RLJ Lodging Trust [RLJ] Filings

10-Q 1 rlj-20230630.htm 10-Q rlj-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-35169

RLJ LODGING TRUST

(Exact Name of Registrant as Specified in Its Charter)


Maryland						27-4706509
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


3 Bethesda Metro Center, Suite 1000
Bethesda,	Maryland	20814
(Address of Principal Executive Offices)		(Zip Code)

(301) 280-7777

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of Each Class

Trading Symbol

Name of Exchange on Which Registered

Common Shares of beneficial interest, par value $0.01 per share

RLJ

New York Stock Exchange

$1.95 Series A Cumulative Convertible Preferred Shares, par value $0.01 per share

RLJ-A

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of July 28, 2023, 157,479,587 common shares of beneficial interest of the Registrant, $0.01 par value per share, were outstanding.

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		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Financial Statements (unaudited)
	Balance Sheets as of June 3 0 , 2023 and December 31, 2022	1
	Statements of Operations and Comprehensive Income for the three and six months ended June 3 0 , 2023 and 2022	2
	Statements of Changes in Equity for the three and six months ended June 3 0 , 2023 and 2022	4
	Statements of Cash Flows for the six months ended June 3 0 , 2023 and 2022	8
	Notes to the Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	37

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	39

Signatures		40

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

RLJ Lodging Trust

Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

(unaudited)


	June 30, 2023		December 31, 2022
Assets
Investment in hotel properties, net	$	4,150,176	$	4,180,328
Investment in unconsolidated joint ventures	7,480		6,979
Cash and cash equivalents	476,936		481,316
Restricted cash reserves	34,396		55,070
Hotel and other receivables, net of allowance of $291 and $319, respectively	41,748		38,528
Lease right-of-use assets	139,163		136,915


Prepaid expense and other assets	82,601		79,089

Total assets	$	4,932,500	$	4,978,225
Liabilities and Equity
Debt, net	$	2,218,737	$	2,217,555
Accounts payable and other liabilities	126,901		155,916

Advance deposits and deferred revenue	25,042		23,769
Lease liabilities	120,376		117,010
Accrued interest	22,067		20,707
Distributions payable	19,292		14,622
Total liabilities	2,532,415		2,549,579
Commitments and Contingencies (Note 10)
Equity
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized
Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at June 30, 2023 and December 31, 2022	366,936		366,936
Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 157,686,191 and 162,003,533 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	1,577		1,620
Additional paid-in capital	3,011,350		3,054,958
Distributions in excess of net earnings	(1,035,566)		(1,049,441)
Accumulated other comprehensive income	41,733		40,591
Total shareholders’ equity	2,386,030		2,414,664
Noncontrolling interests:
Noncontrolling interest in the Operating Partnership	6,380		6,313
Noncontrolling interest in consolidated joint ventures	7,675		7,669
Total noncontrolling interests	14,055		13,982

Total equity	2,400,085		2,428,646
Total liabilities and equity	$	4,932,500	$	4,978,225

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Consolidated Statements of Operations and Comprehensive Income

(Amounts in thousands, except share and per share data)

(unaudited)


	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Revenues
Operating revenues
Room revenue	$	295,496	$	280,676	$	556,328	$	486,455
Food and beverage revenue	38,132		31,154		71,420		52,055
Other revenue	23,332		18,671		43,715		34,890
Total revenues	356,960		330,501		671,463		573,400
Expenses
Operating expenses
Room expense	70,333		65,793		136,384		119,621
Food and beverage expense	28,037		21,770		54,174		37,939
Management and franchise fee expense	29,277		26,067		55,459		46,456
Other operating expenses	84,207		76,888		166,831		145,542
Total property operating expenses	211,854		190,518		412,848		349,558
Depreciation and amortization	44,925		46,922		89,921		93,787

