# EDGAR Filing Document

**Accession Number:** 0001511337
**File Stem:** 0001511337-26-000007
**Filing Date:** 2026-2
**Character Count:** 478881
**Document Hash:** 53242523a8fd73ea6867d08e85ee5a51
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001511337-26-000007.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001511337-26-000007

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 92

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RLJ Lodging Trust
- **CENTRAL INDEX KEY:** 0001511337
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35169
- **FILM NUMBER:** 26701135

**BUSINESS ADDRESS:**
- **STREET 1:** 7373 WISCONSIN AVE
- **STREET 2:** SUITE 1500
- **CITY:** BETHESDA
- **STATE:** MD
- **ZIP:** 20814
- **BUSINESS PHONE:** 301-280-7777

**MAIL ADDRESS:**
- **STREET 1:** 7373 WISCONSIN AVE
- **STREET 2:** SUITE 1500
- **CITY:** BETHESDA
- **STATE:** MD
- **ZIP:** 20814

?xml version='1.0' encoding='ASCII'? rlj-20251231

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549**

**FORM 10-K** 

---

| | | |
|:---|:---|:---|
| ☒ | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal year ended** | **December 31, 2025** |
|  | **OR** | **OR** |
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**  | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**  | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**  |

---

**Commission File Number 001-35169** 

 **RLJ LODGING TRUST** 

(Exact Name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **Maryland** | **27-4706509** |
| (State or Other Jurisdiction of Incorporation or Organization) | (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
| **7373 Wisconsin Avenue, Suite 1500** | **7373 Wisconsin Avenue, Suite 1500** | |
| **Bethesda,** | **Maryland** | **20814** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

**(301) 280-7777** 

(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| <u>Title of Class</u> | <u>Trading Symbol</u> | <u>Name of Exchange on Which Registered</u> |
| Common Shares of beneficial interest, par value $0.01 per share | RLJ | New York Stock Exchange |
| $1.95 Series A Cumulative Convertible Preferred Shares, par value $0.01 per share | RLJ-A | New York Stock Exchange |

---

&nbsp;&nbsp;&nbsp;&nbsp;Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes&nbsp;&nbsp;&nbsp;&nbsp;☒ No

The aggregate market value of the 149,149,843 common shares of beneficial interest held by non-affiliates of the Registrant was approximately $1,085,810,857 based on the closing price of $7.28 as reported on the New York Stock Exchange for such common shares of beneficial interest on June 30, 2025.

As of February 20, 2026, 151,917,505 common shares of beneficial interest of the Registrant, $0.01 par value per share, were outstanding.

**Documents Incorporated by Reference**

Portions of the Definitive Proxy Statement for our 2026 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. We expect to file our proxy statement within 120 days after December 31, 2025.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| **<u>Item No.</u>** | | **Form 10-K**<br>**<u>Report Page</u>** |
| **PART I** | **PART I** | **PART I** |
| <u>Item 1.</u> | <u>Business</u> | <u>[4](#i078fbe21061b4d05b7cb6b3f86c170f7_16)</u> |
| <u>Item 1A.</u> | <u>Risk Factors</u> | <u>[10](#i078fbe21061b4d05b7cb6b3f86c170f7_19)</u> |
| <u>Item 1B.</u> | <u>Unresolved Staff Comments</u> | <u>[24](#i078fbe21061b4d05b7cb6b3f86c170f7_22)</u> |
| <u>Item 1C.</u> | <u>Cybersecurity</u> | <u>[24](#i078fbe21061b4d05b7cb6b3f86c170f7_25)</u> |
| <u>[Item 2.](#i078fbe21061b4d05b7cb6b3f86c170f7_28)</u> | <u>Properties</u> | <u>[25](#i078fbe21061b4d05b7cb6b3f86c170f7_28)</u> |
| <u>Item 3.</u> | <u>Legal Proceedings</u> | <u>[29](#i078fbe21061b4d05b7cb6b3f86c170f7_31)</u> |
| <u>Item 4.</u> | <u>Mine Safety Disclosures</u> | <u>[29](#i078fbe21061b4d05b7cb6b3f86c170f7_34)</u> |
| **PART II** | **PART II** | **PART II** |
| <u>Item 5.</u> | <u>Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities</u> | <u>[30](#i078fbe21061b4d05b7cb6b3f86c170f7_40)</u> |
| <u>Item 6.</u> | <u>[Reserved](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u> | <u>[32](#i078fbe21061b4d05b7cb6b3f86c170f7_43)</u> |
| <u>Item 7.</u> | <u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u> | <u>[32](#i078fbe21061b4d05b7cb6b3f86c170f7_46)</u> |
| <u>Item 7A.</u> | <u>Quantitative and Qualitative Disclosures About Market Risk</u> | <u>[44](#i078fbe21061b4d05b7cb6b3f86c170f7_85)</u> |
| <u>Item 8.</u> | <u>Financial Statements and Supplementary Data</u> | <u>[45](#i078fbe21061b4d05b7cb6b3f86c170f7_88)</u> |
| <u>Item 9.</u> | <u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u> | <u>[45](#i078fbe21061b4d05b7cb6b3f86c170f7_91)</u> |
| <u>Item 9A.</u> | <u>Controls and Procedures</u> | <u>[45](#i078fbe21061b4d05b7cb6b3f86c170f7_94)</u> |
| <u>Item 9B.</u> | <u>Other Information</u> | <u>[46](#i078fbe21061b4d05b7cb6b3f86c170f7_97)</u> |
| <u>Item 9C.</u> | <u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u> | <u>[46](#i078fbe21061b4d05b7cb6b3f86c170f7_100)</u> |
| **PART III** | **PART III** | **PART III** |
| <u>Item 10.</u> | <u>Directors, Executive Officers and Corporate Governance</u> | <u>[47](#i078fbe21061b4d05b7cb6b3f86c170f7_106)</u> |
| <u>Item 11.</u> | <u>Executive Compensation</u> | <u>[47](#i078fbe21061b4d05b7cb6b3f86c170f7_109)</u> |
| <u>Item 12.</u> | <u>Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters</u> | <u>[47](#i078fbe21061b4d05b7cb6b3f86c170f7_112)</u> |
| <u>Item 13.</u> | <u>Certain Relationships and Related Transactions and Director Independence</u> | <u>[47](#i078fbe21061b4d05b7cb6b3f86c170f7_115)</u> |
| <u>Item 14.</u> | <u>Principal Accountant Fees and Services</u> | <u>[47](#i078fbe21061b4d05b7cb6b3f86c170f7_118)</u> |
| **PART IV** | **PART IV** | **PART IV** |
| <u>Item 15.</u> | <u>Exhibits and Financial Statement Schedules</u> | <u>[48](#i078fbe21061b4d05b7cb6b3f86c170f7_124)</u> |
| <u>[Item 16.](#i078fbe21061b4d05b7cb6b3f86c170f7_127)</u> | <u>[Form 10-K Summary](#i078fbe21061b4d05b7cb6b3f86c170f7_127)</u> | <u>[50](#i078fbe21061b4d05b7cb6b3f86c170f7_127)</u> |

---

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS**

Certain statements in this Annual Report on Form 10-K, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, 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 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 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 we believe 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 our actual results could differ materially from those set forth in the forward-looking statements.

Factors that might cause actual outcomes to differ materially from our forward-looking statements include the following: the current global economic uncertainty, increased direct and indirect 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, epidemics and/or pandemics, our ability to obtain lines of credit or permanent financing on satisfactory terms, inflation and changes in interest rates, access to capital through offerings of our common and preferred shares of beneficial interest, or debt, our ability to identify suitable acquisitions, our ability to close on identified acquisitions and integrate those businesses, and inaccuracies of our accounting estimates. A discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" within this Annual Report on Form 10-K. Given these uncertainties, undue reliance should not be placed on such statements. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Except where the context suggests otherwise, we define certain terms in this Annual Report on Form 10-K as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "our company," "we," "us" and "our" refer to RLJ Lodging Trust, a Maryland real estate investment trust, together with its consolidated subsidiaries, including RLJ Lodging Trust, L.P., a Delaware limited partnership, which we refer to as the "Operating Partnership";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "our hotel properties" refers to the 93 hotels owned by us as of December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "compact full-service hotel" typically refers to any hotel with (1) less than 300 guestrooms and less than 12,000 square feet of meeting space, or (2) more than 300 guestrooms where, unlike traditional full-service hotels, the operations focus primarily on the rental of guestrooms such that a significant majority of its total revenue is generated from room rentals rather than other sources, such as food and beverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a "focused-service hotel" typically refers to any hotel where the operations focus primarily on the rental of guestrooms and that offers services and amenities to a lesser extent than a traditional full-service or compact full-service hotel. For example, a focused-service hotel may have a restaurant, but, unlike a restaurant in a traditional full-service or compact full-service hotel, it may not offer three meals per day and may not offer room service. In addition, a focused-service hotel differs from a compact full-service hotel in that it typically has less than 2,000 square feet of meeting space, if any at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "independent manager" refers to a hotel management company that is treated as an "independent contractor" for purposes of the U.S. federal income tax rules applicable to real estate investment trusts and that is otherwise engaged in the business of managing hotels, including hotels that we do not own;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "TRS" refers to each entity that is owned, directly or indirectly, by the Operating Partnership that jointly elects to be treated as a "taxable REIT subsidiary" (together with its subsidiaries that are disregarded as separate entities from such entity) for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Average Daily Rate" ("ADR") represents the total hotel room revenues divided by the total number of rooms sold in a given period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Occupancy" represents the total number of hotel rooms sold in a given period divided by the total number of rooms available; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** "Revenue Per Available Room" ("RevPAR") is the product of ADR and Occupancy.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

For a more in depth discussion of ADR, Occupancy and RevPAR, please refer to the "Key Indicators of Operating Performance" section.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**PART I**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;Business**

**Our Company**

We are a self-advised and self-administered Maryland real estate investment trust that owns primarily premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels located within heart of demand locations. We are one of the largest U.S. publicly-traded lodging REITs in terms of both number of hotels and number of rooms. Our hotels are concentrated in markets that we believe exhibit multiple demand generators and attractive long-term growth prospects. We believe premium-branded, focused-service and compact full-service hotels with these characteristics generate high levels of RevPAR, strong operating margins and attractive returns.

As of December 31, 2025, we owned 93 hotel properties with approximately 20,800 rooms, located in 23 states and the District of Columbia. We owned, through wholly-owned subsidiaries, a 100% interest in 91 of our hotel properties, a 95% controlling interest in one hotel property, and a 50% non-controlling interest in an entity owning one hotel property. We consolidate our real estate interests in the 92 hotel properties in which we hold a controlling financial interest, and we record the real estate interest in the one hotel property in which we hold an indirect 50% non-controlling interest using the equity method of accounting. We lease 92 of the 93 hotel properties to our TRSs, of which we own a controlling financial interest.

We elect to be taxed as a real estate investment trust for U.S. federal income tax purposes (a "REIT"). Substantially all of our assets and liabilities are held by, and all of our operations are conducted through, the Operating Partnership. We are the sole general partner of the Operating Partnership. As of December 31, 2025, we owned, through a combination of direct and indirect interests, 99.5% of the units of limited partnership interest in the Operating Partnership ("OP units").

**The Lodging Industry**

The lodging industry in the United States consists of public and private entities that operate in an extremely diversified market under a variety of brand names. The key participants in the lodging industry are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Owners —* own the hotel property and typically enter into a management agreement with an independent third party to manage the hotel property. The hotel properties may be branded and operated under the independent manager's brand or branded under a separate franchise agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Franchisors —* own a brand or brands and provide the franchised hotels with brand recognition, marketing support and worldwide reservation systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Independent Managers —* responsible for the day-to-day operation of the hotel property, including the employment of the hotel staff, the determination of room rates, the development of sales and marketing plans, the preparation of operating and capital expenditure budgets and the preparation of financial reports for the owner.

**Our Investment and Business Strategies**

Our objective is to generate strong returns for our shareholders by acquiring and owning primarily premium-branded, focused-service and compact full-service hotels at prices where we believe we can generate attractive returns on investment and long-term value appreciation through proactive asset management. We also intend to selectively dispose of hotel properties when we believe the returns have been maximized or the hotel properties no longer meet our strategy in order to have investment capacity for other opportunities, which may include acquisitions. We intend to pursue this objective through the following investment and business strategies:

***Investment Strategies***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Targeted ownership of premium-branded, focused-service and compact full-service hotels.* We believe that premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels located within heart of demand locations have the potential to generate attractive returns relative to other types of hotels due to their ability to achieve RevPAR levels at or close to those generated by traditional full-service hotels, while achieving higher profit margins due to their more efficient operating model and less volatile cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Use of premium hotel brands.* We believe in affiliating our hotels with premium brands owned by leading international franchisors such as Marriott, Hilton and Hyatt. We believe that utilizing premium brands provides significant advantages because of their guest loyalty programs, worldwide reservation systems, effective product segmentation, global distribution and strong customer awareness.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Focus on high-growth markets.* We focus on owning and acquiring hotel properties in markets that we believe exhibit multiple demand generators and attractive long-term growth prospects. As a result, we believe that these hotel properties generate higher returns on investment.

***Business Strategies***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maximize returns from our hotel properties.* We believe that our hotel properties have the potential to generate improvements in RevPAR and earnings before interest, taxes, depreciation and amortization ("EBITDA") as a result of our proactive asset management. We actively monitor and advise our independent managers on most aspects of our hotels' operations, including property positioning, physical design, capital planning and investment, guest experience and overall strategic direction. We regularly review opportunities to further invest in our hotel properties in an effort to enhance quality and attractiveness, increase long-term value and generate attractive returns on investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Pursue a disciplined hotel acquisition strategy.* We seek to acquire additional hotel properties at prices below replacement cost where we believe we can generate attractive returns on investment. We intend to target newly or recently built hotel properties and we will also target acquisition opportunities where we can enhance value by pursuing proactive investment strategies such as renovation, repositioning or rebranding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Pursue opportunistic capital recycling.* We may opportunistically and selectively sell hotel properties whose returns appear to have been maximized. To the extent that we sell our hotel properties, except as may be required by our debt agreements, we intend to redeploy the capital into other investment opportunities, including without limitation, acquisitions and internal value creation opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Maintain a flexible balance sheet.* We intend to continue to maintain a flexible capital structure that allows us to execute our strategy. We believe that a strong balance sheet is a key competitive advantage that affords us a lower cost of capital and positions us for growth. We structure our debt profile to maintain financial flexibility and a balanced maturity schedule with access to different forms of financing.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**Our Hotels**

Our hotel properties operate under industry-leading, premium brands, with approximately 89.3% of our hotel properties operating under existing relationships with Marriott, Hilton or Hyatt. The following table sets forth the brand affiliations of our hotel properties as of December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Brand Affiliations** | **Number of hotels** | **Percentage of total hotels** | **Number of rooms** | **Percentage of total rooms** |
| **Marriott** | | | | |
| &nbsp;&nbsp;&nbsp;Courtyard | 12 | 12.9% | 2736 | 13.2% |
| &nbsp;&nbsp;&nbsp;Residence Inn | 8 | 8.6% | 1220 | 5.9% |
| &nbsp;&nbsp;&nbsp;Marriott | 4 | 4.3% | 1500 | 7.2% |
| &nbsp;&nbsp;&nbsp;Fairfield Inn & Suites | 3 | 3.2% | 418 | 2.0% |
| &nbsp;&nbsp;&nbsp;Renaissance | 3 | 3.2% | 782 | 3.8% |
| &nbsp;&nbsp;&nbsp;SpringHill Suites | 2 | 2.2% | 273 | 1.3% |
| &nbsp;&nbsp;&nbsp;AC Hotel | 1 | 1.1% | 205 | 1.0% |
| &nbsp;&nbsp;&nbsp;Moxy | 1 | 1.1% | 170 | 0.8% |
| &nbsp;&nbsp;&nbsp;Tribute Portfolio | 1 | 1.1% | 132 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** | 35 | 37.7% | 7436 | 35.8% |
| **Hilton** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Embassy Suites | 18 | 19.4% | 5041 | 24.3% |
| &nbsp;&nbsp;&nbsp;Hilton Garden Inn | 5 | 5.3% | 1125 | 5.4% |
| &nbsp;&nbsp;&nbsp;DoubleTree/DoubleTree Suites by Hilton | 4 | 4.3% | 944 | 4.5% |
| &nbsp;&nbsp;&nbsp;Hampton Inn/Hampton Inn & Suites | 3 | 3.2% | 499 | 2.4% |
| &nbsp;&nbsp;&nbsp;Curio Collection | 2 | 2.2% | 468 | 2.3% |
| &nbsp;&nbsp;&nbsp;Homewood Suites | 2 | 2.2% | 345 | 1.7% |
| &nbsp;&nbsp;&nbsp;Hilton | 1 | 1.1% | 231 | 1.1% |
| &nbsp;&nbsp;&nbsp;Tapestry Collection | 1 | 1.1% | 124 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** | 36 | 38.8% | 8777 | 42.3% |
| **Hyatt** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Hyatt House | 7 | 7.4% | 1204 | 5.8% |
| &nbsp;&nbsp;&nbsp;Hyatt Place | 3 | 3.2% | 466 | 2.2% |
| &nbsp;&nbsp;&nbsp;Hyatt Centric | 2 | 2.2% | 266 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** | 12 | 12.8% | 1936 | 9.3% |
| **Wyndham** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Wyndham | 4 | 4.3% | 1642 | 7.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** | 4 | 4.3% | 1642 | 7.9% |
| **Other Brand Affiliation/Independent** | 6 | 6.4% | 968 | 4.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | 93 | 100.0% | 20759 | 100.0% |

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**Asset Management**

We have a dedicated team of asset management professionals that proactively work with our independent managers to maximize profitability at each of our hotels to the extent permitted under the REIT rules. Our asset management team monitors the performance of our hotels on a daily basis and holds frequent ownership meetings with corporate operations executives and key personnel at the hotels. Our asset management team works closely with our independent managers on key aspects of each hotel's operation, including, among others, revenue management, market positioning, cost structure, capital and operational budgeting, as well as the identification and evaluation of return on investment initiatives and overall business strategy. While we have limited ability (or in some cases, no ability) to impact our independent managers' decisions with respect to their employees, we do retain approval rights on key staffing positions at many of our hotels, such as the hotel's general manager and director of sales. We believe that our strong asset management process helps to ensure that each hotel is being operated to our and our franchisors' standards, that our hotel properties are being adequately maintained in order to preserve the value of the

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asset and to ensure the safety of our customers, and that our management companies are maximizing revenues, profits and operating margins.

**Competition**

The U.S. lodging industry is highly competitive. Our hotel properties compete with other participants in the lodging industry for guests in each of their markets on the basis of several factors, including, among others, location, quality of accommodations, convenience, brand affiliation, room rates, service levels, amenities and the availability of lodging and event space. Competition is often specific to the individual markets in which our hotel properties are located and includes competition from existing and new hotels in the focused-service and compact full-service hotel segments and non-traditional accommodations for travelers, such as online services that market homes, apartments and condominiums as an alternative to hotel rooms. We believe that hotels, such as our hotels, that are affiliated with leading national brands, such as the Marriott, Hilton and Hyatt brands, will enjoy competitive advantages associated with operating under such brands.

We face competition for the acquisition of hotel properties from institutional pension funds, private equity funds, REITs, hotel companies and other parties who are engaged in the acquisition of hotel properties. Some of these competitors may have substantially greater financial and operational resources and access to capital, a lower cost of capital and/or greater knowledge of the markets in which we seek to invest. This competition may reduce the number of suitable investment opportunities offered to us and decrease the attractiveness of the terms on which we may acquire our targeted hotel investments, including the cost thereof.

**Seasonality**

The lodging industry is seasonal in nature, which can cause quarterly fluctuations in our revenues. For example, our hotels in the northeastern metropolitan areas experience lower revenues and profits during the winter months of December through March, while our hotels in Florida generally have higher revenues in the months of January through April. This seasonality can be expected to cause periodic fluctuations in a hotel's room revenues, occupancy levels, room rates, operating expenses and cash flows.

**Our Financing Strategy**

Over time, we intend to finance our long-term growth with equity issuances and debt financing with staggered maturities. Our strategy with respect to our debt profile is to primarily have unsecured debt and a greater percentage of fixed rate and hedged floating rate debt as compared to unhedged floating rate debt. Our debt is currently comprised of unsecured senior notes, unsecured credit agreements, and mortgage loans secured by certain hotel properties. We have a mix of fixed and floating rate debt; however, the majority of our debt currently either bears interest at fixed rates or effectively bears interest at fixed rates due to interest rate swaps on the debt.

**Organizational Structure**

We conduct our business through a traditional umbrella partnership real estate investment trust ("UPREIT") structure in which our assets are owned and our business activities are undertaken by the Operating Partnership and its subsidiaries. We are the sole general partner of the Operating Partnership and, as of December 31, 2025, we owned 99.5% of the OP units in the Operating Partnership. In the future, we may issue OP units from time to time in connection with acquiring hotel properties, financing, compensation or other reasons.

Our hotel properties are indirectly owned by the Operating Partnership through limited partnerships or limited liability companies ("hotel owners"). The hotel owners lease the hotels to our TRSs, which engage independent managers to operate our hotel properties on market terms. The independent managers operate the hotels, collect hotel operating revenue, pay operating expenses (including the independent managers' management fees) on behalf of the TRSs pursuant to the relevant hotel management agreement. Our TRSs are corporations for U.S. federal income tax purposes and, thus, are subject to U.S. federal corporate income tax, as well as applicable state and local income tax, on their taxable income.

We treat the rent paid by our TRS lessees to our OP lessors as "rents from real property" for purposes of our qualification as a REIT. In addition, we treat any distributions received from our TRSs out of after-tax earnings as dividend income. As a REIT, we generally are not subject to U.S. federal income tax on our income that we distribute to our shareholders as dividends and we are required to distribute 90% of our REIT taxable income (excluding net capital gains) in order to maintain our qualification as a REIT.

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**Regulation**

***General***

Our hotel properties are subject to various U.S. federal, state and local laws, ordinances and regulations, including regulations relating to common areas and fire and life safety requirements. We believe that each of our hotel properties has the necessary permits and approvals to operate its business.

***Americans with Disabilities Act***

Our hotel properties must comply with the applicable provisions of the Americans with Disabilities Act of 1990 and the Accessibility Guidelines promulgated thereunder (the "ADA"), to the extent that such hotels are "public accommodations" as defined by the ADA. The ADA may require the removal of structural barriers to access by persons with disabilities in certain public areas of our hotels where such removal is readily achievable. We believe that our hotel properties are in substantial compliance with the ADA and that we will not be required to make substantial capital expenditures to address the requirements of the ADA. However, non-compliance with the ADA could result in the imposition of fines or an award of damages to private litigants. The obligation to make readily achievable accommodations is an ongoing one, and we will continue to assess our hotels and to make alterations as appropriate in this respect.

***Environmental Matters***

Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment, a current or previous owner or operator (including tenants) of real estate may be subject to liability related to contamination resulting from the presence or discharge of hazardous or toxic substances at that property and may be required to investigate and clean up such contamination at that property or emanating from that property. These costs could be substantial and liability under these laws may attach without regard to whether the owner or operator knew of, or was responsible for, the presence of the contaminants, and the liability may be joint and several. The presence of contamination or the failure to remediate contamination at our hotels may expose us to third-party liability for cleanup costs, property damage or bodily injury, natural resource damages and costs or expenses related to liens or property use restrictions and materially and adversely affect our ability to sell, lease or develop the real estate or to incur debt using the real estate as collateral.

Our hotel properties are subject to various federal, state, and local environmental, health and safety laws and regulations. Certain of our hotel properties may also be subject to various climate disclosure laws and regulations. Our hotel properties incur costs to comply with these laws and regulations and could be subject to fines and penalties for non-compliance. The costs of complying with environmental, health and safety laws could increase as new laws are enacted and existing laws are modified.

Some of our hotel properties contain asbestos-containing building materials. We believe that the asbestos is appropriately contained in accordance with current environmental regulations and that we have no need for any immediate remediation or current plans to remove the asbestos.

We believe that our hotel properties are in compliance, in all material respects, with all federal, state and local environmental ordinances and regulations regarding hazardous or toxic substances and other environmental matters, the violation of which could have a material adverse effect on us. Although we have not received written notice from any governmental authority of any material noncompliance, liability or claim relating to hazardous or toxic substances or other environmental matters in connection with any of our present properties, we can offer no assurance that a material environmental claim will not be asserted against us in the future.

**Insurance**

We carry comprehensive general liability, fire, extended coverage, business interruption, rental loss of income coverage and umbrella liability coverage on all of our hotels, including earthquake, wind, flood and hurricane coverage on hotels in areas where we believe such coverages are warranted, in each case with limits of liability that we deem adequate. Similarly, we are insured against the risk of direct physical damage in amounts we believe to be adequate to reimburse us, on a replacement cost basis, for the costs incurred to repair or rebuild each hotel, including loss of income during the reconstruction period. We have selected policy specifications and insured limits which we believe to be appropriate given the relative risk of loss, the cost of the coverage and industry practice. Certain of our properties in our portfolio are located in areas known to be subject to hurricanes and we believe that we have appropriate insurance for those risks, although they are subject to higher retentions for

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named windstorms than our other properties. We do not carry insurance for generally uninsurable risks, including, but not limited to losses caused by communicable or infectious diseases, war or governmental actions such as government seizures of property. In addition, we do not carry cyber insurance.

**Human Capital** 

As of December 31, 2025, we had 75 employees. We strive to maintain a workplace that is free from discrimination or harassment on the basis of race, color, sex, religion, age, ethnicity, national origin, disability, sexual orientation, gender identification or any other status protected by applicable laws. We conduct annual trainings to prevent discrimination and harassment and monitor employee conduct year-round.

Our key human capital management objectives are to attract, recruit, hire, develop and promote a deep and diverse bench of talent that translates into a strong and successful workforce. To support these objectives, our human resources programs are designed to develop talent to prepare them for critical roles and leadership positions for the future; reward and support employees through competitive pay, benefit programs, and flexible work arrangements; enhance our culture through efforts to foster, promote, and preserve a culture of diversity and inclusion; and evolve and invest in technology, tools, and resources to enable employees at work.

**Sustainability**

We are committed to driving long-term value creation for our shareholders by upholding our corporate responsibility and incorporating sustainability initiatives in all key aspects of our strategy and business.

In June 2025, we released our third annual Corporate Sustainability Report, which included the Global Reporting Initiative disclosures for our portfolio, the Sustainable Accounting Standards Board Real Estate disclosures and disclosures in accordance with the Task Force on Climate-Related Financial Disclosures. We also continued our participation in sustainability frameworks such as GRESB and meaningfully improved our overall score over the prior year.

On the environmental front, we believe our investment strategy of owning primarily rooms-oriented, focused-service and compact full-service hotels leads to lower operational intensity and higher efficiency with respect to space usage than full-service hotels, resulting in an overall lower environmental impact across our portfolio. We continue to disclose our environmental policy, which includes our environmental objectives such as reducing energy, greenhouse gas, and water usage and making green building investments, as well as addressing the physical impacts of climate change. Our capital expenditure priorities are focused heavily on projects that, in addition to strengthening our market positioning, also enhance profitability by bringing about energy and water usage reductions and savings. Through these and our wider initiatives and support from our hotel operators, across our portfolio since 2019, we were able to reduce our energy usage per square foot by 9% and our greenhouse gas emissions per square foot by 23% as of 2024, bringing us closer to achieving our stated goal of reducing carbon emissions by 35% by 2030.

With respect to social causes, we continue to show our commitment to making an impact in the communities we serve. In 2025, RLJ employees participated in a number of company-sponsored volunteer opportunities, including a finance mentorship program with Junior Achievement of Greater Washington during which RLJ employees taught local middle school students about principles of personal finance. Additionally, in response to the Los Angeles area wildfires in January 2025, several RLJ properties organized donations and care packages for victims and impacted families. We maintain our partnership with a number of other locally-based charitable organizations including the N Street Village, Bridges from School to Work, and Don Bosco Cristo Rey. Additionally, we continue to support small businesses in our community through a $5.0 million deposit at Industrial Bank, a minority-owned financial institution which aims to empower under-banked businesses and individuals locally.

In connection with our adherence to the American Hotel Lodging Association ("AHLA") Safe Stay® initiative, we are committed to promoting the health and well-being of all members of our community – from our customers and associates to the employees of our independent managers. To that end, we incorporate all related AHLA Safe Stay policies and procedures into hotel operations so that all related parties benefit from our support. We have committed to initiatives that support associate well-being, including the AHLA 5-Star Promise – a voluntary industry pledge to improve and promote workplace safety around sexual violence, assault, and human trafficking. We are also committed to supporting our independent managers with integrating the 5-Star Promise principles throughout their hotel operations. Our labor and human rights policy outlines our approach to ensuring fair and equitable labor practices.

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We continue to uphold high standards with respect to governance, which is reflected in our approach to maintaining a highly diverse board and our overall approach to risk management. With respect to our board, three trustees are women, five are ethnically diverse and seven are independent. Nearly 80% of our board has deep expertise and experience in risk management. In addition, our board, via the Nominating and Corporate Governance Committee (the "NCG Committee") of the board, has the overall responsibility for overseeing sustainability-related issues, policies and programs for our company. We have an internal sustainability committee that reports sustainability matters directly through our CEO to the board's NCG Committee and meets several times a year. The NCG Committee, with critical support from management, is leading the effort to formulate our strategy with respect to adapting and responding to the risks and opportunities presented by sustainability-related matters.

We intend to continue to enhance our sustainability initiatives and our disclosures by striving to adhere to the widely recognized frameworks in order to continue to provide transparency regarding our sustainability initiatives. We also intend to enhance strategic decision making by identifying and addressing material risks and opportunities that mitigate long-term environmental impacts to our hotel properties. We will continue to seek ways to maximize the positive impact of our business in ways that foster long-term resiliency for both the portfolio and our stakeholders.

**Corporate Information**

Our principal executive offices are located at 7373 Wisconsin Avenue, Suite 1500, Bethesda, Maryland 20814. Our telephone number is (301) 280-7777. Our website is located at www.rljlodgingtrust.com. The information that is found on or accessible through our website is not incorporated into, and does not form a part of, this Annual Report on Form 10-K or any other report or document that we file with or furnish to the Securities and Exchange Commission (the "SEC"). We have included our website address in this Annual Report on Form 10-K as an inactive textual reference and do not intend it to be an active link to our website.

We make available on our website, free of charge, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. We also make available on our website on the Corporate Governance page under the Investor Relations section various documents related to our corporate governance including our: Board Committee Charters; Corporate Governance Guidelines; Code of Business Conduct and Ethics; Complaint Procedures for Financial and Auditing Matters; Declaration of Trust; and Bylaws.

This Annual Report on Form 10-K and other reports filed with the SEC are available on the SEC's website, which contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The SEC's website address is www.sec.gov.

**Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;Risk Factors**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*Set forth below are the risks that we believe are material to our shareholders. You should carefully consider the following risks in evaluating our company and our business. The occurrence of any of the following risks could materially and adversely impact our financial condition, results of operations, cash flows, the market price of our common shares, and our ability to, among other things, satisfy our debt service obligations and to make distributions to our shareholders, which in turn could cause our shareholders to lose all or a part of their investment. Some statements in this report including statements in the following risk factors constitute forward-looking statements. Please refer to the section entitled "Special Note About Forward-Looking Statements" at the beginning of our Annual Report on Form 10-K.*

**Risks Related to Our Business and Hotel Properties**

***Economic volatility and high rates of inflation could significantly impact and disrupt our business, financial performance and condition, operating results and cash flows.***

Our business strategy depends on achieving revenue and net income growth from demand for hotel rooms as part of a strong U.S. and global economy. Any economic slowdown or recession or weaker-than-anticipated growth or political actions and policies could negatively impact demand for our hotel rooms, which in turn could materially and adversely affect our business, financial performance and condition, operating results and cash flows. Even if the U.S. and global economies remain stable or grow in 2026, we cannot provide any assurances that demand for hotel rooms will increase from current levels. If demand does not increase in the near future, or if demand weakens, our future results of operations and growth prospects could be materially and adversely affected.

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Price volatility, dislocations and liquidity disruptions in the U.S. financial markets may negatively impact our ability to access additional financing for our capital needs, including growth, acquisition activities and other business initiatives, on favorable terms or at all, which may negatively affect our business. A prolonged downturn in the financial markets may cause us to seek alternative capital sources of potentially less attractive financing and may require us to further adjust our business plan accordingly. These events also may make it more difficult or costly for us to raise capital through the issuance of new equity or the incurrence of additional secured or unsecured debt, which could materially and adversely affect us.

In addition to market volatility, any future increases in inflation would pose a risk to us due to the possibility of increases in interest rates, which would adversely impact our outstanding variable rate debt and may result in higher interest rates on any new fixed rate debt we may incur. We have entered into interest rate swaps to limit our exposure to interest rate fluctuations related to a portion of our variable rate debt. However, in a high interest rate environment, the fixed rates we can obtain with such replacement fixed rate swap agreements, and the fixed rate on any new debt we may incur, will also continue to be high. Inflation may also have an adverse effect on our operating expenses, including, but not limited to, labor, supplies, repairs and maintenance, as these costs could increase at a rate higher than our revenues. Additionally, proposed or enacted tariffs on imported goods, including construction materials, furniture, and equipment, may further exacerbate inflationary pressures on renovation costs and limit the availability of certain supplies, thereby increasing the cost and/or delaying the timing of planned capital projects. Inflation could also have an adverse effect on consumer spending, which could impact demand at our hotel properties and, in turn, our results of operations.

