RLJ Lodging Trust (RLJ): Business Model Canvas [Apr-2026 Updated]

You're trying to map out the true engine behind a major hotel real estate investment trust, and for RLJ Lodging Trust, the story isn't about daily operations-it's about smart ownership and asset management. Honestly, this REIT makes its money by owning a portfolio of 96 high-value, urban-centric hotels and driving value through strategic renovations, not by managing the front desk; their trailing 12-month revenue as of September 2025 hit $1.35 billion. We need to see how they manage the inherent pressures, like projected 2025 net interest expense between $94.0M and $96.0M and a planned capital expenditure budget of $80.0M to $100.0M, all while relying on major partners like Marriott and Hilton. Keep reading below to break down the nine essential building blocks of this model, showing exactly how they turn premium brand access into investor returns.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Key Partnerships

You're looking at the essential relationships RLJ Lodging Trust relies on to keep its premium-branded, rooms-oriented portfolio running smoothly. These aren't just vendors; they are the foundational agreements that define brand standards, operational execution, and capital structure.

The franchisors provide the brand equity that drives demand. RLJ Lodging Trust maintains strong relationships with the major players, leveraging their robust loyalty programs. As of late 2025, the portfolio operates under brands from these global leaders.

Here's a quick look at the brand families RLJ Lodging Trust partners with:

• Franchisors include Marriott (e.g., Courtyard by Marriott, Residence Inn by Marriott).
• Franchisors include Hilton (e.g., Hilton Garden Inn, Embassy Suites, Curio Collection).
• Franchisors include Hyatt (e.g., Hyatt Place, Hyatt Centric).
• Franchisors include Wyndham (though management agreements were terminated for some properties in prior years, brand affiliation may remain for others).

Daily operations rely heavily on third-party management expertise, especially given RLJ Lodging Trust's self-advised structure. For instance, news in November 2025 referenced hotels operated by Aimbridge in key markets like Los Angeles and Philadelphia, showing that third-party operators are central to on-the-ground execution.

Capital structure is managed through key financial institutions. You saw RLJ Lodging Trust proactively manage debt maturities in 2025. They entered into a new $300 million term loan in Q1 2025, which matures in 2030 (inclusive of extension options), to refinance a $200 million loan. Furthermore, they secured final extensions on two existing mortgage loans totaling $96 million and $85 million. Liquidity remained strong as of Q3 2025, reported at $1 billion, comprised of $375 million in cash and $600 million on the revolver. To manage interest rate risk, 74% of debt was fixed or hedged as of that period.

Investment partners facilitate portfolio optimization through joint ventures and acquisitions/dispositions. In Q1 2025, RLJ Lodging Trust closed the sale of the 181-room Courtyard by Marriott Atlanta Buckhead to Partners Capital (the investment platform of Partners Real Estate) for $24.25 million. This shows active engagement with real estate investment platforms.

Capital projects, which are crucial for maintaining premium branding, involve contractors and renovation specialists. As of Q3 2025, the portfolio was impacted by three transformative renovations. One specific capital project noted was the conversion of a Boston property to Hilton's Tapestry Collection brand.

Here is a snapshot of the portfolio scale and key financial partners as of late 2025:

The REIT benefits from the alignment of these agreements, ensuring that operational performance, like the Q3 2025 Comparable RevPAR of $138.51, is supported by brand standards and managed capital deployment.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Key Activities

You're looking to map out the core engine of RLJ Lodging Trust, the things they absolutely must do well to keep the lights on and the returns flowing. It's about active management, not just owning buildings. Here are the key activities driving the business as of late 2025, grounded in their recent operational data.

Strategic asset management and portfolio optimization

This is about constantly evaluating every asset to ensure it fits the long-term strategy. RLJ Lodging Trust is focused on its urban-centric portfolio, which showed resilience, for example, with San Francisco's central business district hotels achieving 20% RevPAR growth in the second quarter of 2025. The comparable portfolio size as of March 31, 2025, and June 30, 2025, stood at 94 hotels. The activity here is ensuring the remaining assets perform, as seen when Q1 2025 Comparable RevPAR hit $141.23, a 1.6% increase year-over-year, even as Q2 2025 Comparable RevPAR contracted by 2.1% to $155.08.

