Key Highlights

  • Comparable RevPAR rose 9.7% to USD 153.36 in the third quarter, with average daily rate up 6.4% to USD 203.35 and occupancy at 75.4% against 73.1%.
  • Adjusted FFO per diluted share and unit climbed 25.9% to USD 0.34 from USD 0.27, and adjusted EBITDA advanced 17.3% to USD 85.2 million.
  • The comparable hotel EBITDA Margin widened 190 basis points to 26.5%, while Net Income reached USD 4.6 million compared with a USD 3.8 million loss.
  • The full-year outlook now calls for adjusted FFO per share of USD 1.47 to USD 1.51 and adjusted EBITDA of USD 352 million to USD 358 million.

Business Travel and Urban Demand Power a 9.7% RevPAR Gain

RLJ Lodging Trust (NYSE:RLJ) is a real estate Investment trust with 84 focused-service and compact full-service hotels concentrated in urban markets. Its third-quarter 2026 results were reported on November 4, 2026. Comparable hotel Revenue increased 9.1% to USD 354.5 million, and comparable hotel EBITDA climbed 17.5% to USD 93.9 million. Management attributed the strength to Business travel leading, with leisure and group demand also firm, and said growth came from both occupancy and rate. Non-room revenue rose 6.5%. Total revenue reached USD 354.5 million against USD 330.0 million, and adjusted FFO came in at USD 52.0 million versus USD 41.1 million. Nine-month adjusted FFO per diluted share and unit was USD 1.19 compared with USD 1.07.

Guidance Lifted, Yet the Implied Fourth Quarter Looks Softer

The company now projects comparable RevPAR growth of 5.75% to 6.25%, comparable hotel EBITDA of USD 377 million to USD 383 million, adjusted EBITDA of USD 352 million to USD 358 million, and adjusted FFO per share of USD 1.47 to USD 1.51. Subtracting the USD 1.19 booked in nine months, the adjusted FFO range leaves about USD 0.28 to USD 0.32 for the fourth quarter (calculated), below the third quarter's USD 0.34. The outlook excludes seven Chicago Midway hotels sold after quarter end and leaves out acquisitions, dispositions and financings. Management cited strong preliminary October results and said third-quarter results beat its expectations on every metric. Net interest expense is expected at USD 101.0 million to USD 103.0 million, and renovation Capital spending at USD 80.0 million to USD 90.0 million.

Midway Hotel Sale, Liquidity and Preferred Payouts

In October 2026, RLJ Lodging Trust (NYSE:RLJ) sold seven hotels near Chicago Midway Airport for USD 110.0 million, equal to 13.8 times forecast 2026 hotel EBITDA or 16.1 times once required capital expenditures are included, and it took USD 20.0 million of seller financing. At September 30, 2026, total liquidity topped USD 1.0 billion, consisting of about USD 448.3 million of unrestricted cash and USD 600.0 million of revolver availability, against USD 2.2 billion of debt. The common Dividend was USD 0.15 per share, paid October 15, 2026, and the Series A preferred dividend of USD 0.4875 was paid October 30, 2026.

Where Things Stand

Mainly strong business and urban demand, plus higher rates. RLJ Lodging Trust (NYSE:RLJ) lifted adjusted FFO per share 25.9% and now guides to USD 1.47 to USD 1.51 for the year, but the raised range still implies a slightly softer fourth quarter than the third. Debt of USD 2.2 billion and the effect of the Midway disposition are the points to track. The Earnings Call on November 5, 2026 should add detail.