Property tax, insurance and other	24,684		22,949		49,332		45,462
General and administrative	14,627		13,348		28,283		27,482
Transaction costs	4		136		24		198
Total operating expenses	296,094		273,873		580,408		516,487
Other income, net	736		721		1,585		8,006
Interest income	5,011		347		8,675		519
Interest expense	(24,543)		(23,855)		(48,673)		(48,416)
(Loss) gain on sale of hotel properties, net	(44)		(364)		(44)		1,053
Loss on extinguishment of indebtedness, net	(169)		—		(169)		—
Income before equity in income from unconsolidated joint ventures	41,857		33,477		52,429		18,075
Equity in income from unconsolidated joint ventures	220		283		501		405
Income before income tax expense	42,077		33,760		52,930		18,480
Income tax expense	(357)		(558)		(696)		(748)
Net income	41,720		33,202		52,234		17,732
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interest in the Operating Partnership	(171)		(125)		(188)		(21)
Noncontrolling interest in consolidated joint ventures	(154)		(111)		(6)		7


Net income attributable to RLJ	41,395		32,966		52,040		17,718
Preferred dividends	(6,279)		(6,279)		(12,557)		(12,557)
Net income attributable to common shareholders	$	35,116	$	26,687	$	39,483	$	5,161

Basic per common share data:
Net income per share attributable to common shareholders	$	0.22	$	0.16	$	0.25	$	0.03
Weighted-average number of common shares	156,424,444		163,539,446		157,945,406		163,857,785

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Diluted per common share data:
Net income per share attributable to common shareholders	$	0.22	$	0.16	$	0.25	$	0.03
Weighted-average number of common shares	156,741,187		163,784,573		158,381,380		164,217,150



Comprehensive income:
Net income	$	41,720	$	33,202	$	52,234	$	17,732
Unrealized gain on interest rate derivatives	7,558		13,380		1,142		47,573
Reclassification of unrealized gains on discontinued cash flow hedges to other income, net	—		—		—		(5,866)
Comprehensive income	49,278		46,582		53,376		59,439
Comprehensive (income) loss attributable to noncontrolling interests:
Noncontrolling interest in the Operating Partnership	(171)		(125)		(188)		(21)
Noncontrolling interest in consolidated joint ventures	(154)		(111)		(6)		7


Comprehensive income attributable to RLJ	$	48,953	$	46,346	$	53,182	$	59,425

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Consolidated Statements of Changes in Equity

(Amounts in thousands, except share data)

(unaudited)


	Shareholders’ Equity												Noncontrolling Interest
	Preferred Stock			Common Stock
	Shares	Amount		Shares	Par Value		Additional Paid-in Capital		Distributions in excess of net earnings		Accumulated Other Comprehensive Income		Operating Partnership		Consolidated Joint Ventures		Total Equity
Balance at December 31, 2022	12,879,475	$	366,936	162,003,533	$	1,620	$	3,054,958	$	(1,049,441)	$	40,591	$	6,313	$	7,669	$	2,428,646
Net income	—	—		—	—		—		52,040		—		188		6		52,234
Unrealized gain on interest rate derivatives	—	—		—	—		—		—		1,142		—		—		1,142









Issuance of restricted stock	—	—		1,190,961	12		(12)		—		—		—		—		—
Amortization of share-based compensation	—	—		—	—		12,728		—		—		—		—		12,728

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	—	—		(407,205)	(4)		(4,394)		—		—		—		—		(4,398)
Shares acquired as part of a share repurchase program	—	—		(5,082,968)	(51)		(51,930)		—		—		—		—		(51,981)
Forfeiture of restricted stock	—	—		(18,130)	—		—		—		—		—		—		—
Distributions on preferred shares	—	—		—	—		—		(12,557)		—		—		—		(12,557)
Distributions on common shares and units	—	—		—	—		—		(25,608)		—		(121)		—		(25,729)


Balance at June 30, 2023	12,879,475	$	366,936	157,686,191	$	1,577	$	3,011,350	$	(1,035,566)	$	41,733	$	6,380	$	7,675	$	2,400,085

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Consolidated Statements of Changes in Equity

(Amounts in thousands, except share data)

(unaudited)


	Shareholders’ Equity												Noncontrolling Interest
	Preferred Stock			Common Stock
	Shares	Amount		Shares	Par Value		Additional Paid-in Capital		Distributions in excess of net earnings		Accumulated Other Comprehensive Income		Operating Partnership		Consolidated Joint Ventures		Total Equity
Balance at March 31, 2023	12,879,475	$	366,936	160,077,784	$	1,601	$	3,034,682	$	(1,057,939)	$	34,175	$	6,264	$	7,521	$	2,393,240
Net income	—	—		—	—		—		41,395		—		171		154		41,720
Unrealized gain on interest rate derivatives	—	—		—	—		—		—		7,558		—		—		7,558