***We require a significant amount of cash to service our debt and sustain our operations. Our ability to generate cash depends on many factors beyond our control, and we may not be able to generate cash required to service our debt.***

Our ability to meet our debt service obligations or refinance our debt depends on our future operating and financial performance and capacity to generate cash. Our performance and capacity to generate cash will be affected by our ability to implement our business strategy successfully, but also certain general economic, financial, competitive, regulatory and other factors beyond our control. If we cannot generate sufficient cash to meet our debt service obligations or fund our other business needs, we may, among other things, need to refinance all or a portion of our debt, obtain additional financing, or delay planned capital expenditures. We cannot assure you that we will be able to generate sufficient cash through any of the foregoing. If we are unable to refinance any of our debt or obtain additional financing on reasonable terms or at all, we may not be able to satisfy our debt obligations.

***We will continue to be significantly influenced by the economies and other conditions in the specific markets in which we operate, particularly in the metropolitan areas where we have high concentrations of hotels.***

Our hotels located in the Northern California, Southern California, South Florida, Chicago, Illinois, and Houston, Texas metropolitan areas accounted for approximately 13.4%, 11.1%, 9.1%, 6.5% and 5.8%, respectively, of our total number of rooms available for the fiscal year ended December 31, 2025. As a result, we are particularly susceptible to adverse market conditions in these areas, including industry downturns, relocation of businesses, constrained municipal budgets, any oversupply of hotel rooms, criminal activity, political and societal unrest, supply-chain issues, labor-related issues, and inflationary pressures, or a reduction in lodging demand. Additionally, our hotels may be impacted by periodic and prolonged closures, renovations and expansion of convention centers that are significant drivers of demand. Adverse economic developments in the markets in which we have a concentration of hotels, or in any of the other markets in which we operate, or any increase in hotel supply or decrease in lodging demand resulting from the local, regional or national business or political climate, could materially and adversely affect us.

***We are dependent on the performance of the independent managers that manage the operations of each of our hotels and we could be materially and adversely affected if such third-party hotel managers do not manage our hotels in our best interests or are financially unable or unwilling to perform their obligations.***

We retain independent third-party hotel managers to operate our hotel properties pursuant to management agreements. As of December 31, 2025, all of our hotel properties had individual management agreements, 26 of which were with Aimbridge Hospitality ("Aimbridge") and 21 of which were with Hilton.

The success of our hotel properties depends largely on our ability to establish and maintain good relationships with the hotel managers. From time to time, disputes may arise between us and our third-party managers regarding their performance or compliance with the terms of the management agreements, which in turn could adversely affect our results of operations. We generally will attempt to resolve any such disputes through discussions and negotiations; however, if we are unable to reach

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satisfactory results through discussions and negotiations, we may choose to terminate our management agreement, litigate the dispute or submit the matter to third-party dispute resolution, the outcome of which may be unfavorable to us.

In the event that any of our management agreements are terminated, we can provide no assurances that we could find a replacement manager or that our franchisors will consent to a replacement manager in a timely manner, or at all, or that any replacement manager will be successful in operating our hotels. Furthermore, if any of our third-party managers, including Aimbridge and/or Hilton, are financially unable or unwilling to perform their obligations pursuant to our management agreements, our ability to find a replacement manager or managers for the impacted hotels could be challenging, costly and time consuming. Any adverse developments in any of our third-party managers' business, financial strength or ability to operate our hotel properties efficiently and effectively could have a material adverse effect on our results of operations.

***Costs associated with, or failure to maintain, franchisor operating standards may materially and adversely affect us.***

Under the terms of our franchise license agreements, we are required to meet specified operating standards and other terms and conditions. We expect that our franchisors will periodically inspect our hotel properties to ensure that we and the hotel management companies follow brand standards. Failure by us, or any management company that we engage, to maintain these standards or other terms and conditions could result in a franchise license being canceled or the franchisor requiring us to undertake a costly property improvement program. If a franchise license is terminated due to our failure to make required improvements or to otherwise comply with its terms, we also may be liable to the franchisor for a termination payment, which will vary by franchisor and by hotel. If the funds required to maintain franchisor operating standards are significant, we could be materially and adversely affected.

In addition, if we were to lose a franchise license, the underlying value of a particular hotel property could decline significantly from the loss of the associated name recognition, marketing support, participation in guest loyalty programs and the centralized reservation system provided by the franchisor, which could require us to recognize an impairment charge on the hotel property. Furthermore, the loss of a franchise license at a particular hotel property could harm our relationship with the franchisor, which could impede our ability to operate other hotels under the same brand, limit our ability to obtain new franchise licenses from the franchisor in the future on favorable terms, or at all, and cause us to incur significant costs to obtain a new franchise license for the particular hotel.

***We bear the costs and other risks of employment of the independent managers' hotel personnel pursuant to our hotel management agreements.***

The independent managers that we engage to operate our hotels employ all employees (and contract with other independent contractors and service providers) who work at our hotels. Although we do not employ, supervise, or manage the independent managers' employees, we are responsible for the costs of the independent managers' employees at our hotels, as well as other risks generally associated with having and maintaining a hotel labor force, which may be more pronounced at a hotel where the independent manager's employees are unionized. From time to time, hotel operations may be disrupted as a result of strikes, lockouts, public demonstrations or other negative actions and publicity. The resolution of labor disputes or re-negotiated labor contracts could lead to higher labor costs, either by increases in wages or benefits or by changes in work rules that raise hotel operating costs. We have limited ability (or in some cases, no ability) to control cost increases related to our independent managers' employees.

***Labor shortages could slow our growth or harm our business.*** 

Our success depends in part upon our independent managers' ability to attract, motivate and retain a sufficient number of qualified employees. Qualified individuals needed to fill these positions are in short supply in some areas. The inability to recruit and retain these individuals may adversely impact hotel operations and guest satisfaction, which could harm our business. Additionally, competition for qualified employees has required us to pay meaningfully higher wages to attract enough employees than has historically been the case, and continued tightness in labor markets could result in continued escalation of labor costs. Changes in U.S. policies that discourage immigration, restrict the number of immigrants permitted into the U.S., or negatively impact certain types of work visas, may put further inflationary pressures on labor costs if there is a material decrease in available and/or willing workers. In addition, we could face some challenges meeting workforce requirements resulting from changes in workforce dynamics, such as working remotely or needing more flexibility, which could result in increased labor costs in the future.

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***Restrictive covenants in certain of our management and franchise agreements contain provisions limiting or restricting the sale or financing of our hotels, which could have a material and adverse effect on us.***

Our management and franchise agreements may contain restrictive covenants that limit or restrict our ability to sell or refinance a hotel without the consent of the management company or franchisor. Some of our franchise agreements provide the franchisor with a right of first offer in the event of certain sales or transfers of a hotel and provide that the franchisor has the right to approve any change in the management company engaged to manage the hotel. Generally, we may not agree to sell, lease or otherwise transfer particular hotels unless the transferee is not a competitor of the management company or franchisor and the transferee assumes the related management and/or franchise agreements. If the management company or franchisor does not consent to the sale or financing of our hotels, we may still sell the hotels, but there could be adverse consequences.

***Our ownership of hotel properties with ground leases exposes us to the risks that we may be forced to sell such hotel properties for a lower price, we may have difficulties financing such hotel properties, we may be unable to renew a ground lease or we may lose such hotel properties upon breach of a ground lease.***

As of December 31, 2025, 12 of our consolidated hotel properties, as well as one unconsolidated hotel property, were on land subject to ground leases. Accordingly, we only owned a leasehold or similar interest in 13 hotel properties. Our ground lease at Wyndham San Diego Bayside expires in 2029, and if this lease is not extended, this hotel property would be turned over to the ground lessor. Our ground lease agreements require the consent of the lessor or sub-lessor prior to transferring our interest in the ground lease. These provisions may impact our ability to sell our hotel properties which, in turn, could adversely impact the price realized from any such sale. In addition, at any given time, investors may be disinterested in buying hotel properties subject to a ground lease and may pay a lower price for such hotel properties than for a comparable hotel property with a fee simple interest or they may not purchase such hotel properties at any price. Secured lenders may be unwilling to lend, or otherwise charge higher interest rates, for loans secured by a leasehold mortgage as compared to loans secured by a fee simple mortgage. If we are found to be in breach of a ground lease, we could lose the right to use the hotel property. In addition, unless we can purchase a fee simple interest in the underlying land or extend the terms of these leases before their expiration, as to which no assurance can be given, we will lose our right to own these hotel properties and our interest in the improvements upon expiration of the leases. If we were to lose the right to use a hotel property due to a breach or non-renewal of the ground lease, we would be unable to derive income from such hotel property and we would be required to purchase an interest in another hotel property in an attempt to replace that income, which could materially and adversely affect us.

***Most of our hotel properties operate under either Marriott, Hilton or Hyatt brands; therefore, we are subject to the risks associated with concentrating our portfolio in just three brand families.***

83 of the 93 hotel properties that we owned as of December 31, 2025 were affiliated with brands owned by Marriott, Hilton or Hyatt. As a result, our success is dependent in part on the continued success of Marriott, Hilton and Hyatt and their respective brands. We believe that building brand value is critical to increasing demand and building customer loyalty. Consequently, if market recognition or the positive perception of Marriott, Hilton or Hyatt is reduced or compromised, the brand value associated with the Marriott-, Hilton-, or Hyatt-branded hotels in our portfolio may be adversely affected. Furthermore, if our relationship with Marriott, Hilton or Hyatt were to deteriorate or terminate as a result of disputes regarding the management of our hotels or for other reasons, Marriott, Hilton or Hyatt could, under certain circumstances, terminate our current franchise licenses with them or decline to provide franchise licenses for hotels that we may acquire in the future. If any of the foregoing were to occur, it could have a material adverse effect on us.

***The failure to make and integrate acquisitions of additional hotels could materially and adversely impede our growth.***

We can provide no assurances that we will be successful in identifying attractive hotel properties or portfolios of hotel properties or that, once identified, we will be successful in consummating an acquisition or integrating the acquired property or portfolio into our business. We face significant competition for attractive investment opportunities from other investors, some of which have greater financial resources, a lower cost of capital and greater access to debt and equity capital than we do. As a result, we may be unable to acquire certain hotel properties or portfolios of hotel properties that we deem attractive or the purchase price may be significantly elevated or other terms may be substantially more onerous. In addition, we expect to finance future acquisitions through a combination of borrowings under our unsecured revolving credit facility or other secured or unsecured borrowings, the use of retained cash flows, and offerings of equity and debt securities, which may not be available on advantageous terms, or at all. Any delay or failure on our part to identify, negotiate, finance on favorable terms, consummate and integrate such acquisitions could materially and adversely impede our growth. Following an acquisition or expansion, we may incur acquisition-related costs and assume potential unknown liabilities and unforeseen increased costs or expenses. The integration of such acquisitions, especially acquisitions of portfolios of hotel properties, may cause disruptions

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to our business, strain management time and resources and materially and adversely affect our operating results and financial condition.

***Any difficulties in obtaining the capital necessary to make required periodic capital expenditures and to renovate our hotel properties could materially and adversely affect our financial condition and results of operations.***

Our hotel properties have an ongoing need for renovations and other capital improvements, including the replacement of furniture, fixtures and equipment ("FF&E"), franchisor-required improvements, and renovation or redevelopment of acquisitions. Our lenders also generally require that we set aside annual amounts for capital improvements to our hotel properties. The costs of these capital improvements may increase due to supply-chain disruptions, increased construction costs, and proposed or enacted tariffs on imported goods, including construction materials and FF&E, and could materially and adversely affect us. In addition, in the event of any supply-chain constraints and disruptions, we could face difficulties sourcing the goods and services in a timely manner, which could adversely affect us.

We may not be able to fund the capital improvements to our hotel properties or acquisitions solely from the cash provided from our operating activities because we must distribute annually at least 90% of our REIT taxable income to shareholders in order to maintain our qualification as a REIT. Consequently, we expect to rely upon the availability of debt or equity capital to fund capital improvements and acquisitions. If we are unable to obtain the capital necessary to make the required periodic capital expenditures and to renovate our hotel properties on favorable terms, or at all, our financial condition, liquidity and results of operations could be materially and adversely affected.

***Competition from other lodging industry participants in the markets in which we operate could adversely affect Occupancy levels and/or ADRs, which could have a material and adverse effect on us.***

We face significant competition from owners and operators of other hotels and other lodging industry participants. In addition, we face competition from non-traditional accommodations for travelers, such as online services that market homes, apartments and condominiums as an alternative to hotel rooms. Our competitors may have an operating model that enables them to offer accommodations at lower rates than we can, which could result in our competitors increasing their Occupancy at our expense and adversely affecting our ADRs. Given the importance of Occupancy and ADR at focused-service and compact full-service hotels, this competition could adversely affect our ability to attract prospective guests, which could materially and adversely affect our business, financial condition and results of operations.

***At December 31, 2025, we had approximately $2.2 billion of debt outstanding, which could materially and adversely affect our operating performance and put us at a competitive disadvantage.***

Required repayments of debt and related interest may materially and adversely affect our operating performance. At December 31, 2025, we had approximately $2.2 billion of outstanding debt. In addition, we may incur substantial additional debt, including secured debt, in the future. After taking into consideration the effect of interest rate swaps, 69.2% of our payments are fixed or effectively fixed. Interest rates could increase, and this would increase our interest expense on any future fixed and variable rate debt, as well as existing variable rate debt, which could adversely affect our cash flows and our ability to pay distributions to shareholders. We have entered into interest rate swaps to limit our exposure to interest rate fluctuations related to a portion of our variable rate debt. However, if our interest rate swaps expire in a high interest rate environment, the fixed rates we can obtain with new interest rate swap agreements would be higher than the interest rates of the expired swaps.

Because we anticipate that our operating cash flow will be adequate to repay only a portion of our debt at maturity, we expect that we will be required to repay debt through debt refinancings and/or offerings of our securities. The amount of our outstanding debt may adversely affect our ability to refinance our debt.

If we are unable to refinance our debt on acceptable terms, or at all, we may be forced to dispose of one or more of our hotels on disadvantageous terms, which may result in losses to us and may adversely affect the cash available for distributions to our shareholders. In addition, if the prevailing interest rates or other factors at the time of refinancing result in higher interest rates upon refinancing, our interest expense would increase, which would adversely affect our future operating results and liquidity.

Our outstanding debt, and any additional debt borrowed in the future, may subject us to many risks, including the risk that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our cash flows from operations may be insufficient to make required payments of principal and interest;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be required to use a substantial portion of our cash flows to pay principal and interest, which would reduce the cash available for distributions to our shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be at a competitive disadvantage compared to our competitors that have less debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be vulnerable to economic volatility, particularly if growth were to slow or stall and reduce our flexibility to respond to difficult market, industry, or economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the terms of any refinancing may not be in the same amount or on terms as favorable as the terms of the debt being refinanced; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the use of leverage could adversely affect our ability to borrow more money for operations and capital improvements, to finance future acquisitions of hotel properties, to make distributions to our shareholders, and to repurchase common shares, and it could adversely affect the market price of our common shares.

***Our existing indebtedness contains covenants and our failure to comply with all covenants in our debt agreements could materially and adversely affect us.***

Our existing indebtedness contains customary and financial covenants that may limit our ability to capitalize on business opportunities. These covenants place restrictions on, among other things, our ability to incur additional indebtedness, incur liens on certain assets, engage in certain mergers, liquidations or consolidations, sell certain assets, make restricted payments (including the payment of dividends and other distributions), engage in certain transactions with affiliates, and make certain types of investments.

In addition, our ability to borrow under our unsecured revolving credit facility is subject to compliance with our financial and other covenants, including covenants relating to debt service coverage ratios and leverage ratios. Our failure to comply with covenants in our existing or future indebtedness, as well as our inability to make required principal and interest payments, could cause a default under the applicable debt agreement, which could result in the acceleration of the debt and require us to repay such debt with capital obtained from other sources, which may not be available to us or may be available only on unattractive terms. Furthermore, if we default on secured debt, lenders can take possession of the hotel(s) securing such debt. In addition, debt agreements may contain specific cross-default provisions with respect to specified other indebtedness, giving the lenders the right to declare a default on their debt and to enforce remedies, including accelerating the maturity of such debt upon the occurrence of a default under such other indebtedness. If we default on several of our debt agreements or any significant debt agreement, we could be materially and adversely affected.

***U.S. federal income tax provisions applicable to REITs may restrict our business decisions regarding the potential sale of a hotel property.***

The provisions of the Internal Revenue Code of 1986, as amended (the "Code"), applicable to REITs require that we hold our hotel properties for investment, rather than primarily for sale in the ordinary course of business, which may cause us to forego or defer sales of hotel properties that otherwise would be in our best interests. Therefore, we may not be able to vary our portfolio promptly in response to economic or other conditions or on favorable terms, which may materially and adversely affect our cash flows, our ability to make distributions to shareholders and the market price of our common shares.

The U.S. federal income tax provisions applicable to REITs provide that any gain realized by a REIT on the sale of property held as inventory or other property held primarily for sale to customers in the ordinary course of business is treated as income from a "prohibited transaction" that is subject to a 100% excise tax. We intend to hold our hotel properties for investment with a view of long-term appreciation, to engage in the business of acquiring and owning hotel properties, and to make occasional sales of hotel properties consistent with our investment objectives. There can be no assurance, however, that the Internal Revenue Service (the "IRS") might not contend that the income from one or more of these sales is subject to the 100% excise tax. Moreover, the potential to incur this penalty tax could deter us from selling one or more hotel properties even though it would be in the best interests of us and our shareholders for us to do so. There is a statutory safe harbor available for a limited number of sales in a single taxable year of properties that have been owned by a REIT for at least two years, but that safe harbor likely would not apply to all sale transactions that we might otherwise consider.

***Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on joint venture partners' financial condition and liquidity and disputes between us and our joint venture partners.***

We own certain hotel properties through joint ventures. In the future, we may enter into additional joint ventures to acquire, develop, improve or partially dispose of hotel properties, thereby reducing the amount of capital required by us to make

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investments and diversifying our capital sources for growth. Such joint venture investments involve risks not otherwise present in a wholly-owned hotel property or a redevelopment project, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not have exclusive control over the hotel property or the joint venture, which may prevent us from taking actions that are in our best interest but opposed by our partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• joint venture agreements often restrict the transfer of a partner's interest or may otherwise restrict our ability to sell the interest when we desire, or on advantageous terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• joint venture agreements may contain provisions pursuant to which one partner may initiate procedures requiring the other partner to choose between buying the other partner's interest or selling its interest to that partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a partner may, at any time, have economic or business interests or goals that are, or that may become, inconsistent with our business interests or goals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a partner may fail to fund its share of required capital contributions or may become bankrupt, which would mean that we and any other remaining partners generally would remain liable for the joint venture's liabilities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may, in certain circumstances, be liable for the actions of a partner, and the activities of a partner could adversely affect our ability to qualify as a REIT, even though we do not control the joint venture.

Any of the above might subject a hotel property to liabilities in excess of those contemplated and adversely affect the value of our current and future joint venture investments.

***The future outbreak of highly infectious or contagious diseases could significantly impact and disrupt our business, financial performance and condition, operating results and cash flows.***

If we experience a pandemic or epidemic in the future, any increases in unemployment, decreased capital spending, declines in consumer confidence, increases in inflation, supply-chain issues, or economic slowdowns or recessions that may result therefrom could cause sustained negative consumer or business sentiment and reduced demand for travel and lodging, which would materially and adversely affect our business, financial performance and condition, operating results and cash flows.

**Risks Related to the Lodging Industry**

***Our ability to make distributions to our shareholders may be adversely affected by various operating risks common to the lodging industry, including competition, over-building and dependence on business travel and tourism.***

Our hotel properties have different economic characteristics than many other real estate assets. Unlike other real estate assets, hotels generate revenue from guests that typically stay at the hotel property for only a few nights, which causes the room rate and Occupancy levels at each of our hotels to change every day, and results in earnings that can be highly volatile.

In addition, our hotel properties are subject to various operating risks common to the lodging industry, many of which are beyond our control, including, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seasonality of the lodging industry may cause quarterly fluctuations in our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• over-building of hotels in the markets in which we operate, which results in an increased supply of hotels that will adversely affect Occupancy and revenues at our hotel properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidation among companies in the lodging industry may increase the resulting companies' negotiating power relative to ours, and decrease competition among those companies for management and franchise agreements, which could result in higher management or franchise fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in the number of brands owned by Marriott, Hilton and Hyatt, which could result in increased competition for our hotels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition from non-traditional accommodations for travelers, such as online services that market homes, apartments and condominiums as an alternative to hotel rooms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dependence on business and leisure travelers;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in energy costs and other expenses affecting travel, which may affect travel patterns and reduce the number of business and leisure travelers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in operating costs due to inflation and other factors that may not be offset by increased room rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in governmental laws and regulations, fiscal policies and zoning ordinances and the related costs of compliance with laws and regulations, fiscal policies and ordinances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse effects of international, national, regional and local economic and market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse effects of worsening conditions in the lodging industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks generally associated with the ownership of hotels and real estate, as we discuss in detail below.

The occurrence of any of the foregoing could materially and adversely affect us.

***The cyclical nature of the lodging industry may cause fluctuations in our operating performance, which could have a material and adverse effect on us.***

The lodging industry historically has been highly cyclical in nature. Fluctuations in lodging demand and, therefore, operating performance, are caused largely by general economic and local market conditions, which subsequently affect levels of business and leisure travel. In addition to general economic conditions, new hotel room supply is an important factor that can affect the lodging industry's performance, and over-building has the potential to further exacerbate the negative impact of an economic recession. Room rates and Occupancy, and thus RevPAR, tend to increase when demand growth exceeds supply growth. We can provide no assurances regarding whether, or the extent to which, lodging demand will rebound or whether any such rebound will be sustained. An adverse change in lodging fundamentals could result in returns that are substantially below our expectations or result in losses, which could have a material and adverse effect on us.

***Technology, potentially including artificial intelligence, is used in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm the business.***

We, and our hotel managers and franchisors, rely on information technology networks and systems, potentially including artificial intelligence ("AI"), to process, transmit and store electronic information, including personal or confidential information, and to manage or support a variety of business processes. These information technology networks and systems can be vulnerable to threats or risks arising from a cybersecurity incident, such as system, network or internet failures; cyber attacks (including malware attacks, unauthorized access attempts and denial of service and other unintentional intrusions or malicious cyber attacks); cyber-terrorism; social engineering (including phishing); cyber extortion (including ransomware) or other fraudulent schemes; and intentional or unintentional intrusions or interruptions. Such cybersecurity incidents or other disruptions may be caused by individuals within our organization (including by employee error, negligence or fraud), individuals outside our organization with authorized access or unauthorized individuals from outside our organization. Although we believe we and our hotel managers and franchisors have taken commercially reasonable steps to protect the security of our systems, there can be no assurance that such security measures will prevent failures, inadequacies or interruptions in system services, or that system security will not be breached. Further, adoption of AI tools by us or by third parties may pose new cybersecurity challenges. Threat actors may use AI tools to automate and enhance cybersecurity attacks against us. We use software and platforms designed to detect such cybersecurity threats, including AI-based tools, but these threats could become more sophisticated and harder to detect and counteract, which may pose significant risks to our data security and systems.

Any failure to maintain proper function, security and availability of information technology networks and systems or any actual or perceived cybersecurity incident or disruption affecting our own or our hotel managers' and franchisors' information technology networks and systems or those upon which we rely could interrupt our operations, our financial reporting and compliance, significantly impact our financial condition, cash flows and the market price of our common shares, damage our reputation, result in significant remediation expenses and increased cybersecurity protection and insurance costs and subject us to liability claims or regulatory scrutiny or penalties, which could have a material and adverse effect on our business, financial condition and results of operations. Due to the complexity and interconnectedness of our information technology networks and systems, and those upon which we and our hotel managers and franchisors rely, the process of upgrading or patching protective measures could itself create a risk of cybersecurity issues or system disruptions for the Company, as well as for our hotel managers, franchisors, and others who rely upon, or have exposure to, such information technology networks and systems. In addition, increased regulation of data collection, use and retention practices, including self-regulation and industry standards, changes in existing laws and regulations, enactment of new laws and regulations, increased enforcement activity, and changes

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in interpretation of laws, could increase our cost of compliance and operation, limit our ability to grow our business or otherwise harm the Company.

In the conduct of our business, both we and our hotel managers and franchisors rely on relationships with third parties, including cloud data storage and other information technology service providers, suppliers, distributors, contractors and other external business partners, for certain functions or for services in support of key portions of our operations. These third-party entities are subject to similar risks related to cybersecurity, privacy violations, and business interruption, and an attack against such third-party service provider or partner could have a material adverse effect on our business. While we may be entitled to damages if our third-party service providers fail to satisfy their cybersecurity-related obligations to us, any award may be insufficient to cover our damages, or we may be unable to recover such award.

Additionally, the use or lack of use of AI by us, our hotel managers, franchisors, and vendors poses risks that could negatively affect our business. The current and potential future applications of these AI tools are rapidly evolving, as are the legal and regulatory frameworks that govern them. While AI tools can improve efficiency, they may also introduce errors or inadequacies that are not easily detectable, including inaccuracies, deficiencies, bias, intellectual property concerns, and data privacy risks. Although we implement measures designed to help prevent such errors or inadequacies, those measures may not always be successful. AI could significantly disrupt the markets in which we operate and subject us to increased competition, legal and regulatory risks and compliance costs, which could have a material adverse effect on our business, our financial condition and results of operations. We also face competitive risks related to the adoption and application of new technologies by established market participants or new entrants. Vendors may use AI without meeting regulatory standards, potentially leading to cybersecurity incidents and reputational damage. Furthermore, market participants, including us, using AI for financial analysis could misinterpret data, resulting in flawed conclusions or investment decisions.

***Future terrorist attacks or changes in terror alert levels could materially and adversely affect us.***

Historically, terrorist attacks and subsequent terrorist alerts have adversely affected the U.S. travel and hospitality industries, often disproportionately to the effect on the overall economy. The extent of the impact that actual or threatened terrorist attacks in the U.S. or elsewhere could have on domestic and international travel and our business in particular cannot be determined, but any such attacks or the threat of such attacks could have a material and adverse effect on travel and hotel demand and our ability to insure our hotel properties, which could materially and adversely affect us.

***We face possible risks associated with natural disasters, weather events, wildfires, and the physical effects of climate change.***

We are subject to the risks associated with natural disasters, weather events, wildfires, and the physical effects of climate change, any of which could have a material adverse effect on our properties, operations and business. Over time, our hotel properties located in coastal markets and other areas that may be impacted by climate change are expected to experience increases in storm intensity and rising sea-levels, causing damage to our hotel properties. As a result, we could become subject to significant losses and/or repair costs that may or may not be fully covered by insurance. Other markets may experience prolonged variations in temperature or precipitation that may limit access to the water needed to operate our hotel properties or significantly increase energy costs, which may subject those properties to additional regulatory burdens, such as limitations on water usage or stricter energy efficiency standards. Natural disasters, weather events and climate change may also affect our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable in areas most vulnerable to such events, increasing operating costs at our hotel properties, such as the cost of water or energy, and requiring us to expend funds as we seek to repair and protect our hotel properties against such risks. There can be no assurance that natural disasters, weather events, or climate change will not have a material adverse effect on our hotel properties, operations or business.

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**Risks Related to Our Organization and Structure**

***The share ownership limits imposed by the Code for REITs and our declaration of trust may restrict share transfers and/or business combination opportunities.***

In order for us to maintain our qualification as a REIT under the Code, not more than 50% in value of our outstanding shares may be owned, directly or indirectly, by five or fewer individuals (as defined in the Code to include certain entities) at any time during the last half of each taxable year following our first year of taxation as a REIT. Our declaration of trust, with certain exceptions, authorizes our board of trustees to take the necessary actions to preserve our qualification as a REIT. Unless exempted by our board of trustees, no person or entity (other than a person or entity who has been granted an exception) may directly or indirectly, beneficially or constructively, own more than 9.8% of the aggregate of our outstanding common shares, by value or by number of shares, whichever is more restrictive, or 9.8% of the aggregate of the outstanding preferred shares of any class or series, by value or by number of shares, whichever is more restrictive.

Our board of trustees may, in its sole discretion, grant an exemption to the share ownership limits, subject to certain conditions and the receipt by our board of trustees of certain representations and undertakings. During the time that such waiver is effective, the excepted holders will be subject to an increased ownership limit. As a condition to granting such limited exemptions, the excepted holders are required to make representations and warranties to us, which are intended to ensure that we will continue to meet the REIT ownership requirements. The excepted holders must inform us if any of these representations becomes untrue or is violated, in which case such excepted holder will lose its limited exemption from the share ownership limits.

***It may be difficult or impractical to effect a change in control under circumstances that otherwise could provide the holders of our common shares with the opportunity to realize a premium over the then-prevailing market price of our common shares.***

Certain advance notice provisions of our bylaws may inhibit a change in control. These advance notice provisions may have the effect of delaying, deferring or preventing a transaction or a change in control of our company that might involve a premium to the market price of our common shares or otherwise be in our shareholders' best interests.

Termination of the employment agreements with our executive officers could be costly and prevent a change in control. The employment agreements that we entered into with each of our executive officers provide that, if their employment with us terminates under certain circumstances (including upon a change in control), we are required to pay them severance compensation, including accelerating the vesting of their respective equity awards, thereby making it costly to terminate their employment without cause. Furthermore, these provisions could delay or prevent a transaction or a change in control that might involve a premium paid for our common shares or otherwise be in the best interests of our shareholders.

Our declaration of trust contains provisions that make the removal of our trustees difficult, which could make it difficult for our shareholders to effect changes to our management. Our declaration of trust provides that, subject to the rights of the holders of one or more classes or series of preferred shares to elect or remove one or more trustees, a trustee may be removed only for cause and only by the affirmative vote of the holders of at least two-thirds of the votes entitled to be cast in the election of trustees and that our board of trustees has the exclusive power to fill vacant trusteeships, even if the remaining trustees do not constitute a quorum. These provisions make it more difficult to change our management by removing and replacing trustees and it may delay or prevent a change in control that is in the best interests of our shareholders.

***Our rights and the rights of our shareholders to take action against our trustees and officers are limited, which could limit our shareholders' recourse in the event of actions not in our shareholders' best interests.***

Under Maryland law, generally, a trustee is required to perform his or her duties in good faith, in a manner he or she reasonably believes to be in our best interest and with the care that an ordinarily prudent person in a like position would use under similar circumstances. Under Maryland law, trustees are presumed to have acted with this standard of care. In addition, our declaration of trust limits the liability of our trustees and officers to us and our shareholders for monetary damages, except for liability resulting from the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual receipt of an improper benefit or profit in money, property or services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• active and deliberate dishonesty by the trustee or officer that was established by a final judgment as being material to the cause of action adjudicated.

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Our declaration of trust and bylaws obligate us, to the fullest extent permitted by Maryland law in effect from time to time, to indemnify and to pay or reimburse reasonable expenses in advance of the final disposition of a proceeding to any present or former trustee or officer who is made or threatened to be made a party to the proceeding by reason of his or her service to us in that capacity. In addition, we may be obligated to advance the defense costs incurred by our trustees and officers. As a result, we and our shareholders may have more limited rights against our trustees and officers than might otherwise exist absent the current provisions in our declaration of trust and bylaws or that might exist with other companies.

***If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results.***

To monitor the accuracy and reliability of our financial reporting, we have established an internal audit function that oversees our internal controls. In addition, we have developed policies and procedures with respect to company-wide business processes and cycles in order to implement an effective system of internal control over financial reporting. We have established, or caused our independent managers to establish, controls and procedures designed to ensure that hotel revenues and expenses are properly recorded at our hotels. We cannot be certain that we will be successful in maintaining effective internal control over financial reporting and we may determine in the future that our existing internal controls need improvement. If we fail to maintain an effective system of internal control, we could be materially harmed or we could fail to meet our reporting obligations. In addition, the existence of a material weakness in our internal controls could result in errors to our financial statements that could require a restatement, cause us to fail to meet our reporting obligations, result in increased costs to remediate any deficiencies, attract regulatory scrutiny or lawsuits and cause investors to lose confidence in our reported financial information, any of which could lead to a substantial decline in the market price of our common shares.

**Risks Related to the Real Estate Industry**

***The illiquid nature of real estate investments could significantly impede our ability to respond to changing economic, financial, and investment conditions or changes in the operating performance of our hotel properties, which could materially and adversely affect our cash flows and results of operations.***

Real estate investments, including the hotels in our portfolio, are relatively illiquid. As a result, we may not be able to sell a hotel or hotels quickly or on favorable terms in response to changing economic, financial and investment conditions or changes in the hotel's operating performance when it otherwise may be prudent to do so. We cannot predict whether we will be able to sell any hotel property we desire to sell for the price or on the terms set by us or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We may be required to expend funds to correct defects or to make improvements before a hotel can be sold, and we cannot provide any assurances that we will have the funds available to correct such defects or to make such improvements. Our inability to dispose of assets at opportune times or on favorable terms could materially and adversely affect our cash flows and results of operations.

***Uninsured and underinsured losses at our hotel properties could materially and adversely affect us.***

We maintain comprehensive property insurance on all of our hotel properties and we intend to maintain comprehensive property insurance on any hotels that we acquire in the future, including fire, terrorism, and extended coverage. Our comprehensive property insurance program has a $250,000 self-insured retention per claim. Certain types of catastrophic losses, such as windstorms, earthquakes, floods, and losses from foreign and domestic terrorist activities may not be insurable or may not be economically insurable. Even when insurable, these policies may have high retentions and/or high premiums. Certain of our coastal hotel properties each have a retention of 5% of total insured value for a named storm, and our hotels located in areas susceptible to earthquakes have retentions of up to 5% of total insured value. Our lenders may require such insurance and our failure to obtain such insurance could constitute a default under the loan agreements, which could have a material and adverse effect on us.

In addition to the comprehensive property insurance, we maintain general liability insurance at all of our hotel properties. Beginning January 30, 2025, we have established a general liability self-insured retention for the majority of our hotel properties of $500,000 per claim. Our general liability policies provide coverage for claim amounts that exceed our self-insured retention.

