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10-K
RLJ LODGING TRUST filed this Form 10-K on 03/01/2019
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Room Revenue
 
Room revenue increased $326.2 million, or 28.4%, to $1.47 billion for the year ended December 31, 2018 from $1.15 billion for the year ended December 31, 2017.  The increase was a result of a $338.0 million increase in room revenue attributable to the non-comparable properties, which was partially offset by an $11.8 million decrease in room revenue attributable to the comparable properties. The decrease in room revenue from the comparable properties was attributable to a 1.3% decrease in RevPAR, led by RevPAR decreases in our Louisville, Houston, and Austin markets of 14.6%, 6.9% and 6.2%, respectively, which were partially offset by RevPAR increases in our Northern California, Chicago, and New York City markets of 5.7%, 4.8% and 1.4%, respectively.

The following are the key hotel operating statistics for the comparable properties owned at December 31, 2018 and 2017, respectively:
 
For the year ended December 31,
 
 
 
2018
 
2017
 
% Change
Number of comparable properties (at end of period)
121

 
121

 

Occupancy
77.1
%
 
77.9
%
 
(1.0
)%
ADR
$
166.01

 
$
166.39

 
(0.2
)%
RevPAR
$
127.96

 
$
129.59

 
(1.3
)%
 
Food and Beverage Revenue
 
Food and beverage revenue increased $47.8 million, or 30.3%, to $205.5 million for the year ended December 31, 2018 from $157.7 million for the year ended December 31, 2017. The increase was a result of a $51.4 million increase in food and beverage revenue attributable to the non-comparable properties, which was partially offset by a $3.5 million decrease in food and beverage revenue attributable to the comparable properties.
 
Other Revenue
 
Other revenue, which includes revenue derived from ancillary sources such as parking fees, golf, pool and other resort fees, gift shop sales and other guest service fees, increased $31.0 million, or 59.9%, to $82.7 million for the year ended December 31, 2018 from $51.7 million for the year ended December 31, 2017.  The increase was due to a $29.6 million increase in other revenue attributable to the non-comparable properties and a $1.4 million increase in other revenue attributable to the comparable properties.
 
Property Operating Expenses
 
Property operating expenses increased $265.4 million, or 32.7%, to $1.08 billion for the year ended December 31, 2018 from $811.9 million for the year ended December 31, 2017. The increase was due to a $258.5 million increase in property operating expenses attributable to the non-comparable properties and a $6.8 million increase in property operating expenses attributable to the comparable properties.

The components of our property operating expenses for the comparable properties owned at December 31, 2018 and 2017, respectively, were as follows (in thousands):
 
For the year ended December 31,
 
 
 
 
 
2018
 
2017
 
$ Change
 
% Change
Room expense
$
222,172

 
$
216,720

 
$
5,452

 
2.5
 %
Food and beverage expense
78,829

 
77,528

 
1,301

 
1.7
 %
Management and franchise fee expense
108,726

 
110,014

 
(1,288
)
 
(1.2
)%
Other operating expense
236,610

 
235,257

 
1,353

 
0.6
 %
Total property operating expenses
$
646,337

 
$
639,519

 
$
6,818

 
1.1
 %

The increase in property operating expenses attributable to the comparable properties was due to higher room expense, food and beverage expense, and other operating expense. Room expense, food and beverage expense, and other operating expense fluctuate based on various factors, including changes in occupancy, labor costs, utilities and insurance costs.

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