RLJ Lodging Trust : Capital One Presentation – January 2022

CAPITAL ONE

CONFERENCE

PORTFOLIO UPDATE

JANUARY 2022

INVESTMENT HIGHLIGHTS

RLJ's portfolio construct, embedded growth catalysts and capital recycling initiatives uniquely position the Company to drive outperformance throughout the cycle

OPERATING	▪	Continued strong operating performance
PERFORMANCE		-	Poised to benefit from the next leg of recovery when Business Travel and Group strengthen
	▪	RLJ's reshaped portfolio has an enhanced growth profile
HIGH-QUALITY
PORTFOLIO		-	Lean operating model and footprint is ideally suited to benefit throughout this cycle

• Accretive capital recycling by match funding acquisitions

CAPITAL	-	Match funded ~$200M of 2021 acquisitions with disposition proceeds sold at >15x EBITDA multiple
-	Acquired 170-room Moxy Denver Cherry Creek for $51M
RECYCLING

• Sold DoubleTree Metropolitan at 47x 2019 EBITDA, lowering NYC contribution to below 3.5%
• Entered 2022 with significant investment capacity

UNLOCKING	▪ Executing Conversions, Revenue Enhancements and Margin Expansion initiatives -
INTERNAL	expected to realize $23M - $28M of incremental EBITDA
GROWTH	- Positioned to generate "above-cycle" growth
CATALYSTS

• Over $1.0B of liquidity, significant flexibility and a well-laddered debt maturity

STRONG	profile
BALANCE	-	2021initiatives extended weighted average maturity to 4.5 years and reduced interest rate by 50 bps
SHEET
-	Balance sheet positioned to support growth initiatives

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2021 | WEEKLY OCCUPANCY TRENDS

Lodging fundamentals have continued to close the gap to 2019

Total Portfolio Weekly Occupancy and as % of 2019(1)

75%									120%
		Total Portfolio		Total Portfolio as % of 2019
70%		Labor Day	Thanksgiving		101%		100%
65%									80%
					Christmas
60%							60%	60%
55%									40%
50%									20%
45%
40%									0%
Jul. 3 Jul. 10 Jul. 17 Jul. 24 Jul. 31 Aug. 7 Aug. 14 Aug. 21 Aug. 28 Sep 4. Sep. 11 Sep. 18 Sep. 25 Oct. 2	Oct. 9 Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11 Dec. 18 Dec. 25 Jan. 1

(1) Total Portfolio as of January 1, 2022; excludes the Chateau LeMoyne-French Quarter New Orleans which is unconsolidated

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Q4 2021 | OPERATING UPDATE

Positive momentum in fundamentals continued through the fourth quarter

Sequential improvement in operating trends each month during Q4

• October, November and December Occupancy at 79%, 83% and 87% respectively, of 2019 levels
• October, November and December ADR at 87%, 89% and 98% respectively, of 2019 levels

Leisure trends remained strong, following normal seasonality

• Leisure benefited from continuing flexibility and hybrid work environment

Business travel trends continued to improve and lowered gap to 2019

• Weekday trends continued to show improvement throughout Q4 demonstrating increased demand from business travelers

Group continued to benefit from small, social group bookings

• RLJ's product type is attractive to groups that are continuing to travel

Minimal impact from Omicron during Q4

• Continuing to monitor impact in Q1 2022

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CAPITAL RECYCLING ENHANCING GROWTH PROFILE

During 2021, RLJ accretively recycled ~$200M of capital into high quality acquisitions

Mature assets, in slower-growth markets,

with high capital needs

$144 ~$200M

RevPAR

~$7K	>15x
EBITDA / Key
EBITDA multiple accretion

12%

EBITDA margin

Younger, high-margin assets, in high-growth markets with no near-term capital needs

$175 - $200

RevPAR

~$30K

EBITDA / Key

40%

EBITDA margin

RLJ accretively match funded 2021 acquisitions

Note: Dispositions include eight assets sold since Q4 2020; Acquisitions include three assets acquired since Q3 2021

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