RLJ delivered Q4 occupancy of 68.7%, ADR of $199 and RevPAR of $137, reflecting a 1.5% year-over-year RevPAR decline. Urban markets led performance with San Francisco up 52% RevPAR, Northern California +18.5%, Denver +10.1% and New York +4.7%, while an extended government shutdown pressured October and November results and December faced tough comparisons.

Non-room revenue rose 7.2%, outpacing RevPAR by nearly 900 basis points and supporting a 0.2% total revenue gain. Corporate transient grew 5%, group revenue fell 3% and leisure was up 1%. Operating costs increased 0.8% in Q4 (1.6% full year, 2.1% excluding $4.7 million tax benefits), aided by favorable insurance renewals and real estate tax appeals.

Seven conversions have been completed with two more underway, delivering an average RevPAR uplift of nearly 700 basis points and 15% growth on the most recent projects. High-occupancy renovations in Waikiki and Deerfield Beach drove over 10% RevPAR gains in December. The trust sold three properties for $73.7 million at a 17.7x projected 2025 EBITDA multiple, with plans to recycle proceeds into higher-return assets.

After year-end refinancing, RLJ extended its $600 million revolver to 2031, upsized and added $375 million of term loans and pushed out maturities to 2029. The trust holds over $1 billion liquidity, $600 million undrawn revolver capacity, 84 of 92 hotels unencumbered and a weighted average interest rate of 4.6%. Shareholder returns totaled $120 million, and 2026 guidance calls for 0.5%–3% comparable RevPAR growth and $1.21–$1.41 adjusted FFO.