RLJ Lodging Trust

Previous wording

•Repurchased and retired approximately 2.7 million common shares for approximately $24.3 million.

Current wording

•Repurchased and retired approximately 3.3 million common shares for approximately $28.2 million.

Previous wording

At March 31, 2025 and 2024, we owned 95 and 97 hotel properties, respectively. Based on when a hotel property is acquired or sold, the operating results for certain hotel properties are not comparable for the three months ended March 31, 2025 and 2024. The non-comparable properties include three hotel properties that were sold in 2025 and 2024 and one hotel property that was acquired in 2024.

Current wording

At June 30, 2025 and 2024, we owned 95 and 97 hotel properties, respectively. Based on when a hotel property is acquired or sold, the operating results for certain hotel properties are not comparable for the three and six months ended June 30, 2025 and 2024. The non-comparable properties include three hotel properties that were sold in 2025 and 2024 and one hotel property that was acquired in 2024.

Previous wording

Food and beverage revenue increased $1.8 million to $37.5 million for the three months ended March 31, 2025 from $35.7 million for the three months ended March 31, 2024. The increase in food and beverage revenue was primarily due to increases in outlet revenue and banquet and catering revenue.

Current wording

Food and beverage revenue increased $1.1 million to $41.9 million for the three months ended June 30, 2025 from $40.8 million for the three months ended June 30, 2024. The increase in food and beverage revenue was primarily due to increases in outlet revenue and the ramping up of our recently converted and renovated hotels.

Previous wording

Property operating expenses increased $3.6 million to $217.1 million for the three months ended March 31, 2025 from $213.5 million for the three months ended March 31, 2024. The increase was due to a $3.9 million increase in property operating expenses from the comparable properties.

Current wording

Property operating expenses increased $1.3 million to $226.1 million for the three months ended June 30, 2025 from $224.8 million for the three months ended June 30, 2024. The increase was due to a $2.1 million increase in property operating expenses from the comparable properties offset by a $0.8 million decrease in property operating expenses from the non-comparable properties.

Previous wording

The increase in property operating expenses from the comparable properties was primarily due to increases in wages and benefits, and increases in other operating expenses, primarily due to increases in sales and marketing, utilities, and general liability insurance coverage.

Current wording

The increase in property operating expenses from the comparable properties was primarily due to increases in wages and benefits, as well as increases in room expenses and increases in other operating expenses, primarily due to increases in utilities and general liability insurance coverage. This was offset by a decrease in management and franchise fee expense, which was due to lower revenues as well as recently amended management and franchise agreements.

Previous wording

Depreciation and amortization expense increased $1.1 million to $45.8 million for the three months ended March 31, 2025 from $44.7 million for the three months ended March 31, 2024. The increase in depreciation and amortization expense was primarily related to our recently renovated hotels.

Current wording

Depreciation and amortization expense increased $1.9 million to $46.4 million for the three months ended June 30, 2025 from $44.5 million for the three months ended June 30, 2024. The increase in depreciation and amortization expense was primarily related to recently renovated hotels.

Previous wording

Property tax, insurance and other expense decreased $0.6 million to $27.2 million for the three months ended March 31, 2025 from $27.8 million for the three months ended March 31, 2024. The decrease was primarily attributable to the impact of successful real estate tax appeals in the current period.

Current wording

Property tax, insurance and other expense decreased $2.3 million to $26.5 million for the three months ended June 30, 2025 from $28.8 million for the three months ended June 30, 2024. The decrease was primarily attributable to the beneficial impact of successful real estate tax appeals in the current quarter and a decrease in property insurance premiums.

Previous wording

General and administrative expense decreased $2.5 million to $12.6 million for the three months ended March 31, 2025 from $15.1 million for the three months ended March 31, 2024. The decrease was primarily attributable to a decrease in non-cash compensation expense.

Current wording

General and administrative expense decreased $2.8 million to $11.1 million for the three months ended June 30, 2025 from $13.9 million for the three months ended June 30, 2024. The decrease was primarily attributable to a decrease in non-cash compensation expense, including the impact of a $1.6 million benefit as a result of the performance unit forfeitures related to the departure of Company executives during the three months ended June 30, 2025.

