RLJ Lodging Trust Reports First Quarter 2013 Results

  RLJ Lodging Trust Reports First Quarter 2013 Results

               - First quarter Pro forma RevPAR increased 10.6%

   - First quarter Pro forma Hotel EBITDA Margin increased 150 basis points

Business Wire

BETHESDA, Md. -- May 08, 2013

RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today reported results for the
three months ended March 31, 2013.

First Quarter Highlights

  *Pro forma RevPAR increased 10.6%, Pro forma ADR increased 6.7% and Pro
    forma Occupancy increased 3.7%
  *Pro forma Hotel EBITDA Margin increased 150 basis points to 31.3%
  *Pro forma Consolidated Hotel EBITDA increased 16.8% to $68.9 million
  *Adjusted FFO increased 54.5% to $44.1 million
  *Acquired two hotels and one apartment building that will be converted to a
    hotel for a total purchase price of $79.5 million in Houston, a key
    gateway market
  *Completed first follow-on offering raising net proceeds of $327.7 million
  *Declared a cash dividend of $0.205 per share for the quarter

“Once again our value-add strategies and well diversified portfolio resulted
in outsized performance this quarter. The groundwork that we set forth in 2011
and 2012 through acquisitions, capital investments, and proactive balance
sheet management continue to serve as a strong tailwind,” commented Thomas J.
Baltimore, Jr., President and Chief Executive Officer. “We remain committed to
being prudent capital allocators and delivering long-term shareholder value
through targeted acquisitions and strategic capital investments.”

Financial and Operating Results

Performance metrics such as Occupancy, Average Daily Rate (“ADR”), Revenue Per
Available Room (“RevPAR”), Hotel EBITDA, and Hotel EBITDA Margin are pro
forma. The prefix “pro forma,” as defined by the Company, denotes operating
results which include results for periods prior to its ownership. Pro forma
RevPAR and Pro forma Hotel EBITDA Margin are reported on a comparable basis
and therefore exclude non-comparable hotels that were not open for operation
or closed for renovations for comparable periods. Explanations of EBITDA,
Adjusted EBITDA, Hotel EBITDA, FFO, and Adjusted FFO, as well as
reconciliations of those measures to net income or loss, if applicable, are
included at the end of this release.

Pro forma RevPAR for the three months ended March 31, 2013, increased 10.6%
over the comparable period in 2012, driven by a Pro forma ADR increase of 6.7%
and a Pro forma Occupancy increase of 3.7%. Among the Company’s top six
markets, the best performers in the quarter were New York City and Austin
which experienced RevPAR growth of 43.1% and 9.8%, respectively.

Pro forma Hotel EBITDA Margin for the three months ended March 31, 2013,
increased 150 basis points over the comparable period in 2012 to 31.3%.

Pro forma Consolidated Hotel EBITDA includes the results of non-comparable
hotels. For the three months ended March 31, 2013, Pro forma Consolidated
Hotel EBITDA increased $9.9 million to $68.9 million, representing a 16.8%
increase over the comparable period in 2012.

Adjusted EBITDA for the three months ended March 31, 2013, increased $12.2
million to $61.3 million, representing a 24.8% increase over the comparable
period in 2012.

Adjusted FFO for the three months ended March 31, 2013, increased $15.5
million to $44.1 million, representing a 54.5% increase over the comparable
period in 2012. Adjusted FFO per diluted share and unit for the three months
ended March 31, 2013, was $0.41 based on the Company’s diluted
weighted-average shares and units outstanding of 108.3 million.

Net income attributable to common shareholders for the three months ended
March 31, 2013, was $8.5 million, compared to a loss of $6.5 million in the
comparable period in 2012.

Net cash flow from operating activities for the three months ended March 31,
2013, totaled $34.0 million compared to $10.5 million for the comparable
period in 2012.

Capital Expenditures

In 2013, the Company expects to initiate renovation projects at 25 hotels for
approximately $40.0 million to $45.0 million. The majority of these projects
are scheduled to be renovated in the fourth quarter.

Acquisitions

On March 19, 2013, the Company acquired the historic Humble Oil Building
complex in downtown Houston, for a purchase price of $79.5 million, or
approximately $151,000 per key based on a combined forward room count of 528
keys. The Humble Oil Building is a three-tower complex that occupies an entire
city block. The complex consists of an 82-unit apartment tower that will be
converted to a 166-room SpringHill Suites and two existing hotels, the
existing 191-room Courtyard Houston Downtown Convention Center and the
171-room Residence Inn Houston Downtown Convention Center. The purchase price
represents a forward capitalization rate of approximately 10.1% for the
Courtyard and 9.5% for the Residence Inn based on each hotel’s projected 2013
net operating income and applicable purchase price allocation.