In the event of a substantial loss, our insurance coverage may not be sufficient to cover the full current market value or replacement cost of our lost investment, which could have a material and adverse effect on us. Should an uninsured loss or a loss in excess of insured limits occur, or should we be unsuccessful in obtaining coverage from an insurance carrier, we could lose all or a portion of the capital we have invested in a hotel property, as well as the anticipated future revenue from the hotel

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property. In that event, we might nevertheless remain obligated for any mortgage debt or other financial obligations related to the hotel property.

***We could incur significant costs related to government regulation and litigation with respect to environmental matters, which could have a material and adverse effect on us.***

Our hotel properties are subject to various U.S. federal, state and local environmental, health and safety laws and regulations that impose liability for contamination. Under these laws, governmental entities have the authority to require us, as the current owner of a hotel property, to perform or pay for the cleanup of contamination at, on, under or emanating from the hotel and to pay for natural resource damages arising from such contamination. Because these laws also impose liability on persons who owned or operated a property at the time it became contaminated, it is possible we could incur cleanup costs or other environmental liabilities even after we sell or no longer operate the hotel properties.

The liabilities and the costs associated with environmental contamination at our hotel properties, defending against the claims related to alleged or actual environmental issues, or complying with environmental, health and safety laws could be material and could materially and adversely affect us. The discovery of material environmental liabilities at our hotel properties could subject us to unanticipated costs, which could significantly reduce or eliminate our profitability and the cash available for distribution to our shareholders.

***We may from time to time be subject to litigation that could expose us to uncertain or uninsured costs.***

As owners of hotel properties, we may from time to time face potential claims, litigation and threatened litigation from guests, visitors to our hotel properties, contractors, sub-contractors and others. These claims and proceedings are inherently uncertain and their costs and outcomes cannot be predicted with certainty. Some of these claims may result in defense costs, settlements, fines or judgments against us, and some of which are not, or cannot be, covered by insurance. Payment of any such costs, settlements, fines or judgments that are not insured could have a material and adverse impact on our financial position and results of operations. In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could materially and adversely impact our results of operations and cash flows, expose us to increased risks that would be uninsured, and/or adversely impact our ability to attract officers and trustees.

**Risks Related to Our Status as a REIT**

***If we do not qualify as a REIT, or if we fail to remain qualified as a REIT, we will be subject to U.S. federal income tax and potentially state and local taxes, which would reduce our earnings and the amount of cash available for distribution to our shareholders.***

If we were to fail to qualify as a REIT in any taxable year and any available relief provisions do not apply, we would be subject to U.S. federal and state corporate income tax, and dividends paid to our shareholders would not be deductible by us in computing our taxable income. Unless we were entitled to statutory relief under certain Code provisions, we also would be disqualified from taxation as a REIT for the four taxable years following the year in which we failed to qualify as a REIT.

Any determination that we do not qualify as a REIT would have a material adverse effect on our results of operations and could materially reduce the value of our common shares. Our additional tax liability could be substantial and would reduce our net earnings available for investment, debt service and/or distributions to shareholders.

***REIT distribution requirements could adversely affect our ability to execute our business plan or require us to make distributions of our shares or other securities.***

We generally must distribute to our shareholders annually at least 90% of our "REIT taxable income," subject to certain adjustments and excluding any net capital gain. From time to time, we may generate taxable income greater than our cash flow. In addition, we may be subject to limitations on the ability to use our net operating loss carryovers to offset taxable income that we do not distribute. If we do not have other funds available in these situations, we could be required to (i) borrow funds on unfavorable terms, (ii) sell investments at disadvantageous prices, (iii) distribute amounts that would otherwise be invested in future acquisitions, or (iv) make a taxable distribution of our common shares as part of a distribution in which shareholders may elect to receive our common shares or (subject to a limit measured as a percentage of the total distribution) cash to make distributions sufficient to enable us to pay out enough of our REIT taxable income to satisfy the REIT distribution requirements. These alternatives could increase our costs or reduce our shareholders' equity. Thus, compliance with the REIT distribution requirements may hinder our ability to grow, which could adversely affect the value of our shares.

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***If our leases are not respected as true leases for U.S. federal income tax purposes, we would likely fail to qualify as a REIT.***

To qualify as a REIT, we must satisfy two gross income tests, pursuant to which specified percentages of our gross income must be passive income, such as rent. For the rent paid pursuant to the hotel leases with our TRSs, which we currently expect will continue to constitute substantially all of our gross income, to qualify for purposes of the gross income tests, the leases must be respected as true leases for U.S. federal income tax purposes and must not be treated as service contracts, joint ventures or some other type of arrangement. We believe that the leases will be respected as true leases for U.S. federal income tax purposes. There can be no assurance, however, that the IRS will agree with this characterization. If the leases were not respected as true leases for U.S. federal income tax purposes, we would not be able to satisfy either of the two gross income tests applicable to REITs and would likely lose our REIT status. Additionally, we could be subject to a 100% excise tax for any adjustment to our leases.

***To comply with the restrictions imposed on REITs, we may have to conduct certain activities and own certain assets through TRSs, which will be subject to normal corporate income tax, and we could be subject to a 100% penalty tax on certain income if those transactions are not conducted on arm's-length terms.***

A TRS is an entity (i) in which a REIT directly or indirectly holds stock, (ii) which has elected, with the REIT, to be treated as a taxable REIT subsidiary of such REIT, and (iii) which is taxable as a regular corporation, at regular corporate income tax rates. As a REIT, we cannot own certain assets or conduct certain activities directly, without risking failing the income or asset tests that apply to REITs. We can, however, hold these assets or undertake these activities through a TRS.

As noted, the income earned through our TRSs will be subject to corporate income taxes. In addition, a 100% excise tax will be imposed on certain transactions between us and our TRSs that are not conducted on an arm's length basis.

***If our TRSs fail to qualify as "taxable REIT subsidiaries" under the Code, we would likely fail to qualify as a REIT.***

Rent paid by a lessee that is a "related party tenant" will not be qualifying income for purposes of the gross income tests applicable to REITs. We currently lease and expect to continue to lease substantially all of our hotels to our TRSs, which will not be treated as "related party tenants" so long as they qualify as "taxable REIT subsidiaries" under the Code. To qualify as such, most significantly, a TRS cannot engage in the direct or indirect operation or management of hotels. We believe that our TRSs qualify to be treated as "taxable REIT subsidiaries" for U.S. federal income tax purposes. However, given recent scrutiny regarding the operational structure of lodging REITs like us and their third-party management agreements, there can be no assurance that the IRS will not challenge the status of a TRS for U.S. federal income tax purposes or that a court would not sustain such a challenge. If the IRS were successful in disqualifying any of our TRSs from treatment as a "taxable REIT subsidiary," it is likely that we would fail to meet the asset tests applicable to REITs and substantially all of our income would fail to qualify for the gross income tests. If we failed to meet either the asset tests or the gross income tests, we would likely lose our REIT status.

***If any management companies that we engage do not qualify as "eligible independent contractors," or if our hotel properties are not "qualified lodging facilities," we would likely fail to qualify as a REIT.***

Rent paid by a lessee that is a "related party tenant" of ours generally will not be qualifying income for purposes of the gross income tests applicable to REITs. An exception is provided, however, for leases of "qualified lodging facilities" to a TRS so long as the hotels are managed by an "eligible independent contractor" and certain other requirements are satisfied. We currently lease and expect to continue to lease all or substantially all of our hotels to TRS lessees and we currently engage and expect to continue to engage management companies that are intended to qualify as "eligible independent contractors." In addition, for a management company to qualify as an eligible independent contractor, (i) the management company must not own, directly or through its shareholders, more than 35% of our outstanding shares, and no person or group of persons can own more than 35% of our outstanding shares and the shares (or ownership interest) of the management company and (ii) such company or a related person must be actively engaged in the trade or business of operating "qualified lodging facilities" (as defined below) for one or more persons not related to the REIT or its TRSs at each time that such company enters into a management contract with a TRS or its TRS lessee. Finally, each hotel with respect to which our TRS lessees pay rent must be a "qualified lodging facility." A "qualified lodging facility" is a hotel, motel, or other establishment in which more than one-half of the dwelling units are used on a transient basis, including customary amenities and facilities, provided that no wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or in connection with such facility. As of the date hereof, we believe the management companies operate qualified lodging facilities for certain persons who are not related to us or our TRSs. As of the date hereof, we believe that all of the hotels leased to our TRS lessees will be qualified lodging facilities. Although we intend to monitor future acquisitions and improvements of hotels, the REIT provisions of the Code provide only

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limited guidance for making determinations under the requirements for qualified lodging facilities, and there can be no assurance that these requirements will be satisfied in all cases.

***Complying with REIT requirements may force us to forgo and/or liquidate otherwise attractive investment opportunities.***

To qualify as a REIT, we must ensure that we meet the gross income tests annually and that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and qualified real estate assets. The remainder of our investment in securities (other than government securities and qualified real estate assets) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets (other than government securities and qualified real estate assets) can consist of the securities of any one issuer, no more than 20% of the value of our total assets (25% of the value of our total assets for taxable years beginning after December 31, 2025) can be represented by securities of one or more TRSs, and no more than 25% of the value of our total assets may be represented by debt instruments issued by publicly offered REITs that are "nonqualified" (i.e., not secured by real property or interests in real property). If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate from our portfolio, or contribute to a TRS, otherwise attractive investments in order to maintain our qualification as a REIT. These actions could have the effect of reducing our income and amounts available for distribution to our shareholders. In addition, we may be required to make distributions to shareholders at disadvantageous times or when we do not have funds readily available for distribution, and may be unable to pursue investments that would otherwise be advantageous to us. Thus, compliance with the REIT requirements may hinder our ability to make, and, in certain cases, maintain ownership of, certain attractive investments.

***In the event that we recognize a significant gain from cash settlement of a forward sale agreement under our at-the-market equity offering program, the U.S. federal income tax treatment of the cash that we receive in such instance is unclear and could impact our ability to meet the REIT qualification requirements.***

We enter into forward sale agreements from time to time in connection with our at-the-market equity offering program and, subject to certain conditions, we have the right to elect physical, cash or net share settlement under these agreements at any time and from time to time, in part or in full. In the event that we elect to settle a forward sale agreement for cash and the settlement price is below the forward sale price, we would be entitled to receive a cash payment from the applicable forward purchaser(s). Under Section 1032 of the Code, generally, no gains and losses are recognized by a corporation in dealing in its own shares, including pursuant to a "securities futures contract," as defined in the Code by reference to the Exchange Act. Although we believe that any amount received by us in exchange for our common shares would qualify for the exemption under Section 1032 of the Code, because it is not entirely clear whether a forward sale agreement qualifies as a "securities futures contract," the U.S. federal income tax treatment of any cash settlement payment we receive is uncertain. In the event that we recognize a significant gain from the cash settlement of a forward sale agreement, we might not be able to satisfy the gross income requirements applicable to REITs under the Code. If we were to fail to satisfy one or both of the gross income tests for any taxable year, we may nevertheless qualify as a REIT for such year if we were entitled to relief under certain provisions of the Code. If these relief provisions were inapplicable, we would not qualify to be taxed as a REIT.

***There is a risk of changes in the tax laws which may adversely affect our taxation as a REIT and taxation of our shareholders.***

The IRS, the United States Treasury Department and Congress frequently review U.S. federal income tax legislation, regulations and other guidance. We cannot predict whether, when or to what extent new U.S. federal tax laws, regulations, interpretations or rulings will be adopted. Further, from time to time, changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability. Any legislative action may prospectively or retroactively modify our tax treatment and, therefore, may adversely affect our taxation or taxation of our shareholders.

**Risks Related to Our Common Shares**

***Our cash available for distribution to shareholders may not be sufficient to pay distributions at expected or required levels, and we may need to borrow funds or rely on other external sources in order to make such distributions, or we may not be able to make such distributions at all, which could cause the market price of our common shares to decline significantly.***

We intend to continue to pay regular quarterly distributions to holders of our common shares. All distributions will be made at the discretion of our board of trustees and will depend on our historical and projected results of operations, EBITDA, funds from operations ("FFO"), liquidity and financial condition, REIT qualification, debt service requirements, capital

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expenditures and operating expenses, prohibitions and other restrictions under financing arrangements and applicable law and other factors as our board of trustees may deem relevant from time to time. No assurance can be given that our projections will prove to be accurate or that any level of distributions or particular yield will be made or sustained. We may not be able to make distributions in the future or we may need to fund such distributions through borrowings or other external financing sources, which may be available only at unattractive terms, if at all. Any of the foregoing could cause the market price of our common shares to decline significantly.

***Future issuances of debt securities, which would rank senior to our common shares upon our liquidation, and future issuances of equity securities (including OP units), which would dilute the holdings of our existing common shareholders and may be senior to our common shares for the purposes of making distributions, periodically or upon liquidation, may negatively affect the market price of our common shares.***

In the future, we may issue debt or equity securities or incur additional borrowings. Upon our liquidation, holders of our debt securities and other loans and preferred shares will receive a distribution of our available assets before common shareholders. If we incur debt in the future, our future interest costs could increase, and adversely affect our liquidity, FFO and results of operations. We are not required to offer any additional equity securities to existing common shareholders on a preemptive basis. Therefore, additional common share issuances, directly or through convertible or exchangeable securities (including OP units), warrants or options, will dilute the holdings of our existing common shareholders, and such issuances or the perception of such issuances may reduce the market price of our common shares. Our preferred shares, if issued, would likely have a preference on distribution payments, periodically or upon liquidation, which could eliminate or otherwise limit our ability to make distributions to common shareholders. Because our decision to issue debt or equity securities or incur additional borrowings in the future will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing, nature or success of any future capital raising efforts. Thus, the common shareholders bear the risk that our future issuances of debt or equity securities or our incurrence of additional borrowings will negatively affect the market price of our common shares.

***We cannot guarantee that we will repurchase our common shares pursuant to our share repurchase program or that our***

***share repurchase program will enhance long-term shareholder value. Share repurchases could also increase the volatility***

***of the price of our common shares and could diminish our cash reserves.***

Our board of trustees authorized a share repurchase program to repurchase up to an aggregate of $250.0 million of common and preferred shares. Although our board of trustees authorized our share repurchase program, our share repurchase program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares. Our share repurchase program may be limited, suspended, or discontinued at any time without prior notice. In addition, repurchases of our common shares pursuant to our share repurchase program could affect our share price and increase its volatility. The existence of our share repurchase program could cause our share price to be higher than it would be in the absence of such a program. Additionally, our share repurchase program could diminish our cash reserves, which may impact our ability to finance future growth and to pursue possible future strategic opportunities and acquisitions. There can be no assurance that any share repurchases will enhance shareholder value because the market price of our common shares may decline below the levels at which we repurchased the common shares.

**Item 1B.&nbsp;&nbsp;&nbsp;&nbsp;Unresolved Staff Comments**

None.

**Item 1C. Cybersecurity**

**Risk Management and Strategy**

We are committed to properly addressing the cybersecurity threats we face, and we have processes to assess, identify, and manage risks from cybersecurity threats. We apply a robust approach to the identification, mitigation and management of cybersecurity risks. The risk of cybersecurity threats is integrated into our overall risk management program, which includes an annual risk prioritization process to identify key enterprise-level risks. The cybersecurity threat risk action plan is managed by a dedicated information technology ("IT") committee (the "IT Committee"), which oversees our cybersecurity program. The IT Committee comprises senior company leaders as well as our outsourced IT services provider. To oversee and identify cybersecurity threat risks on a day-to-day basis, we maintain a security operations center with round-the-clock monitoring. We have established policies, including those related to privacy, information security and cybersecurity, and we employ a broad and diversified set of mitigation strategies and techniques to reduce cybersecurity risks, including continuous monitoring, early

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detection tools, and proactive vulnerability management. Our information security policies are informed by the National Institute of Standards and Technology's Cybersecurity Standards.

Given the ever-changing cybersecurity landscape, our IT Committee regularly meets to identify opportunities for incremental improvements, assess additional layers of security, and evaluate new technologies for implementation. In addition, we engage, as necessary, cybersecurity experts to analyze our IT policies, procedures, and infrastructure to assess their effectiveness and to identify opportunities for improvement.

We conduct an annual information security compliance training for employees to better enable them to detect and report malware, ransomware, and other malicious software and social engineering attempts that may compromise our IT systems. Employees also are subject to spear-phishing training campaigns, which helps us to assess the effectiveness of our training programs.

Our management companies are ultimately responsible for our guests' information, and we monitor these companies, as well as other third-party service providers, to ensure that they are complying with our privacy, information security and cybersecurity policies. We also assess the cybersecurity proficiency of potential third-party cloud suppliers before utilizing their services.

We work closely with our internal and external auditors to assess, identify and manage cybersecurity risks. Our internal controls over financial reporting, which include certain of our IT internal controls, are audited by our external auditor as part of our Sarbanes-Oxley Act compliance activities, and this process includes assessing the design and operating effectiveness of those controls.

Although we have experienced phishing and similar attempts for unauthorized access to our information technology systems and data, during the past three years, management has not identified cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition. However, evolving cybersecurity threats make it increasingly challenging to anticipate, detect and defend against cybersecurity threats and incidents. See "Item 1A. Risk Factors" above for more information.

**Governance**

Our board of trustees is responsible for overseeing the assessment and management of enterprise-level risks that may impact us, including cybersecurity. Two board members have information security expertise from their professional experience. Nathaniel A. Davis has expertise in information technology and experience reviewing and addressing cybersecurity risks. Patricia L. Gibson also has experience assessing and addressing cybersecurity risks through her past professional experience.

Our Audit Committee has primary responsibility for the oversight of risks from cybersecurity threats. Management, including members of the IT Committee, reports at least annually to the Audit Committee regarding the Company's enterprise risk management, cybersecurity risks and mitigation strategies and will report cybersecurity incidents to the Audit Committee as they occur, if material. The Audit Committee will inform the full board of trustees regarding significant cybersecurity incidents, as appropriate.

In addition to implementing and monitoring safeguards to minimize the chance and potential impact of a cybersecurity incident, we have established a cybersecurity incident response plan that is designed to effectively address cybersecurity threats that may occur despite these safeguards and help ensure timely and consistent responses to actual or attempted cybersecurity incidents impacting our company. The cybersecurity incident response plan includes an escalation framework, including processes for informing the board of trustees of material cybersecurity incidents.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;Properties**

***Our Hotel Properties***

The following table provides a comprehensive list of our hotel properties as of December 31, 2025:

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| **State** | **Hotel Property Name** | **Rooms** | **State** | **Hotel Property Name** | **Rooms** |
| **Alabama** | **Alabama** | **Alabama** | **Indiana** | **Indiana** | **Indiana** |
|  | Embassy Suites Birmingham | 242 |  | Courtyard Indianapolis @ The Capitol | 124 |
| **Arizona** | **Arizona** | **Arizona** |  | Residence Inn Indianapolis Downtown On The Canal | 134 |
|  | Embassy Suites Phoenix - Biltmore | 232 | **Kentucky** | **Kentucky** | **Kentucky** |

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|:---|:---|:---|:---|:---|:---|
| **State** | **Hotel Property Name** | **Rooms** | **State** | **Hotel Property Name** | **Rooms** |
| **California** | **California** | **California** |  | Marriott Louisville Downtown | 620 |
|  | Courtyard San Francisco | 166 |  | Residence Inn Louisville Downtown | 140 |
|  | Embassy Suites Irvine Orange County | 293 | **Louisiana** | **Louisiana** | **Louisiana** |
|  | Embassy Suites Los Angeles Downey | 220 |  | Chateau LeMoyne - French Quarter, New Orleans (1) | 171 |
|  | Embassy Suites Los Angeles - International Airport South | 349 |  | Hilton Garden Inn New Orleans Convention Center | 286 |
|  | Embassy Suites Milpitas Silicon Valley | 267 |  | Hotel Tonnelle New Orleans, a Tribute Portfolio Hotel | 132 |
|  | Embassy Suites San Francisco Airport - South San Francisco | 316 |  | Wyndham New Orleans - French Quarter | 374 |
|  | Embassy Suites San Francisco Airport - Waterfront | 340 | **Maryland** | **Maryland** | **Maryland** |
|  | Hilton Garden Inn Los Angeles Hollywood | 160 |  | Residence Inn Bethesda Downtown | 188 |
|  | Hilton Garden Inn San Francisco Oakland Bay Bridge | 303 |  | Residence Inn National Harbor Washington DC | 162 |
|  | Hyatt House Cypress Anaheim | 142 | **Massachusetts** | **Massachusetts** | **Massachusetts** |
|  | Hyatt House Emeryville San Francisco Bay Area | 234 |  | AC Hotel Boston Downtown | 205 |
|  | Hyatt House San Diego Sorrento Mesa | 193 |  | Embassy Suites Boston Waltham | 275 |
|  | Hyatt House San Jose Silicon Valley | 180 |  | Wyndham Boston Beacon Hill | 304 |
|  | Hyatt House San Ramon | 142 | **Minnesota** | **Minnesota** | **Minnesota** |
|  | Hyatt House Santa Clara | 150 |  | Embassy Suites Minneapolis - Airport | 310 |
|  | Hyatt Place Fremont Silicon Valley | 151 | **New York** | **New York** | **New York** |
|  | Residence Inn Palo Alto Los Altos | 156 |  | Courtyard New York Manhattan Upper East Side | 226 |
|  | San Francisco Marriott Union Square | 401 |  | Hampton Inn Garden City | 143 |
|  | The Pierside Santa Monica | 132 |  | The Knickerbocker New York (2) | 330 |
|  | Wyndham San Diego Bayside | 600 | **North Carolina** | **North Carolina** | **North Carolina** |
|  | Zachari Dunes on Mandalay Beach, Curio Collection by Hilton | 250 |  | Hyatt House Charlotte Center City | 163 |
| **Colorado** | **Colorado** | **Colorado** | **Oregon** | **Oregon** |  |
|  | Hotel Teatro | 110 |  | Courtyard Portland City Center | 256 |
|  | Marriott Denver South @ Park Meadows | 279 |  | SpringHill Suites Portland Hillsboro | 106 |
|  | Moxy Denver Cherry Creek | 170 | **Pennsylvania** | **Pennsylvania** |  |
|  | Renaissance Boulder Flatiron Hotel | 232 |  | Courtyard Pittsburgh University Center | 253 |
| **District of Columbia** | **District of Columbia** | **District of Columbia** |  | Hilton Garden Inn Pittsburgh University Place | 202 |
|  | Fairfield Inn & Suites Washington DC Downtown | 198 |  | Renaissance Pittsburgh Hotel | 300 |
|  | Homewood Suites Washington DC Downtown | 175 |  | Wyndham Philadelphia Historic District | 364 |
|  | Hyatt Place Washington DC Downtown K Street | 164 | **South Carolina** | **South Carolina** |  |
| **Florida** | **Florida** | **Florida** |  | Courtyard Charleston Historic District | 176 |
|  | DoubleTree Grand Key Resort | 216 |  | Mills House Charleston, Curio Collection by Hilton | 218 |
|  | DoubleTree Suites by Hilton Orlando - Lake Buena Vista | 236 | **Tennessee** | **Tennessee** |  |
|  | Embassy Suites Deerfield Beach - Resort & Spa | 244 |  | The Bankers Alley Hotel, a Tapestry Collection by Hilton | 124 |
|  | Embassy Suites Fort Lauderdale 17th Street | 361 | **Texas** |  |  |
|  | Embassy Suites Fort Myers Estero | 150 |  | Courtyard Austin Downtown Convention Center | 270 |
|  | Embassy Suites Miami - International Airport | 318 |  | Courtyard Houston By The Galleria | 190 |
|  | Embassy Suites Orlando - International Drive South/Convention Center | 244 |  | Courtyard Houston Downtown Convention Center | 191 |
|  | Embassy Suites Tampa Downtown Convention Center | 360 |  | DoubleTree by Hilton Houston Medical Center Hotel & Suites | 297 |
|  | Embassy Suites West Palm Beach Central | 194 |  | DoubleTree Suites by Hilton Austin | 195 |
|  | Fairfield Inn & Suites Key West | 106 |  | Hyatt Centric The Woodlands | 72 |
|  | Hilton Cabana Miami Beach | 231 |  | Residence Inn Austin Downtown Convention Center | 179 |
|  | Renaissance Fort Lauderdale West Hotel | 250 |  | Residence Inn Houston Downtown Convention Center | 171 |
| **Georgia** | **Georgia** | **Georgia** |  | SpringHill Suites Houston Downtown Convention Center | 167 |
|  | Embassy Suites Atlanta - Buckhead | 326 | **Washington** | **Washington** | **Washington** |
|  | Hampton Inn and Suites Atlanta Midtown | 186 |  | Homewood Suites Seattle Lynnwood | 170 |
|  | Hyatt Centric Midtown Atlanta | 194 | **Wisconsin** | **Wisconsin** | **Wisconsin** |
|  | Residence Inn Atlanta Midtown Historic | 90 |  | Hyatt Place Madison Downtown | 151 |
| **Hawaii** | **Hawaii** | **Hawaii** |  |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **Hotel Property Name** | **Rooms** | **Hotel Property Name** | **Rooms** |
|  | Courtyard Waikiki Beach | 404 |  |  |
| **Illinois** | **Illinois** | **Illinois** |  |  |
|  | Courtyard Chicago Downtown Magnificent Mile | 306 |  |  |
|  | Courtyard Midway Airport | 174 |  |  |
|  | Fairfield Inn & Suites Chicago Midway Airport | 114 |  |  |
|  | Hampton Inn Chicago Midway Airport | 170 |  |  |
|  | Hilton Garden Inn Chicago Midway Airport | 174 |  |  |
|  | Holiday Inn Express & Suites Midway Airport | 104 |  |  |
|  | Marriott Chicago Midway | 200 |  |  |
|  | Sleep Inn Midway Airport | 121 |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)We own an indirect 50% ownership interest in this hotel property and we account for the ownership interest using the equity method of accounting. This hotel property is operated without a lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)We own a 95.0% controlling ownership interest in this hotel property.

**Management Agreements**

In order to qualify as a REIT, we cannot directly or indirectly operate any of our hotel properties. We lease all but one of our hotel properties to TRS lessees, which in turn engage hotel property management companies to manage our hotel properties. All of our hotel properties are operated pursuant to a management agreement with one of 16 independent management companies. 37 of our hotel properties receive the benefits of a franchise agreement pursuant to a management agreement with Hilton, Hyatt, Marriott, or other management companies.

As of December 31, 2025, Aimbridge and Hilton were the management companies for 26 and 21 of our hotel properties, respectively. Our remaining 46 hotel properties were managed by 14 other management companies, including Hyatt and Marriott.

The management agreements have initial terms that range from three to 25 years, and some provide for one or two automatic extension periods ranging from one to 10 years each.

Each management company receives a base management fee between 1.5% and 3.5% of hotel revenues. The management agreements that include the benefits of a franchise agreement incur a base management fee between 1.0% and 7.0% of hotel revenues.

The management companies are also eligible to receive an incentive management fee upon the achievement of certain financial thresholds as set forth in each applicable management agreement. The incentive management fee is generally calculated as a percentage of hotel net operating income after we have received a priority return on our investment in the hotel.

Each management agreement provides that the applicable independent manager controls the operations of the applicable hotel property. Our ability to participate in decisions regarding the hotel property is limited under the management agreement to typical owner rights with respect to hotel operations.

Each of the management agreements provides us with a right to terminate such management agreement if the management company fails to reach certain performance targets (as provided in the applicable management agreement). Certain management agreements also provide us with a right to terminate the management agreement in our sole and absolute discretion. In addition, certain management agreements give us the right to terminate the management agreement upon the sale of the hotel property or for any reason upon payment of a stipulated termination fee. Subject to certain qualifications and applicable cure periods, the management agreements are generally terminable by either party upon material casualty, or condemnation of the hotel property, or the occurrence of certain customary events of default. Certain management agreements also stipulate that in the event that a management company elects to terminate a management agreement due to an event of default by us, the management company may elect to recover a termination fee, as liquidated damages, equal to 2.5 times the actual base management fee and incentive management fee earned by the management company under that management agreement in the fiscal year immediately preceding the fiscal year in which such termination occurred.

Many of our Aimbridge, White Lodging Services ("WLS"), and Hersha Hospitality Management ("HHM") management agreements state that we cannot sell the applicable hotel property to any unrelated third party or engage in certain change of control actions (1) if we are in default under the management agreement, or (2) with or to a person or entity that is known in the community as being of bad moral character or has been convicted of a felony or is in control of or controlled by persons

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convicted of a felony or would be in violation of any franchise agreement requirements applicable to us. In addition, those Aimbridge, WLS, and HHM management agreements further require that any future owner of the applicable hotel property, at the option of the management company, assume the management agreement or enter into a new management agreement for such hotel property.

**Franchise Agreements**

As of December 31, 2025, 53 of our hotels operated under franchise agreements with Marriott, Hilton, Hyatt or other hotel brands. This excludes 37 hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, Marriott, or other management companies. In addition, three of our hotels are not operated with a hotel brand so they do not have franchise agreements.

The franchisors provide a variety of benefits to the franchisees, including centralized reservation systems, national advertising, marketing programs and publicity designed to increase brand awareness, personnel training and operational quality at the hotels across the brand system. The franchise agreements generally specify management, operational, record-keeping, accounting, reporting and marketing standards and procedures, all of which our TRS lessees, as the franchisees, must follow. The franchise agreements require our TRS lessees to comply with the franchisors' standards and requirements, including the training of operational personnel, safety, maintaining specified insurance, the types of services and products ancillary to guest room services that may be provided by the TRS lessee, the display of signage and the type, quality and age of furniture, fixtures and equipment included in the guest rooms and the nature of the lobbies and other common areas. The franchise agreements have initial terms ranging from one to 30 years. Each of our franchise agreements require that we pay a royalty fee between 2.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee between 1.5% and 3.0% of food and beverage revenues.

The franchise agreements also provide for termination at the applicable franchisor's option upon the occurrence of certain events, including the failure to pay royalties and fees, the failure to perform our obligations under the franchise license, bankruptcy and the abandonment of the franchise, or a change in control. The TRS lessee is responsible for making all payments under the applicable franchise agreement to the franchisor; however, we are required to guarantee the obligations under each of the franchise agreements. In addition, many of our existing franchise agreements provide the franchisor with a right of first offer in the event of certain sales or transfers of a hotel and provide the franchisor the right to approve a change in the management company who manages the hotel.

**TRS Leases**

In order for us to qualify as a REIT, neither our company nor any of our subsidiaries may directly or indirectly operate any of our hotels. The subsidiaries of the Operating Partnership, as the lessors, lease our hotels to our TRS lessees, which, in turn, are the parties to the existing management agreements with the independent managers at each of our hotels. The independent managers control the daily operations of our hotel properties, and our ability to participate in operating decisions regarding our hotel properties is limited to typical owner rights with respect to hotel operations. The TRS leases contain the provisions that are described below. For the hotels that are acquired in the future, we intend for the leases to contain substantially similar provisions as those described below; however, we may, in our discretion, alter any of these provisions with respect to any particular lease.

***Lease Terms***

Our TRS leases have initial terms of generally three years and a majority of the leases can be renewed by our TRS lessees for three or four successive three-year renewal terms unless the lessee is in default at the expiration of the then-current term. In addition, our TRS leases are subject to early termination by us in the event that we sell the hotel to an unaffiliated party, a change in control occurs or the applicable provisions of the Code are amended to permit us to operate our hotels. Our TRS leases are also subject to early termination upon the occurrence of certain events of default and/or other contingencies described in the lease.

***Amounts Payable under the Leases***

During the term of each TRS lease, our TRS lessees are obligated to pay us a fixed annual base rent plus a percentage rent and certain other additional charges that our TRS lessees agree to pay under the terms of the respective TRS lease. For the majority of our hotels, percentage rent is calculated based on the total revenues generated by the hotel. Certain TRS lessees only pay percentage rent on room revenue.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

The TRS leases require our TRS lessees to pay rent, management fees, franchise fees, personal property taxes where applicable, certain insurance policies, and all other costs and expenses, including utility and other charges, incurred in the operation of the hotels. The leases also provide for rent reductions and abatements in the event of damage to, destruction, or a partial taking of, any hotel. Any intercompany transactions involving rent payments, reductions, or abatements eliminate in consolidation.

***Maintenance and Modifications***

Under each TRS lease, the TRS lessee may, at its expense, make additions, modifications or improvements to the hotel that it deems desirable, and that we approve. In addition, our TRS lessees are required, at their expense, to maintain the hotels in good order and repair, except for ordinary wear and tear, and to make repairs that may be necessary and appropriate to keep the hotel in good order and repair. Under the TRS lease, we are responsible for maintaining, at our cost, any underground utilities or structural elements, including the exterior walls and the roof of the hotel (excluding, among other things, windows and mechanical, electrical and plumbing systems). Each TRS lessee, when and as required to meet the standards of the applicable management agreement, any applicable hotel franchise agreement, or to satisfy the requirements of any lender, must establish an FF&E reserve in an amount equal to up to 5% of gross revenue for the purpose of periodically repairing, replacing or refurbishing the furnishings and equipment.

***Events of Default***

The events of default under each of the leases include, among others: the failure by a TRS lessee to pay rent when due; the breach by a TRS lessee of a covenant, condition or term under the lease, subject to the applicable cure period; the bankruptcy or insolvency of a TRS lessee; cessation of operations by a TRS lessee of the leased hotel for more than 30 days, except as a result of damage, destruction, or a partial or complete condemnation; or the default by a TRS lessee under a franchise agreement subject to any applicable cure period.

***Termination of Leases on Disposition of the Hotels or Change of Control***

In the event that we sell a hotel to a non-affiliate or a change of control occurs, we generally have the right to terminate the lease by paying the applicable TRS lessee a termination fee to be governed by the terms and conditions of the lease.

