RLJ Lodging Trust : ALIS Conference Update

ALIS

CONFERENCE

UPDATE

JANUARY 2023

RLJ | NEAR-TERM CATALYSTS

RLJ is well-positioned in the near-term, with multiple channels to drive growth

HYATT CENTRIC ATLANTA

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INVESTMENT HIGHLIGHTS

RLJ's reshaped portfolio is well-positioned to capitalize on unique internal and external growth opportunities to drive significant EBITDA expansion

URBAN MARKET	Urban markets are driving the current leg of lodging recovery
GROWTH	 Urban markets represent over 2/3rds of EBITDA(1)
	Recently relaunched two transformative conversions in Q4 2022
INTERNAL
 The Mills House and Zachari Dunes joined Hilton's Curio collection. Santa Monica to launch in Q1 2023
GROWTH
CATALYSTS	 Unlocking embedded catalysts to generate $23M to $28M of incremental Hotel EBITDA
	Acquired four high-quality, young assets in top growth markets since 2021
GROWTH
CAPITAL	 Aggregate 2022 Hotel EBITDA exceeded RLJ's underwriting
DEPLOYMENT
	$1.1B of liquidity to drive growth initiatives and capital return
STRONG
 Quarterly dividend to $0.05 / share and repurchased $57.6M of stock in 2022
BALANCE
SHEET	 Well laddered debt maturities
	 99% of debt fixed / hedged

	RLJ owns a high-quality portfolio with an attractive growth profile
HIGH-QUALITY	 Transactions since 2019 have increased RevPAR by 9%, Hotel EBITDA per Key by 12% and Hotel
PORTFOLIO	EBITDA margins by 60 bps(1)

1. • Lean operating model and efficient footprint with fewer FTEs than full-service properties
2. Based on FY 2019 EBITDA pro forma for the portfolio owned as of December 31, 2022; excludes Chateau LeMoyne which is unconsolidated

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RLJ | TANGIBLE EBITDA GROWTH DRIVERS

Accretive capital recycling, unlocking of embedded value creation opportunities and lean operating model position RLJ to exceed 2019 Hotel EBITDA

$40M OF TANGIBLE INCREMENTAL EBITDA

From Complete / In-progress External + Internal Growth Initiatives

$504M

$444M

$410M

Pro Forma

Adj

EBITDA(1)

$14M

$10M$7M

$9M

$484M $20M

$450M

Pro Forma

Adj

EBITDA(1)

$470M

Pro Forma

Adj

EBITDA(1)

2 0 1 9 P R O F O R M A

H O T E L E B I T D A

2 0 2 2	R E V E N U E	M A R G I N	I N C R E M E N T A L
C O N V E R S I O N S	E N H A N C E M E N T	E X P A N S I O N	E B I T D A F R O M
	I N I T I A T I V E S	I N I T I A T I V E S	2 0 2 1 & 2 0 2 2
			A C Q U I S I T I O N S

INTERNAL GROWTH	EXTERNAL
$23M - 28M OF HOTEL EBITDA	GROWTH

2 0 1 9 P R O F O R M A

H O T E L E B I T D A

( W / I N I T I A T I V E S )

I N C R E M E N T A L	2 0 1 9 P R O F O R M A
P O S T - C O V I D	H O T E L E B I T D A
S Y N E R G I E S	( W / S Y N E R G I E S )
( 1 0 0 - 2 0 0 B P S )

POST-COVID

SYNERGIES

(1) 2019 pro forma Hotel and Adj. EBITDA reflect assets sold in 2019, 2020, 2021, and 2022; pro forma Adj. EBITDA excludes Cash General & Administrative expenses

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WEEKLY

UPDATE

AC HOTEL BOSTON DOWNTOWN

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