The acquisition was funded through the Company’s revolving credit facility,
which was subsequently repaid with proceeds from the Company’s equity
offering.

Balance Sheet and Capital Structure

On March 25, 2013, the Company completed its underwritten public offering of
15,870,000 common shares at a public offering price of $21.60 per share. The
total shares include 2,070,000 shares sold pursuant to the full exercise of
the underwriters' option to purchase additional common shares. Net proceeds
from the public offering after deducting the underwriting discount and other
offering costs were approximately $327.7 million. The Company used funds from
its equity raise to repay funds borrowed under the revolving credit facility
for the Humble Oil Building acquisition. The Company intends to use the
remaining net proceeds from the offering to fund future acquisitions and for
general corporate purposes.

As of March 31, 2013, the Company had $347.0 million of unrestricted cash on
its balance sheet and $300.0 million available on its unsecured revolving
credit facility. The Company had $1.4 billion of outstanding debt. The
Company’s ratio of net debt to Adjusted EBITDA for the trailing twelve month
period was 3.6 times.

Dividends

The Company’s Board of Trustees declared a cash dividend of $0.205 per common
share of beneficial interest in the first quarter. The dividend was paid on
April 15, 2013, to shareholders of record as of March 28, 2013.

2013 Outlook

Based on the Company’s recent acquisition and first quarter performance, the
Company is increasing its 2013 outlook. The outlook excludes potential future
acquisitions and dispositions, which could result in a material change to the
Company’s outlook. The 2013 outlook is also based on a number of other
assumptions, many of which are outside the Company’s control and all of which
are subject to change. Pro forma operating statistics include prior owner
results and assume that the Company owned its 147 hotels since January 1,
2012. Pro forma Consolidated Hotel EBITDA includes approximately $1.7 million
of prior ownership Hotel EBITDA from the two recent hotel acquisitions
acquired in the first quarter that will not be included in the Company’s
corporate Adjusted EBITDA or Adjusted FFO. For the full year 2013, the Company
anticipates:

                                                       
                                    Current Outlook     Prior Outlook
Pro forma RevPAR growth ^(1)         6.0% to 8.0%        5.5% to 7.5%
Pro forma Hotel EBITDA Margin ^(1)     34.0% to 35.0%        34.0% to 35.0%
Pro forma Consolidated Hotel           $320.0M to            $310.0M to
EBITDA                                 $340.0M               $330.0M
Corporate cash general and           $23.5M to $24.5M    $23.5M to $24.5M
administrative expenses
                                                             

(1) Pro forma RevPAR growth and Pro forma Hotel EBITDA Margin exclude one
non-comparable hotel, Hotel Indigo New Orleans Garden District, which was
closed and under renovation for most of 2012.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on
May 9, 2013, at 10:00 a.m. (Eastern Time). The conference call can be accessed
by dialing (877) 705-6003 or (201) 493-6725 for international participants and
requesting RLJ Lodging Trust’s first quarter earnings conference call.
Additionally, a live webcast of the conference call will be available through
the Company’s website at http://rljlodgingtrust.com. A replay of the
conference call webcast will be archived and available online through the
Investor Relations section of the Company’s website.

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment
trust focused on acquiring premium-branded, focused-service and compact
full-service hotels. The Company owns 148 properties, comprised of 147 hotels
with approximately 22,000 rooms and one planned hotel conversion, located in
21 states and the District of Columbia.

