RLJ Lodging Trust has announced its latest quarterly cash distributions for shareholders. The real estate investment trust declared a dividend of $0.15 per common share, scheduled for payment on January 15, 2026. Shareholders of record at the close of business on December 31, 2025, will be eligible for the payment. In a separate announcement, the board also approved a preferred dividend of $0.4875 per share for its Series A Preferred Stock, payable on January 30, 2026.
Market Performance and Trading Activity
Equity markets showed a muted response to the news. RLJ Lodging shares opened trading near $7.66. Throughout the morning session, the stock traded within a narrow band between $7.595 and $7.62. By 10:35 AM Eastern Standard Time, a slight decline of approximately 0.85% brought the price to $7.595. These minor fluctuations are considered typical daily volatility and do not appear to be a direct reaction to the dividend declaration. From a technical perspective, a level of support was observed around $7.59.
Financial Context and Distribution Sustainability
This capital return decision follows the company’s third-quarter earnings report, released on November 5. For Q3, RLJ Lodging posted adjusted funds from operations (FFO) of -$0.07 per share, matching consensus analyst estimates. Revenue came in at $330 million, slightly exceeding expectations of $325.57 million. The trust’s portfolio experienced a 5.1% year-over-year decline in Revenue Per Available Room (RevPAR). However, properties that have undergone renovation bucked this trend, posting a 6% increase in RevPAR.
Should investors sell immediately? Or is it worth buying RLJ Lodging?
The critical question for investors is whether the current dividend level is sustainable. Management’s full-year 2025 guidance projects a RevPAR decline in the range of 1.9% to 2.6%. The company anticipates Hotel EBITDA between $357.5 million and $365.5 million, with adjusted FFO per share forecasted at $1.31 to $1.37. Based on these projections, the declared payout appears compatible with the trust’s earnings and FFO outlook, though persistent pressure on RevPAR could challenge future free cash flow generation.
Analyst Sentiment and Forward Look
The prevailing view among market researchers remains neutral. The average 12-month price target from analysts, based on data from December 14, stands at approximately $8.694. This suggests a potential upside of roughly 13.5% from recent trading levels. Investor attention is now turning toward the release of the complete 2025 annual results and the fourth-quarter earnings presentation, expected in late February to early March 2026.
Key Dividend Details:
* Common Share Dividend: $0.15 per share, payable January 15, 2026
* Series A Preferred Dividend: $0.4875 per share, payable January 30, 2026
* Record Date: December 31, 2025
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