RLJ Lodging Trust Posts Strong Q3, Raises Outlook
The hotel REIT reported business transient revenue growth of 15% and raised its full-year 2026 guidance for comparable RevPAR and adjusted EBITDA.
Updated on Nov. 5, 2026 in Hospitality
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RLJ Lodging Trust reported a very strong third quarter in 2026, with business transient revenues rising 15% year over year and comparable RevPAR increasing 9.7% to $153.36. The company also raised its full-year 2026 outlook for comparable RevPAR and adjusted EBITDA.
Why it matters
The results show business travel demand accelerating as hotel operators capture higher room rates from corporate guests. For the U.S. lodging sector, RLJ's performance signals that pricing power is holding even as overall demand grew only 2%.
Comparable RevPAR rose 9.7% to $153.36 and adjusted EBITDA increased 17.3% to $85.2 million in the third quarter, versus the prior-year period. The company did not specify how much of its raised full-year outlook depends on the estimated World Cup contribution.
The players
RLJ Lodging Trust
A hotel real estate investment trust headquartered in Bethesda, Maryland, that owns and operates a portfolio of select-service and full-service lodging properties.
The details
RLJ credited accelerating business travel demand, which began in the second quarter, for the strong third-quarter results. The company also sold seven hotels near Chicago Midway Airport for $110 million after the quarter ended, at a multiple of 14 times forecasted EBITDA.
Timeline
Q2 2026: Accelerating business travel demand drove second-quarter performance.
Q3 2026: RLJ reported very strong third-quarter results.
October 2026: RLJ saw strong operating results.
2027: RLJ's Boston and Key West conversion properties are set to open.
Market Landscape
RLJ's 9.7% comparable RevPAR gain comes as its growth is concentrated in business transient demand rather than overall volume, which rose only 2%. The results mark a continuation of the post-pandemic business travel recovery in the U.S. lodging sector.
Higher average daily rates of 13% indicate that hotel room prices for business travelers are rising, which may affect corporate travel budgets. Travelers planning stays in Northern California and around the 2026 World Cup should expect elevated pricing, since the company attributes part of its outlook to those events.
The takeaway
Business travel demand is driving hotel pricing more than occupancy right now, so travelers should book early for peak periods. Watch the company's conversion openings in 2027 to see whether its strategy keeps delivering growth.
What happens next
RLJ's Boston and Key West conversion properties are scheduled to open in 2027, which will be the next measurable test of its conversion strategy.
Further reading
Explore more Hospitality coverage for context on how hotel demand and room rates are shifting across the country.
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