RLJ Lodging Trust : Citi's Global Property CEO Conference - March 2024

CITI'S GLOBAL PROPERTY CEO CONFERENCE

MARCH 2024

OPERATING PERFORMANCE | Q4 & FY 2023

RLJ's urban-centric portfolio yielded top-quartile performance throughout 2023

RLJ was a top performer among peers and outperformed the industry throughout 2023

• Q4 and 2023 RevPAR growth of 5.2% and 9.0% exceeded industry by 4x and 2x, respectively
• RLJ's RevPAR growth was consistently in the top-quartile of its peers throughout the year

Urban-centric portfolio benefitted from improvement in all segments of demand

• Robust group demand, improving Business and international inbound travel were key drivers during the year
• Urban leisure remained healthy, benefitting from large-scale events and hybrid work flexibility allowing for "Bleisure"
• Urban markets strength allowed portfolio RevPAR to be driven by balanced Occupancy and ADR growth

Portfolio benefitted from ramping conversions

• Exceeded our initial projections for our Phase I conversions, revenue enhancement and margin expansion initiatives
• • ROIs were a key driver of out-of-rooms revenues growing by +8.1% and +19.7% in Q4 and 2023, respectively

Lean operating model drove EBITDA growth

• Q4 and FY Hotel EBITDA increased 2.3% and 8.5%, respectively
• Continued to benefit from lean operating model with fewer FTEs

OPERATING PERFORMANCE | 2024 OUTLOOK

RLJ's urban-centric portfolio and multiple channels of growth well-positioned to continue to drive outperformance relative to the industry

Urban markets are expected to benefit from positive growth in all demand segments

• Group is expected to remain strong due to continued demand from small group and favorable citywides
• • RLJ group booking pace is +12%
• Expect further improvement in business transient and international travel demand
• Leisure should remain healthy, with urban leisure to benefit from special events

Performance will benefit from a favorable footprint

• Expect divergence in individual market performance to emerge given citywide calendars and event locations etc.
• • RLJ's urban markets such as Boston, Southern California and New York are expected to outperform in 2024

January 2024 RevPAR growth up 5.8%

• Occupancy and ADR growth of 4.3% and 1.5% respectively
• Q1 impacted by the timing of Easter and difficult comparisons to prior year growth rates

Full Year Outlook

• Anticipates a continuation of the current operating and macroeconomic environment
• • Comparable RevPAR Growth of 2.5% - 5.5%
  • Comparable Hotel EBITDA of $395.0M to $425.0M
  • Adjusted EBITDA of $360.0M to $390.0M and Adjusted FFO per diluted share between $1.55 and $1.75