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RLJ Lodging Trust (RLJ) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
RLJ Lodging Trust (NYSE:RLJ) a Real Estate Investment Trust (REIT) which focuses on the acquisition of premium, compact full-service hotels in the United States. RLJ is one of the largest lodging REITs in the United States in terms of the number of rooms and the number hotels that it owns. Unlike traditional full service hotels, compact full-service have fewer meeting spaces and have a limited supply of food and beverage outlets. As a whole, they require fewer employees to operate. RLJ believes that they produce strong returns since they make their money off the rental of rooms rather than add on services.[1]
Because RLJ Lodging invests in hotels, its revenues are primarily affected by two main drivers. First, the fluctuations in real estate and the U.S. Housing Market alter the capital gains that RLJ will receive from the sale of its hotels. Second, the amount of travel and tourist activity will alter the profitability of the hotels that RLJ operates. This is mostly heavily impacted by the disposable income of individuals and the relative performance of companies paying for travel.[2]
The company's initial public offering of stock on the NYSE occurred on May 10, 2011. The company offered 27.5M shares each for $18. This was below the $19-$21 initial price range. This offering raised a total of $495M. The lead underwriter of the IPO were Bank of America (BAC), Barclays (BCS), and Wells Fargo (WFC).[3]
For the full year 2010, RLJ's total revenue was $546M, and it reported a net loss of $45M. The revenue figure was a 13% increase over the previous year, and the 2010 net loss was smaller than the net loss reported in 2009.[4]
References
- ↑ RLJ S-11/A PROSPECTUS SUMMARY "Overview" pg 1
- ↑ RLJ S-11/A PROSPECTUS SUMMARY "The US Lodging Industry and Market Opportunity" pg 4-5
- ↑ Renaissance Capital - IPO Home "Hotel REIT RLJ Lodging Trust prices IPO at $18, below the range" 10 May 2011
- ↑ RLJ S-11/A PROSPECTUS SUMMARY "Summary Historical and Pro Forma Combined Financial and Operating Data " pg 14
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