RLJ Lodging Trust : NAREIT Conference – June 2024

NAREIT

PRESENTATION

JUNE 2024

RLJ | INVESTMENT HIGHLIGHTS

The evolution of RLJ's portfolio over the last several years has positioned it to benefit from the upside in urban demand and to capitalize on unique internal and external growth catalysts

HIGH-QUALITY

PORTFOLIO

INTERNAL

GROWTH

EXTERNAL

GROWTH

BALANCE

SHEET

High-quality portfolio with an attractive growth profile

• Urban-centricportfolio growth expected to exceed the Industry
• Urban markets represent over two-thirds of RLJ's portfolio

Phase I and II initiatives to generate $14M to $18M of incremental EBITDA

• Three conversions announced in 2023 underway in New Orleans, Houston and Nashville
• Two conversions of the Renaissance and the Wyndham in Pittsburgh
• Expanded conversion pipeline by acquiring Wyndham Boston Beacon Hill

Well-positioned to drive external growth

• Ability to execute all-cash transactions in a constrained lending environment
• Attractive pipeline of off-market, external growth opportunities

Low leveraged balance sheet with a strong track record of returning capital

• ~$1B of liquidity providing optionality
• In 2023, repurchased $77.2M of common shares while doubling dividend

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OPERATING PERFORMANCE

THE PIERSIDE SANTA MONICA

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OPERATING PERFORMANCE | FY & Q2 UPDATE

RLJ's urban-centric portfolio achieves strong RevPAR growth in May

May Forecasted RevPAR Growth of ~ 6.5%

• Sequential improvement from April RevPAR (down 0.3% vs. 2023)
• Month benefitted from robust demand from all segments
• May is expected to be the strongest month of Q2

Q2 Expected to Sequentially Improve From Q1

• Group demand expected to remain strong due to small group and favorable citywides
• Expect continued momentum in business transient
• Urban leisure to benefit from special events such as 150th Kentucky Derby

FY 2024 and Q2 Outlook

• The Company continues to expect 2024 full year results to be within existing guidance ranges
• • The Company currently expects Q2 Adjusted EBITDA in the range of $104.0M to $107.0M

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RLJ | MULTIPLE CHANNELS OF GROWTH

URBAN CENTRIC PORTFOLIO

ORGANIC GROWTH

INITIAL CONVERSIONS /

ACQUISITIONS

FUTURE

PIPELINE OF CONVERSIONS

BALANCE SHEET

OPTIONALITY

▪	Multiple demand drivers	▪ Pacing ahead of	▪ Targeting two conversions
▪	Capture new normal		underwriting	per year
▪	Limited new supply	▪ External growth from high-	▪ Executing incremental
		growth markets	revenue enhancement
▪	Next leg of recovery
▪	Additional growth to	opportunities

stabilization

Based on pro forma FY 2019 EBITDA for hotels owned As of June 30, 2023

• Strong Liquidity
• Generate significant free cash flow
• Optionality to drive external / internal growth
• Ability to return capital to shareholders

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HIGH-QUALITY PORTFOLIO

THE PIERSIDE SANTA MONICA

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RLJ | HIGH QUALITY PORTFOLIO

RLJ owns a geographically diversified portfolio of premium branded, high-margin hotels

Portfolio Overview(1)

Hotels96(1)

ADR$197

RevPAR$141

EBITDA/Key$19k

Urban Footprint

66%

Y/Y Growth %

• 4.5%
• 9.0%
• 8.5%

Brand Exposure

12%

42%

36%

9%

Independent/Other

Based on proforma FY 2023 for Comparable Hotels owned as of December 31, 2023

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RLJ | HIGH QUALITY PORTFOLIO

U R B A N L I F E S T Y L E

U R B A N G AT E W AY

R E S O R T

U R B A N M E T R O

33	32	11	20
# of HOTELS	# of HOTELS	# of HOTELS	# of HOTELS

41%	31%	17%	11%
of EBITDA	of EBITDA	of EBITDA	of EBITDA
$21K	$22K	$25K	$16K
EBITDA / KEY	EBITDA / KEY	EBITDA / KEY	EBITDA / KEY
Based on pro forma FY 2019 EBITDA for Comparable hotels owned as of December 31, 2023
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URBAN LIFESTYLE

P R O P E R T I E S I N T O P U R B A N S U B M A R K E T S T H A T B E N E F I T F R O M

S E V E N - D AY- A - W E E K D E M A N D A N D " B L E I S U R E " W I T H H I G H L E I S U R E M I X 4 1 % O F E B I T D A ( 1 )

THE BANKER'S ALLEY HOTEL NASHVILLE

THE KNICKERBOCKER NEW YORK

AC HOTEL BOSTON DOWNTOWN

MOXY DENVER CHERRY CREEK

MARRIOTT LOUISVILLE DOWNTOWN

HYATT CENTRIC MIDTOWN ATLANTA

(1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2023; excludes Chateau LeMoyne which is unconsolidated

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URBAN GATEWAY

P R O P E R T I E S L O C A T E D I N T O P H O T E L M A R K E T S I N T H E U . S . , T H A T A R E A L S O T H E N A T I O N ' S K E Y E C O N O M I C C E N T E R S

3 1 % O F E B I T D A ( 1 )

COURTYARD NEW YORK MANHATTAN UPPER EAST SIDE

HYATT PLACE WASHINGTON DC DTWN K ST

COURTYARD / RESIDENCE INN / SPRINGHILL SUITES HOUSTON DTWN CONV CTR

SAN FRANCISCO MARRIOTT UNION SQUARE

HILTON GARDEN INN NEW ORLEANS CONV CTR

COURTYARD SAN FRANSISCO

(1) Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2023; excludes Chateau LeMoyne which is unconsolidated

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