Capital recycling through non-core asset sales, like the $24.3 million Q1 2025 sale

Recycling capital means selling assets that don't meet the growth profile to fund better opportunities or return capital to shareholders. In the first quarter of 2025, RLJ Lodging Trust sold one non-core hotel, the 181-room Courtyard Atlanta Buckhead, for $24.3 million. This sale reflected a 18.0x multiple based on projected 2025 Hotel EBITDA, and the company recorded a gain of $1.3 million on the transaction. This activity directly feeds into capital return initiatives; year-to-date through Q1 2025, proceeds were used to repurchase 2.7 million shares for approximately $24.3 million. By Q2 2025 end, the year-to-date share repurchases totaled 3.2 million common shares for about $28.0 million. Still, as of August 4, 2025, the remaining capacity for the 2025 share repurchase program was $246.3 million.

Here's a quick look at the capital deployment from dispositions:

Transformative renovations and brand conversions to drive RevPAR

Driving higher revenue per available room through physical improvements is a core function. RLJ Lodging Trust is actively executing transformative renovations and brand conversions. For instance, the 4 most recently completed conversions achieved 6% RevPAR growth during the third quarter of 2025, with the newest one in Nashville delivering high single-digit RevPAR growth. This is a clear driver, as seven completed conversion projects resulted in a collective 10% RevPAR growth in Q2 2025. The company is on track to complete the conversion of its Renaissance Pittsburgh Hotel to an Autograph Collection hotel by the end of 2025. However, these activities create near-term drag; ongoing renovations constrained Q2 2025 RevPAR, which saw a 2.1% contraction to $155.08.

Financial management, including debt and equity capital markets activities

Managing the balance sheet is critical, especially given the current environment. A key activity was addressing all near-term debt maturities in Q1 2025, including fully paying down the revolver following a term loan refinancing. The company's debt profile is reflected in its recent debt-to-equity ratio of 1.21, with the long-term debt/equity ratio last reported at 109.7%. Liquidity management is also key; as of June 30, 2025, RLJ had approximately $974 million in total liquidity, which included $374 million in unrestricted cash. The company is also managing shareholder returns, with a quarterly dividend paid in October 2025 of $0.15 per share, representing an annualized $0.60 and a dividend yield of 8.2%, though the payout ratio was 1,200.00%.

Oversight of third-party hotel operators and brand standards

Since RLJ Lodging Trust is self-advised, it relies heavily on third-party operators to execute day-to-day management and maintain brand integrity. This oversight activity is crucial for controlling costs and driving bottom-line results. For example, in Q3 2025, disciplined expense management allowed RLJ to achieve Hotel EBITDA of $80.8 million and Hotel EBITDA margins of 24.5%, despite a 5.1% RevPAR contraction. The operators proactively initiated cost mitigation efforts early, which limited margin contraction over the last year to just 90 basis points as of Q2 2025. The company's portfolio as of Q3 2025 was still comprised of 94 hotels, all operating under premium brands.

Here are some key operational metrics tied to operator performance:

• Q3 2025 Comparable Hotel EBITDA: $80.8 million.
• Q3 2025 Hotel EBITDA Margin: 24.5%.
• Q2 2025 Comparable Hotel EBITDA Margin: 31.1% (down 90 basis points year-over-year).
• Q1 2025 Comparable Hotel EBITDA: $85.3 million.
• Q1 2025 Adjusted EBITDA: $77.6 million.

Finance: draft 13-week cash view by Friday.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Key Resources

You're looking at the core assets RLJ Lodging Trust (RLJ) relies on to operate and generate returns, which is key for any REIT analysis. These aren't just buildings; they are strategically placed real estate and the operational expertise to manage them.

The physical asset base is substantial. As of late 2025, the portfolio is anchored by a significant number of properties concentrated in high-barrier-to-entry locations. While historical figures show a portfolio of 96 hotels with approximately 21,200 rooms, the most recent comparable statistics as of September 30, 2025, reflect a portfolio of 94 hotels.

Here's a quick look at the property scale, using the required benchmark and the latest reported portfolio size:

The real estate itself is a primary resource. RLJ Lodging Trust focuses on high-value, urban-centric real estate in major U.S. markets. These locales offer multiple demand generators from business and leisure travelers, and the density and high underlying real estate values create high barriers to entry for competitors.