Forward Looking Statements

The following information contains certain statements, other than purely
historical information, including estimates, projections, statements relating
to the Company’s business plans, objectives and expected operating results,
and the assumptions upon which those statements are based, that are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally are identified by the use of the
words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,”
“will,” “will continue,” “intend,” “should,” “may” or similar expressions.
Although the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, beliefs and
expectations, such forward-looking statements are not predictions of future
events or guarantees of future performance and the Company’s actual results
could differ materially from those set forth in the forward-looking
statements. Some factors that might cause such a difference include the
following: the current global economic uncertainty, increased direct
competition, changes in government regulations or accounting rules, changes in
local, national and global real estate conditions, declines in the lodging
industry, seasonality of the lodging industry, risks related to natural
disasters, such as earthquakes and hurricanes, hostilities, including future
terrorist attacks or fear of hostilities that affect travel, the Company’s
ability to obtain lines of credit or permanent financing on satisfactory
terms, changes in interest rates, access to capital through offerings of the
Company’s common and preferred shares of beneficial interest, or debt, the
Company’s ability to identify suitable acquisitions, the Company’s ability to
close on identified acquisitions and integrate those businesses and
inaccuracies of the Company’s accounting estimates. Given these uncertainties,
undue reliance should not be placed on such statements. Except as required by
law, the Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise. The Company cautions investors not to place undue
reliance on these forward-looking statements and urge investors to carefully
review the disclosures the Company makes concerning risks and uncertainties in
the sections entitled “Risk Factors,” “Forward-Looking Statements,” and
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s Annual Report, as well as risks, uncertainties
and other factors discussed in other documents filed by the Company with the
SEC.

  For additional information or to receive press releases via email, please
                visit our website: http://rljlodgingtrust.com

                              RLJ Lodging Trust

                             Non-GAAP Definitions

Non-Generally Accepted Accounting Principles (“GAAP”) Financial Measures

The Company considers the following non-GAAP financial measures useful to
investors as key supplemental measures of the Company’s performance: (1) FFO,
(2) Adjusted FFO, (3) EBITDA, (4) Adjusted EBITDA, and (5) Hotel EBITDA. These
non-GAAP financial measures should be considered along with, but not as
alternatives to, net income or loss as a measure of the Company’s operating
performance. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, and Hotel EBITDA as
calculated by the Company, may not be comparable to other companies that do
not define such terms exactly as the Company.

Funds From Operations (“FFO”)

The Company calculates FFO in accordance with standards established by the
National Association of Real Estate Investment Trusts (“NAREIT”), which
defines FFO as net income or loss (calculated in accordance with GAAP),
excluding gains or losses from sales of real estate, items classified by GAAP
as extraordinary, the cumulative effect of changes in accounting principles,
plus depreciation and amortization, and adjustments for unconsolidated
partnerships and joint ventures. Historical cost accounting for real estate
assets implicitly assumes that the value of real estate assets diminishes
predictably over time. Since real estate values instead have historically
risen or fallen with market conditions, most real estate industry investors
consider FFO to be helpful in evaluating a real estate company’s operations.

The Company believes that the presentation of FFO provides useful information
to investors regarding the Company’s operating performance by excluding the
effect of depreciation and amortization, gains or losses from sales for real
estate, extraordinary items and the portion of items related to unconsolidated
entities, all of which are based on historical cost accounting, and that FFO
can facilitate comparisons of operating performance between periods and
between real estate investment trusts (“REITs”), even though FFO does not
represent an amount that accrues directly to common shareholders. The
Company’s calculation of FFO may not be comparable to measures calculated by
other companies who do not use the NAREIT definition of FFO or do not
calculate FFO per diluted share in accordance with NAREIT guidance.
Additionally, FFO may not be helpful when comparing the Company to non-REITs.
The Company presents FFO attributable to common shareholders, which includes
the Company’s OP units, because the Company’s OP units are redeemable for
common shares. The Company believes it is meaningful for the investor to
understand FFO attributable to all common shares and OP units.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

EBITDA is defined as net income or loss excluding: (1) interest expense, (2)
provision for income taxes, including income taxes applicable to sale of
assets, and (3) depreciation and amortization. The Company considers EBITDA
useful to an investor in evaluating and facilitating comparisons of the
Company’s operating performance between periods and between REITs by removing
the impact of the Company’s capital structure (primarily interest expense) and
asset base (primarily depreciation and amortization) from the Company’s
operating results. In addition, EBITDA is used as one measure in determining
the value of hotel acquisitions and dispositions. The Company presents EBITDA
attributable to common shareholders, which includes the Company’s OP units,
because the Company’s OP units are redeemable for common shares. The Company
believes it is meaningful for the investor to understand EBITDA attributable
to all common shares and OP units.

Hotel EBITDA

With respect to Hotel EBITDA, the Company believes that excluding the effect
of corporate-level expenses, non-cash items, and the portion of these items
related to unconsolidated entities, provides a more complete understanding of
the operating results over which individual hotels and operators have direct
control. The Company believes property-level results provide investors with
supplemental information on the ongoing operational performance of the
Company’s hotels and effectiveness of the third-party management companies
operating the Company’s business on a property-level basis.

