FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
RLJ Lodging Trust (NYSE:RLJ)'s stock has faced significant headwinds, touching a 52-week low of $6.49. According to InvestingPro analysis, technical indicators suggest the stock is in oversold territory, while offering an attractive 8.81% dividend yield. The real estate investment trust, specializing in hotel properties, has seen its shares tumble amidst a challenging market environment, reflecting broader industry trends and economic factors that have weighed heavily on the hospitality sector. Over the past year, RLJ's stock has experienced a steep decline, with a 1-year total return of -38.03%. Despite the challenging environment, InvestingPro data reveals management's confidence through aggressive share buybacks, and the company has maintained dividend payments for 15 consecutive years. This downturn highlights the volatility and the pressures faced by lodging trusts in the current economic landscape, as investors and analysts closely monitor the company's performance and the potential for recovery. InvestingPro analysis suggests the stock may be undervalued at current levels, with 12 additional exclusive insights available to subscribers.
In other recent news, RLJ Lodging Trust reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of -$0.01, compared to the forecasted -$0.04. The company also reported revenue of $330 million, surpassing the anticipated $323.92 million. RLJ Lodging Trust continues to demonstrate strong liquidity with over $900 million, and its urban markets showed a notable 3.7% growth in revenue per available room (RevPAR). The company projects RevPAR growth of 1-3% for 2025, with comparable hotel EBITDA expected to be between $378 million and $408 million. In other developments, RLJ Lodging Trust's Executive Vice President and Chief Financial Officer, Sean M. Mahoney, announced his retirement in May 2025 after seven years with the company. The company is actively searching for his successor and will announce the appointment when finalized. Additionally, RLJ Lodging Trust continues to focus on conversions and acquisitions, completing three conversions in 2024 and advancing others in its pipeline. The firm maintains a positive outlook, with CEO Leslie Hale expressing confidence in achieving positive RevPAR growth each quarter of 2025.
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