**Ground Leases**

As of December 31, 2025, 12 of our consolidated hotel properties and one unconsolidated hotel property were subject to ground lease agreements that cover the land under the respective hotel properties. Additional information on the ground leases can be found in Note 10 to our accompanying consolidated financial statements.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings**

The nature of the operations of our hotels exposes our hotel properties, us and the Operating Partnership to the risk of claims and litigation in the normal course of business. Other than routine litigation arising out of the ordinary course of business, we are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;Mine Safety Disclosures**

Not applicable.

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**PART II**

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities** 

Our common shares are traded on the New York Stock Exchange ("NYSE") under the symbol "RLJ." During the year ended December 31, 2025, we paid a cash dividend of $0.15 per common share in each quarter of 2025. During the year ended December 31, 2024, we paid a cash dividend of $0.10 per common share in each of the first and second quarters of 2024 and a cash dividend of $0.15 per common share in each of the third and fourth quarters of 2024.

On December 31, 2025 and February 20, 2026, the closing price of our common shares as reported on the NYSE was $7.45 and $8.22, respectively.

***Share Return Performance***

The graph and the table set forth below assume $100.00 was invested on December 31, 2020 in RLJ Lodging Trust's common shares. The graph and the table compare the total shareholder return of our common shares against the cumulative total returns of the Standard & Poor's 500 Index ("S&P 500 Index") and the Dow Jones U.S. Select Real Estate Hotels Index ("Dow Jones US REIT Hotels Index") between December 31, 2020 and December 31, 2025. The graph assumes an initial investment of $100.00 in our common shares and in each of the indices, and it also assumes the reinvestment of dividends.

![1412](rlj-20251231_g1.jpg)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **<u>Name</u>** | **Initial Investment at December 31, 2020** | **Value of Initial<br>Investment at<br>December 31, 2021** | **Value of Initial<br>Investment at<br>December 31, 2022** | **Value of Initial<br>Investment at<br>December 31, 2023** | **Value of Initial<br>Investment at<br>December 31, 2024** | **Value of Initial<br>Investment at<br>December 31, 2025** |
| RLJ Lodging Trust | $100.00 | $98.71 | $75.90 | $86.91 | $79.57 | $62.88 |
| S&P 500 Index | $100.00 | $128.71 | $105.40 | $133.10 | $166.40 | $196.16 |
| Dow Jones US REIT Hotels Index | $100.00 | $115.06 | $97.38 | $121.20 | $115.82 | $109.44 |

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This performance graph shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or incorporated by reference into any filing by us under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

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***Shareholder Information***

At February 20, 2026, we had 172 holders of record of our common shares. However, because many of our common shares are held by brokers and other institutions on behalf of shareholders, we believe there are substantially more beneficial holders of our common shares than holders of record. At February 20, 2026, there were 12 holders (other than our company) of our OP units. Our OP units are redeemable for cash or, at our election, for our common shares.

In order to comply with certain requirements related to our qualification as a REIT, our declaration of trust provides that, subject to certain exceptions, no person or entity (other than a person or entity who has been granted an exception) may directly or indirectly, beneficially or constructively, own more than 9.8% of the aggregate of our outstanding common shares, by value or by number of shares, whichever is more restrictive, or 9.8% of the aggregate of the outstanding preferred shares of any class or series, by value or by number of shares, whichever is more restrictive.

***Distribution Information***

We intend, over time, to make quarterly distributions to our common shareholders. In order to qualify and maintain our qualification for taxation as a REIT, we intend to make annual distributions to our shareholders of at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain.

The credit agreements governing our $600.0 million unsecured revolving credit facility (the "Revolver") and our unsecured term loans (the "Term Loans") limit our ability to pay dividends under certain circumstances. If an event of default exists, we may only pay cash dividends in an aggregate amount with respect to any fiscal year not to exceed the greater of (a) the minimum amount required for us to maintain our status as a REIT under Sections 856 through 860 of the Code, or (b) the amount necessary to avoid income or excise tax under the Code. However, if the event of default is a payment default or bankruptcy related, we may not make any cash dividend payments. So long as no event of default exists, the credit agreements do not restrict our ability to pay cash dividends.

The terms of our outstanding preferred stock prohibit us from paying dividends on our common shares unless all accrued preferred dividends then payable have been paid.

Any future distributions will be at the sole discretion of our board of trustees, and their form, timing and amount, if any, will depend upon a number of factors, including our actual and projected financial condition, liquidity, EBITDA, FFO and results of operations, the revenue we actually receive from our properties, our operating expenses, our debt service requirements, our capital expenditures, prohibitions and other limitations under our financing arrangements, as described above, our REIT taxable income, the annual REIT distribution requirements, applicable law and such other factors as our board of trustees deems relevant. To the extent that our cash available for distribution is less than 90% of our REIT taxable income, we may consider various means to cover any such shortfall, including borrowing under the Revolver or other loans, selling certain of our assets, or using a portion of the net proceeds we receive from offerings of equity, equity-related or debt securities or declaring taxable share dividends.

***Unregistered Sales of Equity Securities***

The Company did not sell any securities during the fiscal year ended December 31, 2025 that were not registered under the Securities Act.

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***Issuer Purchases of Equity Securities***

The following table summarizes all of the share repurchases during the quarter ended December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total number<br>of shares<br>purchased** | **Average price<br>paid per share** | **Total number of<br>shares purchased<br>as part of publicly<br>announced plans<br>or programs** | **Maximum number<br>of shares that may<br>yet be purchased<br>under the plans or<br>programs (1)** |
| October 1, 2025 through October 31, 2025 |  | $— |  | 36136600 |
| November 1, 2025 through November 30, 2025 |  | $— |  | 32590037 |
| December 1, 2025 through December 31, 2025 |  | $— |  | 32983743 |
| Total |  |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)A share repurchase program to acquire up to an aggregate of $250.0 million of common and preferred shares was approved in April 2025 and is set to expire on May 8, 2026 (the "2025 Share Repurchase Program"). The maximum number of &nbsp;&nbsp;&nbsp;&nbsp;shares that may yet be repurchased under the 2025 Share Repurchase Program is calculated by dividing the total dollar amount available to repurchase shares by the closing price of our common shares on the last business day of the respective month.

**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;Reserved**

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion and analysis should be read in conjunction with our accompanying consolidated financial statements, the related notes included thereto, and Item 1A., "Risk Factors", all of which appear elsewhere in this Annual Report on Form 10-K.

**Overview**

We are a self-advised and self-administered Maryland REIT that owns primarily premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels located within heart of demand locations. We own a geographically diversified portfolio of hotels located in urban markets that exhibit multiple demand generators and attractive long-term growth prospects. We believe that our investment strategy allows us to generate high levels of RevPAR, strong operating margins and attractive returns. Our focused-service and compact full-service hotels typically generate most of their revenue from room rentals, have limited food and beverage outlets and meeting space, and require fewer employees than traditional full-service hotels. We believe these types of hotels have the potential to generate attractive returns relative to other types of hotels due to their ability to achieve RevPAR levels at or close to those achieved by traditional full-service hotels while achieving higher profit margins due to their more efficient operating model and less volatile cash flows.

**Our Customers**

The majority of our hotels consist of premium-branded, focused-service and compact full-service hotels. As a result of this property profile, the majority of our customers are transient in nature. Transient business typically represents individual business or leisure travelers. The majority of our hotels are located in business districts within major metropolitan areas which benefit from a wide range of demand sources, including corporate, educational, government, leisure and international, among others. As a result, macroeconomic or political actions that impact these areas may have a significant effect on our business.

Group business is typically defined as a minimum of 10 guestrooms booked together as part of the same piece of business. Group business may or may not use the meeting space at any given hotel. Given the limited meeting space at the majority of our hotels, group business that utilizes meeting space represents a small component of our customer base.

A number of our hotel properties are affiliated with brands marketed toward extended-stay customers. Extended-stay customers are generally defined as those staying five nights or longer.

**Key Indicators of Operating Performance**

We use a variety of operating, financial and other information to evaluate the operating performance of our business. These key indicators include financial information that is prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") as well as other financial measures that are non-GAAP measures. In addition, we

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use other information that may not be financial in nature, including industry standard statistical information and comparative data. We use this information to measure the operating performance of our individual hotels, groups of hotels and/or business as a whole. We also use these metrics to evaluate the hotels in our portfolio and potential acquisition opportunities to determine each hotel's contribution to cash flow and its potential to provide attractive long-term total returns. The key indicators include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Average Daily Rate*** — ADR represents the total hotel room revenues divided by the total number of rooms sold in a given period. ADR measures the average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base at a hotel or group of hotels. We use ADR to assess the pricing levels that we are able to generate, as changes in rates have a greater impact on operating margins and profitability than changes in Occupancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Occupancy*** — Occupancy represents the total number of hotel rooms sold in a given period divided by the total number of rooms available. Occupancy measures the utilization of our hotels' available capacity. We use Occupancy to measure demand at a specific hotel or group of hotels in a given period. Additionally, Occupancy levels help us determine the achievable ADR levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Revenue Per Available Room*** — RevPAR is the product of ADR and Occupancy. RevPAR does not include non-room revenues, such as food and beverage revenue or other revenue. We use RevPAR to identify trend information with respect to room revenues from comparable hotel properties and to evaluate hotel performance on a regional basis.

RevPAR changes that are primarily driven by changes in Occupancy have different implications for overall revenues and profitability than the changes that are driven primarily by changes in ADR. For example, an increase in Occupancy at a hotel would lead to additional variable operating costs (including housekeeping services, utilities and room supplies) and could also result in an increase in other revenue and other operating expense. Changes in ADR typically have a greater impact on operating margins and profitability as they only have a limited effect on variable operating costs.

ADR, Occupancy and RevPAR are commonly used measures within the lodging industry to evaluate operating performance. RevPAR is an important statistic for monitoring operating performance at the individual hotel property level and across our entire business. We evaluate individual hotel RevPAR performance on an absolute basis with comparisons to budget and prior periods, as well as on a regional and company-wide basis. ADR and RevPAR include only room revenue. Room revenue comprised approximately 81.0% of our total revenues for the year ended December 31, 2025, and it is dictated by demand (as measured by Occupancy), pricing (as measured by ADR) and our available supply of hotel rooms.

We also use non-GAAP measures such as FFO, Adjusted FFO, EBITDA, EBITDA*re* and Adjusted EBITDA to evaluate the operating performance of our business. For a more in depth discussion of these non-GAAP measures, please refer to the "Non-GAAP Financial Measures" section. In addition, we use Hotel EBITDA, a non-GAAP financial measure, to assess operating performance. For a more in depth discussion of Hotel EBITDA, please refer to Note 15, Segment Information, to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

**Principal Factors Affecting Our Results of Operations**

The principal factors affecting our operating results include the overall demand for lodging compared to the supply of available hotel rooms and other lodging options, and the ability of our independent managers to increase or maintain revenues while controlling expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Demand*** — The overall demand for lodging generally fluctuates with economic performance. Historically, periods of declining demand are followed by extended periods of relatively strong demand, which typically occurs during the growth phase of the lodging cycle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Supply*** — The development of new hotels is driven largely by construction costs, the availability of financing, the expected performance of existing hotels and other lodging options.

We expect that our ADR, Occupancy and RevPAR performance will be impacted by macroeconomic factors and government policies such as regional and local employment growth, government spending, personal income and corporate earnings, office vacancy rates, business relocation decisions, airport activity, business and leisure travel demand, new hotel construction and the pricing strategies of our competitors, as well as any changes in inbound international travel as a result of visa policies. In addition, our ADR, Occupancy and RevPAR performance are dependent on the continued success of the Marriott, Hilton and Hyatt hotel brands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Revenues*** *—* Substantially all of our revenues are derived from the operation of hotels. Specifically, our revenues are comprised of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Room revenue —* Occupancy and ADR are the major drivers of room revenue. Room revenue accounts for the majority of our total revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Food and beverage revenue —* Occupancy, the nature of the hotel property and the type of customer staying at the hotel are the major drivers of food and beverage revenue (i.e., group business typically generates more food and beverage revenue through catering functions as compared to transient business, which may or may not utilize the hotel's food and beverage outlets).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Other revenue —* Occupancy and the nature of the hotel property are the main drivers of other ancillary revenue, such as parking fees, resort fees, gift shop sales and other guest service fees. Some hotels, due to the limited focus of the services offered and size or space limitations at the hotel, may not have the type of facilities that generate other revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Property Operating Expenses*** *—* The components of our property operating expenses are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Room expense —* These expenses include housekeeping and front office wages and payroll taxes, reservation systems, room supplies, laundry services and other room-related costs. Like room revenue, Occupancy is the major driver of room expense. These costs can increase based on an increase in salaries and wages, as well as the level of service and amenities that are provided at the hotel property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Food and beverage expense —* These expenses primarily include food, beverage and labor costs. Occupancy and the type of customer staying at the hotel (i.e., catered functions are generally more profitable than restaurant, bar, and other food and beverage outlets that are located on the hotel property) are the major drivers of food and beverage expense, which correlates closely with food and beverage revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Management and franchise fee expense —* A base management fee is computed as a percentage of gross hotel revenues. An incentive management fee is typically paid when the hotel's operating income exceeds certain thresholds, and it is generally calculated as a percentage of hotel operating income after we have received a priority return on our investment in the hotel. A franchise fee is computed as a percentage of room revenue, plus an additional percentage of room revenue for marketing, central reservation systems and other franchisor costs. Certain hotels will also pay an additional franchise fee which is computed as a percentage of food and beverage revenue. For a more in depth discussion of the management and franchise fees, please refer to the "Our Hotel Properties — Management Agreements" and "Our Hotel Properties — Franchise Agreements" sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Other operating expenses —* These expenses include labor and other costs associated with the sources of our other revenue, as well as the labor and other costs associated with the administrative departments, sales and marketing, repairs and maintenance, and utility costs at the hotel properties.

Most categories of variable operating expenses, including labor costs, fluctuate with changes in Occupancy. Increases in Occupancy are accompanied by increases in most categories of variable operating expenses, while increases in ADR typically only result in increases in certain categories of operating costs and expenses, such as management fees, franchise fees, travel agency commissions, and credit card processing fees, all of which are based on hotel revenues. Therefore, changes in ADR have a more significant impact on operating margins than changes in Occupancy.

**Inflation**

We rely on the performance of our hotel properties to increase revenues to keep pace with inflation. Generally, our hotel management companies possess the ability to adjust room rates daily, except for group or corporate rates contractually committed to in advance, although competitive pressures may limit the ability of our operators to raise rates faster than the rate of inflation or even at the same rate. High inflation may also have an adverse effect on our operating expenses, including, but not limited to, labor, supplies, repairs and maintenance, as these costs could increase at a faster rate than any increase in our revenues. Additionally, proposed or enacted tariffs on imported goods, including construction materials, furniture, and equipment, may further exacerbate inflationary pressures on renovation costs and limit the availability of certain supplies, thereby increasing the cost and/or delaying the timing of planned capital projects. Inflation could also have an adverse effect on consumer spending, which could impact demand at our hotel properties and, in turn, our results of operations.

**2025 Significant Activities**

Our significant activities reflect our commitment to creating long-term shareholder value through enhancing our hotel portfolio's quality, recycling capital and maintaining a prudent capital structure. During the year ended December 31, 2025, the following significant activities took place:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sold three hotel properties for a combined sales price of $73.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Refinanced a term loan to increase the loan amount to $300.0 million and extend the initial maturity to April 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Paid off the $100.0 million outstanding balance on our Revolver using the incremental $100.0 million in proceeds from the refinanced term loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercised the final one-year extension options on $181.0 million in mortgage loans to extend the maturities to April 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Approved the 2025 Share Repurchase Program to acquire up to an aggregate of $250.0 million of common and preferred shares from May 9, 2025 to May 8, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased and retired approximately 3.3 million common shares for approximately $28.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entered into $225.0 million in interest rate swaps as a $150.0 million interest rate swap expired.

**Results of Operations**

At December 31, 2025 and 2024, we owned 93 and 96 hotel properties, respectively. Based on when a hotel property is acquired or sold, the operating results for certain hotel properties are not comparable for the years ended December 31, 2025 and 2024. The non-comparable properties include five hotel properties that were sold in 2025 and 2024 and one hotel property that was acquired in 2024.

For similar operating and financial data and discussion of our results for the year ended December 31, 2024 compared to our results for the year ended December 31, 2023, refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" under Part II of our annual report on <u>[Form 10-K for the year ended December 31, 2024](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001511337/000151133725000007/rlj-20241231.htm)</u>, which was filed with the SEC on February 26, 2025 and is incorporated herein by reference.

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***Comparison of the year ended December 31, 2025 to the year ended December 31, 2024***

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| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | |
| | **2025** | **2024** |<br>**$ Change** |
| | **(amounts in thousands)** | **(amounts in thousands)** | **(amounts in thousands)** |
| **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenues |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Room revenue | $1093265 | $1121586 | $(28321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage revenue | 158218 | 153108 | 5110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenue | 98377 | 94746 | 3631 |
| &nbsp;&nbsp;&nbsp;Total revenues | 1349860 | 1369440 | (19580) |
| **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Room expense | 293405 | 288567 | 4838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage expense | 119799 | 117766 | 2033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and franchise fee expense | 102757 | 107978 | (5221) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 371558 | 363631 | 7927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property operating expenses | 887519 | 877942 | 9577 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 186356 | 179431 | 6925 |
| &nbsp;&nbsp;&nbsp;Property tax, insurance and other | 101315 | 107043 | (5728) |
| &nbsp;&nbsp;&nbsp;General and administrative | 47644 | 54804 | (7160) |
| &nbsp;&nbsp;&nbsp;Transaction costs | 410 | 320 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1223244 | 1219540 | 3704 |
| &nbsp;&nbsp;&nbsp;Other income, net | 3477 | 5342 | (1865) |
| &nbsp;&nbsp;&nbsp;Interest income | 13580 | 17314 | (3734) |
| &nbsp;&nbsp;&nbsp;Interest expense | (112298) | (111358) | (940) |
| &nbsp;&nbsp;&nbsp;(Loss) gain on sale of hotel properties, net | (1526) | 8262 | (9788) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of indebtedness, net | (47) | (129) | 82 |
| Income before equity in (loss) income from unconsolidated joint ventures | 29802 | 69331 | (39529) |
| Equity in (loss) income from unconsolidated joint ventures | (100) | 459 | (559) |
| Income before income tax expense | 29702 | 69790 | (40088) |
| Income tax expense | (1148) | (1599) | 451 |
| Net income | 28554 | 68191 | (39637) |
| Net (income) loss attributable to noncontrolling interests: |  |  |  |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in consolidated joint ventures | (30) | 45 | (75) |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in the Operating Partnership | (15) | (215) | 200 |
| Net income attributable to RLJ | 28509 | 68021 | (39512) |
| Preferred dividends | (25115) | (25115) |  |
| Net income attributable to common shareholders | $3394 | $42906 | $(39512) |

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***Revenues***

Total revenues decreased $19.6 million to $1,349.9 million for the year ended December 31, 2025, from $1,369.4 million for the year ended December 31, 2024. The decrease was the result of a $28.3 million decrease in room revenue, offset by a $5.1 million increase in food and beverage revenue, and a $3.6 million increase in other revenue.

*Room Revenue*

Room revenue decreased $28.3 million to $1,093.3 million for the year ended December 31, 2025, from $1,121.6 million for the year ended December 31, 2024. The decrease was the result of a $21.6 million decrease in room revenue attributable to the comparable properties and a $6.7 million decrease in room revenue attributable to the non-comparable properties. The decrease in room revenue from the comparable properties was primarily due to a decrease in international, government, corporate and group travel.

The following are the key hotel operating statistics for the comparable properties:

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| | | |
|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** |
| Occupancy | 71.6% | 72.7% |
| ADR | $200.22 | $200.88 |
| RevPAR | $143.43 | $145.99 |

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*Food and Beverage Revenue*

Food and beverage revenue increased $5.1 million to $158.2 million for the year ended December 31, 2025, from $153.1 million for the year ended December 31, 2024. The increase in food and beverage revenue was primarily due to increases in banquet and outlet revenue and the ramping up of our recently converted and renovated hotels.

*Other Revenue*

Other revenue increased $3.6 million to $98.4 million for the year ended December 31, 2025, from $94.7 million for the year ended December 31, 2024. The increase in other revenue was primarily due to an increase in gift shop sales, parking and resort fees.

***Property Operating Expenses***

Property operating expenses increased $9.6 million to $887.5 million for the year ended December 31, 2025, from $877.9 million for the year ended December 31, 2024. The increase was due to a $14.9 million increase in property operating expenses attributable to the comparable properties offset by a $5.3 million decrease in property operating expenses attributable to the non-comparable properties.

The components of our property operating expenses for the comparable properties were as follows (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Room expense | $288303 | $281533 | $6770 |
| Food and beverage expense | 117332 | 115489 | 1843 |
| Management and franchise fee expense | 100667 | 104797 | (4130) |
| Other operating expenses | 363477 | 353078 | 10399 |
| Total property operating expenses | $869779 | $854897 | $14882 |

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The increase in property operating expenses attributable to the comparable properties was primarily due to increases in wages and benefits, as well as increases in room expenses and food expenses and increases in other operating expenses, including increases in sales and marketing expenses, utilities and general liability insurance coverage. This was offset by a decrease in management and franchise fee expense, which was due to lower revenues as well as recently amended management and franchise agreements.

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***Depreciation and Amortization***

Depreciation and amortization expense increased $6.9 million to $186.4 million for the year ended December 31, 2025, from $179.4 million for the year ended December 31, 2024. The increase was primarily related to our recently renovated hotels.

***Property Tax, Insurance and Other***

Property tax, insurance and other expense decreased $5.7 million to $101.3 million for the year ended December 31, 2025, from $107.0 million for the year ended December 31, 2024. The decrease was primarily attributable to a decrease in property insurance premiums and a decrease in real estate tax expense including the beneficial impact of successful real estate tax appeals.

***General and Administrative***

General and administrative expense decreased $7.2 million to $47.6 million for the year ended December 31, 2025, from $54.8 million for the year ended December 31, 2024. The decrease was primarily attributable to a decrease in non-cash compensation expense, including the impact of a $1.6 million benefit as a result of the performance unit forfeitures related to the departure of Company executives during the year ended December 31, 2025. In addition, there were certain share-based awards granted during 2021 that became fully vested during the second quarter of 2024.

***Other Income, net***

Other income, net decreased $1.9 million to $3.5 million for the year ended December 31, 2025, from $5.3 million for the year ended December 31, 2024. The decrease was primarily attributable to the receipt of certain one-time COVID-19 relief awards during the year ended December 31, 2024.

***Interest Income***

Interest income decreased $3.7 million to $13.6 million for the year ended December 31, 2025, from $17.3 million for the year ended December 31, 2024. The decrease was attributable to the combination of lower interest rates and lower average cash balances in 2025.

***Interest Expense***

Interest expense increased $0.9 million to $112.3 million for the year ended December 31, 2025, from $111.4 million for the year ended December 31, 2024. The components of our interest expense for the years ended December 31, 2025 and 2024 were as follows (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | |
| | **2025** | **2024** |<br>**$ Change** |
| Senior Notes | $38764 | $38764 | $— |
| Revolver and Term Loans | 54851 | 50928 | 3923 |
| Mortgage loans | 10555 | 13451 | (2896) |
| Amortization of deferred financing costs | 7551 | 6623 | 928 |
| Non-cash interest expense related to interest rate hedges | 577 | 1592 | (1015) |
| Total interest expense | $112298 | $111358 | $940 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(Loss) Gain on Sale of Hotel Properties, net***

During the year ended December 31, 2025, we sold three hotel properties for a combined sales price of $73.7 million and recorded a net loss on the sales of approximately $1.5 million. During the year ended December 31, 2024, we sold two hotel properties for a combined sales price of approximately $20.8 million and recorded a net gain on the sales of approximately $8.3 million.

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**Non-GAAP Financial Measures**

We consider the following non-GAAP financial measures useful to investors as key supplemental measures of our performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA, (4) EBITDA*re* and (5) Adjusted EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income as a measure of our operating performance. FFO, Adjusted FFO, EBITDA, EBITDA*re,* and Adjusted EBITDA, as calculated by us, may not be comparable to FFO, Adjusted FFO, EBITDA, EBITDA*re* and Adjusted EBITDA as reported by other companies that do not define such terms exactly as we define such terms.

**Funds From Operations**

We calculate FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which defines FFO as net income or loss, excluding gains or losses from sales of real estate, impairment, 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. We believe that the presentation of FFO provides useful information to investors regarding our operating performance and can facilitate comparisons of operating performance between periods and between REITs, even though FFO does not represent an amount that accrues directly to common shareholders. Our 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 us to non-REITs. We present FFO attributable to common shareholders, which includes our OP units, because our OP units may be redeemed for common shares. We believe it is meaningful for the investor to understand FFO attributable to all common shares and OP units.

We further adjust FFO for certain additional items that are not in NAREIT's definition of FFO, such as transaction costs, pre-opening costs, gains or losses on extinguishment of indebtedness, amortization of share-based compensation, non-cash income tax expense or benefit, non-cash interest expense related to discontinued interest rate hedges, derivative gains or losses in accumulated other comprehensive income reclassified to earnings, and certain other income or expenses that we consider outside the normal course of operations. We believe that Adjusted FFO provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and FFO, is beneficial to an investor's understanding of our operating performance.

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The following table is a reconciliation of our GAAP net income to FFO attributable to common shareholders and unitholders and Adjusted FFO attributable to common shareholders and unitholders for the years ended December 31, 2025 and 2024 (in thousands):

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| | | |
|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** |
| Net income | $28554 | $68191 |
| Preferred dividends | (25115) | (25115) |
| Depreciation and amortization | 186356 | 179431 |
| Loss (gain) on sale of hotel properties, net | 1526 | (8262) |
| Noncontrolling interest in consolidated joint ventures | (30) | 45 |
| Adjustments related to consolidated joint venture (1) | (198) | (187) |
| Adjustments related to unconsolidated joint venture (2) | 934 | 912 |
| &nbsp;&nbsp;&nbsp;FFO | 192027 | 215015 |
| Transaction costs | 410 | 320 |
| Pre-opening costs (3) | 874 | 1335 |
| Loss on extinguishment of indebtedness, net | 47 | 129 |
| Amortization of share-based compensation | 15340 | 20804 |
| Non-cash income tax expense | 13 | 10 |
| Non-cash interest expense related to discontinued interest rate hedges | 577 | 1592 |
| Other expenses (4) | 130 | 2641 |
| &nbsp;&nbsp;&nbsp;Adjusted FFO | $209418 | $241846 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes depreciation and amortization expense allocated to the noncontrolling interest in the consolidated joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Includes our ownership interest in the depreciation and amortization expense of the unconsolidated joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents expenses related to the brand conversions of certain hotel properties prior to opening.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Represents expenses and income outside of the normal course of operations.

**EBITDA and EBITDA*re***

EBITDA is defined as net income or loss excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sales of assets; and (3) depreciation and amortization expense. We consider EBITDA useful to an investor in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization expense) from our operating results. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and disposals.

In addition to EBITDA, we present EBITDA*re* in accordance with NAREIT guidelines, which defines EBITDA*re* as net income or loss excluding interest expense, income tax benefit or expense, depreciation and amortization expense, gains or losses from sales of real estate, impairment, and adjustments for unconsolidated joint ventures. We believe that the presentation of EBITDA*re* provides useful information to investors regarding our operating performance and can facilitate comparisons of operating performance between periods and between REITs.

We also present Adjusted EBITDA, which includes additional adjustments for items such as transaction costs, pre-opening costs, gains or losses on extinguishment of indebtedness, amortization of share-based compensation, derivative gains or losses in accumulated other comprehensive income reclassified to earnings, and certain other income or expenses that we consider outside the normal course of operations. We believe that Adjusted EBITDA provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income, EBITDA and EBITDA*re*, is beneficial to an investor's understanding of our operating performance.

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The following table is a reconciliation of our GAAP net income to EBITDA, EBITDA*re* and Adjusted EBITDA for the years ended December 31, 2025 and 2024 (in thousands):

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| | | |
|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** |
| Net income | $28554 | $68191 |
| Depreciation and amortization | 186356 | 179431 |
| Interest expense, net of interest income | 98718 | 94044 |
| Income tax expense | 1148 | 1599 |
| Adjustments related to unconsolidated joint venture (1) | 1512 | 1390 |
| &nbsp;&nbsp;&nbsp;EBITDA | 316288 | 344655 |
| Loss (gain) on sale of hotel properties, net | 1526 | (8262) |
| &nbsp;&nbsp;EBITDA*re* | 317814 | 336393 |
| Transaction costs | 410 | 320 |
| Pre-opening costs (2) | 874 | 1335 |
| Loss on extinguishment of indebtedness, net | 47 | 129 |
| Amortization of share-based compensation | 15340 | 20804 |
| Other expenses (3) | 130 | 2641 |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA | $334615 | $361622 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes our ownership interest in the interest, depreciation, and amortization expense of the unconsolidated joint venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents expenses related to the brand conversions of certain hotel properties prior to opening.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents expenses and income outside of the normal course of operations.

**Liquidity and Capital Resources**

As of December 31, 2025, we had $442.1 million of cash, cash equivalents, and restricted cash reserves as compared to $433.3 million at December 31, 2024. In addition, we had $600.0 million available on our Revolver at December 31, 2025.

Our principal uses of capital for the year ended December 31, 2025 were capital improvements and additions to hotel properties, repayment of the full outstanding balance on our Revolver, paydown of a mortgage loan, the repurchase of common shares under our share repurchase programs, and distributions on common and preferred shares. Our principal sources of capital for the year ended December 31, 2025 were cash generated from operations, the sales of three hotel properties, and borrowings on a term loan.

***Material Cash Requirements***

Our expected material cash requirements for the twelve months ending 2026 and thereafter are comprised of (i) contractually obligated expenditures; and (ii) other essential cash requirements as follows:

*Contractually Obligated Expenditures*

We are party to various contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Our material short and long-term cash commitments primarily consist of debt obligations and ground lease payments related to certain of our hotel properties.

As of December 31, 2025, we had approximately $2.2 billion in debt outstanding with a weighted average interest rate of 4.56%, of which $879.8 million is scheduled to become due in the succeeding 12 months, excluding extension options. As of December 31, 2025, our total future minimum lease payments were $570.4 million, of which $10.2 million is scheduled to become due in the succeeding 12 months. For details regarding our indebtedness and lease obligations, refer to Note 7, Debt, and Note 10, Commitments and Contingencies, to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

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*Other Essential Cash Requirements*

Our other short-term cash requirements consist primarily of the funds necessary to pay for operating expenses and other expenditures directly associated with our hotel properties, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recurring maintenance and capital expenditures necessary to maintain our hotel properties in accordance with brand standards and capital expenditures required for hotel brand conversions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distributions, including those necessary to qualify for taxation as a REIT; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporate and other general and administrative expenses.

We expect to meet our short-term cash requirements generally through the net cash provided by operations, existing cash balances, short-term borrowings under our Revolver, proceeds from the sale of hotel properties, proceeds from financings, and proceeds from public offerings of common shares.

Our other long-term cash requirements consist primarily of the funds necessary to pay for costs of acquiring additional hotel properties, renovations and other capital expenditures that need to be made periodically with respect to our hotel properties, and any other value enhancing projects.

**Sources and Uses of Cash** 

***Cash flows from Operating Activities***

The net cash flow provided by operating activities totaled $243.8 million and $285.4 million for the years ended December 31, 2025 and 2024, respectively. The cash flows provided by operating activities generally consist of the net cash generated by our hotel operations, cash paid for corporate expenses and other working capital changes. Refer to the "Results of Operations" section for further discussion of our operating results for the years ended December 31, 2025 and 2024.

***Cash flows from Investing Activities***

The net cash flow used in investing activities totaled $57.4 million for the year ended December 31, 2025 primarily due to $126.4 million in capital improvements and additions to our hotel properties and other assets. The net cash flow used in investing activities was partially offset by $69.0 million in net proceeds from the sales of three hotel properties.

The net cash flow used in investing activities totaled $275.7 million for the year ended December 31, 2024 primarily due to a $122.8 million acquisition of a fee simple interest in our Wyndham Boston Beacon Hill hotel property, a $35.9 million acquisition of a hotel property, and $136.5 million in capital improvements and additions to our hotel properties and other assets. The net cash flow used in investing activities was partially offset by $19.5 million in net proceeds from the sales of two hotel properties.

***Cash flows from Financing Activities***

The net cash flow used in financing activities totaled $177.7 million for the year ended December 31, 2025 primarily due to $100.0 million in repayment of our Revolver, $26.3 million in repayment of a mortgage loan, $28.6 million paid to repurchase common shares under our share repurchase programs, $116.9 million in distributions to shareholders and unitholders, $3.6 million paid to repurchase common shares to satisfy employee tax withholding requirements, and $2.2 million in deferred financing cost payments. The net cash flow used in financing activities was partially offset by $100.0 million in borrowings on a term loan.

The net cash flow used in financing activities totaled $131.7 million for the year ended December 31, 2024. The sources of cash included $500.0 million in borrowings on a term loan and $200.0 million in borrowings on our Revolver. The uses of cash included $400.0 million in repayment of a term loan, $200.0 million in repayment of a maturing mortgage loan, $100.0 million in repayment of our Revolver, $22.0 million paid to repurchase common shares under our share repurchase programs, $95.3 million in distributions to shareholders and unitholders, $9.0 million paid to repurchase common shares to satisfy employee tax withholding requirements, and $5.4 million in deferred financing cost payments.