Previous wording

Interest income decreased $1.5 million to $3.3 million for the three months ended March 31, 2025 from $4.8 million for the three months ended March 31, 2024. The decrease was attributable to the combination of lower interest rates and the Company holding less cash in 2025.

Current wording

Interest income decreased $0.8 million to $3.4 million for the three months ended June 30, 2025 from $4.1 million for the three months ended June 30, 2024. The decrease was attributable to the combination of lower interest rates and the Company holding less cash in 2025.

Previous wording

During the three months ended March 31, 2025, we sold one hotel property for a sales price of $24.3 million and recorded a net gain on the sale of $1.3 million. There were no hotels sold during the three months ended March 31, 2024.

Current wording

During the three months ended June 30, 2024, we sold one hotel property for a sales price of approximately $8.1 million and recorded a net gain on the sale of approximately $3.5 million. There were no hotels sold during the three months ended June 30, 2025.

Previous wording

Other revenue increased $0.9 million to $23.0 million for the three months ended March 31, 2025 from $22.1 million for the three months ended March 31, 2024. The increase in other revenue was primarily due to an increase in parking, resort and cancellation fees.

Current wording

Other revenue increased $1.1 million to $48.0 million for the six months ended June 30, 2025 from $46.9 million for the six months ended June 30, 2024. The increase in other revenue was primarily due to an increase in parking and resort fees.

Previous wording

Other income, net decreased $2.3 million to $0.9 million for the three months ended March 31, 2025 from $3.2 million for the three months ended March 31, 2024. The decrease was primarily attributable to the receipt of certain one-time COVID-19 relief awards during the three months ended March 31, 2024.

Current wording

Other income, net decreased $1.8 million to $2.0 million for the six months ended June 30, 2025 from $3.9 million for the six months ended June 30, 2024. The decrease was primarily attributable to the receipt of certain one-time COVID-19 relief awards during the six months ended June 30, 2024.

Previous wording

Interest expense increased $1.1 million to $27.6 million for the three months ended March 31, 2025 from $26.5 million for the three months ended March 31, 2024. The increase was attributable to an increase in the amount of our debt that was unhedged combined with the expiration of certain high value swaps. The components of our interest expense for the three months ended March 31, 2025 and 2024 were as follows (in thousands):

Current wording

Interest expense increased $0.9 million to $55.4 million for the six months ended June 30, 2025 from $54.5 million for the six months ended June 30, 2024. The increase was attributable to an increase in the amount of our debt that was unhedged combined with the expiration of certain interest rate swaps. The components of our interest expense for the six months ended June 30, 2025 and 2024 were as follows (in thousands):

Previous wording

Gain on Sale of Hotel Property, net

Current wording

Gain on Sale of Hotel Properties, net

Previous wording

The following table is a reconciliation of our GAAP net income to FFO attributable to common shareholders and unitholders and Adjusted FFO attributable to common shareholders and unitholders for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

The following table is a reconciliation of our GAAP net income to FFO attributable to common shareholders and unitholders and Adjusted FFO attributable to common shareholders and unitholders for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

The following table is a reconciliation of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA for the three months ended March 31, 2025 and 2024 (in thousands):

Current wording

The following table is a reconciliation of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 (in thousands):

Previous wording

As of March 31, 2025, we had $372.4 million of cash, cash equivalents, and restricted cash reserves as compared to $433.3 million at December 31, 2024.

Current wording

As of June 30, 2025, we had $401.2 million of cash, cash equivalents, and restricted cash reserves as compared to $433.3 million at December 31, 2024.

Previous wording

The net cash flow provided by operating activities totaled $16.3 million and $20.8 million for the three months ended March 31, 2025 and 2024, respectively. Our cash flows provided by operating activities generally consist of the net cash generated by our hotel operations, the cash paid for corporate expenses and other working capital changes. Refer to the "Results of Operations" section for further discussion of our operating results for the three months ended March 31, 2025 and 2024.

Current wording

The net cash flow provided by operating activities totaled $117.6 million and $134.3 million for the six months ended June 30, 2025 and 2024, respectively. Our cash flows provided by operating activities generally consist of the net cash generated by our hotel operations, the cash paid for corporate expenses and other working capital changes. Refer to the "Results of Operations" section for further discussion of our operating results for the six months ended June 30, 2025 and 2024.

