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SEC Filings

10-K
RLJ LODGING TRUST filed this Form 10-K on 03/01/2019
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As of December 31,
 
2018
 
2017
 
2016
 
2015
 
2014
 
(In thousands, except share and per share data)
Balance Sheet Data:
 
 
 
 
 
 
 
 
 
Investment in hotel properties, net
$
5,378,651

 
$
5,791,925

 
$
3,368,674

 
$
3,674,999

 
$
3,518,803

Cash and cash equivalents
$
320,147

 
$
586,470

 
$
456,672

 
$
134,192

 
$
262,458

Total assets
$
6,005,097

 
$
6,794,805

 
$
4,023,393

 
$
3,972,942

 
$
4,118,727

Total debt
$
2,202,676

 
$
2,880,488

 
$
1,582,715

 
$
1,575,486

 
$
1,548,095

Total liabilities
$
2,508,156

 
$
3,224,527

 
$
1,788,116

 
$
1,772,418

 
$
1,740,243

Total equity
$
3,496,941

 
$
3,570,278

 
$
2,235,277

 
$
2,200,524

 
$
2,378,484

Per Common Share Data:
 
 
 
 
 
 
 
 
 
Basic net income per share
$
0.93

 
$
0.47

 
$
1.61

 
$
1.69

 
$
1.06

Diluted net income per share (1)
$
0.93

 
$
0.47

 
$
1.61

 
$
1.68

 
$
1.05

Weighted-average common shares outstanding — basic
174,225,130

 
140,616,838

 
123,651,003

 
128,444,469

 
127,360,669

Weighted-average common shares outstanding — diluted (1)
174,316,405

 
140,694,049

 
123,879,007

 
128,967,754

 
128,293,843

Dividends declared per common share
$
1.32

 
$
1.32

 
$
1.32

 
$
1.32

 
$
1.04


(1)
Income allocated to the noncontrolling interest in the Operating Partnership has been excluded from the numerator, and the OP units of the Operating Partnership have been omitted from the denominator, since the effect of including these amounts in the numerator and denominator would have no impact.

Item 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
The following discussion and analysis should be read in conjunction with our accompanying consolidated financial statements, the related notes included thereto, and Item 1A., "Risk Factors", all of which appear elsewhere in this Annual Report on Form 10-K.

Overview
 
We are a self-advised and self-administered Maryland REIT that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. Our hotels are concentrated in markets that we believe exhibit multiple demand generators and attractive long-term growth prospects. We believe premium-branded, focused-service and compact full-service hotels with these characteristics generate high levels of RevPAR, strong operating margins and attractive returns.
 
Our strategy is to own primarily premium-branded, focused-service and compact full-service hotels. Focused-service and compact full-service hotels typically generate most of their revenue from room rentals, have limited food and beverage outlets and meeting space, and require fewer employees than traditional full-service hotels. We believe these types of hotels have the potential to generate attractive returns relative to other types of hotels due to their ability to achieve RevPAR levels at or close to those achieved by traditional full-service hotels while achieving higher profit margins due to their more efficient operating model and less volatile cash flows.

As we look at factors that could impact our business, we find that the consumer is generally in good financial health, job creation remains positive, and an increase in wages is adding to consumers' disposable income. While geopolitical and global economic uncertainty still exists and interest rates are rising, we remain cautiously optimistic that positive employment trends, high consumer confidence, and elevated corporate sentiment will continue to drive economic expansion in the U.S. and generate positive lodging demand and RevPAR growth for the industry. However, in light of accelerating supply and signs of slowing economic growth, RevPAR growth is likely to be moderate. Low unemployment rates can impact the cost of labor through higher wages and benefits, which negatively impact our financial and operating results.

We continue to follow a prudent and disciplined capital allocation strategy. We will continue to look for and weigh all possible investment decisions against the highest and best returns for our shareholders over the long term. We believe that our cash on hand and expected access to capital (including availability under our Revolver) along with our senior management team's experience, extensive industry relationships and asset management expertise, will enable us to pursue investment opportunities that generate additional internal and external growth.

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