RLJ Lodging Trust Reports Q4 Results Ahead of Expectations

Executives cite urban market strength, renovations, and non-room revenue growth as key drivers

Mar. 3, 2026 at 4:07am

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RLJ Lodging Trust reported fourth-quarter and full-year 2025 results that management said came in ahead of expectations, despite a 'choppy operating environment' pressured by a protracted government shutdown. Executives attributed the quarter's outperformance to relative strength in urban markets, accelerating results at recently renovated and converted hotels as the shutdown ended, and continued growth in non-room revenue, alongside disciplined cost control.

Why it matters

RLJ's performance highlights the continued resilience of the hotel industry, particularly in urban markets, as it navigates challenges like government shutdowns. The company's focus on conversions, renovations, and non-room revenue growth also demonstrates strategies that hotel operators are using to drive performance in a competitive landscape.

The details

RLJ reported fourth-quarter occupancy of 68.7%, average daily rate (ADR) of $199, and RevPAR of $137, representing a 1.5% year-over-year RevPAR decline. The company said non-room revenue rose 7.2% in the quarter, nearly 900 basis points ahead of RevPAR, helping generate positive total revenue growth. RLJ also emphasized progress on conversions and high-occupancy renovations, which it said generated strong RevPAR growth.

  • In the fourth quarter of 2025, RLJ reported occupancy of 68.7%, ADR of $199, and RevPAR of $137.
  • RLJ said non-room revenue rose 7.2% in the fourth quarter of 2025.

The players

RLJ Lodging Trust

A self-managed, publicly traded real estate investment trust (REIT) that acquires, owns and operates premium-branded, focused-service and compact full-service hotels.

Nikhil Bhalla

Chief Financial Officer of RLJ Lodging Trust.

Leslie Hale

CEO of RLJ Lodging Trust.

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The takeaway

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