Financially, the REIT emphasizes its capital structure as a key strength for navigating market uncertainty. Management expressed confidence in the company's strong balance sheet and liquidity as of the third quarter of 2025. For context on that position, as of June 30, 2025, total assets stood at $4.82 billion with liabilities at $2.58 billion. More recently, trailing twelve months data shows cash on hand of $378.30 million against total debt of $2.34 billion.

The operational structure itself is a resource. RLJ Lodging Trust is a self-advised and self-administered Maryland real estate investment trust. This structure implies significant intellectual capital in asset management and real estate investment residing internally, rather than being outsourced to a third-party advisor. This self-management capability is critical for direct control over investment and operational decisions.

Finally, the top-line financial performance demonstrates the scale of the business operations supported by these resources. The trailing 12-month revenue was $1.35 billion as of September 2025. For the third quarter ending September 30, 2025, total revenues reached $330.05 million.

You can see the financial scale in these recent figures:

• Trailing 12-Month Revenue (as of September 2025): $1.35 billion
• Q3 2025 Total Revenues: $330.05 million
• Q3 2025 Adjusted EBITDA: $72.6 million
• Total Assets (as of June 30, 2025): $4.82 billion
• Total Debt (TTM as of Dec 2025): $2.34 billion

RLJ Lodging Trust (RLJ) - Canvas Business Model: Value Propositions

You're looking at the core reasons why guests choose RLJ Lodging Trust properties and why investors back the trust. It's about the brands they own and where those hotels sit in the market.

Access to premium-branded, high-quality hotel experiences is central. RLJ Lodging Trust owns a portfolio consisting of 96 hotels with approximately 21,200 rooms as of December 7, 2025. These properties operate under major global brand names, specifically the Marriott, Hilton, and Hyatt brands.

The geographic placement is strategic, focusing on high-demand urban and dense suburban markets. The portfolio is geographically diverse, located across 23 states and the District of Columbia. This concentration in urban markets targets multiple demand generators from business and leisure travelers.

RLJ Lodging Trust emphasizes focused-service and compact full-service models. This model choice is designed to deliver higher operating margins compared to traditional full-service hotels. The Q3 2025 results showed that out-of-room revenues grew by 1.3% during the quarter, highlighting success in maximizing revenue streams beyond just room nights.

The value proposition for guests is reinforced by leveraging the global brand loyalty programs associated with Marriott, Hilton, and Hyatt, which helps drive reliable guest volume. For investors, the value is rooted in the real estate backing and the income stream.

Here are some key operational and financial metrics supporting this value proposition as of late 2025:

The dividend-paying security aspect is supported by the recent quarterly distribution of $0.15 per common share. The TTM (Trailing Twelve Month) dividend payout stands at $0.60 per share, yielding around 8.10% as of early December 2025.

The company is actively managing its asset base to enhance value, evidenced by the sale of the Courtyard Atlanta Buckhead in March 2025. Furthermore, the remaining share repurchase program capacity stood at $245.7 million as of November 5, 2025.

• Hotels are under Marriott, Hilton, and Hyatt brands.
• Portfolio size: 96 hotels with 21,200 rooms.
• Concentration in urban markets.
• Q3 2025 Adjusted FFO per share/unit: $0.27.
• TTM Dividend Yield: Approximately 8.20%.

The lean operating model, which contributes to the focused-service value, helped achieve Comparable Hotel EBITDA of $80.8 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Customer Relationships

You're managing a portfolio of premium-branded hotels, so your direct relationship with the end guest is often filtered, which is a key part of the structure here. The core customer interaction for the traveler staying at one of the 94 hotels in the RLJ Lodging Trust portfolio, which totals approximately 21,000 rooms as of September 30, 2025, is primarily with the hotel operator and, by extension, the major brand itself.

Indirect relationship managed primarily through franchisor's systems

Honestly, the day-to-day guest experience is dictated by the franchise agreement. RLJ Lodging Trust owns the bricks and mortar, but the brand-be it Marriott, Hilton, or Hyatt-sets the service standards, the operating playbook, and the reservation system. This means the guest relationship is largely indirect, managed by the franchisor's established systems. The guest experience is transactional for the stay itself-they book a room, they stay, they pay-but the underlying relationship is built on the long-term equity of the brand they trust.