Pro forma Hotel EBITDA includes hotel results from prior ownership periods and
excludes non-comparable hotels which were not open for operation or closed for
renovations for comparable periods. Pro forma Consolidated Hotel EBITDA
includes hotel results from prior ownership periods and includes
non-comparable hotels which were not open for operation or closed for
renovations for comparable periods.

Adjustments to EBITDA and FFO

The Company adjusts FFO and EBITDA for items that the Company considers
outside the normal course of business. The Company believes that these
adjustments provide investors with another financial measure that may
facilitate comparisons of operating performance between periods and between
REITs. The Company believes that the exclusion of certain additional recurring
and non-recurring items when combined with GAAP net income, EBITDA and FFO,
are beneficial to an investor's complete understanding of the Company’s
operating performance. The Company adjusts EBITDA and FFO for the following
items, as applicable:

  *Transaction and Pursuit Costs: The Company excludes transaction and
    pursuit costs expensed during the period because it believes they do not
    reflect the underlying performance of the Company.
  *Other Non-Cash Expenses: The Company excludes the effect of certain
    non-cash items because it believes they do not reflect the underlying
    performance of the Company. In 2013 and 2012, the Company excluded the
    amortization of share based compensation.
  *Non-recurring expenses: The Company excludes the effect of certain
    non-customary expenses because it believes they do not reflect the
    underlying performance of the Company. In 2013, the Company excluded legal
    expenses it considered outside the normal course of business.


RLJ Lodging Trust
Combined Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)


                                                                   
                                             March 31,       December 31,
                                               2013              2012
                                            (unaudited)               
Assets
Investment in hotel and other properties,      $ 3,136,597       $ 3,073,483
net
Investment in loans                              12,386            12,426
Cash and cash equivalents                        347,027           115,861
Restricted cash reserves                         64,008            64,787
Hotel and other receivables, net of              28,390            22,738
allowance of $232 and $194, respectively
Deferred financing costs, net                    10,418            11,131
Deferred income tax asset                        2,292             2,206
Purchase deposits                                7,936             9,910
Prepaid expense and other assets                28,566        33,843    
Total Assets                                   $ 3,637,620    $ 3,346,385 
Liabilities and Equity
Borrowings under revolving credit facility     $ -               $ 16,000
Mortgage loans                                   994,073           997,651
Term loans                                       400,000           400,000
Interest rate swap liability                     816               470
Accounts payable and accrued expense             76,922            87,105
Deferred income tax liability                    4,052             4,064
Advance deposits and deferred revenue            12,898            8,508
Accrued interest                                 2,403             2,284
Distributions payable                           25,917        22,392    
Total Liabilities                                1,517,081         1,538,474
                                                                             
                                                                             
                                                                             
Equity
Shareholders' equity:
Preferred shares of beneficial interest,
$0.01 par value, 50,000,000 shares
authorized; zero shares issued and               -                 -
outstanding at March 31, 2013 and December
31, 2012, respectively.
Common shares of beneficial interest,
$0.01 par value, 450,000,000 shares
authorized; 122,733,573 and 106,565,516          1,227             1,066
shares issued and outstanding at March 31,
2013 and December 31, 2012, respectively.
Additional paid-in-capital                       2,171,357         1,841,449
Accumulated other comprehensive loss             (477      )       -
Distributions in excess of net earnings         (69,552   )    (52,681   )
Total shareholders' equity                       2,102,555         1,789,834
                                                                             
Noncontrolling interest
Noncontrolling interest in joint venture         6,718             6,766
Noncontrolling interest in Operating            11,266        11,311    
Partnership
Total noncontrolling interest                   17,984        18,077    
Total Equity                                    2,120,539     1,807,911 
Total Liabilities and Equity                   $ 3,637,620    $ 3,346,385 
                                                                             


RLJ Lodging Trust
Combined Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)

                                                                   
                                         For the three months ended
                                           March 31,
                                        2013              2012
Revenue                                                     
Operating revenue
Room revenue                               $ 186,427           $ 158,579
Food and beverage revenue                    23,232              19,505
Other operating department revenue          6,228           5,109       
Total revenue                               215,887         183,193     
Expense
Operating expense
Room expense                                 43,397              36,930
Food and beverage expense                    16,577              14,440
Management fee expense                       7,419               6,304
Other operating expense                     66,900          58,558      
Total property operating expense             134,293             116,232
Depreciation and amortization                31,435              33,697
Property tax, insurance and other            14,786              12,634
General and administrative                   8,815               7,260
Transaction and pursuit costs               1,089           19          
Total operating expense                     190,418         169,842     
Operating income                             25,469              13,351
Other income                                 79                  84
Interest income                              296                 419
Interest expense                            (17,034     )    (20,181     )
                                                                             
