RLJ Lodging Trust is a hotel REIT trading above analyst price targets with negative implied upside and below-average business quality, though its strong earnings beat history and excellent free cash flow conversion offer some floor support for existing holders.
Thesis pillars
- Price Above Analyst Target Negative Upside↓Deteriorating
- Strong Earnings Beat Versus Low Expectations↑Improving
- High Short Interest Quality Floor↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 27, 2026· older than 90 days
RLJ Lodging Trust (RLJ) Stock Analysis
Real Estate · REIT - Hotel & Motel
Hold if already holding. Not a fresh buy at $12.72, but acceptable to hold if already in. Reasons: Concentration risk — Counterparty: Marriott, Hilton and Hyatt (89.3%); Analyst target reached - limited upside remaining.
RLJ Lodging Trust is a self-advised REIT that owns 93 premium-branded, focused-service and compact full-service hotels with about 20,800 rooms across 23 states and Washington, D.C., with roughly 89.3% of its portfolio operating under Marriott, Hilton, or Hyatt brands. The... Read more
Hold if already holding. Not a fresh buy at $12.72, but acceptable to hold if already in. Reasons: Concentration risk — Counterparty: Marriott, Hilton and Hyatt (89.3%); Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.1/10, high confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news boost earnings 0.70, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About RLJ Lodging Trust
About RLJ Lodging Trust
RLJ Lodging Trust owned 93 hotels with about 20,800 rooms across 23 states and the District of Columbia as of December 31, 2025, with roughly 89.3% of properties operating under Marriott, Hilton, or Hyatt brands. The five largest metro concentrations - Northern California, Southern California, South Florida, Chicago, and Houston - together accounted for roughly 45.9% of total rooms, and the company held debt of approximately $2.2 billion at year-end, 69.2% of it fixed or effectively fixed.
RLJ generates revenue by leasing its 93 hotels to taxable REIT subsidiaries (TRSs), which in turn engage independent third-party managers - most notably Aimbridge Hospitality (26 hotels) and Hilton (21 hotels) - to run day-to-day operations, set room rates, and collect revenue under individual management agreements; the TRS structure lets RLJ record TRS dividend distributions as REIT income while retaining approval rights over key hotel staffing positions such as general managers and directors of sales. Twelve consolidated hotels and one unconsolidated hotel sit on ground leases rather than owned land, including one at Wyndham San Diego Bayside expiring in 2029. As a REIT, RLJ must distribute at least 90% of its taxable income to shareholders, financing acquisitions and renovations instead through its unsecured credit facility, mortgage debt, and equity or debt offerings, with a debt profile weighted toward unsecured, fixed-rate obligations supplemented by interest rate swaps.
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RLJ's own filing frames the three-brand dependence directly: 83 of its 93 hotels carry Marriott, Hilton, or Hyatt flags, so a deterioration in any one franchisor's brand reputation, or a breakdown in the underlying franchise relationship, could impair the value of dozens of properties at once rather than a single asset. The same concentration runs through hotel management, where just two operators, Aimbridge and Hilton, run every one of RLJ's 93 hotels, leaving replacement risk elevated if either manager became financially unable or unwilling to perform under its agreements.
See also: Real Estate · REIT - Hotel & Motel
From RLJ Lodging Trust's most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated Nov 4, 2026Recent Developments — RLJ Lodging Trust
Latest news
- NEWS RLJ Lodging Trust Reports Third Quarter 2026 Results — fiscal.ai Nov 4, 2026
- NEWS RLJ Lodging Trust Raises FY2026 FFO Guidance from $1.37-$1.50 to $1.47-$1.51 vs $1.46 Est — benzinga Nov 4, 2026 positive
- NEWS RLJ Lodging Q3 EPS $(0.01) Beats $(0.04) Estimate, Sales $354.476M Beat $341.412M Estimate — benzinga Nov 4, 2026 positive
- NEWS Rlj Lodging Trust stock hits 52-week high at 12.9 USD - Investing.com — Investing.com Nov 2, 2026 positive
- NEWS Rlj Lodging Trust stock hits 52-week high at 12.9 USD By Investing.com - Investing.com India — Investing.com India Nov 2, 2026 positive
Latest item Nov 4, 2026 · Generated 2026-11-05T11:54:13Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHcounterpartyMarriott, Hilton and Hyatt89%10-K Item 1: 'approximately 89.3% of our hotel properties operating under existing relationships with Marriott, Hilton or Hyatt'
- LOWGeographicNorthern California13%10-K Item 1A: 'Our hotels located in the Northern California, Southern California, South Florida, Chicago, Illinois, and Houston, Texas metropolitan areas accounted for approximately 13.4%'
- MEDIUMcounterpartyAimbridge Hospitality28%10-K Item 1A: 'As of December 31, 2025, all of our hotel properties had individual management agreements, 26 of which were with Aimbridge Hospitality ("Aimbridge") and 21 of which were with Hilton.'
Material Events(8-K, last 90d)
- 2026-04-30Item 5.02LOWShareholders approved the RLJ Lodging Trust 2026 Equity Incentive Plan at the April 24, 2026 Annual Meeting, replacing the 2021 Plan. Routine equity-plan approval; no executive departure or appointment.SEC filing →
- 2026-04-30Item 5.07LOWRLJ Lodging Trust held its Annual Meeting on April 24, 2026, where shareholders voted on the 2026 Equity Incentive Plan among other proposals. No adverse or contested results cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $12.72, but acceptable to hold if already in. Reasons: Concentration risk — Counterparty: Marriott, Hilton and Hyatt (89.3%); Analyst target reached - limited upside remaining. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Analyst target $10.53 reached (−17.2%), stop $12.06 (−5.5%), A.R:R -1.3:1. Score 5.1/10, high confidence.
Analyst target $10.53 reached (−17.2% from $12.72); no take-profit level is published. Analyst target $10.53 reached (−17.2%), stop $12.06 (−5.5%), A.R:R -1.3:1. Stop-loss: $12.06.
Concentration risk — Counterparty: Marriott, Hilton and Hyatt (89.3%); Analyst target reached - limited upside remaining; Near 52-week high (1.7% away).
RLJ Lodging Trust trades at a P/E of N/A (forward 1060.0). TrendMatrix value score: 4.8/10. Verdict: Hold.
19 analysts rate RLJ, with a consensus score of 2.7/5. 10 analysts publish price targets averaging $12.
What does RLJ Lodging Trust do?RLJ Lodging Trust is a self-advised REIT that owns 93 premium-branded, focused-service and compact full-service hotels...
RLJ Lodging Trust is a self-advised REIT that owns 93 premium-branded, focused-service and compact full-service hotels with about 20,800 rooms across 23 states and Washington, D.C., with roughly 89.3% of its portfolio operating under Marriott, Hilton, or Hyatt brands. The company earns rental income by leasing its hotels to taxable REIT subsidiaries, which engage independent managers - primarily Aimbridge Hospitality and Hilton - to run day-to-day hotel operations, and distributes at least 90% of REIT taxable income to shareholders.