RLJ Lodging Trust Shows Strong Performance and Potential for Growth

Analysts at Wolfe Research have recently initiated coverage on several hotel real estate investment trusts (REITs), providing valuable insights into the industry. One of the top performers identified is RLJ Lodging Trust, based in Bethesda, Maryland.

RLJ Lodging Trust owns a portfolio of 96 premium-branded hotels across the United States. Despite the challenges of the COVID-19 pandemic, RLJ has managed to improve its occupancy rate, average daily rates, and revenue per available room.

With an Outperform rating from Wolfe Research and a price target of $15, RLJ Lodging Trust shows great promise for investors. The company has demonstrated its ability to weather the storm and bounce back stronger.

Diamondrock Hospitality, another Bethesda-based hotel REIT, owns 36 premium hotels in key gateway cities in the US. While its revenue has increased, its revenue per available room still lags behind the previous year. However, it has also received an Outperform rating from Wolfe Research, with a price target of $11, indicating potential for growth.

Summit Hotel Properties, headquartered in Austin, Texas, is a hotel REIT that owns 101 assets across 24 states. Although its third-quarter operating results exceeded expectations, its funds from operations were lower compared to the previous year. Wolfe Research gave Summit Hotel Properties a Peer Perform rating, suggesting moderate potential.

Xenia Hotels & Resorts, based in Orlando, Florida, operates luxury and upscale hotels across the United States. While it missed estimates for funds from operations and revenue in its last earnings report, Xenia has received varying ratings from analysts, including Peer Perform and Hold. Wolfe Research assigned Xenia a Peer Perform rating without specifying a price target.

Each of these hotel REITs has its own strengths and weaknesses. RLJ Lodging Trust and Diamondrock Hospitality have been rated Outperform, indicating higher growth potential. In comparison, Summit Hotel Properties and Xenia Hotels & Resorts have received Peer Perform ratings, suggesting moderate performance.

Investors should consider various factors, including price/FFO ratios, dividend yields, and payout ratios, when evaluating these REITs. RLJ Lodging Trust stands out with its solid financial strength and performance, making it an attractive choice among the four.

In conclusion, RLJ Lodging Trust has demonstrated strong performance and offers significant growth potential. Its positive outlook and lower price/FFO ratio make it an appealing investment option among the hotel REITs covered by Wolfe Research.

The source of the article is from the blog enp.gr