Q2 2024 RLJ Lodging Trust Earnings Call Transcript
Key Points
- RLJ Lodging Trust (RLJ) achieved RevPAR growth of 2.6% for the second quarter, driven by gains in both occupancy and ADR.
- The company successfully acquired Hotel Teatro in Denver for $35.5 million, aligning with their strategy of acquiring high-margin, rooms-oriented hotels.
- RLJ Lodging Trust (RLJ) increased their quarterly dividend to $0.15 per share, demonstrating confidence in their financial stability.
- The company reported a robust 6.5% increase in non-room revenues, contributing to a total revenue growth of 3.4%.
- RLJ Lodging Trust (RLJ) executed opportunistic share repurchases, recycling proceeds from the sale of a non-core asset into the repurchase of $5 million of shares.
- The company adjusted its full-year guidance downward due to price sensitivity in the leisure segment, dampening growth expectations.
- Fixed costs such as insurance and property taxes increased by 16% during the second quarter, impacting overall expenses.
- The leisure segment faced ADR headwinds, indicating increased consumer price sensitivity and normalization of leisure rates.
- Renovations in key markets like Atlanta and Austin held back performance in those areas.
- The company noted that the economic backdrop is showing signs of moderation, which could impact future demand and growth.
Welcome to the RLJ Lodging Trust second quarter 2024 earnings call. (Operator Instructions)
I would now like to turn the call over to Nikhil Bhalla, RLJ Senior Vice President, Finance and Treasurer. Please go ahead.
Thank you, operator, good morning and welcome to RLJ Lodging Trust 2024 second quarter earnings call. On todayâs call, Leslie Hale, our President and Chief Executive Officer, will discover key highlights for the quarter. Sean Mahoney, our Executive Vice President and Chief Financial Officer, will discuss the companyâs financial results. Tom Bardenett, our Chief Operating Officer, will be available for Q&A.
Forward-looking statements made on this call are subject to numerous risks and uncertainties that may lead the companyâs actual results to differ materially from what had been communicated. Factors that may impact the results of the company can be found in the companyâs 10-Q and other reports filed with the SEC. The company undertakes no
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