Income (loss) before income taxes            8,810               (6,327      )
                                                                             
Income tax expense                          (226        )    (594        )
                                                                             
Net income (loss)                            8,584               (6,921      )
                                                                             
Net (income) loss attributable to
non-controlling interests
Noncontrolling interest in joint             48                  370
venture
Noncontrolling interest in common           (139        )    38          
units of Operating Partnership
Net income (loss) attributable to          $ 8,493          $ (6,513      )
common shareholders
                                                                             
Basic per common share data:
Net income (loss) per share                $ 0.08           $ (0.06       )
attributable to common shareholders
Weighted-average number of common           106,815,375     105,332,812 
shares
                                                                             
Diluted per common share data:
Net income (loss) per share                $ 0.08           $ (0.06       )
attributable to common shareholders
Weighted-average number of common           107,423,195     105,332,812 
shares
                                                                             


Note:
The comprehensive income statement and corresponding footnotes can be found in
the Company's Quarterly Report on Form 10Q.



RLJ Lodging Trust
Reconciliation of Net Income/(Loss) to Non-GAAP Measures
(Amounts in thousands, except per share data)
(Unaudited)


Funds From Operations (FFO)                                         
                                                 For the three months ended
                                                   March 31,
                                                2013          2012
Net income (loss)                                  $ 8,584       $ (6,921  )
Depreciation and amortization                        31,435          33,697
Noncontrolling interest in joint venture             48              370
Adjustments related to joint venture ^(1)           (121    )    (98     )
FFO attributable to common shareholders              39,946          27,048
Transaction and pursuit costs                        1,089           19
Amortization of share based compensation             3,014           1,459
Other expenses ^(2)                                 13          -       
Adjusted FFO                                       $ 44,062     $ 28,526  
                                                                             
Adjusted FFO per common share and unit- basic      $ 0.41          $ 0.27
Adjusted FFO per common share and unit-            $ 0.41          $ 0.27
diluted
                                                                             
Basic weighted-average common shares and units       107,709         106,227
outstanding ^(3)
Diluted weighted-average common shares and           108,317         106,227
units outstanding ^(3)
                                                                             


Note:
(1)  Includes depreciation and amortization expense allocated to the
      noncontrolling interest in joint venture.
(2)   Includes less than $0.1 million for the three months ended March 31,
      2013, of legal expenses outside the normal course of operations.
(3)   Includes 894,000 operating partnership units.
      


RLJ Lodging Trust
Reconciliation of Net Income/(Loss) to Non-GAAP Measures
(Amounts in thousands)
(Unaudited)


Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
                                                  For the three months ended
                                                    March 31,
                                                 2013          2012
Net income (loss)                                   $  8,584      $ (6,921 )
Depreciation and amortization                          31,435         33,697
Interest expense, net ^ (1)                            17,027         20,169
Income tax expense                                     226            594
Noncontrolling interest in joint venture               48             370
Adjustments related to joint venture ^(2)             (121   )    (272   )
EBITDA                                                 57,199         47,637
Transaction and pursuit costs                          1,089          19
Amortization of share based compensation               3,014          1,459
Other expenses ^ (3)                                  13         -      
Adjusted EBITDA                                       61,315     49,115 
General and administrative ^ (4)                       5,801          5,801
Other income/interest income                           (368   )       (491   )
Corporate overhead allocated to properties             90             202
Operating results from noncontrolling interest         73             (98    )
in joint venture
Apartment Income                                       (43    )       -
Pro forma hotel adjustments ^(5)                       1,735          4,230
Non-cash amortization ^(6)                            301        250    
Pro forma Consolidated Hotel EBITDA                   68,904     59,009 
Non-comparable hotels ^(7)                            (582   )    48     
Pro forma Hotel EBITDA                              $  68,322    $ 59,057 
                                                                             

    
Note:
      Excludes amounts attributable to investment in loans of $0.3 million and
(1)   $0.4 million for the three months ended March 31, 2013 and 2012,
      respectively.
(2)   Includes depreciation, amortization and interest expense allocated to
      the noncontrolling interest in joint venture.
(3)   Includes less than $0.1 million for the three months ended March 31,
      2013, of legal expenses outside the normal course of operations.
(4)   General and administrative expenses exclude amortization of share based
      compensation, which are reflected in Adjusted EBITDA.
(5)   Reflects prior ownership adjustments made for recent acquisitions.
(6)   Non-cash amortization includes the amortization of management and
      franchise fees.
      The Hotel Indigo New Orleans Garden District was closed most of 2012 due
(7)   to a conversion upgrade. It reopened in December 2012 and therefore has
      been excluded from 2013 and 2012.
      


