RLJ Lodging Trust Common Shares of Beneficial Interest $0.01 par value (RLJ)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach RLJ as a REIT, so reported EPS is not my main yardstick. Depreciation distorts REIT earnings, and FFO/AFFO - the numbers I really want - are not in this data. What I can see is an owner of 91 premium-branded hotels in urban markets. That portfolio may have some locational advantage, but hotels are cyclical and competitive; there is no wide moat here. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $383.0M and net income $31.0M, or $0.16 per diluted share. That followed a near-breakeven fiscal Q1 2026, ended 2026-03-31, with revenue $340.0M and a net loss of $141,000, and fiscal Q3 2025, ended 2025-09-30, with revenue $330.0M and a net loss of $3.7M. For FY2025, the year ended 2025-12-31, revenue was $1.3B, net income $28.5M, and EPS $0.01, down from FY2024, ended 2024-12-31, net income of $68.0M and FY2023, ended 2023-12-31, net income of $76.4M. The trend is not inspiring. Financial health is mixed. FairStock's D/E is 1.30 and its Altman Z-score is 0.32, so leverage and credit risk need attention. Yet TTM free cash flow is $267.0M, a 15.1% FCF yield on the $1.8B market cap, and Piotroski is 7/9. The dividend yield is 5.56%, but AFFO coverage is unknown. At the 2026-10-13 close of $11.60, FairStock's P/B is 0.97 and EV/EBITDA is 11.16. The Lynch category is ASSET PLAY - trades at 0.97x book. FairStock Score is 31/100. That is not demanding, but ROE of 1.26% and ROCE of 1.66% show weak profitability. I would call it a fair-to-cheap asset situation, not a high-quality compounder.

In plain English: The company owns premium-branded hotels in cities and earns money from room stays. Its profits have been uneven and much lower than a few years ago, although the latest quarter was profitable and cash flow is positive. At $11.60, the shares trade near the accounting value of its net assets and pay a high dividend, so the price looks fair rather than clearly expensive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer