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- **Urban Strength**: Urban hotels outperformed portfolio, with San Francisco CBD RevPAR +19.4% and Atlanta +12.1%.
- **Non-Room Growth**: Non-room revenues grew 1.3%, outpacing RevPAR by 600 basis points.
- **Balance Sheet Strength**: $1B liquidity, 74% debt fixed/hedged, and $28.6M shares repurchased.
- **Q4 Challenges**: Government shutdown and FAA disruptions caused October RevPAR -2%, moderating full-year outlook to -1.9% to -2.6% RevPAR.
- **2026 Catalysts**: World Cup, U.S. 250th anniversary, and Northern California AI-driven demand poised to drive recovery.

**【CEO Summary Section】**
- **RevPAR Performance**: Q3 RevPAR declined 5.1% YoY, driven by occupancy (-3.1%) and ADR (-2.1%). Urban hotels outperformed the portfolio, with San Francisco CBD RevPAR up 19.4% and Atlanta up 12.1%.
- **Out-of-Room Revenue Growth**: Non-room revenues grew 1.3% despite lower occupancy, outpacing RevPAR by 600 basis points, supported by ROI initiatives in F&B and event spaces.
- **Renovations and Conversions**: Completed renovations in Waikiki, Key West, and Fort Lauderdale are expected to ramp in 2026. New conversions include Renaissance Pittsburgh (Marriott Autograph) and Wyndham Boston (Hilton Tapestry), targeting 40%+ EBITDA upside.
- **Challenges**: Government shutdown and FAA disruptions impacted October RevPAR (-2%), delaying renovations' contribution and moderating Q4 outlook.

**【CFO Financial Commentary】**
- **Financial Results**: Q3 hotel EBITDA of $80.8M (24.5% margin) and AFFO per share of $0.27. Non-room revenue growth offset RevPAR headwinds, with total revenue outpacing RevPAR by 110 basis points.
- **Balance Sheet**: $1B liquidity, $375M cash, and $600M revolver. Debt at 4.7% interest rate, 74% fixed/hedged. Shares repurchased: 3.3M ($28.6M).
- **Outlook**: Full-year RevPAR decline expected between 1.9% and 2.6%. 2026 positioned for recovery with World Cup, U.S. 250th anniversary, and Northern California AI-driven demand.

**【Q&A Highlights】**
- **Booking Channels**: Group pace improved in September (+700 points), but October softened due to shutdown. Leisure demand stable, with urban leisure up 3.2%.
- **Market Trends**: San Francisco CBD benefits from AI conferences and Salesforce return. New York Knickerbocker seeing strong NYE bookings. Hilton's fee reduction incentive for quality scores could benefit RLJ's 25 Hilton properties.
- **Labor Management**: Contract labor down 9.5% YoY, focusing on productivity and retention through labor management systems.

RLJ Lodging Trust (RLJ) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

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