RLJ Lodging Trust
Acquisitions



                                                                        Purchase
                                  Acquisition   Management              Price       %
2013 Acquisitions  Location                  Company        Rooms            
                                  Date                                  ($ in       Interest
                                                                        millions)
Courtyard Houston  Houston, TX  Mar 19,      Marriott       191    $  34.4    100   %
Downtown                          2013          International
Residence Inn       Houston, TX   Mar 19,       Marriott        171        29.5     100   %
Houston Downtown                  2013          International
Humble Tower        Houston, TX   Mar 19,       The Sterling    82         15.6     100   %
Apartments ^(1)                   2013          Group
Hilton Cabana       Miami         N/A           N/A             N/A      71.6     100   %
Miami Beach ^(2)    Beach, FL
Total                                                           444    $  151.1
Acquisitions ^(3)
                                                                                          
                                                                                          
                                                                            
                                                                        Purchase
                                  Acquisition   Management              Price       %
2012 Acquisitions  Location                  Company        Rooms            
                                  Date                                  ($ in       Interest
                                                                        millions)
Residence Inn       Bethesda,     May 29,       Marriott        187     $  64.5     100   %
Bethesda Downtown   MD            2012          International
Courtyard New
York                New York,     May 30,       Highgate        226        82.0     100   %
Manhattan/Upper     NY            2012          Hotels
East Side
Hilton Garden Inn                               Davidson
San                 Emeryville,   Jun 11,       Hotels &        278        36.2     100   %
Francisco/Oakland   CA            2012          Resorts
Bay Bridge
Embassy Suites      Waltham, MA   Nov 13,       HEI Hotels      275      64.5     100   %
Boston/Waltham                    2012          and Resorts
Total                                                           966    $  247.2
Acquisitions
                                                                            

    
Note:
(1)   Conversion to a 166-room SpringHill Suites expected to be complete by
      mid-2015.
      On November 30, 2012, the Company signed a purchase and sale agreement
      to acquire upon completion the 231-room Hilton Cabana Miami Beach for a
(2)   fixed purchase price of $71.6 million, or approximately $310,000 per
      key. The transaction is expected to close in fourth quarter 2013. No
      management contract has been signed.
      The 2013 acquisitions in Houston do not reflect a $225,000 credit
(3)   received at closing. The credit results in a net purchase price of $79.3
      million.
      


RLJ Lodging Trust
Pro forma Operating Statistics – Top 40 Assets
(Amounts in thousands, except rooms)
(Unaudited)


For the trailing twelve months ending March 31, 2013
                                                                  Pro forma

