NOI margins remain highly sensitive to operating expense fluctuations, recently recovering to 33.8% in 2026Q1 after dipping to a low of 24.2% in 2025Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Revenue | 1.36B | 1.35B | 1.37B | 1.33B | 1.19B | 785.66M | 464.63M | 1.57B | 1.76B | 1.36B | 1.16B | 1.14B | 1.11B | 970.38M | 854.21M | 758.95M | 545.57M | 482.49M | 551.82M |
| Revenue Growth % | -0.83% | -1.43% | 3.31% | 11.05% | 51.93% | 69.09% | -70.37% | -10.98% | 29.86% | 16.92% | 2.08% | 2.45% | 14.31% | 13.6% | 12.55% | 39.11% | 13.07% | -12.56% | - |
| Property Operating Expenses | 1.34B | 1.36B | 984.99M | 934.9M | 831.4M | 600.38M | 494.87M | 1.08B | 1.21B | 903.28M | 745.39M | 734.33M | 717.79M | 638.73M | 565.69M | 461.3M | 369.44M | 301.47M | 366.91M |
| Net Operating Income (NOI) | 19.43M | -11.69M | 384.45M | 390.68M | 362.26M | 185.29M | -30.23M | 490.15M | 548.94M | 452.98M | 414.61M | 402.01M | 391.41M | 331.65M | 288.51M | 297.65M | 176.13M | 181.01M | 184.91M |
| NOI Margin % | 1.43% | -0.87% | 28.07% | 29.47% | 30.35% | 23.58% | -6.51% | 31.26% | 31.17% | 33.4% | 35.74% | 35.38% | 35.29% | 34.18% | 33.78% | 39.22% | 32.28% | 37.52% | 33.51% |
| Operating Expenses | -109.59M | -137.72M | 234.24M | 238.1M | 241.21M | 235.3M | 41.14M | 45.25M | 290.84M | 227.45M | 194.02M | 194.04M | 185.97M | 162.7M | 157.9M | 209.7M | 120.39M | 158.7M | 103.18M |
| G&A Expenses | 47.98M | 47.64M | 54.8M | 59M | 56.33M | 47.53M | 41.14M | 45.25M | 49.2M | 40.45M | 35.72M | 41.91M | 45.37M | 39.17M | 35.49M | 34.99M | 19.6M | 18.53M | 18.79M |
| EBITDA | 315.71M | 312.39M | 335.16M | 336.64M | 309.19M | 137.76M | 120.39M | 654.43M | 2.18B | 1.36B | 1.16B | 360.14M | 335.69M | 291.97M | 253M | 215.66M | 142.19M | 22.83M | 145.03M |
| EBITDA Margin % | 23.18% | 23.14% | 24.47% | 25.4% | 25.9% | 17.53% | 25.91% | 41.74% | 123.68% | 100% | 100% | 31.69% | 30.26% | 30.09% | 29.62% | 28.42% | 26.06% | 4.73% | 26.28% |
| Depreciation & Amortization | 186.69M | 186.36M | 184.94M | 184.06M | 188.14M | 187.78M | 191.76M | 209.53M | 1.92B | 1.18B | 939.6M | 156.23M | 144.29M | 127.43M | 126.8M | 131.71M | 100.79M | 98.88M | 86.87M |
| D&A / Revenue % | 13.71% | 13.81% | 13.5% | 13.89% | 15.76% | 23.9% | 41.27% | 13.36% | 109.03% | 86.64% | 81% | 13.75% | 13.01% | 13.13% | 14.84% | 17.35% | 18.47% | 20.49% | 15.74% |
| Operating Income | 129.02M | 126.04M | 150.22M | 152.58M | 121.05M | -50.02M | -71.38M | 444.9M | 258.1M | 181.14M | 220.4M | 203.91M | 191.39M | 164.54M | 126.2M | 83.95M | 41.39M | -76.06M | 58.16M |
| Operating Margin % | 9.48% | 9.34% | 10.97% | 11.51% | 10.14% | -6.37% | -15.36% | 28.38% | 14.65% | 13.36% | 19% | 17.94% | 17.26% | 16.96% | 14.77% | 11.06% | 7.59% | -15.76% | 10.54% |
| Interest Expense | 3M | 112.3M | 104.73M | 92.71M | 93.16M | 106.37M | 0 | 91.3M | 101.64M | 78.32M | 58.82M | 54.79M | 56.81M | 59.86M | 83.69M | 96.02M | 89.19M | 92.17M | 92.89M |
| Interest Coverage | - | 1.18x | 1.67x | 1.84x | 1.41x | -1.95x | - | 2.56x | 2.93x | 2.31x | 4.49x | 3.74x | 3.33x | 2.75x | 1.54x | 0.90x | 0.51x | -0.81x | 0.65x |
