RLJ Lodging Q4 Non-Room Revenue Up 7.2%; San Francisco RevPAR Jumps 52%
RLJ Lodging Trust’s Q4 non-room revenue rose 7.2%, outpacing RevPAR by 900 basis points and driving 0.2% total revenue growth. Urban RevPAR surged 52% in San Francisco CBD, grew 18.5% in Northern California and 10.1% in Denver CBD despite a 1.5% RevPAR decline to $137 on 68.7% occupancy.
1. Q4 Financial Highlights
RLJ reported total revenues up 0.2% year over year, driven by non-room revenue rising 7.2%, nearly 900 basis points above RevPAR performance. Occupancy was 68.7%, ADR $199 and RevPAR $137, a 1.5% decline, with government demand hit by the shutdown and urban leisure outperformance boosting San Francisco RevPAR by 52%, Northern California by 18.5%, and Denver CBD by 10.1%.
2. Conversions and Renovations
The company completed its Nashville conversion and six others, with completed conversions delivering RevPAR growth nearly 700 basis points ahead of the broader portfolio. Two additional conversions are underway, including a relaunch of Renaissance Pittsburgh under Marriott’s Autograph Collection and transformation of Wyndham Boston Beacon Hill into Hilton’s Tapestry Collection, while high-occupancy hotel renovations in Waikiki and Deerfield Beach drove over 10% RevPAR growth in December.
3. Balance Sheet Actions and Guidance
RLJ secured four financing deals extending debt maturities through 2031, creating $500 million of new capacity to repay senior notes and leaving no maturities before 2029, with $1 billion liquidity and 84 of 92 hotels unencumbered. The company returned $120 million to shareholders in 2025 and guided 2026 comparable RevPAR growth of 0.5%–3% and adjusted FFO per share of $1.21–$1.41.