Property                     City/State            Rooms    Consolidated

                                                                  Hotel EBITDA
DoubleTree Metropolitan      New York, NY          764      $19,529
Marriott Louisville            Louisville, KY          616        13,386
Downtown
Hilton New York Fashion        New York, NY            280        11,884
District
Hilton Garden Inn New York     New York, NY            298        11,878
Courtyard Austin Downtown      Austin, TX              270        8,247
Courtyard Chicago Downtown     Chicago, IL             306        6,983
Mag Mile
Embassy Suites Tampa           Tampa, FL               360        6,147
Downtown
Fairfield Inn Washington       Washington, DC          198        6,130
DC
Renaissance Pittsburgh         Pittsburgh, PA          300        5,359
Embassy Suites Waltham         Waltham, MA             275        4,967
Marriott Denver South @        Littleton, CO           279        4,879
Park Meadow
Courtyard Upper East Side      New York, NY            226        4,680
Residence Inn Bethesda         Bethesda, MD            187        4,547
Homewood Suites Washington     Washington, DC          175        4,539
DC
Marriott Denver                Aurora, CO              238        4,387
International Airport
Residence Inn Austin           Austin, TX              179        4,046
Downtown
Courtyard Houston Galleria     Houston, TX             190        3,885
Residence Inn National         Oxon Hill, MD           162        3,790
Harbor
Hilton Garden Inn New          New Orleans, LA         286        3,789
Orleans Convention Center
Renaissance Plantation         Plantation, FL          250        3,779
Hilton Garden Inn              Emeryville, CA          278        3,740
Emeryville
Embassy Suites Downey          Downey, CA              219        3,508
Hilton Garden Inn Los          Hollywood, CA           160        3,471
Angeles Hollywood
Courtyard Houston Downtown     Houston, TX             191        3,437
Renaissance Boulder Suites     Broomfield, CO          232        3,412
@ Flatiron
Hampton Inn Garden City        Garden City, NY         143        3,383
Courtyard Charleston           Charleston, SC          176        3,129
Historic District
Marriott Airport Austin        Austin, TX              211        2,927
South
Residence Inn Houston          Houston, TX             171        2,881
Downtown
Residence Inn Galleria         Houston, TX             146        2,863
Hilton Garden Inn              Bloomington, IN         168        2,851
Bloomington
Residence Inn Oakbrook         Oak Brook, IL           156        2,804
Hilton Garden Inn              Pittsburgh, PA          202        2,740
Pittsburgh
Residence Inn Downtown         Louisville, KY          140        2,691
Louisville
Fairfield Inn & Suites Key     Key West, FL            106        2,499
West
Hyatt House Dallas Lincoln     Dallas, TX              155        2,414
Park
Marriott Midway                Chicago, IL             200        2,297
Hampton Inn Houston            Houston, TX             176        2,212
Galleria
Courtyard Buckhead             Atlanta, GA             181        2,174
Embassy Suites West Palm       West Palm Beach, FL     194        1,781
Beach
                                                         
Top 40 Assets                                          9,444      194,042
Other                                                  12,535   120,537
Total Portfolio                                   21,979   $314,580
                                                                  


Note:
The information above has not been audited and is presented only for
comparison purposes. Results reflect 100% of DoubleTree by Hilton Hotel
Metropolitan New York City financial results, which have not been adjusted to
reflect the 5% noncontrolling interest in the joint venture.



RLJ Lodging Trust
Pro forma Operating Statistics
(Unaudited)

                                                                                                              
For the three months ending March 31, 2013
                                                                                                                               % of
Top Markets           Occupancy                    ADR                             RevPAR                           Hotel

                                                                                                                               EBITDA
                # of       2013    2012    Var          2013      2012      Var         2013      2012      Var          Q1
                Hotels
NYC             5          95.2 %   68.7 %   38.6  %      $ 186.49   $ 180.69   3.2  %      $ 177.51   $ 124.06   43.1  %      9%
Chicago         21         61.7 %   62.5 %   (1.4  %)       114.48     105.93   8.1  %        70.62      66.25    6.6   %      6%
Austin          17         76.5 %   74.9 %   2.1   %        151.07     140.50   7.5  %        115.50     105.18   9.8   %      17%
Denver          15         62.2 %   62.9 %   (1.1  %)       116.56     112.33   3.8  %        72.49      70.67    2.6   %      7%
Louisville      5          65.7 %   67.7 %   (3.0  %)       138.68     129.93   6.7  %        91.09      88.02    3.5   %      7%
Washington      7          62.1 %   61.1 %   1.6   %        166.69     164.15   1.5  %        103.46     100.33   3.1   %      6%
DC
Other           76         70.8 %  69.7 %  1.6   %       126.10   119.87  5.2  %       89.33    83.60   6.9   %      48%
Total           146        70.7 %  68.1 %  3.7   %      $ 135.66  $ 127.20  6.7  %      $ 95.85   $ 86.64   10.6  %      100%
                                                                                                                               
                                                                                           
                                                                                                                               % of
Service               Occupancy                    ADR                             RevPAR                           Hotel
Level
                                                                                                                               EBITDA
                # of       2013    2012    Var          2013      2012      Var         2013      2012      Var          Q1
                Hotels
Focused         125        69.2 %   68.8 %   0.5   %      $ 129.23   $ 120.70   7.1  %      $ 89.40    $ 83.06    7.6   %      72%
Service
Compact
Full            20         75.8 %   66.1 %   14.7  %        151.88     145.41   4.5  %        115.19     96.15    19.8  %      24%
Service
Full            1          66.0 %  66.6 %  (0.9  %)      156.76   150.86  3.9  %       103.40   100.42  3.0   %      4%
Service
Total           146        70.7 %  68.1 %  3.7   %      $ 135.66  $ 127.20  6.7  %      $ 95.85   $ 86.64   10.6  %      100%
                                                                                                                               
