RLJ Lodging Trust : Capital One Presentation – January 2022
January 10, 2022 at 08:48 am EST
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CAPITAL ONE
CONFERENCE
PORTFOLIO UPDATE
JANUARY 2022
INVESTMENT HIGHLIGHTS
RLJ's portfolio construct, embedded growth catalysts and capital recycling initiatives uniquely position the Company to drive outperformance throughout the cycle
OPERATING
▪
Continued strong operating performance
PERFORMANCE
-
Poised to benefit from the next leg of recovery when Business Travel and Group strengthen
▪
RLJ's reshaped portfolio has an enhanced growth profile
HIGH-QUALITY
PORTFOLIO
-
Lean operating model and footprint is ideally suited to benefit throughout this cycle
Accretive capital recycling by match funding acquisitions
CAPITAL
-
Match funded ~$200M of 2021 acquisitions with disposition proceeds sold at >15x EBITDA multiple
-
Acquired 170-room Moxy Denver Cherry Creek for $51M
RECYCLING
Sold DoubleTree Metropolitan at 47x 2019 EBITDA, lowering NYC contribution to below 3.5%
Entered 2022 with significant investment capacity
UNLOCKING
▪ Executing Conversions, Revenue Enhancements and Margin Expansion initiatives -
INTERNAL
expected to realize $23M - $28M of incremental EBITDA
GROWTH
- Positioned to generate "above-cycle" growth
CATALYSTS
Over $1.0B of liquidity, significant flexibility and a well-laddered debt maturity
STRONG
profile
BALANCE
-
2021initiatives extended weighted average maturity to 4.5 years and reduced interest rate by 50 bps
SHEET
-
Balance sheet positioned to support growth initiatives
J A N U A R Y 2 0 2 2
2
2021 | WEEKLY OCCUPANCY TRENDS
Lodging fundamentals have continued to close the gap to 2019
Total Portfolio Weekly Occupancy and as % of 2019(1)
75%
120%
Total Portfolio
Total Portfolio as % of 2019
70%
Labor Day
Thanksgiving
101%
100%
65%
80%
Christmas
60%
60%
60%
55%
40%
50%
20%
45%
40%
0%
Jul. 3 Jul. 10 Jul. 17 Jul. 24 Jul. 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 Sep 4. Sep. 11 Sep. 18 Sep. 25 Oct. 2
(1) Total Portfolio as of January 1, 2022; excludes the Chateau LeMoyne-French Quarter New Orleans which is unconsolidated
J A N U A R Y 2 0 2 2
3
Q4 2021 | OPERATING UPDATE
Positive momentum in fundamentals continued through the fourth quarter
Sequential improvement in operating trends each month during Q4
October, November and December Occupancy at 79%, 83% and 87% respectively, of 2019 levels
October, November and December ADR at 87%, 89% and 98% respectively, of 2019 levels
Leisure trends remained strong, following normal seasonality
Leisure benefited from continuing flexibility and hybrid work environment
Business travel trends continued to improve and lowered gap to 2019
Weekday trends continued to show improvement throughout Q4 demonstrating increased demand from business travelers
Group continued to benefit from small, social group bookings
RLJ's product type is attractive to groups that are continuing to travel
Minimal impact from Omicron during Q4
Continuing to monitor impact in Q1 2022
J A N U A R Y 2 0 2 2
4
CAPITAL RECYCLING ENHANCING GROWTH PROFILE
During 2021, RLJ accretively recycled ~$200M of capital into high quality acquisitions
Mature assets, in slower-growth markets,
with high capital needs
$144 ~$200M
RevPAR
~$7K
>15x
EBITDA / Key
EBITDA multiple accretion
12%
EBITDA margin
Younger, high-margin assets, in high-growth markets with no near-term capital needs
$175 - $200
RevPAR
~$30K
EBITDA / Key
40%
EBITDA margin
RLJ accretively match funded 2021 acquisitions
Note: Dispositions include eight assets sold since Q4 2020; Acquisitions include three assets acquired since Q3 2021
J A N U A R Y 2 0 2 2
5
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RLJ Lodging Trust published this content on 10 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2022 13:47:08 UTC.
RLJ Lodging Trust is a self-advised and self-administered real estate investment trust that owns primarily premium-branded, rooms-oriented, focused-service and compact full-service hotels. The Company's portfolio consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms. Its brand affiliations consist of Marriott, which includes Courtyard, Residence Inn, Marriott, Fairfield Inn & Suites, Renaissance, SpringHill Suites, AC Hotel, Moxy and Tribute Portfolio; Hilton, which includes Embassy Suites, Hilton Garden Inn, DoubleTree/DoubleTree Suites by Hilton, Hampton Inn/Hampton Inn & Suites, Curio Collection, Homewood Suites, Hilton and Tapestry Collection; Hyatt, which includes Hyatt House, Hyatt Place and Hyatt Centric, and Wyndham. The Company's hotel properties include Embassy Suites Milpitas Silicon Valley, Hyatt House San Ramon and Moxy Denver Cherry Creek.