Previous wording

The net cash flow used in investing activities totaled $23.7 million for the three months ended March 31, 2025 primarily due to $46.8 million in capital improvements and additions to our hotel properties and other assets and a purchase deposit of $1.0 million. The net cash flow used in investing activities was partially offset by $24.1 million in proceeds from the sale of a hotel property.

Current wording

The net cash flow used in investing activities totaled $58.2 million for the six months ended June 30, 2025 primarily due to $82.0 million in capital improvements and additions to our hotel properties and other assets. The net cash flow used in investing activities was partially offset by $23.8 million in proceeds from the sale of a hotel property.

Previous wording

The net cash flow used in investing activities totaled $158.0 million for the three months ended March 31, 2024 primarily due to a $122.7 million acquisition of a fee simple interest in our Wyndham Boston Beacon Hill hotel property, $33.8 million in capital improvements and additions to our hotel properties and other assets, and a purchase deposit of $1.5 million.

Current wording

The net cash flow used in investing activities totaled $225.0 million for the six months ended June 30, 2024 primarily due to a $122.7 million acquisition of a fee simple interest in our Wyndham Boston Beacon Hill hotel property, a $35.7 million acquisition of a hotel property, $72.4 million in capital improvements and additions to our hotel properties and other assets, and a purchase deposit of $2.0 million. The net cash flow used in investing activities was partially offset by $7.7 million in proceeds from the sale of a hotel property.

Previous wording

The net cash flow used in financing activities totaled $27.2 million for the three months ended March 31, 2024 primarily due to $1.3 million paid to repurchase common shares under a share repurchase program, $21.9 million in distributions to shareholders and unitholders, and $4.0 million paid to repurchase common shares to satisfy employee tax withholding requirements.

Current wording

The net cash flow used in financing activities totaled $91.6 million for the six months ended June 30, 2025 primarily due to $100.0 million in repayment of our Revolver, $27.2 million paid to repurchase common shares under our share repurchase programs, $58.8 million in distributions to shareholders and unitholders, $3.6 million paid to repurchase common shares to satisfy employee tax withholding requirements, and $2.1 million in deferred financing cost payments. The net cash flow used in financing activities was partially offset by $100.0 million in borrowings on a term loan.

Previous wording

The net cash flow used in financing activities totaled $53.6 million for the three months ended March 31, 2025 primarily due to $20.8 million paid to repurchase common shares under a share repurchase program, $29.6 million in distributions to shareholders and unitholders, and $3.1 million paid to repurchase common shares to satisfy employee tax withholding requirements.

Current wording

The net cash flow used in financing activities totaled $57.4 million for the six months ended June 30, 2024 primarily due to $200.0 million in repayment of a maturing mortgage loan, $4.2 million paid to repurchase common shares under our share repurchase programs, $43.9 million in distributions to shareholders and unitholders, and $9.0 million paid to repurchase common shares to satisfy employee tax withholding requirements. The net cash flow used in financing activities was partially offset by $200.0 million in borrowings on our Revolver.

Previous wording

With respect to some of our hotels that are operated under franchise agreements with major national hotel brands and for some of our hotels subject to first mortgage liens, we are obligated to maintain FF&E reserve accounts for future capital expenditures at these hotels. The amount funded into each of these reserve accounts is generally determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents for each of the respective hotels, and typically ranges between 3.0% and 5.0% of the respective hotel’s total gross revenue. As of March 31, 2025, approximately $24.9 million was held in FF&E reserve accounts for future capital expenditures.

Current wording

With respect to some of our hotels that are operated under franchise agreements with major national hotel brands and for some of our hotels subject to first mortgage liens, we are obligated to maintain FF&E reserve accounts for future capital expenditures at these hotels. The amount funded into each of these reserve accounts is generally determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents for each of the respective hotels, and typically ranges between 3.0% and 5.0% of the respective hotel’s total gross revenue. As of June 30, 2025, approximately $27.3 million was held in FF&E reserve accounts for future capital expenditures.