Direct asset management oversight to ensure operator performance and cost control

Since RLJ Lodging Trust is a self-advised real estate investment trust, its asset management team steps in to bridge that gap between ownership and the independent managers running the properties day-to-day. They don't run the front desk, but they definitely watch the score. This team monitors performance daily and holds frequent meetings with the corporate executives of the management companies. They focus intensely on revenue management, market positioning, and cost structure. For instance, they work on identifying and evaluating Return on Investment (ROI) initiatives, which contributed to out-of-room revenues growing by 1.3% in Q3 2025 despite lower occupancy. Plus, RLJ Lodging Trust retains approval rights on critical roles, like the hotel's general manager and director of sales, ensuring alignment on strategy.

Here's a quick look at the operational context as of the third quarter of 2025:

Investor relations and communication for shareholders and analysts

For the capital providers-the shareholders and analysts-the relationship is direct and highly structured. RLJ Lodging Trust maintains a consistent cadence of communication, with the Q3 2025 earnings conference call held on November 6, 2025. They provide supplemental information and investor presentations, such as the one released in November 2025, to keep the financial community informed on portfolio strategy, including ongoing brand conversions like the Boston property moving to Hilton's Tapestry Collection.

Shareholder capital management is a key communication point, showing direct engagement with the ownership base:

• Year-to-date share repurchases reached 3.3 million common shares for approximately $28.6 million as of November 5, 2025.
• The remaining capacity under the 2025 share repurchase program stood at $245.7 million.
• Q3 2025 saw a repurchase of 0.2 million shares for about $1.3 million.

Leveraging major brand loyalty programs for guest retention

The reliance on Marriott, Hilton, and Hyatt means RLJ Lodging Trust inherently benefits from their massive loyalty ecosystems. These programs are crucial for driving occupancy because they lower customer acquisition costs for the operator and secure repeat business. Industry data suggests that loyalty program fees paid by owners grew by 3.9% from 2023 to 2024, outpacing the growth in rooms revenue, which implies loyalty members are making up a larger share of stays. For RLJ Lodging Trust, this translates to a customer base that is often less price-sensitive, which is beneficial, especially as business-transient demand was reported at 81% of pre-pandemic levels in early 2025.

Transactional for hotel stays, but long-term for brand relationships

The relationship is dual-natured. For the individual booking, it's transactional-a room night at a specific location. However, for RLJ Lodging Trust as the owner, the relationship is a long-term strategic partnership with the franchisors. This partnership is about maintaining property value and ensuring the operator maximizes profits while adhering to brand standards. The company's focus on conversions and repositionings, like the eight announced as of late 2023, shows a commitment to optimizing these long-term brand relationships to unlock embedded value.

Finance: review the impact of the $245.7 million remaining share repurchase capacity on Q4 2025 FFO guidance by next Tuesday.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Channels

You're looking at how RLJ Lodging Trust gets its product-rooms and services across its 94 hotels-into the hands of the customer, which is a mix of direct engagement and reliance on major third-party systems. This is critical because, as a REIT, their channel efficiency directly impacts the Adjusted FFO per diluted share they guide for, which was projected between $1.31 and $1.37 for full-year 2025.

Global Distribution Systems (GDS) and Online Travel Agencies (OTAs)

RLJ Lodging Trust relies on the broader travel ecosystem, meaning a significant portion of bookings flows through Global Distribution Systems (GDS) and Online Travel Agencies (OTAs). While the exact percentage split isn't published in the Q3 2025 supplemental data, this channel is the default access point for many transient and corporate bookers. The company's strategy focuses on owning premium-branded assets in urban markets, which are heavily indexed in these high-volume booking channels. The overall portfolio, as of June 30, 2025, comprised 94 hotels with about 21,000 rooms.

Major franchisor central reservation systems (e.g., Marriott.com, Hilton.com)

A core component of the channel strategy is the relationship with major franchisors. RLJ Lodging Trust hotels operate under globally recognized brands, including flags from Marriott, Hilton, and Hyatt. This means direct booking channels like Marriott.com and Hilton.com are primary distribution avenues. These systems offer brand loyalty benefits that often drive higher-rated, more stable demand compared to OTAs. The portfolio includes brands like Courtyard by Marriott, Residence Inn by Marriott, AC Hotels, Moxy Hotels, Hilton Garden Inn, Embassy Suites, Hyatt Place, and Wyndham.

