RLJ Lodging TrustRLJ

RLJ Lodging Trust Segments Disclosure

10-KFiled Feb 27, 20262 min read
Segment Information
The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer.

The CODM separately evaluates the performance of each of the Company’s hotel properties and each hotel property is an operating segment. However, because each of the hotels has similar economic characteristics, facilities, and services, the hotel properties have been aggregated into a single reportable segment.

The hotel segment revenues are derived from the operation of hotel properties. The hotel segment generates room revenue by renting hotel rooms to customers at the Company’s hotel properties. The hotel segment generates food and beverage revenue from the sale of food and beverage to customers at the Company’s hotel properties. The hotel segment generates other revenue from parking fees, resort fees, gift shop sales and other guest service fees at the Company’s hotel properties.

The CODM assesses performance for the hotel segment and decides how to allocate resources based on Hotel EBITDA, which is a non-GAAP financial measure. Hotel EBITDA is defined as net income or loss excluding: (1) interest expense; (2) income tax expense; and (3) depreciation and amortization expense, adjusted for corporate-level expenses, certain non-cash items, and certain other items that the Company considers outside the normal course of operations.

The following table presents information about profit or loss for the hotel segment:
For the Years Ended December 31,
202520242023
Revenues         
Room revenue$1,093,265 $1,121,586 $1,095,028 
Food and beverage revenue158,218 153,108 141,625 
Other revenue98,377 94,746 88,924 
Total revenues1,349,860 1,369,440 1,325,577 
Operating expenses         
Room expense293,405 288,567 277,058 
Food and beverage expense119,799 117,766 109,707 
Management and franchise fee expense102,757 107,978 107,417 
Other operating expenses371,558 363,631 340,485 
Total operating expenses887,519 877,942 834,667 
Property tax, insurance and other101,315 107,043 100,229 
Other, net (1)(8,052)(14,300)(11,535)
Hotel EBITDA$369,078 $398,755 $402,216 
(1)    Includes miscellaneous hotel segment income, as well as adjustments for corporate-level expenses, certain non-cash items, and certain other items that the Company considers outside the normal course of operations.
The following table provides a reconciliation of the hotel segment profit and loss to the Company’s consolidated totals:
For the Years Ended December 31,
202520242023
Income before income tax expense $29,702 $69,790 $77,873 
Depreciation and amortization186,356 179,431 179,103 
Interest expense, net of interest income98,718 94,044 79,064 
General and administrative47,644 54,804 58,998 
Loss (gain) on sale of hotel properties, net1,526 (8,262)34 
Other, net5,132 8,948 7,144 
Hotel EBITDA$369,078 $398,755 $402,216 

A measure of segment assets is not currently provided to the CODM and has therefore not been included herein.
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Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 26, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Feb 26, 2020
2018Mar 1, 2019
2017Feb 28, 2018
2016Feb 23, 2017
2015Feb 25, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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