Issuance of restricted stock	—	—		550,554	6		(6)		—		—		—		—		—
Amortization of share-based compensation	—	—		—	—		6,597		—		—		—		—		6,597

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	—	—		(244,456)	(3)		(2,506)		—		—		—		—		(2,509)
Shares acquired as part of a share repurchase program	—	—		(2,681,115)	(27)		(27,417)		—		—		—		—		(27,444)
Forfeiture of restricted stock	—	—		(16,576)	—		—		—		—		—		—		—


Distributions on preferred shares	—	—		—	—		—		(6,279)		—		—		—		(6,279)
Distributions on common shares and units	—	—		—	—		—		(12,743)		—		(55)		—		(12,798)


Balance at June 30, 2023	12,879,475	$	366,936	157,686,191	$	1,577	$	3,011,350	$	(1,035,566)	$	41,733	$	6,380	$	7,675	$	2,400,085

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Consolidated Statements of Changes in Equity

(Amounts in thousands, except share data)

(unaudited)


	Shareholders’ Equity												Noncontrolling Interest
	Preferred Stock			Common Stock
	Shares	Amount		Shares	Par Value		Additional Paid-in Capital		Distributions in excess of net earnings		Accumulated Other Comprehensive (Loss) Income		Operating Partnership		Consolidated Joint Ventures		Total Equity
Balance at December 31, 2021	12,879,475	$	366,936	166,503,062	$	1,665	$	3,092,883	$	(1,046,739)	$	(17,113)	$	6,316	$	9,919	$	2,413,867
Net income (loss)	—	—		—	—		—		17,718		—		21		(7)		17,732
Unrealized gain on interest rate derivatives	—	—		—	—		—		—		47,573		—		—		47,573
Reclassification of unrealized gains on discontinued cash flow hedges to other income, net	—	—		—	—		—		—		(5,866)		—		—		(5,866)







Contributions from consolidated joint venture partners	—	—		—	—		—		—		—		—		156		156
Distribution to consolidated joint venture partners				—	—		—		—		—		—		(2,600)		(2,600)

Issuance of restricted stock	—	—		702,993	7		(7)		—		—		—		—		—
Amortization of share-based compensation	—	—		—	—		11,462		—		—		—		—		11,462

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	—	—		(260,187)	(3)		(3,586)		—		—		—		—		(3,589)
Shares acquired as part of a share repurchase program	—	—		(3,957,983)	(39)		(47,407)		—		—		—		—		(47,446)
Forfeiture of restricted stock	—	—		(6,065)	—		—		—		—		—		—		—
Distributions on preferred shares	—	—		—	—		—		(12,557)		—		—		—		(12,557)
Distributions on common shares and units	—	—		—	—		—		(3,148)		—		(12)		—		(3,160)


Balance at June 30, 2022	12,879,475	$	366,936	162,981,820	$	1,630	$	3,053,345	$	(1,044,726)	$	24,594	$	6,325	$	7,468	$	2,415,572

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Consolidated Statements of Changes in Equity

(Amounts in thousands, except share data)

(unaudited)


	Shareholders’ Equity												Noncontrolling Interest
	Preferred Stock			Common Stock
	Shares	Amount		Shares	Par Value		Additional Paid-in Capital		Distributions in excess of net earnings		Accumulated Other Comprehensive Income		Operating Partnership		Consolidated Joint Ventures		Total Equity
Balance at March 31, 2022	12,879,475	$	366,936	166,843,586	$	1,668	$	3,097,166	$	(1,069,769)	$	11,214	$	6,209	$	7,368	$	2,420,792
Net income	—	—		—	—		—		32,966		—		125		111		33,202
Unrealized gain on interest rate derivatives	—	—		—	—		—		—		13,380		—		—		13,380






Distribution to consolidated joint venture partners	—	—		—	—		—		—		—		—		(11)		(11)


Issuance of restricted stock	—	—		270,214	3		(3)		—		—		—		—		—
Amortization of share-based compensation	—	—		—	—		5,907		—		—		—		—		5,907

Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock	—	—		(172,561)	(2)		(2,318)		—		—		—		—		(2,320)
Shares acquired as part of a share repurchase program	—	—		(3,957,983)	(39)		(47,407)		—		—		—		—		(47,446)
Forfeiture of restricted stock	—	—		(1,436)	—		—		—		—		—		—		—
Distributions on preferred shares	—	—		—	—		—		(6,279)		—		—		—		(6,279)
Distributions on common shares and units	—	—		—	—		—		(1,644)		—		(9)		—		(1,653)

Balance at June 30, 2022	12,879,475	$	366,936	162,981,820	$	1,630	$	3,053,345	$	(1,044,726)	$	24,594	$	6,325	$	7,468	$	2,415,572

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Consolidated Statements of Cash Flows

(Amounts in thousands)

(unaudited)


	For the six months ended June 30,
	2023		2022
Cash flows from operating activities
Net income	$	52,234	$	17,732
Adjustments to reconcile net income to cash flow provided by operating activities:
Loss (gain) on sale of hotel properties, net	44		(1,053)
Loss on extinguishment of indebtedness, net	169		—

Depreciation and amortization	89,921		93,787
Amortization of deferred financing costs	2,965		3,101
Other amortization	2,172		1,136
Reclassification of unrealized gains on discontinued cash flow hedges to other income, net	—		(5,866)

Equity in income from unconsolidated joint ventures	(501)		(405)




Amortization of share-based compensation	11,781		10,654

Changes in assets and liabilities:
Hotel and other receivables, net	(3,220)		(10,018)
Prepaid expense and other assets	1,080		1,450
Accounts payable and other liabilities	(22,163)		7,680
Advance deposits and deferred revenue	1,273		(1,401)
Accrued interest	1,360		(493)
Net cash flow provided by operating activities	137,115		116,304
Cash flows from investing activities

Proceeds from sales of hotel properties, net	(44)		48,073
Improvements and additions to hotel properties	(65,771)		(51,406)
Purchase deposit	—		(1,500)





Net cash flow used in investing activities	(65,815)		(4,833)
Cash flows from financing activities

Repayment of Revolver	—		(200,000)

Borrowings on Term Loans	320,000		—



Repayments of Term Loans	(318,662)		—

Repurchase of common shares under a share repurchase program	(51,981)		(47,446)
Repurchase of common shares to satisfy employee tax withholding requirements	(4,398)		(3,589)
Distributions on preferred shares	(12,557)		(12,557)
Distributions on common shares	(20,962)		(3,522)
Distributions on Operating Partnership units	(95)		(10)

Payments of deferred financing costs	(7,699)		(10)


Contributions from consolidated joint venture partners	—		156
Distribution to consolidated joint venture partners	—		(2,600)
Net cash flow used in financing activities	(96,354)		(269,578)
Net change in cash, cash equivalents, and restricted cash reserves	(25,054)		(158,107)
Cash, cash equivalents, and restricted cash reserves, beginning of year	536,386		713,869
Cash, cash equivalents, and restricted cash reserves, end of period	$	511,332	$	555,762

The accompanying notes are an integral part of these consolidated financial statements.

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RLJ Lodging Trust

Notes to the Consolidated Financial Statements

(unaudited)

1. General

Organization

RLJ Lodging Trust (the "Company") was formed as a Maryland real estate investment trust ("REIT") on January 31, 2011. The Company is a self-advised and self-administered REIT that owns primarily premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels located within heart of demand locations. The Company elected to be taxed as a REIT, for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2011.

Substantially all of the Company’s assets and liabilities are held by, and all of its operations are conducted through, RLJ Lodging Trust, L.P. (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. As of June 30, 2023, there were 158,458,022 units of limited partnership interest in the Operating Partnership ("OP units") outstanding and the Company owned, through a combination of direct and indirect interests, 99.5% of the outstanding OP units.

As of June 30, 2023, the Company owned 97 hotel properties with approximately 21,400 rooms, located in 23 states and the District of Columbia. The Company, through wholly-owned subsidiaries, owned a 100% interest in 95 of its hotel properties, a 95% controlling interest in one hotel property, and a 50% non-controlling interest in an entity owning one hotel property. The Company consolidates its real estate interests in the 96 hotel properties in which it holds a controlling interest, and the Company records the real estate interest in the one hotel property in which it holds an indirect 50% non-controlling interest using the equity method of accounting. The Company leases 96 of the 97 hotel properties to its taxable REIT subsidiaries ("TRSs"), of which the Company owns a controlling financial interest.