| Non-Operating Income | -5.71M | -5.98M | -24.3M | -18M | -9.87M | 157.77M | 194.17M | 211.58M | -41.75M | 0 | -43.96M | -1M | 2.06M | 0 | -2.32M | -2.91M | -3.98M | 5.24M | -2.36M |
| Pretax Income | 26.15M | 29.7M | 69.79M | 77.87M | 43.73M | -309.9M | -356.83M | 125.63M | 199.66M | 117.86M | 209.5M | 180.69M | 137.63M | 107.62M | 42.69M | -9.39M | -43.82M | -166.65M | -32.38M |
| Pretax Margin % | 1.92% | 2.2% | 5.1% | 5.87% | 3.66% | -39.44% | -76.8% | 8.01% | 11.34% | 8.69% | 18.06% | 15.9% | 12.41% | 11.09% | 5% | -1.24% | -8.03% | -34.54% | -5.87% |
| Income Tax | 590K | 1.15M | 1.6M | 1.26M | 1.52M | 1.19M | 51.97M | -3.75M | 8.79M | 42.12M | 8.19M | -39.13M | 1.15M | 879K | 1.37M | 740K | -945K | 1.8M | -945K |
| Effective Tax Rate % | 2.26% | 3.87% | 2.29% | 1.61% | 3.47% | -0.38% | -14.56% | -2.99% | 4.4% | 35.74% | 3.91% | -21.65% | 0.83% | 0.82% | 3.21% | -7.88% | 2.16% | -1.08% | 2.92% |
| Net Income | 24.8M | 28.51M | 68.02M | 76.41M | 41.92M | -305.17M | -404.44M | 129.18M | 190.13M | 75.33M | 200.35M | 218.22M | 135.44M | 112.92M | 40.89M | 11.41M | -22.4M | -168M | -29.32M |
| Net Margin % | 1.82% | 2.11% | 4.97% | 5.76% | 3.51% | -38.84% | -87.05% | 8.24% | 10.8% | 5.55% | 17.27% | 19.2% | 12.21% | 11.64% | 4.79% | 1.5% | -4.11% | -34.82% | -5.31% |
| Net Income Growth % | -62.68% | -58.09% | -10.97% | 82.24% | 113.74% | 24.55% | -413.08% | -32.06% | 152.39% | -62.4% | -8.19% | 61.12% | 19.94% | 176.13% | 258.5% | 150.92% | 86.66% | -472.96% | - |
| Funds From Operations (FFO) | 211.48M | 214.87M | 252.96M | 260.47M | 230.06M | -117.39M | -212.68M | 338.71M | 2.11B | 1.25B | 1.14B | 374.45M | 279.74M | 240.35M | 167.69M | 143.12M | 78.39M | -69.11M | 57.55M |
| FFO Margin % | 15.53% | 15.92% | 18.47% | 19.65% | 19.27% | -14.94% | -45.77% | 21.6% | 119.82% | 92.2% | 98.27% | 32.95% | 25.22% | 24.77% | 19.63% | 18.86% | 14.37% | -14.32% | 10.43% |
| FFO Growth % | -63.6% | -15.06% | -2.88% | 13.21% | 295.98% | 44.8% | -162.79% | -83.95% | 68.77% | 9.69% | 204.44% | 33.86% | 16.39% | 43.33% | 17.17% | 82.58% | 213.42% | -220.09% | - |
| FFO per Share | 1.42 | 1.44 | 1.65 | 1.66 | 1.42 | -0.72 | -1.29 | 1.98 | 12.11 | 8.89 | 9.20 | 2.90 | 2.18 | 2.02 | 1.59 | 1.50 | 0.77 | -0.68 | 0.56 |
| FFO Payout Ratio % | 43.18% | 42.52% | 27.6% | 18.89% | 5.78% | -5.71% | -28.68% | 67.4% | 10.95% | 13.59% | 14.42% | 45.42% | 44.74% | 40.49% | 41% | 30.64% | 76.51% | -47.81% | 160.77% |
| EPS (Diluted) | 0.17 | 0.01 | 0.27 | 0.32 | 0.10 | -2.01 | -2.61 | 0.75 | 1.09 | 0.47 | 1.61 | 1.68 | 1.05 | 0.95 | 0.38 | 0.12 | -0.22 | -1.64 | -0.29 |
| EPS Growth % | -103.9% | -94.52% | -15.63% | 220% | 104.98% | 22.99% | -448% | -31.19% | 131.91% | -70.81% | -4.17% | 60% | 10.53% | 150% | 216.67% | 154.55% | 86.59% | -465.52% | - |
| EPS (Basic) | - | 0.01 | 0.27 | 0.32 | 0.10 | -2.01 | -2.61 | 0.75 | 1.09 | 0.47 | 1.61 | 1.69 | 1.05 | 0.95 | 0.38 | 0.12 | -0.22 | -1.64 | -0.29 |
| Diluted Shares Outstanding | 149.32M | 149.66M | 153.48M | 156.56M | 161.95M | 164M | 164.5M | 171.39M | 174.32M | 140.69M | 123.88M | 128.97M | 128.29M | 118.86M | 105.75M | 95.34M | 102.23M | 102.23M | 102.23M |
Urban market demand volatility
