RLJ Lodging (RLJ) Q4 2025 Earnings Call Transcript

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Friday, February 27, 2026 astatine 10 a.m. ET

• President & CEO — Leslie D. Hale

• Chief Financial Officer — Nikhil Bhalla

• Chief Operating Officer — Thomas J. Bardenett

Leslie D. Hale: Thanks, John Paul. Good morning, everyone, and convey you for joining america today. We were pleased with our coagulated 4th fourth results, which came successful up of our expectations. Despite a choppy operating situation that was further constrained by the protracted authorities shutdown, our operating results benefited from the continued outperformance of the ramp of our completed high-occupancy renovations, arsenic good arsenic our robust maturation successful non-rooms revenue. These factors, combined with disciplined outgo management, contributed to our better-than-expected bottom-line results.

Leslie D. Hale: The 4th fourth capped a highly productive twelvemonth for us, during which we delivered our Nashville conversion and continued ramping our completed conversions, which connected mean achieved RevPAR maturation that was astir 700 ground points up of our broader portfolio. We precocious the adjacent signifier of our pipeline, including the enactment of the marque for our Boston conversion. We completed transformative renovations of respective hotels successful high-demand markets. We achieved robust non-room revenues good successful excess of our RevPAR performance, validating investments successful our ROI initiatives. We strengthened our equilibrium expanse by addressing each of our near-term debt.

We executed connected opportunistic plus income astatine accretive multiples and returned important superior to shareholders successful the signifier of dividends and stock repurchases. The execution of these initiatives has strengthened our semipermanent maturation illustration and further bolstered assurance successful our quality to present connected our value-creation initiatives adjacent successful an uncertain environment.

Leslie D. Hale: With respect to our operating performance, our 4th fourth RevPAR diminution of 1.5% came successful amended than what we had anticipated successful the midst of the authorities shutdown. These improved top-line results were driven by the comparative outperformance of our municipality markets, a stronger-than-expected acceleration of the ramp astatine our large renovations arsenic the shutdown ended, arsenic good arsenic an wide stronger December, which benefited from affirmative leisure request contempt a hard year-over-year examination for the month. Our municipality hotels proceed to beryllium a cardinal operator of our show arsenic they captured affirmative trends crossed a wide scope of request sources this quarter.

Among our municipality markets, San Francisco CBD was erstwhile again the apical performer, achieving 52% RevPAR maturation successful the quarter, supported by maturation from each request segments, arsenic good arsenic the calendar displacement for the Dreamforce league into the 4th quarter. We are encouraged by the ongoing momentum successful San Francisco's recovery, supported by a thriving tech economy, improving cognition of the wide section environment, and a beardown lineup of events this year, including the caller Super Bowl, which was wildly successful, arsenic good arsenic the upcoming World Cup games.