RLJ Lodging Trust (RLJ) has reported a 13.99 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $21.76 million, or $0.17 a share in the quarter, compared with $25.30 million, or $0.20 a share for the same period last year.
Revenue during the quarter dropped 5.43 percent to $260.23 million from $275.17 million in the previous year period.
Cost of revenue dropped 4.54 percent or $7.41 million during the quarter to $155.96 million. Gross margin for the quarter contracted 56 basis points over the previous year period to 40.07 percent.
Total expenses were $223.53 million for the quarter, down 4.47 percent or $10.45 million from year-ago period. Operating margin for the quarter contracted 86 basis points over the previous year period to 14.11 percent.
Operating income for the quarter was $36.71 million, compared with $41.19 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $78.98 million compared with $86 million in the prior year period. At the same time, adjusted EBITDA margin contracted 91 basis points in the quarter to 30.35 percent from 31.25 percent in the last year period.
Occupancy revenue was $224.96 million for the quarter, down 6.07 percent or $14.55 million. Food and beverage revenue was $26.69 million during the quarter, up 0.51 percent or $0.14 million from year-ago period. Revenue from other hotel operating activities was $8.58 million for the quarter, down 5.80 percent or $0.53 million from year-ago period.
"Our results this quarter were slightly better than our initial expectations and highlight the advantages of a diversified portfolio. Strong performance in markets such as Washington, D.C. and Southern California and growth in Houston, partially offset short-term softness in markets like Louisville and Northern California,” commented Ross H. Bierkan, president and chief executive officer. "We consistently generate one of the highest margins in the industry. Our ability to continue to drive strong profitability demonstrates the benefits of owning a high-quality portfolio of premium focused-service and compact full-service hotels."
Receivables move up
Net receivables were at $34.67 million as on Mar. 31, 2017, up 11.81 percent or $3.66 million from year-ago. Total assets went up marginally by 1.33 percent or $52.43 million to $3,992.76 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,769.79 million as on Mar. 31, 2017, down 0.89 percent or $15.86 million from year-ago.
Return on assets moved down 12 basis points to 0.91 percent in the quarter. At the same time, return on equity moved down 20 basis points to 0.98 percent in the quarter.
Debt remains almost stable
Total debt was almost stable over the past one year at $1,582.43 million on Mar. 31, 2017. Shareholders equity stood at $2,222.97 million as on Mar. 31, 2017, up 3.17 percent or $68.29 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.71 percent in the quarter.
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