin (%)	32.0%	29.2%	27.4%
Comparable ADR ($)	$205.20	$193.39	$198.71
Comparable Occupancy (%)	76.7%	75.1%	69.2%
Comparable RevPAR ($)	$157.30	$145.23	$137.53

Q4 revenue mix vs. prior year

Revenue ($000s)	Q4 2023	Q4 2024
Room	261,612	267,690
Food & Beverage	36,024	39,593
Other	22,072	22,706
Total	319,708	329,989

Q4 demand/channel KPIs and out-of-room monetization

KPI (YoY unless noted)	Q4 2024
Business Transient revenue growth	+8%
BT ADR growth	+7%
Group revenue growth	+3%
Group ADR growth	+2%
Leisure revenue growth	+6%
Urban leisure revenue growth	+8%
Out-of-room spend growth	+6.3%
January RevPAR growth (preliminary)	+3.2% YoY

Note: Comparable portfolio metrics reflect the 95-hotel portfolio owned as of December 31, 2024 .

Estimates versus actuals

Metric	Q4 2024 Actual	Q4 2024 S&P Global Consensus
Total Revenues	$329.989M	N/A – S&P Global consensus unavailable at time of writing
Adjusted FFO per Share	$0.33	N/A – S&P Global consensus unavailable at time of writing
Adjusted EBITDA	$81.128M	N/A – S&P Global consensus unavailable at time of writing

S&P Global consensus estimates were not retrievable due to data access limits during this analysis window.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Comparable RevPAR Growth	FY 2025	N/A	+1% to +3%	New
Comparable Hotel EBITDA ($M)	FY 2025	N/A	$378–$408	New
Adjusted EBITDA ($M)	FY 2025	N/A	$345–$375	New
Adjusted FFO per diluted share ($)	FY 2025	N/A	$1.46–$1.66	New
Net Interest Expense ($M)	FY 2025	N/A	$94–$96	New
Cash Corporate G&A ($M)	FY 2025	N/A	$34–$35	New
Capital Expenditures ($M)	FY 2025	N/A	$80–$100	New
Diluted Wtd Avg Shares & Units (M)	FY 2025	N/A	152.5	New
Q1 Adjusted EBITDA ($M)	Q1 2025	N/A	$74–$77 (modeling aid)	New
Common Dividend ($/share)	Q4 2024	$0.15 (Q3 2024)	$0.15 (declared for Q4, paid Jan 15)	Maintained

Management noted 2025 ranges incorporate renovation displacement (Waikiki, South Florida, New York) and Austin convention center closure in Q2, with stronger growth prospects into 2026+ post-renovations .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Urban/BT demand	Q2: “Strong gains in urban markets… business and group segments” . Q3: “Resiliency of urban-centric portfolio; RevPAR 2x industry” .	BT revenue +8% (ADR +7%), midweek RevPAR +4.1%; multiple urban markets with double-digit RevPAR .	Strengthening, ADR-led.
Conversions pipeline/returns	Q2: Progressing 2024 conversions . Q3: Completed two conversions .	Six completed conversions; Courtyard Pittsburgh Q4 RevPAR +14% YoY; Phase 1/2 ramp robust; unlevered IRRs >50% on incremental capital .	Accelerating; high-IRR growth driver.
Cost environment	Q2 margin -245 bps YoY to 32.0% . Q3 margin -11 bps YoY .	Q4 cost growth moderated to 3.9%; insurance premiums -10% on renewal; property tax appeals helped .	Improving cost trajectory.
Capital allocation	Q2 buybacks and dividend increase; addressed 2024 maturities . Q3 more buybacks; new $500M term loan; dividend +50% .	Continued buybacks (1.2M shares YTD 2025), dividend “well covered” .	Ongoing returns + balance sheet flexibility.
Transaction market	—	“Choppy,” wide bid-ask; optimism skewed to back half; remain opportunistic .	Cautious stance.
Regional/citywides/events	—	Citywide tailwinds in NorCal (+60% citywide nights), SoCal, Boston; D.C. inauguration, Super Bowl lift; Jan RevPAR +3.2% .	Event-led demand supportive.