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**Capital Expenditures and Reserve Funds**

We maintain each of our hotel properties in good repair and condition and in conformity with applicable laws and regulations, franchise agreements and management agreements. The cost of routine improvements and alterations are paid out of FF&E reserves, which are funded by a portion of each hotel property's gross revenues. Routine capital expenditures may be administered by the property management companies. However, we have approval rights over the capital expenditures as part of the annual budget process for each of our hotel properties.

From time to time, certain of our hotel properties may undergo renovations as a result of our decision to upgrade portions of the hotels, such as guestrooms, public space, meeting space, and/or restaurants, in order to better compete with other hotels and alternative lodging options in our markets. In addition, upon acquisition of a hotel property we often are required to complete a property improvement plan in order to bring the hotel up to the respective franchisor's standards. If permitted by the terms of the management agreement, funding for a renovation will first come from the FF&E reserves. To the extent that the FF&E reserves are not available or sufficient to cover the cost of the renovation, we will fund all or the remaining portion of the renovation with cash and cash equivalents on hand, our Revolver and/or other sources of available liquidity.

With respect to some of our hotels that are operated under franchise agreements with major national hotel brands and for some of our hotels subject to first mortgage liens, we are obligated to maintain FF&E reserve accounts for future capital expenditures at these hotels. The amount funded into each of these reserve accounts is generally determined pursuant to the management agreements, franchise agreements and/or mortgage loan documents for each of the respective hotels, and typically ranges between 3.0% and 5.0% of the respective hotel's total gross revenue. As of December 31, 2025, approximately $31.9 million was held in FF&E reserve accounts for future capital expenditures.

**Critical Accounting Estimates**

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of our financial statements and the reported amounts of revenues and expenses during the reporting period. We consider our accounting policies over impairment and purchase price allocation to be our critical accounting estimates. See Note 2 to our consolidated financial statements for further descriptions of such accounting policies. We have set forth below the accounting policies that we believe require material subjective or complex judgments and have the most significant impact on our financial condition and results of operations. It is possible that the actual amounts may differ significantly from these estimates and assumptions. We evaluate our estimates, assumptions and judgments on an ongoing basis, based on information that is available to us, our business and industry experience, and various other matters that we believe are reasonable and appropriate for consideration under the circumstances.

***Impairment***

We assess the carrying value of our investments in hotel properties whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Hotel property recoverability is measured by comparing the carrying amount to the projected undiscounted future cash flows expected to be generated from the operation and the eventual disposition of the hotel properties over the estimated hold period, which take into account current market conditions and our intent with respect to holding or disposing of the hotel properties. If our analysis indicates that the carrying value is not recoverable on a projected undiscounted cash flow basis, we will recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The determination of fair value is subjective and is based in part on assumptions and estimates that could differ materially from actual results in future periods. The fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions, third-party appraisals, the net sales proceeds from pending offers, or the net sales proceeds from transactions that closed subsequent to the end of the reporting period. The use of projected future cash flows is based on assumptions that are consistent with a market participant's future expectations for the travel industry and the economy in general, including discount rates, sales proceeds in the reversion year, average daily rates, Occupancy rates, operating expenses and capital expenditures, and our intent with respect to holding or disposing of the underlying hotel properties. Fair value may also be based on assumptions including, but not limited to, room revenue multiples and comparable sales adjusted for capital expenditures, if necessary.

***Purchase Price Allocation***

Our acquisitions generally consist of land, land improvements, buildings, building improvements, furniture, fixtures and equipment, inventory, and assumed debt. We allocate the purchase price among the assets acquired and the liabilities assumed based on their respective fair values at the date of acquisition. We estimate the fair values of the assets acquired and the liabilities assumed by using a combination of the market, cost and income approaches. We determine the fair value by using

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market data and independent appraisals available to us and making numerous estimates and assumptions, such as estimates of future income growth, replacement cost per unit, value per acre or buildable square foot, capitalization rates, discount rates, borrowing rates, market rental rates, capital expenditures and cash flow projections at the respective hotel properties. The determination of fair value is subjective and is based in part on assumptions and estimates that could differ materially from actual results in future periods.

**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

Market risk includes the risks that arise from changes in interest rates, equity prices and other market changes that affect market sensitive instruments. Our primary market risk exposure is to changes in interest rates on our variable rate debt. As of December 31, 2025, we had approximately $1.2 billion of total variable rate debt outstanding (or 53.5% of total indebtedness) with a weighted-average interest rate of 5.13% per annum.

Our interest rate risk objectives are to limit the impact of interest rate fluctuations on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, we manage our exposure to fluctuations in market interest rates through the use of fixed rate debt instruments to the extent that reasonably favorable rates are obtainable. We have entered into derivative financial instruments such as interest rate swaps to mitigate our interest rate risk or to effectively lock the interest rate on a portion of our variable rate debt. We do not enter into derivative or interest rate transactions for speculative purposes. After taking into consideration the effect of interest rate swaps, 69.2% of our total indebtedness was fixed or effectively fixed. As of December 31, 2025, if market interest rates on our variable rate debt not subject to interest rate swaps were to increase by 1.00%, or 100 basis points, interest expense would decrease future earnings and cash flows by approximately $6.8 million annually, taking into account our existing contractual hedging arrangements.

The following table provides information about our financial instruments that are sensitive to changes in interest rates. For debt obligations outstanding as of December 31, 2025, the following table presents the principal repayments and related weighted-average interest rates by contractual maturity dates, excluding extension options (in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** | **Total** |
| Fixed rate debt (1)(2)(3) | $500000 | $— | $— | $525000 | $— | $— | $1025000 |
| &nbsp;&nbsp;&nbsp;Weighted-average interest rate | 3.75% | —% | —% | 4.05% | —% | —% | 3.90% |
| Variable rate debt (1)(3) | $379750 | $500000 | $300000 | $— | $— | $— | $1179750 |
| &nbsp;&nbsp;&nbsp;Weighted-average interest rate (4) | 5.16% | 4.85% | 5.54% | —% | —% | —% | 5.13% |
| Total | $879750 | $500000 | $300000 | $525000 | $— | $— | $2204750 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes $3.6 million, $4.9 million and $0.1 million of net deferred financing costs on the senior notes, Term Loans and mortgage loans, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Excludes a $1.1 million fair value adjustment on debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The principal repayments for 2026 include two mortgage loans with a combined outstanding principal balance of approximately $154.8 million as of December 31, 2025. Both of these mortgage loans were amended in January 2026. Each mortgage loan now has a maturity date of April 2029 and two one-year extension options at our discretion, subject to certain conditions. We paid down approximately $5.4 million in principal in connection with the amendments in January 2026, resulting in a new combined outstanding principal balance of $149.4 million for the two mortgage loans. One of the mortgage loans allows a future advance of up to $23.4 million by April 2026 with the addition of another hotel property previously unencumbered, with the combined outstanding principal balance of both mortgage loans not to exceed $164.4 million. The principal repayments for 2026 also include a term loan with an outstanding principal balance of $225.0 million. This term loan was refinanced in February 2026 to extend the scheduled maturity date to February 2031 and upsize it to a delayed draw term loan of $569.0 million, of which $225.0 million has been funded and $344.0 million of commitments remain available to be drawn by us. In February 2026, we also entered into a new $150.0 million delayed draw term loan which matures in February 2033. The principal repayments for 2026 also include our $500.0 million senior notes maturing in July 2026, which we intend to repay by maturity using the incremental proceeds from these transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The weighted-average interest rate gives effect to interest rate swaps, as applicable.

Our ultimate realized gain or loss with respect to interest rate fluctuations will depend on the exposures that arise during future periods, prevailing interest rates, and our hedging strategies at that time.

Changes in market interest rates on our fixed rate debt impact the fair value of our debt, but such changes have no impact on our consolidated financial statements. As of December 31, 2025, the estimated fair value of our fixed rate debt was $994.1

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million, which was based on having the same debt service requirements that could have been borrowed at the date presented, at prevailing current market interest rates. If interest rates were to rise by 1.00%, or 100 basis points, and our fixed rate debt balance remained constant, we expect the fair value of our debt would decrease by approximately $19.2 million.

**Item 8.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Supplementary Data**

Refer to the Index to Financial Statements on page F-1.

**Item 9.&nbsp;&nbsp;&nbsp;&nbsp;Changes in and Disagreements with Accountants on Accounting and Financial Disclosures**

None.

**Item 9A.&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures***

The Company's management, under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as required by paragraph (b) of Rules 13a-15 and 15d-15 of the Exchange Act. Based on this evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that as of December 31, 2025, the Company's disclosure controls and procedures were effective to ensure that the information we are required to disclose in reports filed or submitted with the Securities and Exchange Commission (i) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and (ii) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure.

***Management's Annual Report on Internal Control over Financial Reporting***

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act). The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company's management assessed the effectiveness of its internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in *Internal Control - Integrated Framework (2013).* Based on this assessment, management has concluded that, as of December 31, 2025, our internal control over financial reporting is effective based on those criteria.

The effectiveness of the Company's internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears on page F-2 of this Annual Report on Form 10-K.

***Changes in Internal Control over Financial Reporting***

There have been no changes in the Company's internal control over financial reporting (as defined in Rule 13a-15 and 15d-15 of the Exchange Act) during the period ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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**Item 9B.&nbsp;&nbsp;&nbsp;&nbsp;Other information**

***Rule 10b5-1 Trading Plans***

During the three months ended December 31, 2025, none of the Company's trustees or officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections** 

Not applicable.

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**PART III**

**Item 10.&nbsp;&nbsp;&nbsp;&nbsp;Directors, Executive Officers and Corporate Governance**

We have adopted insider trading policies and procedures governing the purchase, sale, and/or other dispositions of our securities by trustees, officers, and employees that are reasonably designed to promote compliance with insider trading laws, rules and regulations and any applicable listing standards. In addition, it is our policy to comply with applicable securities and state laws, including insider trading laws, when engaging in transactions of our securities. A copy of our insider trading policy is incorporated by reference as Exhibit 19.1 to this Annual Report on Form 10-K.

The other information called for by this Item is contained in our definitive Proxy Statement for our 2026 Annual Meeting of Shareholders, and is incorporated herein by reference.

**Item 11.&nbsp;&nbsp;&nbsp;&nbsp;Executive Compensation**

The information called for by this Item is contained in our definitive Proxy Statement for our 2026 Annual Meeting of Shareholders, and is incorporated herein by reference.

**Item 12.&nbsp;&nbsp;&nbsp;&nbsp;Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters**

The information called for by this Item is contained in our definitive Proxy Statement for our 2026 Annual Meeting of Shareholders, or in Item 5 of this Annual Report on Form 10-K for the year ended December 31, 2025, and is incorporated herein by reference.

**Item 13.&nbsp;&nbsp;&nbsp;&nbsp;Certain Relationships and Related Transactions and Director Independence**

The information called for by this Item is contained in our definitive Proxy Statement for our 2026 Annual Meeting of Shareholders, and is incorporated herein by reference.

**Item 14.&nbsp;&nbsp;&nbsp;&nbsp;Principal Accountant Fees and Services**

The information called for by this Item is contained in our definitive Proxy Statement for our 2026 Annual Meeting of Shareholders, and is incorporated herein by reference.

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**PART IV**

**Item 15.&nbsp;&nbsp;&nbsp;&nbsp;Exhibits and Financial Statement Schedules**

The following is a list of documents filed as a part of this report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Financial Statements — Refer to the Index to Financial Statements on page F-1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial Statement Schedules — The following financial statement schedule is included herein on pages F-38 through F-42:

Schedule III — Real Estate and Accumulated Depreciation for RLJ Lodging Trust

All other schedules for which a provision is made in Regulation S-X are either not required to be included herein under the related instructions, are inapplicable, or the related information is included in the footnotes to the applicable financial statement and, therefore, have been omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Exhibits — The exhibits required to be filed by Item 601 of Regulation S-K are noted below:

**Exhibit Index**

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| | |
|:---|:---|
| **Exhibit<br>Number** | **Description of Exhibit** |
| 3.1 | <u>[Articles of Amendment and Restatement of Declaration of Trust of RLJ Lodging Trust (incorporated by reference to Exhibit 3.1 to Amendment No. 4 to the Registrant's Registration Statement on Form S-11 (File No. 333-172011) filed on May 5, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000104746911004649/a2203855zex-3_1.htm)</u> |
| 3.2 | <u>[Articles of Amendment to Articles of Amendment and Restatement of Declaration of Trust of RLJ Lodging Trust (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on May 7, 2015)](https://www.sec.gov/Archives/edgar/data/1511337/000110465915035604/a15-11017_1ex3d1.htm)</u> |
| 3.3 | <u>[Articles of Amendment to Articles of Amendment and Restatement of Declaration of Trust of RLJ Lodging Trust (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on May 5, 2016)](https://www.sec.gov/Archives/edgar/data/1511337/000110465916118295/a16-10659_1ex3d1.htm)</u> |
| 3.4 | <u>[Articles Supplementary to Articles of Amendment and Restatement of Declaration of Trust (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on February 26, 2015)](https://www.sec.gov/Archives/edgar/data/1511337/000110465915014427/a15-5435_1ex3d1.htm)</u> |
| 3.5 | <u>[Articles Supplementary designating RLJ Lodging Trust's $1.95 Series A Cumulative Convertible Preferred Shares, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to the Registrant's Form 8-A filed on August 30, 2017)](https://www.sec.gov/Archives/edgar/data/1511337/000110465917054552/a17-21125_1ex3d5.htm)</u> |
| 3.6 | <u>[Third Amended and Restated Bylaws of RLJ Lodging Trust (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed on May 5, 2016)](https://www.sec.gov/Archives/edgar/data/1511337/000110465916118295/a16-10659_1ex3d2.htm)</u> |
| 4.1 | <u>[Form of Specimen Common Share Certificate (incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement on Form S-11/A (File. No. 333-172011) filed on April 29, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000104746911004242/a2203502zex-4_1.htm)</u> |
| 4.2 | <u>[Form of stock certificate evidencing the $1.95 Series A Cumulative Convertible Preferred Shares, par value $0.01 per share (incorporated by reference to Exhibit 4.2 to the Registrant's Form 8-A filed on August 30, 2017)](https://www.sec.gov/Archives/edgar/data/1511337/000110465917054552/a17-21125_1ex4d2.htm)</u> |
| 4.3 | <u>[Registration Rights Agreement, dated May 16, 2011, by and among RLJ Lodging Trust and the persons listed on Schedule I thereto (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d2.htm)</u> |
| 4.4 | <u>[Registration Rights Agreement, dated May 16, 2011, by and among RLJ Lodging Trust and the persons listed on Schedule I thereto (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d3.htm)</u> |
| 4.5 | <u>[Indenture, dated as of June 17, 2021, among RLJ Lodging Trust, RLJ Lodging Trust, L.P., the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed on June 17, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000110465921082680/tm2119176d3_ex4-1.htm)</u> |
| 4.6 | <u>[Indenture, dated as of September 13, 2021, among RLJ Lodging Trust, RLJ Lodging Trust, L.P., the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K filed on September 16, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000110465921116417/tm2127684d1_ex4-1.htm)</u> |
| 4.7 | <u>[Description of Registered Securities](https://www.sec.gov/Archives/edgar/data/1511337/000162828021003473/exhibit4712312020.htm)</u> |
| 10.1 | <u>[Amended and Restated Agreement of Limited Partnership, dated May 13, 2011 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d1.htm)</u> |

---

------

---

| | | |
|:---|:---|:---|
| 10.2 | <u>[Amendment No. 1 to Amended and Restated Agreement of Limited Partnership, dated August 31, 2017 (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on September 1, 2017)](https://www.sec.gov/Archives/edgar/data/1511337/000110465917055048/a17-21125_2ex10d3.htm)</u> | <u>[Amendment No. 1 to Amended and Restated Agreement of Limited Partnership, dated August 31, 2017 (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on September 1, 2017)](https://www.sec.gov/Archives/edgar/data/1511337/000110465917055048/a17-21125_2ex10d3.htm)</u> |
| 10.3\* | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Evan Bayh (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d5.htm)</u> | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Evan Bayh (incorporated by reference to Exhibit 10.5 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d5.htm)</u> |
| 10.4\* | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Nathaniel Davis (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d7.htm)</u> | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Nathaniel Davis (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d7.htm)</u> |
| 10.5\* | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Leslie D. Hale (incorporated by reference to Exhibit 10.8 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d8.htm)</u> | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Leslie D. Hale (incorporated by reference to Exhibit 10.8 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d8.htm)</u> |
| 10.6\* | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Robert L. Johnson (incorporated by reference to Exhibit 10.9 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d9.htm)</u> | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Robert L. Johnson (incorporated by reference to Exhibit 10.9 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d9.htm)</u> |
| 10.7\* | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Robert M. La Forgia (incorporated by reference to Exhibit 10.10 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d10.htm)</u> | <u>[Indemnification Agreement, dated May 16, 2011, between RLJ Lodging Trust and Robert M. La Forgia (incorporated by reference to Exhibit 10.10 to the Registrant's Current Report on Form 8-K filed on May 19, 2011)](https://www.sec.gov/Archives/edgar/data/1511337/000110465911030234/a11-12536_1ex10d10.htm)</u> |
| 10.8 | <u>[RLJ Lodging Trust 2021 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q filed on August 6, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000151133721000012/exhibit103-rlj_2021equityi.htm)</u> | <u>[RLJ Lodging Trust 2021 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q filed on August 6, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000151133721000012/exhibit103-rlj_2021equityi.htm)</u> |
| 10.9\* | <u>[Form of Restricted Share Agreement (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q filed on August 6, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000151133721000012/exhibit104-2021rsaawardagr.htm)</u> | <u>[Form of Restricted Share Agreement (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q filed on August 6, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000151133721000012/exhibit104-2021rsaawardagr.htm)</u> |
| 10.10\* | <u>[Form of Performance Share Unit Agreement (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q filed on August 6, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000151133721000012/exhibit105-2021psuagreement.htm)</u> | <u>[Form of Performance Share Unit Agreement (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q filed on August 6, 2021)](https://www.sec.gov/Archives/edgar/data/1511337/000151133721000012/exhibit105-2021psuagreement.htm)</u> |
| 10.11\* | <u>[Amended and Restated Employment Agreement, dated as of February 18, 2025, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Robert L. Johnson (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on February 19, 2025)](https://www.sec.gov/Archives/edgar/data/1511337/000110465925015152/tm256992d1_ex10-1.htm)</u> | <u>[Amended and Restated Employment Agreement, dated as of February 18, 2025, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Robert L. Johnson (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on February 19, 2025)](https://www.sec.gov/Archives/edgar/data/1511337/000110465925015152/tm256992d1_ex10-1.htm)</u> |
| 10.12\* | <u>[Employment Agreement, dated as of March 29, 2023, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Leslie D. Hale (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on April 4, 2023)](https://www.sec.gov/Archives/edgar/data/1511337/000110465923041630/tm2311433d1_ex10-1.htm)</u> | <u>[Employment Agreement, dated as of March 29, 2023, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Leslie D. Hale (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on April 4, 2023)](https://www.sec.gov/Archives/edgar/data/1511337/000110465923041630/tm2311433d1_ex10-1.htm)</u> |
| 10.13\* | <u>[Employment Agreement, dated as of September 15, 2025, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Nikhil Bhalla (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on September 18, 2025)](https://www.sec.gov/Archives/edgar/data/1511337/000110465925091234/tm2526402d1_ex10-1.htm)</u> | <u>[Employment Agreement, dated as of September 15, 2025, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Nikhil Bhalla (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on September 18, 2025)](https://www.sec.gov/Archives/edgar/data/1511337/000110465925091234/tm2526402d1_ex10-1.htm)</u> |
| 10.14\* | <u>[Second Amended and Restated Employment Agreement, dated as of December 20, 2024, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Thomas Bardenett (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on December 23, 2024)](https://www.sec.gov/Archives/edgar/data/1511337/000110465924131279/tm2431683d1_ex10-1.htm)</u> | <u>[Second Amended and Restated Employment Agreement, dated as of December 20, 2024, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Thomas Bardenett (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on December 23, 2024)](https://www.sec.gov/Archives/edgar/data/1511337/000110465924131279/tm2431683d1_ex10-1.htm)</u> |
| 10.15\*\*\* | <u>[Employment Agreement, dated as of](exhibit101512312025.htm)[August 19](exhibit101512312025.htm)[, 2025, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Frederick McKalip](exhibit101512312025.htm)</u> | <u>[Employment Agreement, dated as of](exhibit101512312025.htm)[August 19](exhibit101512312025.htm)[, 2025, by and among RLJ Lodging Trust, RLJ Lodging Trust, L.P. and Frederick McKalip](exhibit101512312025.htm)</u> |
| 10.16† | <u>[Sixth Amended and Restated Credit Agreement, dated as of February 11, 2026, by and among RLJ Lodging Trust, L.P., RLJ Lodging Trust, Wells Fargo Bank National Association, as Administrative Agent and a lender, and the other agents and lenders party thereto (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on February 18, 2026)](https://www.sec.gov/Archives/edgar/data/1511337/000110465926017119/tm266707d1_ex10-1.htm)</u> | <u>[Sixth Amended and Restated Credit Agreement, dated as of February 11, 2026, by and among RLJ Lodging Trust, L.P., RLJ Lodging Trust, Wells Fargo Bank National Association, as Administrative Agent and a lender, and the other agents and lenders party thereto (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on February 18, 2026)](https://www.sec.gov/Archives/edgar/data/1511337/000110465926017119/tm266707d1_ex10-1.htm)</u> |
| 10.17 | <u>[Sixth Amended and Restated Guaranty, dated as of February 11, 2026, by and among RLJ Lodging Trust, certain subsidiaries of RLJ Lodging Trust party thereto and Wells Fargo Bank National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on February 18, 2026)](https://www.sec.gov/Archives/edgar/data/1511337/000110465926017119/tm266707d1_ex10-2.htm)</u> | <u>[Sixth Amended and Restated Guaranty, dated as of February 11, 2026, by and among RLJ Lodging Trust, certain subsidiaries of RLJ Lodging Trust party thereto and Wells Fargo Bank National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on February 18, 2026)](https://www.sec.gov/Archives/edgar/data/1511337/000110465926017119/tm266707d1_ex10-2.htm)</u> |
| 19.1 | <u>[RLJ Lodging Trust Second Amended and Restated Policy on Inside Information and Insider Trading (incorporated by reference to Exhibit 19.1 to the Registrant's Annual Report on Form 10-K filed on February 26, 2025)](https://www.sec.gov/Archives/edgar/data/1511337/000151133725000007/exhibit19112312024.htm)</u> | <u>[RLJ Lodging Trust Second Amended and Restated Policy on Inside Information and Insider Trading (incorporated by reference to Exhibit 19.1 to the Registrant's Annual Report on Form 10-K filed on February 26, 2025)](https://www.sec.gov/Archives/edgar/data/1511337/000151133725000007/exhibit19112312024.htm)</u> |
| 21.1\*\* | <u>[List of subsidiaries of RLJ Lodging Trust](exhibit21112312025.htm)</u> | <u>[List of subsidiaries of RLJ Lodging Trust](exhibit21112312025.htm)</u> |
| 23.1\*\* | <u>[Consent of PricewaterhouseCoopers LLP](exhibit23112312025.htm)</u> | <u>[Consent of PricewaterhouseCoopers LLP](exhibit23112312025.htm)</u> |
| 31.1\*\* | <u>[Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31112312025.htm)</u> | <u>[Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31112312025.htm)</u> |
| 31.2\*\* | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31212312025.htm)</u> | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31212312025.htm)</u> |
| 32.1\*\* | <u>[Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit32112312025.htm)</u> | <u>[Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit32112312025.htm)</u> |
| 97.1 | <u>[RLJ Lodging Trust Amended and Restated Executive Compensation Clawback Policy (incorporated by reference to Exhibit 97.1 to the Registrant's Annual Report on Form 10-K filed on February 27, 2024)](https://www.sec.gov/Archives/edgar/data/1511337/000151133724000006/exhibit97112312023.htm)</u> | <u>[RLJ Lodging Trust Amended and Restated Executive Compensation Clawback Policy (incorporated by reference to Exhibit 97.1 to the Registrant's Annual Report on Form 10-K filed on February 27, 2024)](https://www.sec.gov/Archives/edgar/data/1511337/000151133724000006/exhibit97112312023.htm)</u> |
| 101.INS | Inline XBRL Instance Document | Submitted electronically with this report |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | Submitted electronically with this report |
| 101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | Submitted electronically with this report |

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| | | |
|:---|:---|:---|
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically with this report |
| 101.LAB | Inline XBRL Taxonomy Label Linkbase Document | Submitted electronically with this report |
| 101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | Submitted electronically with this report |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101) |  |

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**_______________________________________________________________________________**

\*This exhibit is a management contract or compensatory plan contract or arrangement.

†RLJ Lodging Trust has omitted certain schedules and exhibits pursuant to Item 601(a) of Regulation S-K and shall furnish supplementally to the SEC copies of any of the omitted schedules and exhibits upon request by the SEC.

\*\*Filed herewith

**Item 16.&nbsp;&nbsp;&nbsp;&nbsp;Form 10-K Summary**

Not applicable.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 27, 2026.

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| | |
|:---|:---|
| **RLJ LODGING TRUST** | **RLJ LODGING TRUST** |
| By: | /s/ LESLIE D. HALE |
|  | Leslie D. Hale<br>President and Chief Executive Officer and Trustee |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **<u>Signature</u>** | **<u>Title</u>** | **<u>Date</u>** |
| /s/ ROBERT L. JOHNSON | Executive Chairman and Trustee | February 27, 2026 |
| Robert L. Johnson | Executive Chairman and Trustee | February 27, 2026 |
| /s/ LESLIE D. HALE | President and Chief Executive Officer and Trustee (Principal Executive Officer) | February 27, 2026 |
| Leslie D. Hale | President and Chief Executive Officer and Trustee (Principal Executive Officer) | February 27, 2026 |
| /s/ NIKHIL BHALLA | Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | February 27, 2026 |
| Nikhil Bhalla | Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | February 27, 2026 |
| /s/ CHRISTOPHER A. GORMSEN | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | February 27, 2026 |
| Christopher A. Gormsen | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | February 27, 2026 |
| /s/ EVAN BAYH | Trustee | February 27, 2026 |
| Evan Bayh | Trustee | February 27, 2026 |
| /s/ ARTHUR R. COLLINS | Trustee | February 27, 2026 |
| Arthur R. Collins | Trustee | February 27, 2026 |
| /s/ NATHANIEL A. DAVIS | Trustee | February 27, 2026 |
| Nathaniel A. Davis | Trustee | February 27, 2026 |
| /s/ PATRICIA L. GIBSON | Trustee | February 27, 2026 |
| Patricia L. Gibson | Trustee | February 27, 2026 |
| /s/ ROBERT M. LA FORGIA | Trustee | February 27, 2026 |
| Robert M. La Forgia | Trustee | February 27, 2026 |
| /s/ ROBERT J. MCCARTHY | Trustee | February 27, 2026 |
| Robert J. McCarthy | Trustee | February 27, 2026 |
| /s/ ROBIN M. ZEIGLER | Trustee | February 27, 2026 |
| Robin M. Zeigler | Trustee | February 27, 2026 |

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**Item 8.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial Statements and Supplementary Data**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| **RLJ Lodging Trust:** | |
| <u>[Report of Independent Registered Public Accounting Firm](#i078fbe21061b4d05b7cb6b3f86c170f7_139)</u> | <u>F-[2](#i078fbe21061b4d05b7cb6b3f86c170f7_139)</u> |
| <u>PCAOB ID: 238</u> |  |
| Consolidated Financial Statements |  |
| &nbsp;&nbsp;<u>[Balance Sheets as of December 31, 2025 and 2024](#i078fbe21061b4d05b7cb6b3f86c170f7_142)</u> | <u>F-[4](#i078fbe21061b4d05b7cb6b3f86c170f7_142)</u> |
| &nbsp;&nbsp;<u>[Statements of Operations and Comprehensive Income for the years ended December 31, 2025, 2024, and 2023](#i078fbe21061b4d05b7cb6b3f86c170f7_148)</u> | <u>F-[5](#i078fbe21061b4d05b7cb6b3f86c170f7_148)</u> |
| &nbsp;&nbsp;<u>[Statements of Changes in Equity for the years ended December 31, 2025, 2024, and 2023](#i078fbe21061b4d05b7cb6b3f86c170f7_151)</u> | <u>F-[7](#i078fbe21061b4d05b7cb6b3f86c170f7_151)</u> |
| &nbsp;&nbsp;<u>[Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023](#i078fbe21061b4d05b7cb6b3f86c170f7_154)</u> | <u>F-[10](#i078fbe21061b4d05b7cb6b3f86c170f7_154)</u> |
| &nbsp;&nbsp;<u>[Notes to the Consolidated Financial Statements](#i078fbe21061b4d05b7cb6b3f86c170f7_157)</u> | <u>F-[11](#i078fbe21061b4d05b7cb6b3f86c170f7_160)</u> |
| <u>[Schedule III—Real Estate and Accumulated Depreciation as of December 31, 2025](#i078fbe21061b4d05b7cb6b3f86c170f7_241)</u> | <u>F-[38](#i078fbe21061b4d05b7cb6b3f86c170f7_241)</u> |

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**Report of Independent Registered Public Accounting Firm**

To the Board of Trustees and Shareholders of RLJ Lodging Trust

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

We have audited the accompanying consolidated balance sheets of RLJ Lodging Trust and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

***Basis for Opinions***

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting***

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

------

***Critical Audit Matters***

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Impairment Assessment of Investment in Hotel Properties*

As described in Note 3 to the consolidated financial statements, as of December 31, 2025, investment in hotel properties, net totaled $4.11 billion and there were no impairment losses recorded during the year ended December 31, 2025. As described in Note 2 to the consolidated financial statements, management assesses the carrying value of its investments in hotel properties whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The recoverability is measured by comparing the carrying amount to the projected undiscounted future cash flows expected to be generated from the operation and the eventual disposition of the hotel properties over the estimated hold period, which takes into account current market conditions and management's intent with respect to holding or disposing of the hotel properties. If management's analysis indicates that the carrying value is not recoverable on a projected undiscounted cash flow basis, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the fair value.

The principal considerations for our determination that performing procedures relating to the impairment assessment of investment in hotel properties is a critical audit matter are (i) the significant judgment by management to identify events or changes in circumstances indicating that the carrying amounts may not be recoverable and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures related to management's identification of events or changes in circumstances indicating that the carrying amounts may not be recoverable.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the impairment assessment of investment in hotel properties, including controls over management's identification of events or changes in circumstances indicating that the carrying amounts may not be recoverable. These procedures also included, among others, (i) testing management's process for identifying investment in hotel properties to be evaluated for impairment, (ii) evaluating events or changes in circumstances that indicate that the carrying amounts may not be recoverable, including, among others, performance of the hotel properties and indicators of changes in hold period for hotel properties, (iii) testing the completeness and accuracy of underlying data used in the evaluation, and (iv) considering whether the information used in the evaluation was consistent with evidence obtained in other areas of the audit.

/s/ PricewaterhouseCoopers LLP

Washington, District of Columbia

February 27, 2026

We have served as the Company's auditor since 2001.