According to the provided financial data, RLJ's revenue growth has fluctuated significantly, reaching 3.6% in 2026Q1 after a period of contraction, suggesting that the company's reliance on urban business transient travel remains a primary driver of top-line volatility in the current lodging cycle.
The inconsistent revenue trajectory appears to reflect the ongoing struggle to stabilize occupancy in key urban coastal hubs. Investors should monitor whether the recent shift toward Sunbelt assets can effectively offset the persistent sluggishness in legacy West Coast markets.
As reported in financial statements, RLJ's FFO per share has shown notable inconsistency, peaking at $0.54 in 2024Q2 before declining to $0.31 by 2026Q1, which may indicate that the company's earnings quality is highly sensitive to seasonal demand and rising property-level operating costs.
The decline in FFO growth suggests that the company is struggling to maintain margins amidst inflationary pressures on labor and insurance. This trend warrants further investigation into whether the current dividend yield is sustainable without a meaningful recovery in RevPAR across the portfolio.
Based on reported figures, RLJ's GAAP net income frequently diverges from FFO, as evidenced by the 2026Q1 net loss of $349,000 despite generating $46.8M in FFO, highlighting the significant impact of non-cash depreciation charges on the company's reported bottom-line profitability metrics.
The recurring gap between GAAP earnings and FFO underscores why investors must prioritize cash-based metrics to evaluate the company's true economic performance. The heavy depreciation burden appears to be a structural feature of the portfolio's asset base rather than a reflection of operational failure.
Data from recent quarters indicates that NOI margins have struggled to maintain consistency, dropping to 24.2% in 2025Q3 before recovering to 33.8% in 2026Q1, which suggests that property-level profitability is highly susceptible to fluctuations in operating expenses and seasonal revenue shifts.
The volatility in NOI margins may indicate that the company's cost structure is less flexible than anticipated, particularly regarding fixed labor and tax obligations. Analysts should monitor whether management can implement structural efficiencies to protect margins during periods of lower occupancy.
Quick answers to the most common questions about buying RLJ stock.
For fiscal year 2025, RLJ Lodging Trust (RLJ) reported total revenue of $1.35B. This represents a 144.6% increase compared to $551.8M in 2008.
RLJ Lodging Trust (RLJ) is profitable, generating $28.5M in net income for the fiscal year ending 2025 with a net profit margin of 2.1%.
RLJ Lodging Trust (RLJ) reported an operating income of $126.0M, resulting in an operating profit margin of 9.3%. This margin reflects the operational efficiency of the business before interest and taxes.
RLJ Lodging Trust (RLJ) generated $-11.7M in gross profit for the year, representing a gross profit margin of -0.9%. This demonstrates the company's core pricing power and production efficiency.