Management Commentary

Strategic posture and momentum: “We were pleased with our fourth quarter results, which once again achieved top quartile RevPAR growth… driven by growth in all segments and the continuing strong ramp up from our conversions.” — Leslie D. Hale, CEO .
Demand mix and pricing power: “BT was once again our best-performing segment, achieving 8% revenue growth… a 7% ADR increase… robust demand from SMEs [and] broadening of corporate travel among large national accounts.” — Leslie D. Hale .
Conversions as alpha: “We completed [the] Courtyard Pittsburgh… Q4 RevPAR increasing by 14% YoY, 24% ahead of 2019… [our conversions] collectively achieved robust RevPAR growth of 21% in the fourth quarter.” — Leslie D. Hale .
Cost moderation: “Operating cost growth… continued to moderate… total hotel operating cost growth was only 3.9%… property insurance… annual premiums decreased over 10%.” — Sean Mahoney, CFO .
2025 outlook framing: Comparable RevPAR +1–3%; Comparable Hotel EBITDA $378–$408M; Adjusted EBITDA $345–$375M; Adjusted FFO/share $1.46–$1.66; capex $80–$100M; Q1 Adjusted EBITDA $74–$77M .

Q&A Highlights

RevPAR guidance scaffolding: High/low ends depend on BT strength (rate and demand), group rate/demand, urban leisure, and renovation displacement scenarios .
Rate vs. occupancy and margins: If RevPAR is more rate-driven, flow-through improves; hitting midpoint RevPAR on rate alone likely yields 50–75 bps margin impact within their range .
Capital allocation priorities: Remain nimble given evolving backdrop; demonstrated ability to repurchase shares, invest in conversions, pursue selective acquisitions, and maintain dividend; continued buybacks in early 2025 .
Conversions cadence and returns: Two per year is the right cadence; conversions generating unlevered IRRs “north of 50%” and still ramping with higher ADR/EBITDA margins and better brand contribution/mix .
Macro/market color: LA fires drove near-term lodging demand in affected markets (temporary); budgets did not assume this; transaction market remains choppy; Bay Area expected above company midpoint on citywide calendar and RTO trends .

Estimates Context

S&P Global consensus estimates (revenue, Adjusted FFO/share, EBITDA) were unavailable at the time of this analysis due to access limits. As a result, we cannot quantify beats/misses versus Street expectations.
Outlook versus history: 2025 Adjusted EBITDA range ($345–$375M) brackets 2024 actual Adjusted EBITDA ($361.6M), consistent with renovation-related displacement and Austin convention center closure in Q2; management expects stronger growth post-renovation .

Key Takeaways for Investors

ADR-led recovery with broad demand: Q4 was rate-driven with BT +8% revenue and group +3% supporting revenue growth > RevPAR; January RevPAR +3.2% suggests constructive 1Q setup .
Conversions are a structural alpha lever: Six completed conversions delivering strong RevPAR and EBITDA gains (e.g., Courtyard Pittsburgh +14% YoY in Q4) with unlevered IRRs above 50% on incremental capital .
Margin path improving even as FY margin fell: Q4 cost growth moderated (3.9%) and insurance premiums fell >10% post-renewal; 2025 rate-led growth should aid flow-through within management’s margin framework .
2025 guide is conservative but balanced: +1–3% comparable RevPAR, flat-ish mid-point Adjusted EBITDA vs. 2024, and explicit renovation headwinds position RLJ for a cleaner acceleration into 2026 .
Liquidity and capital returns remain supportive: ~$0.9B liquidity, disciplined buybacks (2.3M in 2024; 1.2M early 2025), and a maintained $0.15 dividend provide downside support and optionality .
Watchlist into 2025: Renovation timing/displacement (Waikiki, South Florida, New York), Austin convention closure in Q2, transaction-market bid/ask dynamics, and execution on the next conversion wave .
Regional catalysts: Robust citywide calendars (NorCal +60% citywide room nights), SoCal aerospace, Boston biotech/higher ed, and major events (inauguration, Super Bowl) should favor RLJ’s urban footprint .

References: Q4 2024 8-K press release and exhibits ; Business Wire Q4 press release -; Q4 2024 earnings call transcript - -; Q3 2024 8-K and press release - -; Q2 2024 8-K and press release - -; Dividend release .

RLJ Lodging Trust (RLJ)·Q4 2024 Earnings Summary