RLJ Lodging Trust owns approximately 95-100 select-service and extended-stay hotels concentrated in high-barrier coastal and urban markets, operating under brands like Courtyard, Residence Inn, and Hampton Inn. The company focuses on premium-branded properties in top-25 MSAs with strong business and leisure travel demand, generating revenue through room rates, occupancy, and ancillary services. Stock performance is driven by RevPAR growth, urban office recovery trends, and group/convention activity in gateway markets.
Real EstateHotel REIT - Select-Service & Extended-Stayhigh - Hotel operations have substantial fixed costs (property taxes, insurance, base management fees, debt service) representing 50-60% of revenue, while variable costs (housekeeping, utilities, incremental labor) scale with occupancy. Once hotels exceed 60-65% occupancy breakeven, incremental revenue flows heavily to EBITDA. RevPAR increases of 5-10% can drive 15-25% EBITDA growth due to operating leverage, making the business highly sensitive to demand fluctuations.