Hotel-level direct sales teams and on-site property staff

On-site teams are responsible for capturing demand that bypasses the major online channels, focusing on local, group, and transient business. This direct effort contributes to the non-room revenue growth the company highlights; for instance, out-of-room spend grew by 1.3% in Q3 2025. The property staff manages the day-to-day execution of revenue management strategies, aiming to maximize the Average Daily Rate (ADR), which stood at $190 in Q3 2025.

Investor Relations website and NYSE trading platform for capital access

For capital access, the channel is the public market. RLJ Lodging Trust trades on the New York Stock Exchange (NYSE) under the ticker RLJ. The Investor Relations website, www.rljlodgingtrust.com, serves as the direct channel for communicating financial performance, such as the Q3 2025 results released on November 5, 2025. The company actively manages its capital structure through this platform, evidenced by the remaining capacity on its 2025 share repurchase program of $245.7 million as of November 5, 2025.

Here's a quick look at the scale of the assets being managed through these channels as of mid-2025:

Direct asset management team communication with property operators

The self-advised structure means a dedicated asset management team is a key internal channel for operational control. This team monitors hotel performance on a daily basis and holds frequent ownership meetings with corporate operations executives and key personnel at the hotels. They work closely with independent managers on revenue management, market positioning, cost structure, and identifying return on investment initiatives. For instance, the team works on capital and operational budgeting, and they retain approval rights for key staffing positions, such as the hotel's general manager and director of sales, at many properties.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Customer Segments

You're looking at the core groups RLJ Lodging Trust serves, which is key to understanding their revenue engine. Honestly, for a Real Estate Investment Trust (REIT) like RLJ Lodging Trust, the customer segments aren't just guests; they include the people funding the whole operation, too.

Business travelers requiring consistent, premium-branded accommodations

This group relies on RLJ Lodging Trust's portfolio of premium-branded, focused-service, and compact full-service hotels. These assets are intentionally placed in urban markets that offer multiple demand generators, which often means proximity to corporate headquarters and business hubs. The consistency of brands like Marriott, Hilton, and Hyatt is what keeps these corporate accounts coming back. For example, in the third quarter of 2025, RLJ Lodging Trust saw non-government-related business travel deliver a 2.4% revenue growth. Furthermore, corporate rates specifically were up a healthy 3% during that same period, showing that the highest-rated corporate customers are definitely returning to their properties.

Leisure travelers seeking urban and major market destinations

Leisure demand is a major driver, especially in the key urban markets where RLJ Lodging Trust concentrates its 94 hotels and approximately 20,982 rooms. While overall portfolio comparable Revenue Per Available Room (RevPAR) dipped 5.1% in Q3 2025, certain urban markets showed significant strength, indicating strong leisure pull. To be fair, this segment is sensitive to broader economic shifts, as seen by the overall occupancy decline of 3.1% in Q3 2025. Still, the performance in specific leisure-heavy urban areas was impressive:

• San Francisco RevPAR growth: 19.4%.
• Atlanta RevPAR growth: 12.1%.
• New York City RevPAR growth: 4.7%.

Geographically, for the nine months ending September 30, 2025, major markets like Southern California and Northern California each contributed $128.7 million in revenue, and South Florida added $112.6 million.

Group and convention business in key citywide markets

Group business is a critical component, though it faced some near-term noise in Q3 2025. Management noted that the shift of the Jewish holidays into September softened the citywide calendar across many markets, and ongoing convention center transformations, like the one in Austin, also had an impact. This segment is highly dependent on the local convention and event calendar, which can cause volatility quarter-to-quarter. The company is actively working to capture this demand through strategic asset improvements, such as completing transformative renovations in Waikiki, Key West, and Fort Lauderdale.

Here's a quick look at the portfolio size and the Q3 2025 operational snapshot that reflects the demand across these segments:

Institutional and individual investors (shareholders) in the REIT

As a publicly traded REIT on the NYSE, RLJ Lodging Trust's financial health and strategy are directly aimed at its shareholders. This segment is interested in the stability of the asset base, debt management, and return of capital. As of October 30, 2025, the company's market capitalization stood at $1.04B, based on 151M shares outstanding. The company has shown a commitment to returning capital through share repurchases, executing 3.3 million shares repurchased year-to-date for approximately $28.6 million. Furthermore, the balance sheet is managed to appeal to institutional holders, with 74% of debt fixed or hedged, and all 2025 debt maturities addressed. This focus on financial structure is what keeps the institutional money interested.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Cost Structure

The Cost Structure for RLJ Lodging Trust is heavily influenced by debt servicing and ongoing property investment, characteristic of a real estate investment trust focused on premium-branded hotels. You need to keep a close eye on these fixed and semi-fixed outflows to gauge operational flexibility.

