Operating Margin

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Price: 7.6 USD -1.3% Market Closed

Market Cap: $1.1B

9.5%

Declining

by 1.5%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.5%

Operating Income

$129m

Revenue

$1.4B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.5%

Operating Income

$129m

Revenue

$1.4B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		RLJ Lodging Trust NYSE:RLJ	1.1B USD	Loading...
US		Host Hotels & Resorts Inc NASDAQ:HST	12.9B USD	Loading...
US		Ryman Hospitality Properties Inc NYSE:RHP	5.9B USD	Loading...
FR		Covivio Hotels SCA PAR:COVH	3.7B EUR	Loading...
JP	I	Invincible Investment Corp TSE:8963	506.2B JPY	Loading...
US		Apple Hospitality REIT Inc NYSE:APLE	2.9B USD	Loading...
SG		CapitaLand Ascott Trust SGX:HMN	3.7B SGD	Loading...
JP		Japan Hotel Reit Investment Corp TSE:8985	438.3B JPY	Loading...
US		Park Hotels & Resorts Inc NYSE:PK	2.3B USD	Loading...
US		Diamondrock Hospitality Co NYSE:DRH	1.9B USD	Loading...
US		Sunstone Hotel Investors Inc NYSE:SHO	1.7B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

RLJ Lodging Trust
Glance View

Economic Moat

None

Market Cap

1.1B USD

Industry

Real Estate

RLJ Lodging Trust, a well-established player in the hospitality industry, is a real estate investment trust (REIT) that has carved a niche for itself through strategic acquisitions and diverse property holdings. Originating in 2011 and headquartered in Bethesda, Maryland, the company operates a portfolio comprised predominantly of premium-branded, focused-service hotels. These properties, often located in the bustling urban centers and major market areas of the United States, benefit from high foot traffic and tourist activity, providing a steady stream of income. With brands under the Marriott, Hilton, and Hyatt umbrellas in its portfolio, RLJ leverages the robust loyalty programs and strong reputations of these partners to drive occupancy rates and maximize revenue. The company’s business model capitalizes on providing quality accommodations that offer a streamlined and efficient experience for travelers, which helps to maintain a competitive edge in an ever-evolving market. The financial engine of RLJ Lodging Trust runs on a combination of rental income from its hotel operations and the strategic buying and selling of properties to optimize its portfolio. Moreover, the REIT benefits from the management contracts and franchise agreements that align operational excellence with branded experiences. These arrangements ensure a seamless guest experience while RLJ focuses on maintaining and enhancing property value. Revenue is further bolstered by implementing cost-efficient management practices that help control expenses, ultimately channeling profits back to shareholders in the form of dividends. By concentrating on properties that require relatively less capital expenditure compared to full-service hotels, RLJ is able to maintain a high return on investment, indicative of its insightful approach to navigating the nuanced hospitality sector.

View RLJ Analysis

RLJ Intrinsic Value

Undervaluation 55%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

RLJ Lodging Trust
NYSE:RLJ

Peer Comparison

Market Distribution

Other Profitability Ratios

RLJ Lodging Trust
Glance View

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RLJ Lodging Trust NYSE:RLJ