------

**RLJ Lodging Trust**

**Consolidated Balance Sheets**

**(Amounts in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| **Assets** |  |  |
| Investment in hotel properties, net | $4112387 | $4250524 |
| Investment in unconsolidated joint ventures | 7357 | 7457 |
| Cash and cash equivalents | 410160 | 409809 |
| Restricted cash reserves | 31901 | 23516 |
| Hotel and other receivables, net of allowance of $170 and $169, respectively | 29643 | 25494 |
| Lease right-of-use assets | 123524 | 128111 |
| Prepaid expense and other assets | 27158 | 38968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $4742130 | $4883879 |
| **Liabilities and Equity** |  |  |
| Debt, net | $2197218 | $2220081 |
| Accounts payable and other liabilities | 141568 | 154643 |
| Advance deposits and deferred revenue | 51029 | 40242 |
| Lease liabilities | 118189 | 119102 |
| Accrued interest | 20532 | 20900 |
| Distributions payable | 30934 | 30634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 2559470 | 2585602 |
| Commitments and Contingencies (Note 10) |  |  |
| **Equity** |  |  |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;Preferred shares of beneficial interest, $0.01 par value, 50,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A Cumulative Convertible Preferred Shares, $0.01 par value, 12,950,000 shares authorized; 12,879,475 shares issued and outstanding, liquidation value of $328,266, at December 31, 2025 and 2024 | 366936 | 366936 |
| &nbsp;&nbsp;Common shares of beneficial interest, $0.01 par value, 450,000,000 shares authorized; 151,085,078 and 153,295,577 shares issued and outstanding at December 31, 2025 and 2024, respectively | 1511 | 1533 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 2977616 | 2992487 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 1919 | 13788 |
| &nbsp;&nbsp;&nbsp;Distributions in excess of net earnings | (1178456) | (1090186) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 2169526 | 2284558 |
| Noncontrolling interest: |  |  |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in consolidated joint ventures | 7438 | 7589 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in the Operating Partnership | 5696 | 6130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncontrolling interest | 13134 | 13719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total equity** | 2182660 | 2298277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $4742130 | $4883879 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**RLJ Lodging Trust**

**Consolidated Statements of Operations and Comprehensive Income**

**(Amounts in thousands, except share and per share data)**

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Revenues** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating revenues |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Room revenue | $1093265 | $1121586 | $1095028 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage revenue | 158218 | 153108 | 141625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenue | 98377 | 94746 | 88924 |
| &nbsp;&nbsp;&nbsp;Total revenues | 1349860 | 1369440 | 1325577 |
| **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Room expense | 293405 | 288567 | 277058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage expense | 119799 | 117766 | 109707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and franchise fee expense | 102757 | 107978 | 107417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 371558 | 363631 | 340485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property operating expenses | 887519 | 877942 | 834667 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 186356 | 179431 | 179103 |
| &nbsp;&nbsp;&nbsp;Property tax, insurance and other | 101315 | 107043 | 100229 |
| &nbsp;&nbsp;&nbsp;General and administrative | 47644 | 54804 | 58998 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 410 | 320 | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1223244 | 1219540 | 1173220 |
| &nbsp;&nbsp;&nbsp;Other income, net | 3477 | 5342 | 4364 |
| &nbsp;&nbsp;&nbsp;Interest income | 13580 | 17314 | 19743 |
| &nbsp;&nbsp;&nbsp;Interest expense | (112298) | (111358) | (98807) |
| &nbsp;&nbsp;&nbsp;(Loss) gain on sale of hotel properties, net | (1526) | 8262 | (34) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of indebtedness, net | (47) | (129) | (169) |
| Income before equity in (loss) income from unconsolidated joint ventures | 29802 | 69331 | 77454 |
| Equity in (loss) income from unconsolidated joint ventures | (100) | 459 | 419 |
| Income before income tax expense | 29702 | 69790 | 77873 |
| Income tax expense | (1148) | (1599) | (1256) |
| Net income | 28554 | 68191 | 76617 |
| Net (income) loss attributable to noncontrolling interests: |  |  |  |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in consolidated joint ventures | (30) | 45 | 35 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in the Operating Partnership | (15) | (215) | (247) |
| Net income attributable to RLJ | 28509 | 68021 | 76405 |
| Preferred dividends | (25115) | (25115) | (25115) |
| Net income attributable to common shareholders | $3394 | $42906 | $51290 |
| **Basic per common share data:** |  |  |  |
| Net income per share attributable to common shareholders | $0.01 | $0.27 | $0.32 |
| Weighted-average number of common shares | 149662774 | 152856036 | 155928663 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Diluted per common share data:** | | | |
| Net income per share attributable to common shareholders | $0.01 | $0.27 | $0.32 |
| Weighted-average number of common shares | 149912078 | 153475921 | 156556414 |
| **Comprehensive income:** |  |  |  |
| Net income | $28554 | $68191 | $76617 |
| Unrealized loss on interest rate derivatives | (11869) | (8874) | (17929) |
| Comprehensive income | 16685 | 59317 | 58688 |
| Comprehensive (income) loss attributable to noncontrolling interests: |  |  |  |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in consolidated joint ventures | (30) | 45 | 35 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest in the Operating Partnership | (15) | (215) | (247) |
| Comprehensive income attributable to RLJ | $16640 | $59147 | $58476 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The accompanying notes are an integral part of these consolidated financial statements.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**RLJ Lodging Trust**

**Consolidated Statements of Changes in Equity**

**(Amounts in thousands, except share data)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Noncontrolling Interest** | **Noncontrolling Interest** | |
| | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | | |
| | **Shares** | **Amount** | **Shares** | **Par <br>Value** | **Additional <br>Paid-in <br>Capital** |<br>**Distributions in Excess of Net Earnings** |<br>**Accumulated Other Comprehensive Income** |<br>**Operating<br>Partnership** |<br>**Consolidated<br>Joint <br>Ventures** |<br>**Total Equity** |
| **Balance at December 31, 2022** | 12879475 | $366936 | 162003533 | $1620 | $3054958 | $(1049441) | $40591 | $6313 | $7669 | $2428646 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | 76405 |  | 247 | (35) | 76617 |
| &nbsp;&nbsp;&nbsp;Unrealized loss on interest rate derivatives |  |  |  |  |  |  | (17929) |  |  | (17929) |
| &nbsp;&nbsp;&nbsp;Issuance of restricted stock |  |  | 1190961 | 12 | (12) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of share-based compensation |  |  |  |  | 26243 |  |  |  |  | 26243 |
| &nbsp;&nbsp;&nbsp;Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock |  |  | (407205) | (4) | (4394) |  |  |  |  | (4398) |
| &nbsp;&nbsp;&nbsp;Shares acquired as part of a share repurchase program |  |  | (7463632) | (75) | (75901) |  |  |  |  | (75976) |
| &nbsp;&nbsp;&nbsp;Forfeiture of restricted stock |  |  | (25828) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Distributions on preferred shares |  |  |  |  |  | (25115) |  |  |  | (25115) |
| &nbsp;&nbsp;&nbsp;Distributions on common shares and units |  |  |  |  |  | (57032) |  | (266) |  | (57298) |
| **Balance at December 31, 2023** | 12879475 | $366936 | 155297829 | $1553 | $3000894 | $(1055183) | $22662 | $6294 | $7634 | $2350790 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**RLJ Lodging Trust**

**Consolidated Statements of Changes in Equity**

**(Amounts in thousands, except share data)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Noncontrolling Interest** | **Noncontrolling Interest** | |
| | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | | |
| | **Shares** | **Amount** | **Shares** | **Par <br>Value** | **Additional<br>Paid-in Capital** |<br>**Distributions in Excess of Net Earnings** |<br>**Accumulated Other Comprehensive<br>Income** |<br>**Operating<br>Partnership** |<br>**Consolidated<br>Joint<br>Ventures** |<br>**Total<br>Equity** |
| **Balance at December 31, 2023** | 12879475 | $366936 | 155297829 | $1553 | $3000894 | $(1055183) | $22662 | $6294 | $7634 | $2350790 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | 68021 |  | 215 | (45) | 68191 |
| &nbsp;&nbsp;&nbsp;Unrealized loss on interest rate derivatives |  |  |  |  |  |  | (8874) |  |  | (8874) |
| &nbsp;&nbsp;&nbsp;Issuance of restricted stock |  |  | 1178779 | 11 | (11) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of share-based compensation |  |  |  |  | 22585 |  |  |  |  | 22585 |
| &nbsp;&nbsp;&nbsp;Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock |  |  | (807917) | (8) | (9006) |  |  |  |  | (9014) |
| &nbsp;&nbsp;&nbsp;Shares acquired as part of a share repurchase program |  |  | (2342190) | (23) | (21975) |  |  |  |  | (21998) |
| &nbsp;&nbsp;&nbsp;Forfeiture of restricted stock |  |  | (30924) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Distributions on preferred shares |  |  |  |  |  | (25115) |  |  |  | (25115) |
| &nbsp;&nbsp;&nbsp;Distributions on common shares and units |  |  |  |  |  | (77909) |  | (379) |  | (78288) |
| **Balance at December 31, 2024** | 12879475 | $366936 | 153295577 | $1533 | $2992487 | $(1090186) | $13788 | $6130 | $7589 | $2298277 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**RLJ Lodging Trust**

**Consolidated Statements of Changes in Equity**

**(Amounts in thousands, except share data)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Shareholders' Equity** | **Noncontrolling Interest** | **Noncontrolling Interest** | |
| | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | | |
| | **Shares** | **Amount** | **Shares** | **Par <br>Value** | **Additional<br>Paid-in Capital** |<br>**Distributions in Excess of Net Earnings** |<br>**Accumulated Other Comprehensive Income** |<br>**Operating<br>Partnership** |<br>**Consolidated<br>Joint<br>Ventures** |<br>**Total<br>Equity** |
| **Balance at December 31, 2024** | 12879475 | $366936 | 153295577 | $1533 | $2992487 | $(1090186) | $13788 | $6130 | $7589 | $2298277 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 28509 |  | 15 | 30 | 28554 |
| &nbsp;&nbsp;&nbsp;Unrealized loss on interest rate derivatives |  |  |  |  |  |  | (11869) |  |  | (11869) |
| &nbsp;&nbsp;&nbsp;Issuance of restricted stock |  |  | 1623937 | 16 | (16) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of share-based compensation |  |  |  |  | 17254 |  |  |  |  | 17254 |
| &nbsp;&nbsp;&nbsp;Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock |  |  | (394485) | (5) | (3551) |  |  |  |  | (3556) |
| &nbsp;&nbsp;&nbsp;Shares acquired as part of a share repurchase program |  |  | (3311175) | (33) | (28558) |  |  |  |  | (28591) |
| &nbsp;&nbsp;&nbsp;Forfeiture of restricted stock |  |  | (128776) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Distribution to consolidated joint venture partner |  |  |  |  |  |  |  |  | (181) | (181) |
| &nbsp;&nbsp;&nbsp;Distributions on preferred shares |  |  |  |  |  | (25115) |  |  |  | (25115) |
| &nbsp;&nbsp;&nbsp;Distributions on common shares and units |  |  |  |  |  | (91664) |  | (449) |  | (92113) |
| **Balance at December 31, 2025** | 12879475 | $366936 | 151085078 | $1511 | $2977616 | $(1178456) | $1919 | $5696 | $7438 | $2182660 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**RLJ Lodging Trust**

**Consolidated Statements of Cash Flows** 

**(Amounts in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Cash flows from operating activities** |  |  |  |
| Net income | $28554 | $68191 | $76617 |
| Adjustments to reconcile net income to cash flow provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss (gain) on sale of hotel properties, net | 1526 | (8262) | 34 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of indebtedness, net | 47 | 129 | 169 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 186356 | 179431 | 179103 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 7551 | 6623 | 6100 |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense and other amortization | 4189 | 5507 | 4960 |
| &nbsp;&nbsp;&nbsp;Equity in loss (income) from unconsolidated joint ventures | 100 | (459) | (419) |
| &nbsp;&nbsp;&nbsp;Distributions of income from unconsolidated joint venture |  | 400 |  |
| &nbsp;&nbsp;&nbsp;Amortization of share-based compensation | 15340 | 20804 | 24285 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel and other receivables, net | (4319) | 651 | 12365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expense and other assets | (849) | 4240 | 12648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | (5166) | 1906 | (11064) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance deposits and deferred revenue | 10837 | 7897 | 8512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | (368) | (1639) | 1832 |
| &nbsp;&nbsp;&nbsp;**Net cash flow provided by operating activities** | 243798 | 285419 | 315142 |
| **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Acquisitions, net |  | (158749) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of hotel properties, net | 69042 | 19503 |  |
| &nbsp;&nbsp;&nbsp;Purchase deposit |  |  | (2400) |
| &nbsp;&nbsp;&nbsp;Improvements and additions to hotel properties and other assets | (126403) | (136484) | (132349) |
| &nbsp;&nbsp;&nbsp;**Net cash flow used in investing activities** | (57361) | (275730) | (134749) |
| **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings under Revolver |  | 200000 |  |
| &nbsp;&nbsp;&nbsp;Repayments of Revolver | (100000) | (100000) |  |
| &nbsp;&nbsp;&nbsp;Borrowings on Term Loans | 100000 | 500000 | 320000 |
| &nbsp;&nbsp;&nbsp;Repayments of Term Loans |  | (400000) | (318662) |
| &nbsp;&nbsp;&nbsp;Repayments of mortgage loans | (26250) | (200000) |  |
| &nbsp;&nbsp;&nbsp;Repurchase of common shares under share repurchase programs | (28591) | (21998) | (75976) |
| &nbsp;&nbsp;&nbsp;Repurchase of common shares to satisfy employee tax withholding requirements | (3556) | (9014) | (4398) |
| &nbsp;&nbsp;&nbsp;Distributions on preferred shares | (25115) | (25115) | (25115) |
| &nbsp;&nbsp;&nbsp;Distributions on common shares | (91362) | (69814) | (49194) |
| &nbsp;&nbsp;&nbsp;Distributions on Operating Partnership units | (449) | (340) | (225) |
| &nbsp;&nbsp;&nbsp;Payments of deferred financing costs | (2197) | (5410) | (7882) |
| &nbsp;&nbsp;&nbsp;Distribution to consolidated joint venture partner | (181) |  |  |
| &nbsp;&nbsp;&nbsp;**Net cash flow used in financing activities** | (177701) | (131691) | (161452) |
| Net change in cash, cash equivalents, and restricted cash reserves | 8736 | (122002) | 18941 |
| **Cash, cash equivalents, and restricted cash reserves, beginning of year** | 433325 | 555327 | 536386 |
| **Cash, cash equivalents, and restricted cash reserves, end of year** | $442061 | $433325 | $555327 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**RLJ Lodging Trust**

**Notes to the Consolidated Financial Statements**

**1. General**

*Organization*

RLJ Lodging Trust (the "Company") was formed as a Maryland real estate investment trust ("REIT") on January 31, 2011. The Company is a self-advised and self-administered REIT that owns primarily premium-branded, rooms-oriented, high-margin, focused-service and compact full-service hotels located within heart of demand locations. The Company elected to be taxed as a REIT, for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2011.

Substantially all of the Company's assets and liabilities are held by, and all of its operations are conducted through, RLJ Lodging Trust, L.P. (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. As of December 31, 2025, there were 151,856,909 units of limited partnership interest in the Operating Partnership ("OP units") outstanding and the Company owned, through a combination of direct and indirect interests, 99.5% of the outstanding OP units.

As of December 31, 2025, the Company owned 93 hotel properties with approximately 20,800 rooms, located in 23 states and the District of Columbia. The Company, through wholly-owned subsidiaries, owned a 100% interest in 91 of its hotel properties, a 95% controlling interest in one hotel property, and a 50% non-controlling interest in an entity owning one hotel property. The Company consolidates its real estate interests in the 92 hotel properties in which it holds a controlling interest, and the Company records the real estate interest in the one hotel property in which it holds an indirect 50% non-controlling interest using the equity method of accounting. The Company leases 92 of the 93 hotel properties to its taxable REIT subsidiaries ("TRSs"), of which the Company owns a controlling financial interest.

**2. Summary of Significant Accounting Policies**

*Basis of Presentation and Principles of Consolidation*

The consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP").

The consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries (including the Company's taxable REIT subsidiaries), and joint ventures in which the Company has a majority voting interest and control. For the controlled subsidiaries that are not wholly-owned, the third-party ownership interest represents a noncontrolling interest, which is presented separately in the consolidated financial statements. The Company also records the real estate interests in one joint venture in which it holds an indirect 50% interest using the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation.

*Use of Estimates*

The preparation of the Company's financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

*Reclassifications*

Certain prior year amounts in these financial statements have been reclassified to conform to the current year presentation with no impact to net income and comprehensive income, shareholders' equity or cash flows.

*Revenue*

Substantially all of the Company's revenues are derived from the operation of hotel properties. The Company generates room revenue by renting hotel rooms to customers at its hotel properties. The Company generates food and beverage revenue from the sale of food and beverage to customers at its hotel properties. The Company generates other revenue from parking fees, resort fees, gift shop sales and other guest service fees at its hotel properties.

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A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. The Company's contracts generally have a single performance obligation, such as renting a hotel room to a customer, or providing food and beverage to a customer, or providing a hotel property-related good or service to a customer. The Company's performance obligations are generally satisfied at a point in time.

The Company allocates revenue to the performance obligation based on its relative standalone selling price. The Company determines the standalone selling price based on the price it charges each customer for the use or consumption of the promised good or service.

The Company's revenue is recognized when control of the promised good or service is transferred to the customer, in an amount that reflects the consideration the Company expects to receive in exchange for the promised good or service. The revenue is recorded net of any sales and occupancy taxes collected from the customer. All rebates or discounts are recorded as a reduction to revenue, and there are no material contingent obligations with respect to rebates and discounts offered by the hotel properties.

The timing of revenue recognition, billings, and cash collections results in the Company recognizing hotel and other receivables and advance deposits and deferred revenue on the consolidated balance sheet. Hotel and other receivables are recognized on the consolidated balance sheets when the Company has provided a good or service to the customer and is waiting for the customer to submit consideration to the Company. Advance deposits and deferred revenue are recognized on the consolidated balance sheets when cash payments are received in advance of the Company satisfying its performance obligation. Advance deposits and deferred revenue consist of amounts that are refundable and non-refundable to the customer. The advance deposits and deferred revenue are recognized as revenue in the consolidated statements of operations and comprehensive income when the Company satisfies its performance obligation to the customer.

For the majority of its goods or services and customers, the Company requires payment at the time the respective good or service is provided to the customer. The Company's payment terms vary by the type of customer and the goods or services offered to the customer. The Company applied a practical expedient to not disclose the value of unsatisfied performance obligations for contracts that have an original expected length of one year or less. Any contracts that have an original expected length of greater than one year are insignificant.

The Company records an allowance for doubtful accounts based on its best estimate of the amount of probable credit losses in the existing accounts receivable portfolio. The Company recognizes increases to the allowance for doubtful accounts as bad debt expense. The allowance for doubtful accounts is calculated as a percentage of the aged accounts receivable based on the Company's historical collection activity and its understanding of the circumstances related to a specific receivable.

*Investment in Hotel Properties*

The Company's acquisitions generally consist of land, land improvements, buildings, building improvements, furniture, fixtures and equipment ("FF&E"), inventory, and assumed debt. The Company may also acquire intangible assets or liabilities related to in-place leases, management agreements, franchise agreements, and advanced bookings. The Company allocates the purchase price among the assets acquired and the liabilities assumed based on their respective fair values at the date of acquisition. The Company estimates the fair values of the assets acquired and the liabilities assumed by using a combination of the market, cost and income approaches. The Company determines the fair value by using market data and independent appraisals available to the Company and making numerous estimates and assumptions, such as estimates of future income growth, replacement cost per unit, value per acre or buildable square foot, capitalization rates, discount rates, borrowing rates, market rental rates, capital expenditures and cash flow projections at the respective hotel properties.

The Company's investments in hotel properties are carried at cost and are depreciated using the straight-line method over the estimated useful lives of 15 years for land improvements, 15 years for building improvements, 40 years for buildings, and three to five years for FF&E. Maintenance and repairs are expensed and major renewals or improvements to the hotel properties are capitalized. Indirect project costs, including interest, salaries and benefits, travel and other related costs that are directly attributable to the development, are also capitalized. Upon the sale or disposition of a hotel property, the asset and related accumulated depreciation accounts are removed and the related gain or loss is included in the gain or loss on sale of hotel properties in the consolidated statements of operations and comprehensive income. A sale or disposition of a hotel property that represents a strategic shift that has or will have a major effect on the Company's operations and financial results is presented as discontinued operations in the consolidated statements of operations and comprehensive income.

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In accordance with the guidance on impairment or disposal of long-lived assets, the Company does not consider the "held for sale" classification on the consolidated balance sheet until it is expected to qualify for recognition as a completed sale within one year and the other requisite criteria for such classification have been met. The Company does not depreciate assets so long as they are classified as held for sale. Upon designation as held for sale and quarterly thereafter, the Company reviews the realizability of the carrying value, less costs to sell, in accordance with the guidance. Any such adjustment to the carrying value is recorded as an impairment loss.

The Company assesses the carrying value of its investments in hotel properties whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The recoverability is measured by comparing the carrying amount to the projected undiscounted future cash flows expected to be generated from the operation and the eventual disposition of the hotel properties over the estimated hold period, which take into account current market conditions and the Company's intent with respect to holding or disposing of the hotel properties. If the Company's analysis indicates that the carrying value is not recoverable on a projected undiscounted cash flow basis, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions, third-party appraisals, the net sales proceeds from pending offers, or the net sales proceeds from transactions that closed subsequent to the end of the reporting period. The use of projected future cash flows is based on assumptions that are consistent with a market participant's future expectations for the travel industry and the economy in general, including discount rates, sales proceeds in the reversion year, average daily rates, occupancy rates, operating expenses and capital expenditures, and the Company's intent with respect to holding or disposing of the underlying hotel properties. Fair value may also be based on assumptions including, but not limited to, room revenue multiples and comparable sales adjusted for capital expenditures, if necessary.

*Investment in Unconsolidated Joint Ventures*

If the Company determines that it does not have a controlling financial interest in a joint venture, either through a controlling financial interest in a variable interest entity or through the Company's voting interest in a voting interest entity, but the Company exercises significant influence over the operating and financial policies of the joint venture, the Company accounts for the joint venture using the equity method of accounting. Under the equity method of accounting, the Company's investment is adjusted each reporting period to recognize the Company's share of the net earnings or losses of the joint venture, plus any contributions to the joint venture, less any distributions received from the joint venture and any adjustment for impairment. In addition, the Company's share of the net earnings or losses of the joint venture is adjusted for the straight-line depreciation of the difference between the Company's basis in the investment in the unconsolidated joint venture as compared to the historical basis of the underlying net assets in the joint venture at the date of acquisition.

The Company assesses the carrying value of its investment in unconsolidated joint ventures whenever events or changes in circumstances may indicate that the carrying value of the investment exceeds its fair value on an other-than-temporary basis. When an impairment indicator is present, the Company will estimate the fair value of the investment, which will be determined by using internally developed discounted cash flow models, comparable market transactions, third-party appraisals, the net sales proceeds from pending offers, or the net sales proceeds from transactions that closed subsequent to the end of the reporting period. If the estimated fair value is less than the carrying value, and management determines that the decline in value is considered to be other-than-temporary, the Company will recognize an impairment loss on its investment in the joint venture.

The Company evaluates the nature of the distributions from each of its unconsolidated joint ventures in order to classify the distributions as either operating activities or investing activities in the consolidated statements of cash flows. Any cash distribution that is considered to be a distribution of the earnings of the unconsolidated joint venture is presented as an operating activity in the consolidated statements of cash flows. Any cash distribution that is considered to be a return of capital from the unconsolidated joint venture is presented as an investing activity in the consolidated statements of cash flows.

*Cash and Cash Equivalents*

Cash and cash equivalents include all cash and highly liquid investments that mature three months or less when they are purchased. The Company maintains its cash at domestic banks, which, at times, may exceed the limits of the amounts insured by the Federal Deposit Insurance Corporation.

*Restricted Cash Reserves*

Restricted cash reserves consist of all cash that is required to be maintained in a reserve escrow account by a management agreement, franchise agreement, and/or a mortgage loan agreement for future capital expenditures (including the periodic replacement or refurbishment of FF&E) and the funding of real estate taxes and insurance.

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*Hotel Receivables*

Hotel receivables consist mainly of receivables due from hotel guests and meeting and banquet room rentals. The Company typically does not require collateral as ongoing credit evaluations are performed. An allowance for doubtful accounts is established against any receivable that is estimated to be uncollectible.

*Deferred Financing Costs*

Deferred financing costs are the costs incurred to obtain long-term financing. The deferred financing costs are recorded at cost and are amortized using the straight-line method, which approximates the effective interest method, over the respective term of the financing agreement and are included as a component of interest expense in the consolidated statements of operations and comprehensive income. The Company expenses unamortized deferred financing costs when the associated financing agreement is refinanced or repaid before the maturity date, unless certain criteria are met that would allow for the carryover of such costs to the refinanced agreement. The Company presents the deferred financing costs for its Senior Notes and Term Loans (as defined in Note 7) and mortgage loans on the balance sheet as a direct deduction from the carrying amount of the respective debt liability, which is included in debt, net, in the accompanying consolidated balance sheets. The Company presents the deferred financing costs for its Revolver (as defined in Note 7) on the balance sheet as an asset, which is included in prepaid expense and other assets in the accompanying consolidated balance sheets.

For the years ended December 31, 2025, 2024 and 2023, approximately $7.6 million, $6.6 million and $6.1 million, respectively, of amortization expense was recorded as a component of interest expense in the consolidated statements of operations and comprehensive income.

*Transaction Costs*

The Company incurs costs during the review of potential hotel property acquisitions and dispositions, including legal fees and other professional service fees. In addition, if the Company completes a hotel property acquisition, the Company may incur transfer taxes and integration costs, including professional fees and employee-related costs. If the Company completes a hotel property acquisition that is considered to be an asset acquisition, the transaction costs are capitalized on the consolidated balance sheets. If the Company completes a hotel property acquisition that is considered to be a business combination, the transaction costs are expensed as incurred in the consolidated statements of operations and comprehensive income. Transaction costs related to successful dispositions are included in (loss) gain on sale of hotel properties, net, in the consolidated statements of operations and comprehensive income. All transaction costs incurred in connection with unsuccessful transactions are expensed.

*Derivative Financial Instruments*

In the normal course of business, the Company is exposed to the effects of interest rate changes. The Company utilizes a variety of borrowing vehicles, including the Revolver and medium and long-term financings. The Company reduces its risk to interest rate changes by following its established risk management policies and procedures, including the use of derivative financial instruments to manage, or hedge, interest rate risk. To mitigate the Company's exposure to interest rate changes, the Company uses interest rate derivative instruments, typically interest rate swaps, to convert a portion of its variable rate debt to fixed rate debt. The Company attempts to require the hedging derivative instruments to be effective in reducing the interest rate risk exposure that they are designated to hedge. This effectiveness is essential in order to qualify for hedge accounting. Derivative instruments that meet the hedging criteria are formally designated as cash flow hedges at the inception of the derivative contract. The Company does not use derivative instruments for trading or speculative purposes.

Interest rate swap agreements contain a credit risk that the counterparties may be unable to fulfill the terms of the agreement. The Company has minimized the credit risk by evaluating the creditworthiness of its counterparties, who are limited to major banks and financial institutions, and it does not anticipate nonperformance by these counterparties.

The estimated fair values of the derivatives are determined by using available market information and appropriate valuation methods. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

The Company recognizes all derivatives as assets or liabilities on its consolidated balance sheets at fair value. The gains and losses on the derivatives that have been determined to be effective cash flow hedges are reported in other comprehensive

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income or loss and are reclassified to interest expense in the period in which the interest expense is recognized on the underlying hedged item. The ineffective portion of the change in fair value of the derivatives is recognized in earnings immediately.

When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, and the interest rate derivative no longer qualifies for hedge accounting, all changes in the fair value of the derivative instrument are marked-to-market with the changes in fair value recognized in earnings each period until the derivative instrument matures.

*Leases*

As a lessee in a lease contract, the Company recognizes a lease right-of-use asset and a lease liability on the consolidated balance sheets. The Company is a lessee in a variety of lease contracts, such as ground leases, parking leases, equipment leases, and an office lease. The Company classifies its leases as either an operating lease or a finance lease based on the principle of whether or not the lease is effectively a financed purchase of the leased asset. For operating leases, the Company recognizes lease expense on a straight-line basis over the term of the lease. For finance leases, the Company recognizes lease expense on the effective interest method, which results in the interest component of each lease payment being recognized as interest expense and the lease right-of-use asset being amortized into amortization expense using the straight-line method over the term of the lease. For leases with an initial term of 12 months or less, the Company will not recognize a lease right-of-use asset and a lease liability on the consolidated balance sheets and lease expense will be recognized on a straight-line basis over the lease term.

At the lease commencement date, the Company determines the lease term by incorporating the fixed, non-cancelable lease term plus any lease extension option terms that are reasonably certain of being exercised. The ability to extend the lease term is at the Company's sole discretion. The Company calculates the present value of the future lease payments over the lease term in order to determine the lease liability and the related lease right-of-use asset that is recognized on the consolidated balance sheets.

Certain lease contracts may include an option to purchase the leased property, which is at the Company's sole discretion. The Company's lease contracts do not contain any material residual value guarantees or material restrictive covenants.

The Company's leases include a base lease payment, which is recognized as lease expense on a straight-line basis over the lease term. In addition, certain of the Company's leases may include an additional lease payment that is based on either (i) a percentage of the respective hotel property's financial results, or (ii) changes in an index such as the consumer price index; all of which are recognized as variable lease expense, when incurred, in the consolidated statements of operations and comprehensive income.

The Company will use the implicit rate in a lease contract in order to determine the present value of the future lease payments over the lease term. If the implicit rate in the lease contract is not available, then the Company will use its incremental borrowing rate at the lease commencement date. The Company determined its incremental borrowing rate for each lease contract by using the U.S. Treasury interest rates yield curve, and then making adjustments for the lease term, the Company's credit spread, the Company's ability to borrow on a secured basis, the quality and condition of the leased asset and the current economic environment.

As a lessor in a lease contract, the Company classifies its leases as either an operating lease, direct financing lease, or a sales-type lease. The Company leases space at its hotel properties to third parties, who use the space for their restaurants or retail locations. The Company classifies these lease contracts as operating leases, so the Company will continue to recognize the underlying leased asset as an investment in hotel properties on the consolidated balance sheets. Lease revenue is recognized on a straight-line basis over the lease term. Variable lease revenue is recognized over the lease term when it is earned and becomes receivable from the lessee, according to the provisions of the respective lease contract. The Company only capitalizes the incremental direct costs of leasing, so any indirect costs of leasing will be expensed as incurred.

*Noncontrolling Interests*

The consolidated financial statements include all subsidiaries controlled by the Company. For the controlled subsidiaries that are not wholly-owned, the third-party ownership interest represents a noncontrolling interest, which is presented separately in the consolidated financial statements.

As of December 31, 2025 and 2024, the Company consolidated the Operating Partnership, which has a 0.5% third-party ownership interest. The third-party ownership interest is included in the noncontrolling interest in the Operating Partnership in

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the equity section of the consolidated balance sheets. The portion of the income and losses associated with the third-party ownership interest are included in the noncontrolling interest in the Operating Partnership in the consolidated statements of operations and comprehensive income.

As of December 31, 2025 and 2024, the Company consolidated the joint venture that owns The Knickerbocker hotel property; this joint venture has a 5% third-party ownership interest in the joint venture. The third-party ownership interest is included in the noncontrolling interest in consolidated joint ventures in the equity section of the consolidated balance sheets. The income and losses associated with the third-party ownership interest are included in the noncontrolling interest in consolidated joint ventures in the consolidated statements of operations and comprehensive income.

*Income Taxes*

The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its REIT taxable income, subject to certain adjustments and excluding any net capital gain, to shareholders. The Company's intention is to adhere to the REIT qualification requirements and to maintain its qualification for taxation as a REIT.

As a REIT, the Company is generally not subject to U.S. federal corporate income tax on the portion of taxable income that is distributed to shareholders. If the Company fails to qualify for taxation as a REIT in any taxable year, the Company will be subject to U.S. federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and it may not be able to qualify as a REIT forfour subsequent taxable years. As a REIT, the Company may be subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on undistributed taxable income. Taxable income from non-REIT activities of the Company's TRSs is subject to U.S. federal, state, and local income taxes at the applicable rates.

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company performs an annual review for any uncertain tax positions and, if necessary, will record the expected future tax consequences of uncertain tax positions in the consolidated financial statements.

*Earnings Per Common Share* 

Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted-average number of unvested restricted shares and unvested performance units outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. The potential shares consist of unvested restricted share grants and unvested performance units, calculated using the treasury stock method, and convertible Series A Preferred Shares, calculated using the if-converted method. Any anti-dilutive shares have been excluded from the diluted earnings per common share calculation.

*Share-based Compensation*

The Company may issue share-based awards as compensation to officers, employees, non-employee trustees and other eligible persons under the RLJ Lodging Trust 2021 Equity Incentive Plan (the "2021 Plan"). The vesting of the awards issued to the officers and employees is based on either the continued employment (time-based) or the absolute and relative total shareholder returns of the Company and continued employment (performance-based), as determined by the board of trustees at the date of grant. For time-based awards, the Company recognizes compensation expense for the unvested restricted shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for

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forfeitures. For performance-based awards, the Company recognizes compensation expense over the requisite service period for each award, based on the fair market value of the shares on the date of grant, as determined using a Monte Carlo simulation, adjusted for forfeitures.

Non-employee trustees may elect to receive unrestricted shares under the 2021 Plan as compensation that would otherwise be paid in cash for their services. The shares issued to the non-employee trustees in lieu of cash compensation are unrestricted and include no vesting conditions. The Company recognizes compensation expense for the unrestricted shares issued in lieu of cash compensation based upon the fair market value of the shares on the date of issuance.

*Recently Issued Accounting Pronouncements*

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company adopted this standard for its fiscal year beginning January 1, 2025, and applied it retrospectively. The adoption of the new standard did not have an impact on the Company's financial position, results of operations or cash flows. Please refer to Notes 14, Income Taxes, and 16, Supplemental Information to Statements of Cash Flows**,** for the related disclosures.

In November 2024, the FASB issued ASU 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures*, which requires public entities to disclose, on an annual and interim basis, disaggregated information about certain income statement expense line items in the notes to the financial statements. Public entities are required to apply the guidance prospectively and may elect to apply it retrospectively. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating this ASU to determine its impact on the Company's consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-09, *Derivatives and Hedging (Topic 815): Hedge Accounting Improvements*. The Company utilizes interest rate derivative instruments, typically interest rate swaps, to mitigate exposure to interest rate changes. The Company is currently evaluating this ASU to determine its impact on the Company's consolidated financial statements and related disclosures.

**3. Investment in Hotel Properties**

Investment in hotel properties consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Land and improvements | $1123123 | $1130005 |
| Buildings and improvements | 4199471 | 4210515 |
| Furniture, fixtures and equipment | 873410 | 852993 |
|  | 6196004 | 6193513 |
| Accumulated depreciation | (2083617) | (1942989) |
| Investment in hotel properties, net | $4112387 | $4250524 |

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For the years ended December 31, 2025, 2024 and 2023, the Company recognized depreciation expense related to its investment in hotel properties of approximately $185.8 million, $179.3 million and $179.1 million, respectively.

There were no impairment losses recorded during any of the years ended December 31, 2025, 2024, or 2023.

**4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions**

On January 29, 2024, the Company acquired the fee simple interest in the Wyndham Boston Beacon Hill in Boston, Massachusetts, which was previously owned via a leasehold interest that was subject to a ground lease, for a purchase price of approximately $125.0 million. The acquisition was accounted for as an asset acquisition, whereby approximately $0.2 million of transaction costs were capitalized as part of the cost of the acquisition. The existing right-of-use asset of $1.3 million, lease liability of $0.1 million and $125.2 million cost of the acquisition were recorded as land in the accompanying consolidated balance sheets.

