RLJ Lodging Trust (RLJ) is expected to see an improved but a mixed setup next year with positives including one-time incremental profits from special sporting events and negatives include continued macro demand choppiness in a K-shaped economy, Truist Securities said.
The brokerage said in a Friday note that it sees gains to RLJ Lodging Trust's earnings before interest, taxes, depreciation and amortization from renovations in Pittsburgh, Waikiki, South Florida, among others. The company also faces one-time benefits from events such as the World Cup, 250th US anniversary in the Northeast, and the Super Bowl in Silicon Valley.
Truist Securities said it assumes the continuation of choppy demand is the "most important" consideration for the company's portfolio, adding that the continued closure-redevelopment of the Austin Convention Center and challenges to government spending in DC may continue to weigh on portfolio upside.
The brokerage adjusted its 2025 adjusted EBITDA estimate to $327 million from $333 million and adjusted funds from operations per share estimate to $1.34 from $1.37.
Truist Securities maintained its hold rating on the company with a $8 price target.
Price: 7.67, Change: -0.05, Percent Change: -0.65
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