RLJ Lodging Trust

RLJ

Market cap $1.53B

Rising inflation pushes interest rates higher, presenting a rare window to acquire preferred shares at a massive discount. When consumer distress eventually triggers an economic slowdown, the fixed predictability of preferred dividends becomes the ultimate portfolio anchor. Capitalize on the financial strengths of a premium hotel REIT and developer of manufactured homes at bargain prices.

Airbnb (ABNB), Marriott (MAR), Host Hotels (HST), and RLJ Lodging (RLJ) are positioning for a surge in late-stage FIFA World Cup 2026 travel demand. Hotel bookings in most U.S. host cities are tracking below initial forecasts, with international demand lagging due to visa and geopolitical concerns.

RLJ Lodging Trust and its preferred remain Strong Buys, offering compelling yield, robust balance sheet with significant cash available, and no major debt maturity until 2029. Q1 results exceeded expectations, with 6.5% YoY Adjusted FFO growth, improved margins, and raised 2026 outlook. Dividend yield stands at 6.56%, well-covered by AFFO, with an additional $250M buyback authorization providing an up to 18.1% total buyback yield.

Every month, we screen for high-yield but safe and consistent dividend growth stocks using Seeking Alpha quant grades, narrowing to top-yielding, fundamentally sound names. Over the long term, dividend growers can help to combat the negative impacts of inflation and help to grow wealth. However, not every name that comes up based on the screening is worthwhile; we do an initial cursory look to see what names could be worth further research.

RLJ Lodging Trust delivered strong Q1 2026 results, with RevPAR up 4.8% and EBITDA margin expanding to 26.4%. RLJ refinanced all debt maturities through 2028, securing a weighted average interest rate of 4.6% and boosting liquidity to over $950 million. An urban-centric portfolio and Northern California AI-driven recovery, plus World Cup exposure, position RLJ for continued growth and event-driven upside.

RLJ Lodging Trust is off to a strong start in 2026, with the shares boosted by solid Q1 2026 results and an increased 2026 outlook. High energy prices present a near-term risk, arguably leading to management's more cautious guidance for the remainder of 2026. Even so, RLJ's valuation remains undemanding, supporting a Buy rating (down from Strong Buy) for long-term investors comfortable with risks in the investment case.

RLJ Lodging Trust (RLJ) Q1 2026 Earnings Call Transcript

The headline numbers for RLJ Lodging (RLJ) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

RLJ Lodging (RLJ) came out with quarterly funds from operations (FFO) of $0.33 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to FFO of $0.31 per share a year ago.

BETHESDA, Md.--(BUSINESS WIRE)--RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months ended March 31, 2026. First Quarter Highlights Comparable RevPAR of $148.55, an increase of 4.8% over the prior year Comparable Hotel Revenue of $340.0 million, an increase of 5.4% over the prior year Net loss of $0.3 million Comparable Hotel EBITDA of $89.9 million, an increase of 7.2% over the prior year Comparable Hotel EBITDA Margin of 26.4%, an increase of 45 bps over t.