RLJ Lodging Trust (RLJ) has reported a 2.23 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $75.43 million, or $0.61 a share in the quarter, compared with $73.79 million, or $0.59 a share for the same period last year.
Revenue during the quarter went down marginally by 1.38 percent to $271.45 million from $275.26 million in the previous year period.
Cost of revenue went down marginally by 1.62 percent or $2.91 million during the quarter to $177.09 million. Gross margin for the quarter expanded 15 basis points over the previous year period to 34.76 percent.
Total expenses were $224.99 million for the quarter, down 2.70 percent or $6.24 million from year-ago period. Operating margin for the quarter expanded 112 basis points over the previous year period to 17.12 percent.
Operating income for the quarter was $46.46 million, compared with $44.04 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $89 million compared with $89.78 million in the prior year period. At the same time, adjusted EBITDA margin improved 17 basis points in the quarter to 32.79 percent from 32.62 percent in the last year period.
Occupancy revenue was $233.43 million for the quarter, down 1.67 percent or $3.97 million. Food and beverage revenue during the quarter was almost stable at $29.09 million, when compared with the previous year period. Revenue from other hotel operating activities was $8.94 million for the quarter, up 3.29 percent or $0.29 million from year-ago period.
"Our performance continues to demonstrate the advantages of owning a diversified portfolio, backed by a strong and liquid balance sheet, with a seasoned and disciplined management team," commented Ross H. Bierkan, president and chief executive officer. "Our upscale, focused-service and compact full-service model continues to generate high margins and significant free cash flow. While we recognize there are headwinds and macro uncertainties, we are confident that we are well positioned to take advantage of any upside in lodging fundamentals."
Receivables move up marginally
Net receivables were at $26.02 million as on Dec. 31, 2016, up 1.02 percent or $0.26 million from year-ago. Total assets went up marginally by 1.27 percent or $50.45 million to $4,023.39 million on Dec. 31, 2016. On the other hand, total liabilities were almost stable over the past one year at $1,788.12 million on Dec. 31, 2016.
Return on assets moved down 102 basis points to 1.10 percent in the quarter. At the same time, return on equity moved up 2 basis points to 3.37 percent in the quarter.
Debt remains almost stable
Total debt was almost stable over the past one year at $1,582.72 million on Dec. 31, 2016. Shareholders equity stood at $2,235.28 million as on Dec. 31, 2016, up 1.58 percent or $34.75 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.71 percent in the quarter.
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