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Also during the year ended December 31, 2024, the Company acquired a 100% interest in the following property:

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|:---|:---|:---|:---|:---|:---|
| **Property** | **Location** | **Acquisition Date** | **Management Company** | **Rooms** | **Purchase Price (in thousands)** |
| Hotel Teatro | Denver, CO | June 13, 2024 | Sage Hospitality | 110 | $35500 |

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The acquisition of Hotel Teatro was accounted for as an asset acquisition, whereby approximately $0.6 million of transaction costs were capitalized as part of the cost of the acquisition. The allocation of the costs for the property acquired was as follows (in thousands):

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| | |
|:---|:---|
| | **December 31, 2024** |
| Land and improvements | $3433 |
| Buildings and improvements | 29718 |
| Furniture, fixtures and equipment | 2996 |
| Total purchase price | $36147 |

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The value of the asset acquired was primarily based on a sales comparison approach (for land) and a depreciated replacement cost approach (for building and improvements and furniture, fixtures and equipment). The sales comparison approach used inputs of recent land sales in the hotel market. The depreciated replacement cost approach used inputs of both direct and indirect replacement costs using a nationally recognized authority on replacement cost information as well as the age, square footage and number of rooms of the asset.

The Company did not acquire any properties during the years ended December 31, 2025 or 2023.

**5. Sales of Hotel Properties**

In connection with the sales of hotel properties for the years ended December 31, 2025 and 2024, the Company recorded a net loss of $1.5 million and a net gain of $8.3 million, respectively.

During the year ended December 31, 2025, the Company sold the following hotel properties in three separate transactions for a combined sales price of $73.7 million:

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| | | | |
|:---|:---|:---|:---|
| **Hotel Property Name** | **Location** | **Sale Date** | **Rooms** |
| Courtyard Atlanta Buckhead | Atlanta, GA | March 6, 2025 | 181 |
| Embassy Suites Dallas Love Field | Dallas, TX | December 12, 2025 | 248 |
| Residence Inn Houston By The Galleria | Houston, TX | December 16, 2025 | 146 |
|  |  | Total | 575 |

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During the year ended December 31, 2024, the Company sold the following hotel properties in two separate transactions for a combined sales price of approximately $20.8 million:

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| | | | |
|:---|:---|:---|:---|
| **Hotel Property Name** | **Location** | **Sale Date** | **Rooms** |
| Residence Inn Merrillville | Merrillville, IN | May 21, 2024 | 78 |
| Fairfield Inn & Suites Denver Cherry Creek | Denver, CO | September 9, 2024 | 134 |
|  |  | Total | 212 |

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The Company did not sell any properties during the year ended December 31, 2023.

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**6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue**

The Company recognized revenue from the following geographic markets (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** |
| | **Room Revenue** | **Food and Beverage Revenue** | **Other Revenue** | **Total Revenue** |
| Northern California | $148057 | $13294 | $8749 | $170100 |
| Southern California | 129697 | 18711 | 16786 | 165194 |
| South Florida | 116306 | 20507 | 11848 | 148661 |
| New York City | 75289 | 11301 | 3927 | 90517 |
| Chicago | 55553 | 8831 | 3506 | 67890 |
| Louisville | 39540 | 21069 | 3771 | 64380 |
| Washington, DC | 53878 | 1212 | 3022 | 58112 |
| Charleston | 40252 | 12563 | 3883 | 56698 |
| Boston | 47689 | 4897 | 2588 | 55174 |
| Houston | 45379 | 3742 | 4287 | 53408 |
| Other | 341625 | 42091 | 36010 | 419726 |
| Total | $1093265 | $158218 | $98377 | $1349860 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
| | **Room Revenue** | **Food and Beverage Revenue** | **Other Revenue** | **Total Revenue** |
| Southern California | $137811 | $19623 | $15538 | $172972 |
| Northern California | 137030 | 13458 | 8013 | 158501 |
| South Florida | 115762 | 20970 | 11571 | 148303 |
| New York City | 72571 | 10716 | 3599 | 86886 |
| Chicago | 57871 | 9403 | 3345 | 70619 |
| Louisville | 40237 | 18923 | 3678 | 62838 |
| Washington, DC | 58096 | 1156 | 2787 | 62039 |
| Boston | 51756 | 4667 | 1960 | 58383 |
| Houston | 46372 | 3511 | 4577 | 54460 |
| Charleston | 39516 | 11029 | 3723 | 54268 |
| Other | 364564 | 39652 | 35955 | 440171 |
| Total | $1121586 | $153108 | $94746 | $1369440 |

---

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** | **For the year ended December 31, 2023** |
| | **Room Revenue** | **Food and Beverage Revenue** | **Other Revenue** | **Total Revenue** |
| Northern California | $140866 | $14013 | $8014 | $162893 |
| Southern California | 128273 | 16216 | 14009 | 158498 |
| South Florida | 113579 | 19641 | 10046 | 143266 |
| New York City | 67886 | 9235 | 3562 | 80683 |
| Chicago | 57863 | 9629 | 3189 | 70681 |
| Washington, DC | 57731 | 1409 | 2402 | 61542 |
| Louisville | 37329 | 16190 | 3643 | 57162 |
| Boston | 49010 | 4202 | 1482 | 54694 |
| Houston | 43134 | 3148 | 4496 | 50778 |
| Charleston | 36851 | 8581 | 4077 | 49509 |
| Other | 362506 | 39361 | 34004 | 435871 |
| Total | $1095028 | $141625 | $88924 | $1325577 |

---

**7. Debt**

The Company's debt consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Senior Notes, net | $996401 | $994037 |
| Revolver Outstanding |  | 100000 |
| Term Loans, net | 1020057 | 918707 |
| Mortgage loans, net | 180760 | 207337 |
| Debt, net | $2197218 | $2220081 |

---

*Senior Notes*

The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Carrying Value at** | **Carrying Value at** |
| |<br>**Interest Rate at December 31, 2025** |<br>**Maturity Date** | **December 31, 2025** | **December 31, 2024** |
| 2029 Senior Notes (1)(2) | 4.00% | September 2029 | $500000 | $500000 |
| 2026 Senior Notes (1)(3) | 3.75% | July 2026 | 500000 | 500000 |
|  |  |  | 1000000 | 1000000 |
| Deferred financing costs, net |  |  | (3599) | (5963) |
| Total senior notes, net |  |  | $996401 | $994037 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Requires payments of interest only through maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The Company has the option to redeem its 4.00% senior notes due 2029 (the "2029 Senior Notes") at a redemption price of (i) 101.0% of the principal amount should such redemption occur before September 15, 2026 and (ii) 100.0% of the principal amount thereafter, in each case plus accrued and unpaid interest, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The Company has the option to redeem its 3.75% senior notes due 2026 (the "2026 Senior Notes") at a redemption price of 100.0% of the principal amount, plus accrued and unpaid interest, if any.

The Senior Notes are each fully and unconditionally guaranteed, jointly and severally, by the Company and certain of the Operating Partnership's subsidiaries that incur and guarantee indebtedness under the Company's credit facilities and certain other indebtedness. The indentures governing the Senior Notes contain customary covenants that limit the Operating Partnership's ability and, in certain instances, the ability of its subsidiaries, to incur additional debt, create liens on assets, make distributions and pay dividends, make certain types of investments, issue guarantees of indebtedness, and make certain restricted payments. These limitations are subject to a number of exceptions and qualifications set forth in the indentures.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

A summary of the various restrictive covenants for the Senior Notes are as follows:

---

| | | |
|:---|:---|:---|
| | **Covenant** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Compliance**<br>**December 31, 2025** |
| ***<u>Maintenance Covenant</u>*** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unencumbered Asset to Unencumbered Debt Ratio | > 150.0% | Yes |
| ***<u>Incurrence Covenants</u>*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Indebtedness less than Adjusted Total Assets | < .65x | Yes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Secured Indebtedness less than Adjusted Total Assets | < .45x | Yes |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Coverage Ratio | > 1.5x | Yes |

---

*Revolver and Term Loans*

The Company had the following unsecured credit agreements in place as of December 31, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $600.0 million revolving credit facility with a scheduled maturity date of May 10, 2027 and either a one-year extension option or up to two six-month extension options if certain conditions are satisfied (the "Revolver");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $500.0 million term loan with a scheduled maturity date of September 24, 2027 and up to two one-year extension options if certain conditions are satisfied (the "$500 Million Term Loan Maturing 2027");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $300.0 million term loan with a scheduled maturity date of April 3, 2028 and up to two one-year extension options if certain conditions are satisfied (the "$300 Million Term Loan Maturing 2028"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $225.0 million term loan with a scheduled maturity date of May 10, 2026 and up to two one-year extension options if certain conditions are satisfied (the "$225 Million Term Loan Maturing 2026").

The $500 Million Term Loan Maturing 2027, the $300 Million Term Loan Maturing 2028, and the $225 Million Term

Loan Maturing 2026 are collectively referred to as the "Term Loans." The credit agreements contain certain financial covenants relating to the Company's maximum leverage ratio, minimum fixed charge coverage ratio, maximum secured indebtedness ratio, maximum unencumbered leverage ratio and minimum unencumbered debt service coverage ratio. If an event of default exists, the Company is not permitted to make distributions to shareholders, other than those required to qualify for and maintain REIT status.

The borrowings under the Revolver and Term Loans bear interest at variable rates equal to (i) the Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment of ten basis points ("Adjusted SOFR") and a margin ranging from 1.35% to 2.20% or (ii) a base rate plus a margin ranging from 0.35% to 1.20%. In all cases, the actual margin used is determined based on the Company's leverage ratio, as calculated under the terms of each facility. The Company incurs an unused facility fee on the Revolver of between 0.20% and 0.25%, based on the amount by which the maximum borrowing amount exceeds the total principal balance of the outstanding borrowings.

In April 2025, the Company refinanced a $200.0 million term loan with a scheduled maturity date of January 31, 2026 (the "$200 Million Term Loan Maturing 2026") to upsize the term loan to $300.0 million and extend the initial maturity to April 2028, with two additional one-year extension options at the Company's discretion, subject to certain conditions. Borrowings under the term loan bear interest at a variable rate under the same pricing grid as the $200 Million Term Loan Maturing 2026. The Company paid approximately $1.9 million in lender fees and legal costs related to the financing. In April 2025, the Company utilized the incremental $100.0 million in proceeds to pay off the full outstanding balance on the Revolver.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

The Company's unsecured credit agreements consisted of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Carrying Value at** | **Carrying Value at** |
| |<br>**Interest Rate at December 31, 2025 (1)** |<br>**Maturity Date** | **December 31, 2025** | **December 31, 2024** |
| Revolver (2) | —% | May 2027 | $— | $100000 |
| $500 Million Term Loan Maturing 2027 | 4.85% | September 2027 (3) | 500000 | 500000 |
| $300 Million Term Loan Maturing 2028 (4)  | 5.54% | April 2028 (3) | 300000 | 200000 |
| $225 Million Term Loan Maturing 2026 (5) | 5.01% | May 2026 (3) | 225000 | 225000 |
|  |  |  | 1025000 | 1025000 |
| Deferred financing costs, net (6) |  |  | (4943) | (6293) |
| Total Revolver and Term Loans, net |  |  | $1020057 | $1018707 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Interest rate at December 31, 2025 gives effect to interest rate hedges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)At December 31, 2025 and 2024, there was $600.0 million and $500.0 million, respectively, of borrowing capacity on the Revolver. In February 2026, the Company amended its Revolver. The amendment extends the maturity date of the Revolver to February 2030. The Company has the ability to further increase the total capacity on the Revolver to $750.0 million, subject to obtaining additional commitments from new or existing lenders and the satisfaction of certain customary conditions. The Company also has the ability to extend the maturity date for an additional one-year period or up to two six-month periods ending February 2031 if certain conditions are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)As of December 31, 2025, this term loan includes two one-year extension options at the Company's discretion, subject to certain conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)In April 2025, the Company refinanced this term loan to increase the loan amount to $300.0 million and extend the initial maturity to April 2028, with two additional one-year extension options at the Company's discretion, subject to certain conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)In February 2026, the Company refinanced this term loan to extend the scheduled maturity date to February 2031 and upsize it to a delayed draw term loan of $569.0 million, of which $225.0 million has been funded and $344.0 million of commitments remain available to be drawn by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Excludes $2.2 million and $3.9 million as of December 31, 2025 and 2024, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.

In addition to the debt transactions noted in the table above, in February 2026, the Company entered into a new $150.0 million delayed draw term loan which matures in February 2033.

The Company paid approximately $6.0 million in lender fees and legal costs in connection with the Revolver and approximately $8.0 million in lender fees and legal costs in connection with the term loan refinancing transactions.

The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows:

---

| | | |
|:---|:---|:---|
| | **Covenant** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Compliance**<br>**December 31, 2025** |
| Leverage ratio (1) | <= 7.25x | Yes |
| Fixed charge coverage ratio (2) | >= 1.50x | Yes |
| Secured indebtedness ratio | <= 45.0% | Yes |
| Unencumbered indebtedness ratio | <= 60.0% | Yes |
| Unencumbered debt service coverage ratio | >= 2.00x | Yes |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less FF&E reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

*Mortgage Loans*

The Company's mortgage loans consisted of the following (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | **Carrying Value at** | **Carrying Value at** |
| |<br>**Number of Assets Encumbered** |<br>**Interest Rate at December 31, 2025** | |<br>**Maturity Date** | | **December 31, 2025** | **December 31, 2024** |
| Mortgage loan (1)(2) | 2 | 5.39% | (4) | April 2026 | (5) | $69750 | $96000 |
| Mortgage loan (1) | 4 | 5.39% | (4) | April 2026 | (5) | 85000 | 85000 |
| Mortgage loan (3) | 1 | 5.06% |  | January 2029 |  | 26112 | 26472 |
|  | 7 |  |  |  |  | 180862 | 207472 |
| Deferred financing costs, net |  |  |  |  |  | (102) | (135) |
| Total mortgage loans, net |  |  |  |  |  | $180760 | $207337 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)In December 2025, the Company paid down $26.3 million of this mortgage loan in connection with the sale of one of the hotels securing this mortgage loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Includes $1.1 million and $1.5 million at December 31, 2025 and 2024, respectively, related to a fair value adjustment on this mortgage loan from purchase price allocation at hotel property acquisition. This mortgage loan requires payments of interest only through maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Interest rate at December 31, 2025 gives effect to interest rate hedges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)In April 2025, the Company exercised the final option to extend the maturity to April 2026. In January 2026, the Company amended these mortgage loans, extending the initial maturity date to April 2029, with two one-year extension options at the Company's discretion, subject to certain conditions. On the $69.8 million and $85.0 million mortgage loans, the Company paid down approximately $1.5 million and $3.9 million, respectively, in principal in connection with the amendments. The amended $69.8 million mortgage loan ($68.3 million after principal paydown) allows a future advance of up to $23.4 million by April 2026 with the addition of another hotel property previously unencumbered, with the combined outstanding principal balance of both mortgage loans not to exceed $164.4 million. The mortgage loans require payments of interest only through maturity.

Certain mortgage agreements are subject to various maintenance covenants requiring the Company to maintain a minimum debt yield or debt service coverage ratio ("DSCR"). Failure to meet the debt yield or DSCR thresholds is not an event of default, but instead triggers a cash trap event. At December 31, 2025, all mortgage loans exceeded the minimum debt yield or DSCR thresholds.

*Interest Expense*

The components of the Company's interest expense consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** | **2023** |
| Senior Notes | $38764 | $38764 | $38764 |
| Revolver and Term Loans | 54851 | 50928 | 31000 |
| Mortgage loans | 10555 | 13451 | 21014 |
| Amortization of deferred financing costs | 7551 | 6623 | 6100 |
| Non-cash interest expense related to interest rate<br>hedges | 577 | 1592 | 1929 |
| Total interest expense | $112298 | $111358 | $98807 |

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

*Future Minimum Principal Payments*

As of December 31, 2025, excluding extension options, the future minimum principal payments were as follows (in thousands):

---

| | |
|:---|:---|
| 2026 | $879750 |
| 2027 | 500000 |
| 2028 | 300000 |
| 2029 | 525000 |
| 2030 |  |
| Thereafter |  |
| Total (1) | $2204750 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes a $1.1 million fair value adjustment on debt.

**8. Derivatives and Hedging Activities**

The following interest rate swaps have been designated as cash flow hedges (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Notional value at** | **Notional value at** | **Fair value at** | **Fair value at** |
|<br>**Hedge type** |<br>**Swap rate** |<br>**Effective Date** |<br>**Maturity Date** | **December 31, 2025** | **December 31, 2024** | **December 31, 2025** | **December 31, 2024** |
| Swap-cash flow-Daily SOFR | 1.16% | September 2021 | September 2025 | $— | $150000 | $— | $3445 |
| Swap-cash flow-Daily SOFR | 0.56% | July 2021 | January 2026 | 50000 | 50000 | 146 | 1926 |
| Swap-cash flow-Daily SOFR | 2.95% | April 2024 | April 2027 | 125000 | 125000 | 697 | 3104 |
| Swap-cash flow-Daily SOFR | 2.85% | April 2024 | April 2027 | 65000 | 65000 | 453 | 1765 |
| Swap-cash flow-Daily SOFR | 2.75% | April 2024 | April 2027 | 60000 | 60000 | 501 | 1768 |
| Swap-cash flow-Daily SOFR | 3.70% | July 2024 | July 2027 | 25000 | 25000 | (147) | 196 |
| Swap-cash flow-Daily SOFR | 3.45% | July 2024 | July 2027 | 25000 | 25000 | (48) | 353 |
| Swap-cash flow-Daily SOFR | 3.71% | July 2024 | July 2027 | 25000 | 25000 | (150) | 191 |
| Swap-cash flow-Daily SOFR | 3.10% | July 2025 | July 2027 | 25000 |  | 87 |  |
| Swap-cash flow-Daily SOFR | 3.20% | January 2025 | January 2028 | 25000 | 25000 | 43 | 564 |
| Swap-cash flow-Daily SOFR | 3.40% | January 2025 | January 2028 | 25000 | 25000 | (60) | 421 |
| Swap-cash flow-Daily SOFR | 3.30% | October 2025 | October 2028 | 25000 |  | (9) |  |
| Swap-cash flow-Daily SOFR | 3.30% | January 2025 | January 2029 | 25000 | 25000 | (5) | 632 |
| Swap-cash flow-Daily SOFR | 3.19% | January 2026 | January 2029 | 25000 |  | 64 |  |
| Swap-cash flow-Daily SOFR | 3.25% | January 2026 | January 2029 | 50000 |  | 39 |  |
| Swap-cash flow-Daily SOFR | 3.29% | January 2026 | January 2029 | 50000 |  | (22) |  |
| Swap-cash flow-Daily SOFR | 3.00% | April 2026 | April 2029 | 25000 |  | 183 |  |
| Swap-cash flow-Daily SOFR | 3.05% | April 2026 | April 2029 | 25000 |  | 147 |  |
|  |  |  |  | $675000 | $600000 | $1919 | $14365 |

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

As of December 31, 2025 and 2024, the aggregate fair value of the interest rate swap assets of $2.4 million and $14.4 million, respectively, was included in prepaid expense and other assets in the accompanying consolidated balance sheets. As of December 31, 2025, the aggregate fair value of the interest rate swap liabilities of $0.4 million was included in accounts payable and other liabilities in the accompanying consolidated balance sheet.

As of December 31, 2025 and 2024, there was approximately $1.9 million and $13.8 million, respectively, of unrealized gains included in accumulated other comprehensive income related to interest rate swaps. There was no ineffectiveness recorded during the years ended December 31, 2025 and 2024. For the years ended December 31, 2025 and 2024, approximately $9.4 million and $20.0 million, respectively, of gains included in accumulated other comprehensive income were reclassified into interest expense for the interest rate swaps. Approximately $1.5 million of the unrealized gains included in accumulated other comprehensive income at December 31, 2025 is expected to be reclassified into earnings within the next 12 months.

**9. Fair Value** 

*Fair Value Measurement*

Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. The fair value hierarchy has three levels of inputs, both observable and unobservable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Inputs include quoted market prices in an active market for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — Inputs are market data, other than Level 1, that are observable either directly or indirectly. Level 2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — Inputs are unobservable and corroborated by little or no market data.

*Fair Value of Financial Instruments*

The Company used the following market assumptions and/or estimation methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash and cash equivalents, restricted cash reserves, hotel and other receivables, accounts payable and other liabilities — The carrying amounts reported in the consolidated balance sheets for these financial instruments approximate fair value because of their short term maturities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt — The Company estimated the fair value of the Senior Notes by using publicly available trading prices, which are Level 1 inputs in the fair value hierarchy. The Company estimated the fair value of the Revolver and Term Loans by using a discounted cash flow model and incorporating various inputs and assumptions for the effective borrowing rates for debt with similar terms, which are Level 2 and Level 3 inputs in the fair value hierarchy. The Company estimated the fair value of the mortgage loans by using a discounted cash flow model and incorporating various inputs and assumptions for the effective borrowing rates for debt with similar terms and the loan to estimated fair value of the collateral, which are Level 3 inputs in the fair value hierarchy.

The fair value of the Company's debt was as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| Senior Notes, net | $996401 | $970000 | $994037 | $938750 |
| Revolver and Term Loans, net | 1020057 | 1013892 | 1018707 | 1025000 |
| Mortgage loans, net | 180760 | 178457 | 207337 | 201340 |
| Debt, net | $2197218 | $2162349 | $2220081 | $2165090 |

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

*Recurring Fair Value Measurements*

The following table presents the Company's fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value at December 31, 2025** | **Fair Value at December 31, 2025** | **Fair Value at December 31, 2025** | **Fair Value at December 31, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Interest rate swap asset | $— | $2360 | $— | $2360 |
| Interest rate swap liability |  | (441) |  | (441) |
| Total | $— | $1919 | $— | $1919 |

---

The following table presents the Company's fair value hierarchy for those financial assets measured at fair value on a recurring basis as of December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value at December 31, 2024** | **Fair Value at December 31, 2024** | **Fair Value at December 31, 2024** | **Fair Value at December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Interest rate swap asset | $— | $14365 | $— | $14365 |
| Total | $— | $14365 | $— | $14365 |

---

The fair values of the derivative financial instruments are determined using widely accepted valuation techniques including a discounted cash flow analysis on the expected cash flows for each derivative. The Company determined that the significant inputs, such as interest yield curves and discount rates, used to value its derivatives fall within Level 2 of the fair value hierarchy and that the credit valuation adjustments associated with the Company's counterparties and its own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of December 31, 2025, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

**10. Commitments and Contingencies**

*Operating Leases* 

As of December 31, 2025, 12 of Company's hotel properties were subject to ground lease agreements that cover the land underlying the respective hotels. The ground leases are classified as operating leases. The total ground lease expense was $15.7 million for the year ended December 31, 2025, which consisted of $11.6 million of fixed lease expense and $4.1 million of variable lease expense. The total ground lease expense was $16.3 million for the year ended December 31, 2024, which consisted of $11.7 million of fixed lease expense and $4.6 million of variable lease expense. The total ground lease expense was $16.7 million for the year ended December 31, 2023, which consisted of $11.9 million of fixed lease expense and $4.8 million of variable lease expense. The total ground lease expense is included in property tax, insurance and other in the accompanying consolidated statements of operations and comprehensive income.

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<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

The Company's ground leases consisted of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Ground Lease Expense** | **Ground Lease Expense** | **Ground Lease Expense** |
| | | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
|<br>**Hotel Property Name** |<br>**Term Expiration (1)** | **2025** | **2024** | **2023** |
| Wyndham Boston Beacon Hill (2) | N/A | $— | $49 | $929 |
| Wyndham San Diego Bayside | 2029 | 5038 | 5525 | 5315 |
| DoubleTree Suites by Hilton Orlando - Lake Buena Vista | 2057 | 928 | 956 | 815 |
| Residence Inn Palo Alto Los Altos (3) | 2033 | 86 | 86 | 86 |
| Courtyard Pittsburgh University Center | 2083 | 726 | 726 | 726 |
| Marriott Louisville Downtown | 2153 (4) |  |  |  |
| Embassy Suites San Francisco Airport - Waterfront | 2059 | 1885 | 1882 | 1850 |
| Wyndham New Orleans - French Quarter | 2065 | 487 | 487 | 487 |
| Courtyard Charleston Historic District | 2096 | 1064 | 1062 | 1052 |
| Courtyard Austin Downtown Convention Center and Residence Inn Austin Downtown Convention Center | 2100 | 781 | 906 | 1025 |
| Courtyard Waikiki Beach | 2112 | 4424 | 4295 | 4121 |
| Moxy Denver Cherry Creek | 2115 | 287 | 280 | 272 |
|  |  | $15706 | $16254 | $16678 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Assumes the exercise of any remaining extension options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;In January 2024, the Company acquired a fee simple interest in this hotel property, which was previously owned via a leasehold interest that was subject to a ground lease, for approximately $125.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;The ground lease underlying a portion of this hotel property is part of a municipal utility district's water pipeline right-of-way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;The lease may be extended for up to four twenty-five year terms at the Company's option.

The future lease payments for the Company's operating leases are as follows (in thousands):

---

| | |
|:---|:---|
| | **December 31, 2025** |
| 2026 | $10247 |
| 2027 | 11023 |
| 2028 | 11075 |
| 2029 | 10638 |
| 2030 | 8882 |
| Thereafter | 518573 |
| Total future lease payments | 570438 |
| Imputed interest | (452249) |
| Lease liabilities | $118189 |

---

The following table presents certain information related to the Company's operating leases as of December 31, 2025:

---

| | |
|:---|:---|
| Weighted average remaining lease term | 62 years |
| Weighted average discount rate | 7.30% |

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*Restricted Cash Reserves*

The Company may be obligated to maintain cash reserve funds for future capital expenditures, real estate taxes, insurance, and other items. The management agreements, franchise agreements and/or mortgage loan documents require the Company to reserve cash ranging typically from 3.0% to 5.0% of the individual hotel's revenues for future capital expenditures (including the periodic replacement or refurbishment of FF&E). Any unexpended amounts will remain the property of the Company upon termination of the management agreements, franchise agreements or mortgage loan documents. As of December 31, 2025 and 2024, approximately $31.9 million and $23.5 million, respectively, was available in the restricted cash reserves for future capital expenditures.

*Litigation*

Neither the Company nor any of its subsidiaries is currently involved in any regulatory or legal proceedings that management believes will have a material and adverse effect on the Company's financial position, results of operations or cash flows.

*Management Agreements*

As of December 31, 2025, 92 of the Company's consolidated hotel properties were operated pursuant to management agreements with initial terms ranging from three to 25 years, with 15 different management companies as noted in the table below. This number includes 36 consolidated hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott.

---

| | |
|:---|:---|
| **Management Company** | **Number of<br>Hotel Properties** |
| Aimbridge Hospitality | 26 |
| Colwen Management, Inc. | 1 |
| Concord Hospitality Enterprises Company | 1 |
| Crestline Hotels and Resorts | 1 |
| Davidson Hotels and Resorts | 2 |
| Hilton Management and affiliates | 21 |
| HEI Hotels and Resorts | 2 |
| Hersha Hospitality Management | 6 |
| Highgate Hotels | 3 |
| Hyatt Corporation and affiliates | 12 |
| InnVentures (1) | 3 |
| Marriott International, Inc. | 3 |
| Pyramid | 1 |
| Sage Hospitality | 6 |
| White Lodging Services | 4 |
|  | 92 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;InnVentures is a subsidiary of Highgate Hotels.

Each management company receives a base management fee between 1.5% and 3.5% of hotel revenues. Management agreements that include the benefits of a franchise agreement incur a base management fee between 1.0% and 7.0% of hotel revenues. The management companies are also eligible to receive an incentive management fee if hotel operating income, as defined in the management agreements, exceeds certain thresholds. The incentive management fee is generally calculated as a percentage of hotel operating income after the Company has received a priority return on its investment in the hotel.

Management fees are included in management and franchise fee expense in the accompanying consolidated statements of operations and comprehensive income. For the years ended December 31, 2025, 2024 and 2023, the Company incurred management fee expense of approximately $39.0 million, $41.0 million and $41.7 million, respectively.

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*Franchise Agreements*

As of December 31, 2025, 53 of the Company's consolidated hotel properties were operated under franchise agreements with initial terms ranging from one to 30 years. This number excludes 36 consolidated hotel properties that receive the benefits of a franchise agreement pursuant to management agreements with Hilton, Hyatt, or Marriott. In addition, three hotels are not operated with a hotel brand so they do not have franchise agreements. Franchise agreements allow the hotel properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee between 2.0% and 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs between 1.0% and 4.3% of room revenue. Certain hotels are also charged a royalty fee between 1.5% and 3.0% of food and beverage revenues.

Franchise fees are included in management and franchise fee expense in the accompanying consolidated statements of operations and comprehensive income. For the years ended December 31, 2025, 2024 and 2023, the Company incurred franchise fee expense of approximately $63.8 million, $67.0 million and $65.7 million, respectively.

**11. Equity**

*Common Shares of Beneficial Interest*

Under the declaration of trust for the Company, there are 450,000,000 common shares authorized for issuance.

On April 25, 2025, the Company's board of trustees approved a new share repurchase program to acquire up to an

aggregate of $250.0 million of common and preferred shares from May 9, 2025 to May 8, 2026 (the "2025 Share Repurchase

Program"). During the year ended December 31, 2025, the Company repurchased and retired 3.3 million common shares for approximately $28.6 million, of which $24.3 million was repurchased under a share repurchase program authorized by the Company's board of trustees in 2024, which expired May 8, 2025, and $4.3 million was repurchased under the 2025 Share Repurchase Program. As of December 31, 2025, the 2025 Share Repurchase Program had a remaining capacity of $245.7 million.

During the year ended December 31, 2024, the Company repurchased and retired 2.3 million common shares for approximately $22.0 million.

During the year ended December 31, 2023, the Company repurchased and retired 7.5 million common shares for approximately $76.0 million.

During the years ended December 31, 2025, 2024, and 2023, the Company declared a cash dividend of $0.60, $0.50, and $0.36, respectively, on each common share.

*Series A Preferred Shares*

Under the declaration of trust for the Company, there are 50,000,000 preferred shares authorized for issuance. The Series A Preferred Shares are convertible, in whole or in part, at any time, at the option of the holders into common shares at a conversion rate of 0.2806 common shares for each Series A Preferred Share.

During each of the years ended December 31, 2025, 2024 and 2023, the Company declared a cash dividend of $1.95 per Series A Preferred Share.

*Noncontrolling Interest in Consolidated Joint Ventures*

The Company consolidates the joint venture that owns The Knickerbocker hotel property, which has a third-party partner that owns a noncontrolling 5% ownership interest in the joint venture. The third-party ownership interest is included in the noncontrolling interest in consolidated joint ventures on the consolidated balance sheets.

*Noncontrolling Interest in the Operating Partnership*

The Company consolidates the Operating Partnership, which is a majority-owned limited partnership that has a noncontrolling interest. As of December 31, 2025, the Operating Partnership had 151,856,909 OP units outstanding, of which 99.5% of the outstanding OP units were owned by the Company and its subsidiaries, and the noncontrolling 0.5% ownership interest was owned by other limited partners.

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As of December 31, 2025, the limited partners owned 771,831 OP units. The outstanding OP units held by the limited partners are redeemable for cash, or at the option of the Company, for a like number of common shares. The noncontrolling interest is included in the noncontrolling interest in the Operating Partnership on the consolidated balance sheets.

**12. Equity Incentive Plan**

Pursuant to the terms of the 2021 Plan, the Company may issue share-based awards to officers, employees, non-employee trustees and other eligible persons under the 2021 Plan. The 2021 Plan provides for a maximum of 6,828,527 common shares to be issued in the form of share options, share appreciation rights, restricted share awards, unrestricted share awards, share units, dividend equivalent rights, long-term incentive units, other equity-based awards and cash bonus awards.

*Share Awards*

From time to time, the Company may award unvested restricted shares under the 2021 Plan as compensation to officers, employees and non-employee trustees. The issued shares vest over a period of time as determined by the board of trustees at the date of grant. The Company recognizes compensation expense for time-based unvested restricted shares on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures.

Non-employee trustees may also elect to receive unrestricted shares under the 2021 Plan as compensation that would otherwise be paid in cash for their services. The shares issued to non-employee trustees in lieu of cash compensation are unrestricted and include no vesting conditions. The Company recognizes compensation expense for the unrestricted shares issued in lieu of cash compensation on the date of issuance based upon the fair market value of the shares on that date.

A summary of the unvested restricted shares is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| | **Number of<br>Shares** | **Weighted-Average<br>Grant Date Fair<br>Value** | **Number of<br>Shares** | **Weighted-Average<br>Grant Date Fair<br>Value** | **Number of<br>Shares** | **Weighted-Average<br>Grant Date Fair<br>Value** |
| Unvested at January 1, | 1589289 | $11.74 | 2305303 | $13.52 | 2267870 | $15.32 |
| Granted | 1384062 | 8.37 | 925731 | 11.57 | 991453 | 10.84 |
| Vested | (872836) | 11.64 | (1610821) | 14.20 | (928192) | 15.07 |
| Forfeited | (128776) | 10.43 | (30924) | 11.00 | (25828) | 13.13 |
| Unvested at December 31, | 1971739 | $9.51 | 1589289 | $11.74 | 2305303 | $13.52 |

---

For the years ended December 31, 2025, 2024 and 2023, the Company recognized approximately $8.5 million, $11.7 million and $15.4 million, respectively, of share-based compensation expense related to restricted share awards.

As of December 31, 2025, there was $11.4 million of total unrecognized compensation costs related to unvested restricted share awards and these costs are expected to be recognized over a weighted-average period of 1.8 years. The total fair value of the shares vested (calculated as the number of shares multiplied by the vesting date share price) during the years ended December 31, 2025, 2024 and 2023 was approximately $7.8 million, $17.8 million and $9.9 million, respectively.

*Performance Units*

The Company aligns its executive officers with its long-term investors by awarding a significant percentage of their equity compensation in the form of multi-year performance unit awards that use both absolute and relative total shareholder return as the primary metrics. The performance units vest at the end of a three year period (the "performance units measurement period").

