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RLJ Lodging Trust Reports First Quarter 2012 Results

RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the three months ended March 31, 2012.

First Quarter Highlights
  • Pro forma RevPAR increased 3.8%, ADR increased 4.9% and occupancy decreased 1.1%
  • Excluding renovation disruption, Pro forma RevPAR is estimated to have increased an additional 522 basis points to 9.0%
  • Pro forma Consolidated Hotel EBITDA increased 8.3% to $54.8 million
  • Adjusted FFO increased 42.8% to $28.5 million
  • Declared a quarterly cash dividend of $0.165, a 10.0% increase to prior quarter

“Our solid performance during the first quarter reflects how our strategically located portfolio and aggressive asset management program have positioned RLJ to benefit from the ongoing lodging recovery,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “Additionally, we continue to take steps to further promote long term growth and value creation through a number of capital projects, including the current renovation of our largest asset, the Doubletree by Hilton Metropolitan located in Manhattan.”

Financial and Operating Results

This press release presents 2011 data that combines the financial and operating results of the Company’s predecessor entities prior to the consummation of the Company’s initial public offering (“IPO”) on May 16, 2011, and the results of the Company post-IPO. Pro forma RevPAR, Pro forma Hotel EBITDA, and Pro forma Hotel EBITDA Margin exclude non-comparable hotels that were not open for operation or closed for renovations for comparable periods. The prefix “pro forma,” as defined by the Company, denotes operating results which include results for periods prior to its ownership. An explanation of EBITDA, Adjusted EBITDA, Hotel EBITDA, FFO, and Adjusted FFO, as well as reconciliations of those measures to net income or loss, if applicable, is included at the end of this release.

Pro forma rooms revenue per available room (“RevPAR”) for the three months ended March 31, 2012, increased 3.8% over the comparable period in 2011, driven by an average daily rate (“ADR”) increase of 4.9% and slightly offset by an occupancy decrease of 1.1%. Adjusting for disruption caused by the recent capital investments, the Company estimates that RevPAR growth would have increased by an additional 522 basis points to 9.0%.

Pro forma Hotel EBITDA for the three months ended March 31, 2012, increased $1.5 million to $53.0 million, representing a 3.0% increase over the comparable period in 2011.

Pro forma Hotel EBITDA Margin for the three months ended March 31, 2012, decreased 37 basis points over the comparable period in 2011 to 29.7%. Adjusting for disruption caused by the recent capital investments, the Company estimates that Pro forma Hotel EBITDA Margin would have increased by an additional 153 basis points to 31.2%.

Pro forma Consolidated Hotel EBITDA, which includes the results of non-comparable hotels, increased $4.2 million to $54.8 million, representing an 8.3% increase.

Adjusted EBITDA for the three months ended March 31, 2012, increased $3.1 million to $49.1 million, representing a 6.6% increase over the comparable period in 2011.

Adjusted FFO for the three months ended March 31, 2012, increased $8.5 million to $28.5 million, representing a 42.8% increase over the comparable period in 2011. Adjusted FFO per diluted share and unit for the three months ended March 31, 2012, was $0.27.

Non-recurring expenses were not incurred for the three months ended March 31, 2012. For the comparable period in 2011, non-recurring expenses included $0.8 million related to the predecessor entities. These expenses are included in net income, EBITDA and FFO, but have been excluded from Adjusted EBITDA and Adjusted FFO.

Net loss attributable to common shareholders for the three months ended March 31, 2012, was $6.5 million, compared to a net loss attributable to common shareholders of $16.1 million in the comparable period in 2011.

Net cash flow from operating activities for the three months ended March 31, 2012, totaled $10.5 million compared to $15.4 million for the three months ended March 31, 2011.

Capital Expenditures

In 2012, the Company authorized approximately $95.0 million of renovation projects to upgrade and/or reposition 45 hotels. Once executed, the Company’s comprehensive two-year capital program will be substantially complete.

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