2. Summary of Significant Accounting Policies

The Company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission ("SEC") on February 28, 2023 (the "Annual Report"), contains a discussion of the Company's significant accounting policies. Other than noted below, there have been no significant changes to the Company's significant accounting policies since December 31, 2022.

Basis of Presentation and Principles of Consolidation

The unaudited consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in conformity with the rules and regulations of the SEC applicable to financial information. The unaudited financial statements include all adjustments of a normal recurring nature that are necessary, in the opinion of management, to fairly state the consolidated balance sheets, statements of operations and comprehensive income, statements of changes in equity and statements of cash flows.

The unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2022, included in the Annual Report.

The consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries, and joint ventures in which the Company has a majority voting interest and control. For the controlled subsidiaries that are not wholly-owned, the third-party ownership interest represents a noncontrolling interest, which is presented separately in the consolidated financial statements. The Company also records the real estate interest in one hotel property in which it holds a 50% non-controlling interest using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain prior year amounts in these financial statements have been reclassified to conform to the current year presentation with no impact to net income and comprehensive income, shareholders’ equity or cash flows.

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Use of Estimates

The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The guidance provides optional expedients for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate that was expected to be discontinued at the end of 2021 because of reference rate reform. The guidance was effective upon issuance and expired on December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the expiration date of Topic 848 to December 31, 2024.

The Company elected to apply certain of the optional expedients for contract modifications to its financial instruments impacted by the discontinuance of LIBOR. The Company has completed its modifications to these financial instruments affected by reference rate reform. The application of this guidance did not have a material impact on the Company's consolidated financial statements.

3. Investment in Hotel Properties

Investment in hotel properties consisted of the following (in thousands):


	June 30, 2023		December 31, 2022
Land and improvements	$	995,095	$	992,609
Buildings and improvements	4,073,238		4,040,505
Furniture, fixtures and equipment	770,499		745,978
	5,838,832		5,779,092
Accumulated depreciation	(1,688,656)		(1,598,764)
Investment in hotel properties, net	$	4,150,176	$	4,180,328

For the three and six months ended June 30, 2023, the Company recognized depreciation expense related to its investment in hotel properties of approximately $44.9 million and $89.9 million, respectively. For the three and six months ended June 30, 2022, the Company recognized depreciation expense related to its investment in hotel properties of approximately $46.8 million and $93.5 million, respectively.

4. Sale of Hotel Properties

During the six months ended June 30, 2022, the Company sold the following hotel properties in two separate transactions

for a combined sales price of approximately $49.9 million.

Hotel Property Name

Location

Sale Date

Rooms

Marriott Denver Airport @ Gateway Park

Aurora, CO

March 8, 2022

238

SpringHill Suites Denver North Westminster

Westminster, CO

April 19, 2022

164

Total

402

The Company recorded a net gain of $1.1 million for the six months ended June 30, 2022 in connection with the sale of these hotel properties.

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5. Revenue

The Company recognized revenue from the following geographic markets (in thousands):


	For the three months ended June 30, 2023								For the three months ended June 30, 2022
	Room Revenue		Food and Beverage Revenue		Other Revenue		Total Revenue		Room Revenue		Food and Beverage Revenue		Other Revenue		Total Revenue
Northern California	$	35,447	$	3,561	$	2,030	$	41,038	$	36,589	$	2,773	$	1,698	$	41,060
Southern California	32,569		3,878		3,626		40,073		31,101		2,161		2,615		35,877
South Florida	27,515		5,484		2,410		35,409		29,537		4,953		2,270		36,760
New York City	17,600		2,834		908		21,342		16,134		2,855		701		19,690
Chicago	17,253		2,730		918		20,901		15,104		2,343		737		18,184
Washington, DC	17,923		514		708		19,145		15,171		364		661		16,196
Louisville	12,941		4,137		1,171		18,249		10,929		3,166		876		14,971
Charleston	11,173		2,256		1,238		14,667		8,452		1,435		396		10,283
Houston	12,300

RLJ Lodging Trust [RLJ] Filings

RLJ Lodging Trust [RLJ-PA] Filings