A significant portion of the cost base is tied to financing the asset portfolio. The projected Net interest expense for the full year 2025 is set in the range of $94.0 million to $96.0 million. This represents a major fixed commitment. To give you context on how that interest is calculated, as of the third quarter of 2025, RLJ Lodging Trust had $2.2 billion in debt with a weighted-average interest rate of 4.7%.

The table below summarizes the key projected annual financial commitments for 2025:

Hotel operating expenses are variable but substantial, directly tied to running the 94-hotel portfolio. While specific line-item costs for labor, utilities, property taxes, and insurance aren't explicitly broken out in the forward guidance, the efficiency of managing these is reflected in the margin performance. For instance, in the third quarter of 2025, the company achieved a Hotel EBITDA margin of 24.5%. This margin shows how effectively RLJ Lodging Trust managed its day-to-day property costs against hotel revenues during that period.

Ongoing investment in the physical assets is a critical cost component, ensuring brand compliance and driving future revenue. Capital expenditures dedicated to renovations for the full year 2025 are projected to be between $80.0 million and $100.0 million. This spending is strategic, aimed at unlocking embedded value through property transformations.

The corporate overhead, or Cash corporate G&A, is projected to fall between $34.0 million and $35.0 million for 2025. This cost supports the self-advised structure of RLJ Lodging Trust.

Another necessary outflow involves payments to the major hotel brands that RLJ Lodging Trust partners with. These are the Franchise fees paid to major hotel brands, which typically include base fees and often incentive fees tied to revenue performance. These fees are a direct operational cost embedded within the hotel-level expenses, though a specific dollar projection for 2025 wasn't detailed in the latest guidance summaries.

You can see the major operational cost drivers below:

• Debt servicing costs, with interest expense projected annually in the $94.0M to $96.0M band.
• Property-level expenses contributing to the 24.5% Hotel EBITDA margin in Q3 2025.
• Significant capital outlay for renovations, budgeted at $80.0M to $100.0M for 2025.
• Fixed corporate overhead projected between $34.0M and $35.0M.

Finance: draft 13-week cash view by Friday.

RLJ Lodging Trust (RLJ) - Canvas Business Model: Revenue Streams

You're looking at how RLJ Lodging Trust actually brings in the cash to keep those premium-branded hotels running. Honestly, it all comes down to the guest staying the night, but they're getting smarter about the other stuff, too.

The primary source is definitely the money from rooms. That's the bread and butter for any hotel REIT. For instance, in the first quarter of 2025, room revenue hit $267.7 million, which was a big chunk of their total $328.1 million for that period. That tells you where the focus is.

Still, they are pushing hard on the secondary streams. Food and beverage revenue, for example, is a key component they track. To give you a concrete number, Q1 2025 saw food and beverage revenue reach $37.5 million. That's the kind of ancillary income that helps smooth out the volatility you see in room rates.

RLJ Lodging Trust also generates other out-of-room revenues. They specifically mentioned success from their Return on Investment (ROI) initiatives driving growth in these areas. You should expect revenue from:

• Parking fees.
• Meeting space rental.
• Expanded market offerings.

The top-line number for the most recent quarter we have data for, Q3 2025, was $330.0 million in Total Revenues. That figure is the aggregate of all those streams, even though occupancy was softer, showing the benefit of their focus on non-room spend.

Plus, you can't forget the capital recycling aspect. This isn't operating revenue, but it's a financial inflow that supports the business model. They actively dispose of assets to free up capital. As an example of this strategy in action, during Q1 2025, RLJ Lodging Trust sold one non-core hotel for $24.3 million, and they used those proceeds for share repurchases. That's capital recycling at work.

Here's a quick look at some of those key revenue figures we've seen recently:

The management noted that non-room revenue growth in Q3 2025 was 1.3%, which outperformed the RevPAR decline by over 600 basis points. That's a clear indicator of where they are focusing operational improvements to diversify income away from just the nightly room rate.

Finance: draft the Q4 2025 revenue projection based on the Q3 run-rate by Wednesday.