                                                                                           
                                                                                                                               % of
Chain Scale           Occupancy                    ADR                             RevPAR                           Hotel

                                                                                                                               EBITDA
                # of       2013    2012    Var          2013      2012      Var         2013      2012      Var          Q1
                Hotels
Upper           17         72.7 %   71.8 %   1.3   %      $ 149.25   $ 144.14   3.6  %      $ 108.58   $ 103.55   4.9   %      25%
Upscale
Upscale         101        71.0 %   67.3 %   5.5   %        134.41     124.81   7.7  %        95.44      84.01    13.6  %      63%
Upper           27         65.7 %   65.6 %   0.2   %        123.24     114.82   7.3  %        80.99      75.31    7.5   %      12%
Midscale
Midscale        1          75.3 %  87.4 %  (13.8 %)      60.43    58.30   3.7  %       45.53    50.97   (10.7 %)     0%
Total           146        70.7 %  68.1 %  3.7   %      $ 135.66  $ 127.20  6.7  %      $ 95.85   $ 86.64   10.6  %      100%
                                                                                                                               
                                                                                           
                                                                                                                               % of
Flags                 Occupancy                    ADR                             RevPAR                           Hotel

                                                                                                                               EBITDA
                # of       2013    2012    Var          2013      2012      Var         2013      2012      Var          Q1
                Hotels
Courtyard       35         67.0 %   66.3 %   1.0   %      $ 132.32   $ 123.68   7.0  %      $ 88.67    $ 82.03    8.1   %      21%
Residence       35         70.6 %   70.6 %   0.0   %        129.16     123.07   5.0  %        91.18      86.87    5.0   %      19%
Inn
Fairfield       14         65.1 %   67.7 %   (3.9  %)       125.11     114.39   9.4  %        81.39      77.44    5.1   %      6%
Inn
SpringHill      11         65.9 %   66.2 %   (0.4  %)       104.53     99.74    4.8  %        68.91      66.04    4.3   %      4%
Suites
Hilton          10         73.4 %   71.1 %   3.1   %        151.99     137.53   10.5 %        111.50     97.82    14.0  %      11%
Garden Inn
Hampton Inn     9          68.4 %   65.5 %   4.4   %        125.80     116.84   7.7  %        86.07      76.58    12.4  %      5%
Marriott        6          66.3 %   65.8 %   0.8   %        140.93     134.73   4.6  %        93.46      88.68    5.4   %      10%
Hyatt House     6          78.6 %   76.0 %   3.5   %        106.61     100.39   6.2  %        83.84      76.25    10.0  %      4%
Embassy         6          78.1 %   77.7 %   0.5   %        151.82     146.42   3.7  %        118.62     113.83   4.2   %      9%
Suites
Renaissance     3          73.5 %   70.3 %   4.6   %        142.59     146.53   (2.7 %)       104.83     103.01   1.8   %      4%
DoubleTree      2          88.1 %   40.9 %   115.4 %        177.27     180.91   (2.0 %)       156.22     73.99    111.1 %      2%
Homewood        2          75.0 %   76.3 %   (1.7  %)       161.27     155.92   3.4  %        120.98     118.94   1.7   %      2%
Suites
Hilton          2          80.4 %   80.2 %   0.3   %        179.18     164.43   9.0  %        144.13     131.88   9.3   %      2%
Other           5          64.3 %  65.1 %  (1.2  %)      99.93    97.64   2.3  %       64.24    63.53   1.1   %      1%
Total         146      70.7 %  68.1 %  3.7   %    $ 135.66  $ 127.20  6.7  %    $ 95.85   $ 86.64   10.6  %    100%
                                                                                                                               


Note:
The information above has not been audited and is presented only for
comparison purposes. Results reflect 100% of DoubleTree by Hilton Hotel
Metropolitan New York City financial results, which have not been adjusted to
reflect the 5% noncontrolling interest in the joint venture. All results
exclude non-comparable hotels, the Hotel Indigo New Orleans Garden District
was closed for most of 2012 due to a conversion upgrade. It reopened in
December 2012 and therefore has been excluded from 2013 and 2012.


Contact:

RLJ Lodging Trust
Leslie D. Hale, 301-280-7774
Chief Financial Officer