BETHESDA, Md. - RLJ Lodging Trust (NYSE: NYSE:RLJ) has surpassed analyst expectations for the fourth quarter, reporting earnings per share (EPS) of $0.01, which is $0.02 higher than the anticipated figure of -$0.01.
The company's revenue also exceeded forecasts, coming in at $319.7 million against the consensus estimate of $314.27 million. This performance represents a 5.8% increase compared to the same quarter last year.
The company's President and CEO, Leslie D. Hale, attributed the strong quarter to top-quartile RevPAR growth and strategic capital allocation initiatives, including share repurchases and the acquisition of the Wyndham Boston Beacon Hill.
Hale highlighted the urban-centric portfolio's ability to capture improving demand in urban markets and the positive impact of completed conversions, which are expected to continue propelling growth into 2024.
Investors responded favorably to the earnings release, with the stock price rising by 1.12%. Although this uptick is below the 2% threshold that typically signifies a significant market response, it nonetheless reflects a positive investor sentiment following the earnings and revenue beat.
Looking ahead to 2024, RLJ Lodging Trust has provided guidance for Comparable RevPAR Growth ranging from 2.5% to 5.5%. The company expects Comparable Hotel EBITDA to be between $395.0M and $425.0M, with Adjusted EBITDA projected to fall between $360.0M and $390.0M.
Adjusted FFO per diluted share is anticipated to range from $1.55 to $1.75. The mid-point of the guidance range for Adjusted FFO per diluted share stands at $1.65, which will be compared against the analyst consensus as it becomes available.
The company's balance sheet remains robust, ending the year with approximately $1.1 billion in liquidity. In addition to the earnings report, RLJ Lodging Trust announced several capital allocation initiatives, including the repurchase of 7.6 million common shares for $77.2 million and the declaration of a quarterly cash dividend of $0.10 per common share.
As RLJ Lodging Trust looks to the future, the company is well-positioned to maintain its momentum, supported by the continued strength of urban leisure demand, ongoing improvement in business travel, and robust group bookings.
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