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RLJ Lodging Trust (NYSE:RLJ)’s stock has faced significant headwinds in the market, touching a 52-week low of $8.45. This latest price level reflects a stark contrast to the company’s performance over the past year, with RLJ experiencing a 1-year change of -28.11%. According to InvestingPro analysis, the stock appears undervalued at current levels, with management actively buying back shares. The decline signals investor concerns and a challenging period for the real estate investment trust, which specializes in acquiring premium-branded, focused-service, and compact full-service hotels. Despite the challenges, the company maintains strong fundamentals with a current ratio of 1.24 and has maintained dividend payments for 15 consecutive years. As the industry navigates through a complex economic landscape, RLJ Lodging Trust’s recent low serves as a critical point of observation for shareholders and potential investors. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of RLJ’s market position.
In other recent news, RLJ Lodging Trust reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of -$0.01, better than the anticipated -$0.04. The company also reported revenue of $330 million, exceeding the forecasted $323.92 million. RLJ Lodging Trust’s strong performance was reflected in its revenue growth, which saw a 3% increase, highlighting the efficiency of recent hotel conversions and acquisitions. Additionally, the company maintains significant liquidity with over $900 million, providing a robust financial position.
In other developments, RLJ Lodging Trust announced the upcoming retirement of its Chief Financial Officer, Sean M. Mahoney, in May 2025. Mahoney’s departure marks the end of a seven-year tenure during which he contributed significantly to the company’s transformation and financial success. The company is in the process of selecting his successor and will announce the appointment in due course. The management also provided guidance for 2025, projecting RevPAR growth of 1-3% and corporate adjusted EBITDA between $345 million and $375 million.
Analysts from firms like Baird and Oppenheimer have shown interest in RLJ’s capital allocation strategies and the potential for continued strong performance in urban markets. The company continues to focus on its urban-centric portfolio, which represents two-thirds of its assets, and expects positive RevPAR growth in each quarter of 2025. Additionally, RLJ Lodging Trust’s strategic focus on hotel conversions and acquisitions has been a key driver of its recent financial success.
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