A credit-focused fund keeps adding to a position in a lodging REIT trading at $7.60 while RevPAR declines and net income hits a penny per share. The math tells you this isn't a hotel bet. It's a balance sheet bet.
RLJ Lodging Trust's full-year RevPAR dropped 1.7%, net income cratered 58%, and EBITDA fell 7.5%... but they're calling it a highly productive year. The math is interesting. So is the strategy behind it.
APLE beat Q4 earnings estimates while RevPAR declined 2.6% and hotel EBITDA margins contracted 230 basis points year-over-year. The updated investor presentation tells a story of disciplined capital allocation, but the operating fundamentals underneath deserve a harder look.