The performance units granted in 2024 and 2025 may convert into restricted shares at a range of 0% to 200% of the number of performance units granted contingent upon the Company achieving a relative shareholder return over the measurement period at specified percentiles of the peer group, as defined by the awards. These performance units are subject to modification based on the Company's absolute total shareholder return performance as follows: (1) if at the end of the measurement period the relative total shareholder return performance exceeds target and absolute total shareholder return is less than zero, payouts will be reduced by 25%, but not below target and (2) if the absolute total shareholder return is down more

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than 15% during the entire measurement period, the maximum payout will be capped at 115% of target. The performance units granted prior to 2024 may convert into restricted shares at a range of 0% to 200% of the number of performance units granted contingent upon the Company achieving an absolute total shareholder return (25% of award) and a relative shareholder return (75% of award) over the measurement period at specified percentiles of the peer group, as defined by the awards.

At the end of the performance units measurement period, if the target criterion is met, 100% of the performance units that are earned will vest immediately. The fair value of the performance units was determined using a Monte Carlo simulation. The Company estimates the compensation expense for the performance units on a straight-line basis using a calculation that recognizes 100% of the grant date fair value over three years.

A summary of the performance unit awards is as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date of Award** | **Number of<br>Units Granted** | **Grant Date Fair<br>Value** | **Conversion Range** | **Risk Free Interest Rate** | **Volatility** |
| February 2022 (1) | 407024 | $21.96 | 0% to 200% | 1.70% | 70.15% |
| February 2023 | 574846 | $16.90 | 0% to 200% | 4.33% | 66.70% |
| February 2024 | 703325 | $15.13 | 0% to 200% | 4.43% | 35.60% |
| March 2025 | 832322 | $11.45 | 0% to 200% | 4.01% | 31.10% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In February 2025, following the end of the measurement period, the Company met certain threshold criterion and the performance units converted into approximately 240,000 restricted shares, all of which vested immediately. The total fair value of the vested shares related to the conversion of the performance units (calculated as the number of vested shares multiplied by the vesting date share price) during the year ended December 31, 2025 was approximately $2.1 million.

For the years ended December 31, 2025, 2024 and 2023, the Company recognized approximately $6.8 million, $9.1 million and $8.9 million, respectively, of share-based compensation expense related to the performance unit awards. The year ended December 31, 2025 included a benefit of $1.6 million as a result of the forfeitures of approximately 217,000 performance units related to the departure of Company executives.

As of December 31, 2025, there was $10.3 million of total unrecognized compensation costs related to the performance unit awards and these costs are expected to be recognized over a weighted-average period of 1.8 years.

As of December 31, 2025, there were 743,631 common shares available for future grant under the 2021 Plan, which includes potential common shares that may convert from performance units if certain target criterion is met.

**13. Earnings per Common Share**

Basic earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period excluding the weighted-average number of unvested restricted shares and unvested performance units outstanding during the period. Diluted earnings per common share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period, plus any shares that could potentially be outstanding during the period. The potential shares consist of the unvested restricted share grants and unvested performance units, calculated using the treasury stock method, and convertible Series A Preferred Shares, calculated using the if-converted method. Any anti-dilutive shares have been excluded from the diluted earnings per share calculation.

Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating shares and are considered in the computation of earnings per share pursuant to the two-class method. If there were any undistributed earnings allocable to the participating shares, they would be deducted from net income attributable to common shareholders used in the basic and diluted earnings per share calculations.

The limited partners' outstanding OP Units (which may be redeemed for common shares under certain circumstances) have been excluded from the diluted earnings per share calculation as there was no effect on the amounts for the years ended December 31, 2025, 2024 and 2023, since the limited partners' share of income or loss would also be added back to net income attributable to common shareholders.

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The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share data):

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| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Numerator:** |  |  |  |
| Net income attributable to RLJ | $28509 | $68021 | $76405 |
| Less: Preferred dividends | (25115) | (25115) | (25115) |
| Less: Dividends paid on unvested restricted shares | (1177) | (895) | (882) |
| Less: Undistributed earnings attributable to unvested restricted shares |  |  |  |
| Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares | $2217 | $42011 | $50408 |
| **Denominator:** |  |  |  |
| Weighted-average number of common shares - basic | 149662774 | 152856036 | 155928663 |
| Unvested restricted shares | 167420 | 481666 | 538023 |
| Unvested performance units | 81884 | 138219 | 89728 |
| Weighted-average number of common shares - diluted | 149912078 | 153475921 | 156556414 |
| Net income per share attributable to common shareholders - basic | $0.01 | $0.27 | $0.32 |
| Net income per share attributable to common shareholders - diluted | $0.01 | $0.27 | $0.32 |

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**14. Income Taxes**

Current income tax expense represents the amounts expected to be reported on the Company's income tax returns, and deferred tax expense or benefit represents the change in the net deferred tax assets and liabilities. The deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse.

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies.

For federal income tax purposes, the cash distributions to shareholders are characterized as follows:

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| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Common distributions: |  |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary income | 71.4% | 96.2% | 90.0% |
| &nbsp;&nbsp;&nbsp;Return of capital | 28.6% |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains |  | 3.8% |  |
| &nbsp;&nbsp;&nbsp;Qualified dividend |  |  | 10.0% |
|  | 100.0% | 100.0% | 100.0% |
| Preferred distributions: |  |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary income | 100.0% | 96.2% | 90.0% |
| &nbsp;&nbsp;&nbsp;Return of capital |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital gains |  | 3.8% |  |
| &nbsp;&nbsp;&nbsp;Qualified dividend |  |  | 10.0% |
|  | 100.0% | 100.0% | 100.0% |

---

The components of the income tax provision are as follows (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | $(64) | $(181) | $(200) |
| &nbsp;&nbsp;&nbsp;State | (1071) | (1408) | (1061) |
| Deferred: |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal | (11) | (8) | 4 |
| &nbsp;&nbsp;&nbsp;State | (2) | (2) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | $(1148) | $(1599) | $(1256) |

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The provision for income taxes is different from the amount of income tax expense that is determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| | **Amount** | **%** | **Amount (3)** | **%** | **Amount (3)** | **%** |
| Expected U.S. federal tax expense at statutory rate | $(6237) | 21.0% | $(14656) | 21.0% | $(16353) | 21.0% |
| Tax impact of REIT election | 5359 | (18.0) | 19295 | (27.6) | 15443 | (19.8) |
| Expected tax (expense) benefit at TRS | (878) | 3.0 | 4639 | (6.6) | (910) | 1.2 |
| Change in valuation allowance | 4284 | (14.4) | (5002) | 7.2 | 467 | (0.6) |
| State income tax expense, net of federal benefit (1) | (846) | 2.8 | (1111) | 1.6 | (838) | 1.1 |
| Impact of subsidiary liquidation | (3390) | 11.4 |  |  |  |  |
| Other items (2) | (318) | 1.1 | (125) | 0.1 | 25 |  |
| &nbsp;&nbsp;&nbsp;Income tax expense | $(1148) | 3.9% | $(1599) | 2.3% | $(1256) | 1.7% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)State taxes in Texas and Louisiana made up the majority (greater than 50.0%) of the tax effect in this category for all periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)No individual item included in this category exceeded the quantitative threshold for separate disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Certain amounts for the years ended December 31, 2024 and 2023 have been reclassified due to the adoption of ASU 2023-09.

Deferred income taxes represent the tax effect from continuing operations of the differences between the book and tax basis of the assets and liabilities. The deferred tax assets (liabilities) include the following (in thousands):

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Partnership basis | $(2649) | $(2569) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | (1517) | (1376) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Deferred tax liabilities** | $(4166) | $(3945) |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment | $6663 | $6872 |
| &nbsp;&nbsp;&nbsp;Incentive and vacation accrual | 2942 | 2964 |
| &nbsp;&nbsp;&nbsp;Deferred revenue - key money | 5682 | 3285 |
| &nbsp;&nbsp;&nbsp;Allowance for doubtful accounts | 44 | 45 |
| &nbsp;&nbsp;&nbsp;Other | 913 | 971 |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | 63951 | 70855 |
| &nbsp;&nbsp;&nbsp;Federal historic tax credit | 824 | 824 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (76853) | (81858) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Deferred tax assets** | $4166 | $3958 |

---

Deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on the consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income, and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company would record a valuation allowance to reduce its deferred tax assets to the amount that is most likely to be utilized in future periods to offset taxable income. Based upon the available objective evidence at December 31, 2025, the Company determined it was more likely than not that the deferred tax assets related to the net operating loss ("NOL") carryforwards of RLJ Lodging Trust Master TRS, Inc., the Company's primary TRS, would not be utilized in future periods. The Company considered all available evidence, both positive and negative, including cumulative losses in recent years and its current forecast of future income in its analysis. As of December 31, 2025 and 2024, the Company had a valuation allowance of approximately $76.9 million and $81.9 million, respectively, related to NOL carryforwards, historic tax credits, and other deferred tax assets of its TRSs.

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The Company's federal NOLs generated prior to 2018 have begun to expire, while federal NOLs generated after 2017 may be carried forward indefinitely. The Company's historic tax credits will begin to expire in 2035. The utilization of these NOLs and tax credits is subject to annual limitations under applicable federal and state tax laws.

The Company is subject to examination by U.S. federal and various state and local jurisdictions. The tax years subject to examination vary by jurisdiction. With few exceptions, as of December 31, 2025, the Company is no longer subject to U.S. federal or state and local tax examinations by tax authorities for the tax years of 2021 and before.

The Company had no accruals for tax uncertainties as of December 31, 2025 and 2024.

**15. Segment Information**

The Company's chief operating decision maker ("CODM") is the President and Chief Executive Officer.

The CODM separately evaluates the performance of each of the Company's hotel properties and each hotel property is an operating segment. However, because each of the hotels has similar economic characteristics, facilities, and services, the hotel properties have been aggregated into a single reportable segment.

The hotel segment revenues are derived from the operation of hotel properties. The hotel segment generates room revenue by renting hotel rooms to customers at the Company's hotel properties. The hotel segment generates food and beverage revenue from the sale of food and beverage to customers at the Company's hotel properties. The hotel segment generates other revenue from parking fees, resort fees, gift shop sales and other guest service fees at the Company's hotel properties.

The CODM assesses performance for the hotel segment and decides how to allocate resources based on Hotel EBITDA, which is a non-GAAP financial measure. Hotel EBITDA is defined as net income or loss excluding: (1) interest expense; (2) income tax expense; and (3) depreciation and amortization expense, adjusted for corporate-level expenses, certain non-cash items, and certain other items that the Company considers outside the normal course of operations.

The following table presents information about profit or loss for the hotel segment:

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| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Revenues |  |  |  |
| &nbsp;&nbsp;Room revenue | $1093265 | $1121586 | $1095028 |
| &nbsp;&nbsp;Food and beverage revenue | 158218 | 153108 | 141625 |
| &nbsp;&nbsp;Other revenue | 98377 | 94746 | 88924 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 1349860 | 1369440 | 1325577 |
| Operating expenses |  |  |  |
| &nbsp;&nbsp;Room expense | 293405 | 288567 | 277058 |
| &nbsp;&nbsp;Food and beverage expense | 119799 | 117766 | 109707 |
| &nbsp;&nbsp;Management and franchise fee expense | 102757 | 107978 | 107417 |
| &nbsp;&nbsp;Other operating expenses | 371558 | 363631 | 340485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 887519 | 877942 | 834667 |
| &nbsp;&nbsp;Property tax, insurance and other | 101315 | 107043 | 100229 |
| &nbsp;&nbsp;Other, net (1) | (8052) | (14300) | (11535) |
| Hotel EBITDA | $369078 | $398755 | $402216 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes miscellaneous hotel segment income, as well as adjustments for corporate-level expenses, certain non-cash items, and certain other items that the Company considers outside the normal course of operations.

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The following table provides a reconciliation of the hotel segment profit and loss to the Company's consolidated totals:

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| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Income before income tax expense | $29702 | $69790 | $77873 |
| Depreciation and amortization | 186356 | 179431 | 179103 |
| Interest expense, net of interest income | 98718 | 94044 | 79064 |
| General and administrative | 47644 | 54804 | 58998 |
| Loss (gain) on sale of hotel properties, net | 1526 | (8262) | 34 |
| Other, net | 5132 | 8948 | 7144 |
| Hotel EBITDA | $369078 | $398755 | $402216 |

---

A measure of segment assets is not currently provided to the CODM and has therefore not been included herein.

**16. Supplemental Information to Statements of Cash Flows (in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Reconciliation of cash, cash equivalents, and restricted cash reserves** |  |  |  |
| Cash and cash equivalents | $410160 | $409809 | $516675 |
| Restricted cash reserves | 31901 | 23516 | 38652 |
| Cash, cash equivalents, and restricted cash reserves | $442061 | $433325 | $555327 |
| Interest paid | $104330 | $103711 | $89827 |
| **Income taxes paid (net of refunds)** |  |  |  |
| Federal | $(110) | $143 | $233 |
| State | 940 | 2077 | 2305 |
| Total | $830 | $2220 | $2538 |
| Income taxes paid (net of refunds) exceeded 5.0% of total income<br>taxes paid (net of refunds) in the following jurisdictions: |  |  |  |
| **State** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;California | $(104) | $152 | $205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Illinois | \* | $414 | $419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kentucky | $210 | $254 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Louisiana | \* | $181 | $377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Massachusetts | \* | \* | $133 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oregon | $50 | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Pennsylvania | \* | \* | $328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Texas | $599 | $576 | $560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Washington, DC | $44 | \* | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\*Jurisdiction below the threshold for the period presented |  |  |  |
| Operating cash flow lease payments for operating leases | $13922 | $15226 | $16899 |
| Right-of-use asset obtained in exchange for lease obligation | $— | $— | $5016 |
| Right-of-use asset and lease liability adjustments due to remeasurement | $— | $(1165) | $— |
| Right-of-use asset and lease liability reclassifications to land due to acquisition | $— | $1187 | $— |

---

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

---

| | | | |
|:---|:---|:---|:---|
| **Supplemental investing and financing transactions** | | | |
| In connection with acquisitions, the Company recorded the following: |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase prices | $— | $160500 | $— |
| &nbsp;&nbsp;&nbsp;Application of purchase deposit |  | (2400) |  |
| &nbsp;&nbsp;&nbsp;Transaction costs |  | 892 |  |
| &nbsp;&nbsp;&nbsp;Operating prorations |  | (243) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, net | $— | $158749 | $— |
| In connection with the sales of hotel properties, the Company recorded the following: |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales prices | $73700 | $20778 | $— |
| &nbsp;&nbsp;&nbsp;Transaction costs | (1556) | (1116) |  |
| &nbsp;&nbsp;&nbsp;Operating prorations | (1102) | (159) |  |
| &nbsp;&nbsp;&nbsp;Seller financing | (2000) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of hotel properties, net | $69042 | $19503 | $— |
| **Supplemental non-cash transactions** |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair market value of designated interest rate swaps | $(11869) | $(8874) | $(17929) |
| &nbsp;&nbsp;&nbsp;Accrued capital expenditures | $20268 | $27172 | $22144 |
| &nbsp;&nbsp;&nbsp;Distributions payable | $30934 | $30634 | $22500 |

---

**17. Subsequent Events**

During the first quarter of 2026, the Company completed a series of refinancing transactions that address its debt previously scheduled to mature (after extension options) by 2028. The refinancing transactions consisted of four components: (i) an extension of the Company's Revolver, (ii) the upsize and recast of an existing term loan, (iii) entering into a new seven-year term loan, and (iv) the refinancing of mortgage debt previously scheduled to mature in 2026. The Company intends to use the incremental proceeds from these transactions to repay the 2026 Senior Notes by maturity in July 2026. As a result of these transactions, the Company's next scheduled debt maturity occurs in 2029.

In January 2026, the Company amended two mortgage loans. Each mortgage loan now matures in April 2029 and includes two one-year extension options at the Company's discretion, subject to certain conditions. The mortgage loans had outstanding principal balances of approximately $69.8 million and $85.0 million at December 31, 2025, with the Company paying down approximately $1.5 million and $3.9 million of principal, respectively, in January 2026 in connection with the amendments, resulting in new outstanding principal balances of $68.3 million and $81.1 million, respectively. The $68.3 million mortgage loan allows a future advance of up to $23.4 million by April 2026 with the addition of another hotel property previously unencumbered, with the combined outstanding principal balance of both mortgage loans not to exceed $164.4 million. The mortgage loans require payments of interest only through maturity.

In February 2026, the Company amended its Revolver. The amendment extends the maturity date of the Revolver to February 2030. The Company has the ability to further increase the total capacity on the Revolver to $750.0 million, subject to obtaining additional commitments from new or existing lenders and the satisfaction of certain customary conditions. The Company also has the ability to extend the maturity date for an additional one-year period or up to two six-month periods ending February 2031 if certain conditions are satisfied.

In February 2026, the Company also refinanced its $225 Million Term Loan Maturing 2026 to extend the scheduled maturity date to February 2031 and upsize it to a delayed draw term loan of $569.0 million, of which $225.0 million has been funded and $344.0 million of commitments remain available to be drawn by the Company.

In February 2026, the Company also entered into a new $150.0 million delayed draw term loan which matures in February 2033.

The Company paid approximately $6.0 million in lender fees and legal costs in connection with the Revolver and approximately $8.0 million in lender fees and legal costs in connection with the term loan refinancing transactions.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

**RLJ Lodging Trust**

**Schedule III - Real Estate and Accumulated Depreciation**

**December 31, 2025** 

**(amounts in thousands)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Initial Costs** | **Initial Costs** | **Costs Capitalized Subsequent to Acquisition** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | | |
|<br>**Description** |<br>**Debt** | **Land &<br>Improvements** | **Building &<br>Improvements** | **Land, Building &<br>Improvements** | **Land &<br>Improvements** | **Buildings &<br>Improvements** | **Total (1)** | **Accumulated<br>Depreciation** |<br>**Date<br>Acquired** |<br>**Depreciation<br>Life** |
| Marriott Denver South @ Park Meadows | $— | $5385 | $39488 | $7952 | $5393 | $47432 | $52825 | $22123 | 2006 | 15 - 40 years |
| Marriott Louisville Downtown |  |  | 89541 | 25937 | 530 | 114948 | 115478 | 54531 | 2006 | 15 - 40 years |
| Marriott Chicago Midway |  | 4464 | 32736 | 6839 | 4534 | 39505 | 44039 | 17937 | 2006 | 15 - 40 years |
| Renaissance Boulder Flatiron Hotel |  | 4440 | 32557 | 10715 | 4869 | 42843 | 47712 | 18897 | 2006 | 15 - 40 years |
| Renaissance Fort Lauderdale West Hotel |  | 4842 | 35517 | 10536 | 4974 | 45921 | 50895 | 20461 | 2006 | 15 - 40 years |
| Courtyard Chicago Downtown Magnificent Mile |  | 8140 | 59696 | 10531 | 8217 | 70150 | 78367 | 34244 | 2006 | 15 - 40 years |
| Courtyard Indianapolis @ The Capitol |  | 2482 | 18207 | 4434 | 2734 | 22389 | 25123 | 10504 | 2006 | 15 - 40 years |
| Courtyard Midway Airport |  | 2172 | 15927 | 6044 | 2291 | 21852 | 24143 | 10191 | 2006 | 15 - 40 years |
| Courtyard Austin Downtown Convention Center |  | 6049 | 44361 | 6638 | 6070 | 50978 | 57048 | 22441 | 2007 | 15 - 40 years |
| Residence Inn Indianapolis Downtown On The Canal |  | 2670 | 19588 | 5454 | 2766 | 24946 | 27712 | 11525 | 2006 | 15 - 40 years |
| Residence Inn Louisville Downtown |  | 1815 | 13308 | 3642 | 1822 | 16943 | 18765 | 7464 | 2007 | 15 - 40 years |
| Residence Inn Austin Downtown Convention Center |  | 3767 | 27626 | 5013 | 3814 | 32592 | 36406 | 14136 | 2007 | 15 - 40 years |
| Fairfield Inn & Suites Key West |  | 1803 | 19325 | 4672 | 1903 | 23897 | 25800 | 11967 | 2006 | 15 - 40 years |
| Fairfield Inn & Suites Chicago Midway Airport |  | 1425 | 10449 | 2245 | 1447 | 12672 | 14119 | 6430 | 2006 | 15 - 40 years |
| Hampton Inn Chicago Midway Airport |  | 2747 | 20143 | 6034 | 2846 | 26078 | 28924 | 11868 | 2006 | 15 - 40 years |
| Hilton Garden Inn Chicago Midway Airport |  | 2978 | 21842 | 1899 | 3010 | 23709 | 26719 | 11778 | 2006 | 15 - 40 years |
| Sleep Inn Midway Airport |  | 1189 | 8718 | 2036 | 1225 | 10718 | 11943 | 5719 | 2006 | 15 - 40 years |
| Holiday Inn Express & Suites Midway Airport |  | 1874 | 13742 | 3251 | 1926 | 16941 | 18867 | 8360 | 2006 | 15 - 40 years |
| TGI Friday's Chicago Midway |  | 829 | 6139 | 1105 | 867 | 7206 | 8073 | 3506 | 2006 | 15 - 40 years |
| Hampton Inn Garden City |  | 5691 | 22764 | 4163 | 5742 | 26876 | 32618 | 12104 | 2007 | 15 - 40 years |
| Courtyard Houston By The Galleria | 19000 | 3069 | 22508 | 3029 | 3090 | 25516 | 28606 | 11569 | 2007 | 15 - 40 years |
| Embassy Suites Los Angeles Downey | 31000 | 4857 | 29943 | 12775 | 5056 | 42519 | 47575 | 19172 | 2008 | 15 - 40 years |
| Embassy Suites Tampa Downtown Convention Center |  | 2161 | 71017 | 18176 | 2444 | 88910 | 91354 | 34964 | 2010 | 15 - 40 years |
| Fairfield Inn & Suites Washington DC Downtown |  | 16214 | 22265 | 8118 | 16447 | 30150 | 46597 | 14179 | 2010 | 15 - 40 years |
| Embassy Suites Fort Myers Estero |  | 2816 | 7862 | 5723 | 3018 | 13383 | 16401 | 5190 | 2010 | 15 - 40 years |

---

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Initial Costs** | **Initial Costs** | **Costs Capitalized Subsequent to Acquisition** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | | |
|<br>**Description** |<br>**Debt** | **Land &<br>Improvements** | **Building &<br>Improvements** | **Land, Building &<br>Improvements** | **Land &<br>Improvements** | **Buildings &<br>Improvements** | **Total (1)** | **Accumulated<br>Depreciation** |<br>**Date<br>Acquired** |<br>**Depreciation<br>Life** |
| Homewood Suites Washington DC Downtown |  | 23139 | 34188 | 9112 | 23770 | 42669 | 66439 | 16749 | 2010 | 15 - 40 years |
| Hotel Tonnelle New Orleans, a Tribute Portfolio Hotel |  | 1901 | 2793 | 17065 | 2176 | 19583 | 21759 | 12217 | 2010 | 15 - 40 years |
| Residence Inn National Harbor Washington DC |  | 7457 | 37046 | 3523 | 7556 | 40470 | 48026 | 15602 | 2010 | 15 - 40 years |
| Hilton Garden Inn New Orleans Convention Center |  | 3405 | 20750 | 11037 | 3509 | 31683 | 35192 | 13677 | 2010 | 15 - 40 years |
| Hilton Garden Inn Los Angeles Hollywood |  | 5303 | 19136 | 11213 | 5718 | 29934 | 35652 | 14370 | 2010 | 15 - 40 years |
| Renaissance Pittsburgh Hotel |  | 3274 | 39934 | 15565 | 3397 | 55376 | 58773 | 21125 | 2011 | 15 - 40 years |
| Embassy Suites West Palm Beach Central |  | 3656 | 9614 | 11125 | 3956 | 20439 | 24395 | 10296 | 2011 | 15 - 40 years |
| Hilton Garden Inn Pittsburgh University Place |  | 1975 | 18490 | 9556 | 2382 | 27639 | 30021 | 14142 | 2011 | 15 - 40 years |
| Courtyard Charleston Historic District |  | 2714 | 35828 | 5637 | 3618 | 40561 | 44179 | 15210 | 2011 | 15 - 40 years |
| Residence Inn Bethesda Downtown |  | 8154 | 52749 | 12211 | 9073 | 64041 | 73114 | 22935 | 2012 | 15 - 40 years |
| Courtyard New York Manhattan Upper East Side |  | 20655 | 60222 | 13270 | 21301 | 72846 | 94147 | 26044 | 2012 | 15 - 40 years |
| Hilton Garden Inn San Francisco Oakland Bay Bridge |  | 11903 | 22757 | 18495 | 12573 | 40582 | 53155 | 14505 | 2012 | 15 - 40 years |
| Embassy Suites Boston Waltham |  | 6268 | 56024 | 6605 | 6386 | 62511 | 68897 | 22381 | 2012 | 15 - 40 years |
| Courtyard Houston Downtown Convention Center |  | 5799 | 28953 | 6239 | 6113 | 34878 | 40991 | 12417 | 2013 | 15 - 40 years |
| Residence Inn Houston Downtown Convention Center |  | 4674 | 24913 | 5265 | 4882 | 29970 | 34852 | 10612 | 2013 | 15 - 40 years |
| SpringHill Suites Houston Downtown Convention Center |  | 2382 | 12756 | 12597 | 2574 | 25161 | 27735 | 12591 | 2013 | 15 - 40 years |
| Courtyard Waikiki Beach |  | 557 | 79033 | 28850 | 1569 | 106871 | 108440 | 33306 | 2013 | 15 - 40 years |
| Courtyard San Francisco |  | 11277 | 18198 | 31264 | 11291 | 49448 | 60739 | 22300 | 2013 | 15 - 40 years |
| Residence Inn Atlanta Midtown Historic |  | 2812 | 6044 | 8978 | 3071 | 14763 | 17834 | 5837 | 2013 | 15 - 40 years |
| SpringHill Suites Portland Hillsboro |  | 3488 | 18283 | 1872 | 3544 | 20099 | 23643 | 6787 | 2013 | 15 - 40 years |
| Hilton Cabana Miami Beach |  | 25083 | 40707 | 14253 | 25748 | 54295 | 80043 | 15910 | 2014 | 15 - 40 years |
| Hyatt House Charlotte Center City |  | 3029 | 26193 | 2529 | 3054 | 28697 | 31751 | 8868 | 2014 | 15 - 40 years |
| Hyatt House Cypress Anaheim | 16000 | 3995 | 9164 | 4740 | 4378 | 13521 | 17899 | 5671 | 2014 | 15 - 40 years |
| Hyatt House Emeryville San Francisco Bay Area |  | 7425 | 29137 | 10194 | 7517 | 39239 | 46756 | 13440 | 2014 | 15 - 40 years |
| Hyatt House San Diego Sorrento Mesa |  | 10420 | 21288 | 4687 | 10794 | 25601 | 36395 | 8136 | 2014 | 15 - 40 years |
| Hyatt House San Jose Silicon Valley |  | 6820 | 31682 | 3406 | 6986 | 34922 | 41908 | 10593 | 2014 | 15 - 40 years |
| Hyatt House San Ramon |  | 5712 | 11852 | 3075 | 5792 | 14847 | 20639 | 5683 | 2014 | 15 - 40 years |
| Hyatt House Santa Clara |  | 8044 | 27703 | 3736 | 8059 | 31424 | 39483 | 10273 | 2014 | 15 - 40 years |

---

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Initial Costs** | **Initial Costs** | **Costs Capitalized Subsequent to Acquisition** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | | |
|<br>**Description** |<br>**Debt** | **Land &<br>Improvements** | **Building &<br>Improvements** | **Land, Building &<br>Improvements** | **Land &<br>Improvements** | **Buildings &<br>Improvements** | **Total (1)** | **Accumulated<br>Depreciation** |<br>**Date<br>Acquired** |<br>**Depreciation<br>Life** |
| Hyatt Centric The Woodlands |  | 5950 | 16882 | 3207 | 5979 | 20060 | 26039 | 5957 | 2014 | 15 - 40 years |
| Hyatt Place Fremont Silicon Valley |  | 6209 | 13730 | 1871 | 6297 | 15513 | 21810 | 5401 | 2014 | 15 - 40 years |
| Hyatt Place Madison Downtown |  | 6701 | 25478 | 1861 | 6753 | 27287 | 34040 | 8145 | 2014 | 15 - 40 years |
| Embassy Suites Irvine Orange County |  | 15062 | 33048 | 9691 | 15312 | 42489 | 57801 | 15141 | 2014 | 15 - 40 years |
| Courtyard Portland City Center |  | 8019 | 53024 | 2105 | 8027 | 55121 | 63148 | 16393 | 2014 | 15 - 40 years |
| Hyatt Atlanta Midtown |  | 3737 | 41731 | 4705 | 3740 | 46433 | 50173 | 13123 | 2014 | 15 - 40 years |
| DoubleTree Grand Key Resort |  | 48192 | 27770 | 17950 | 50444 | 43468 | 93912 | 13575 | 2014 | 15 - 40 years |
| Hyatt Place Washington DC Downtown K Street |  | 10763 | 55225 | 2479 | 10763 | 57704 | 68467 | 15510 | 2015 | 15 - 40 years |
| Homewood Suites Seattle Lynnwood | 19000 | 3933 | 30949 | 3251 | 4020 | 34113 | 38133 | 8727 | 2015 | 15 - 40 years |
| Residence Inn Palo Alto Los Altos |  | 16996 | 45786 | 3260 | 17240 | 48802 | 66042 | 13298 | 2015 | 15 - 40 years |
| DoubleTree Suites by Hilton Austin |  | 7072 | 50827 | 7020 | 7576 | 57343 | 64919 | 11927 | 2017 | 15 - 40 years |
| DoubleTree Suites by Hilton Orlando - Lake Buena Vista |  | 896 | 44508 | 9358 | 1198 | 53564 | 54762 | 11470 | 2017 | 15 - 40 years |
| Embassy Suites Atlanta - Buckhead |  | 31279 | 46015 | 18997 | 31544 | 64747 | 96291 | 15579 | 2017 | 15 - 40 years |
| Embassy Suites Birmingham |  | 10495 | 33568 | 5509 | 10519 | 39053 | 49572 | 7939 | 2017 | 15 - 40 years |
| Embassy Suites Deerfield Beach - Resort & Spa |  | 7527 | 56128 | 25220 | 8083 | 80792 | 88875 | 15901 | 2017 | 15 - 40 years |
| Embassy Suites Fort Lauderdale 17th Street |  | 30933 | 54592 | 18461 | 31364 | 72622 | 103986 | 14699 | 2017 | 15 - 40 years |
| Embassy Suites Los Angeles - International Airport South | 49120 | 13110 | 94733 | 16237 | 14300 | 109780 | 124080 | 22826 | 2017 | 15 - 40 years |
| Embassy Suites Miami - International Airport |  | 14765 | 18099 | 10529 | 15218 | 28175 | 43393 | 6598 | 2017 | 15 - 40 years |
| Embassy Suites Milpitas Silicon Valley |  | 43157 | 26399 | 13787 | 43370 | 39973 | 83343 | 11313 | 2017 | 15 - 40 years |
| Embassy Suites Minneapolis - Airport |  | 7248 | 41202 | 18498 | 9796 | 57152 | 66948 | 16777 | 2017 | 15 - 40 years |
| Embassy Suites Orlando - International Drive South/Convention Center |  | 4743 | 37687 | 3002 | 5042 | 40390 | 45432 | 8892 | 2017 | 15 - 40 years |
| Embassy Suites Phoenix - Biltmore | 20630 | 24680 | 24487 | 15391 | 24809 | 39749 | 64558 | 8242 | 2017 | 15 - 40 years |
| Embassy Suites San Francisco Airport - South San Francisco |  | 39616 | 55163 | 16801 | 39799 | 71781 | 111580 | 17845 | 2017 | 15 - 40 years |
| Embassy Suites San Francisco Airport - Waterfront |  | 3698 | 85270 | 5842 | 4526 | 90284 | 94810 | 21402 | 2017 | 15 - 40 years |
| Zachari Dunes on Mandalay Beach, Curio Collection by Hilton |  | 35769 | 53280 | 32186 | 37101 | 84134 | 121235 | 19569 | 2017 | 15 - 40 years |
| DoubleTree by Hilton Houston Medical Center Hotel & Suites |  | 7776 | 43475 | 12937 | 8267 | 55921 | 64188 | 10913 | 2017 | 15 - 40 years |
| Mills House Charleston, Curio Collection by Hilton |  | 9599 | 68932 | 12642 | 10744 | 80429 | 91173 | 17236 | 2017 | 15 - 40 years |
| San Francisco Marriott Union Square |  | 46773 | 107841 | 13786 | 46882 | 121518 | 168400 | 28128 | 2017 | 15 - 40 years |

---

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Initial Costs** | **Initial Costs** | **Costs Capitalized Subsequent to Acquisition** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | **Gross Amount at December 31, 2025** | | |
|<br>**Description** |<br>**Debt** | **Land &<br>Improvements** | **Building &<br>Improvements** | **Land, Building &<br>Improvements** | **Land &<br>Improvements** | **Buildings &<br>Improvements** | **Total (1)** | **Accumulated<br>Depreciation** |<br>**Date<br>Acquired** |<br>**Depreciation<br>Life** |
| The Knickerbocker New York |  | 113613 | 119453 | 8215 | 114966 | 126315 | 241281 | 26010 | 2017 | 15 - 40 years |
| The Pierside Santa Monica |  | 27054 | 45866 | 16552 | 27714 | 61758 | 89472 | 12705 | 2017 | 15 - 40 years |
| Wyndham Boston Beacon Hill |  | 126606 | 51934 | 3596 | 126618 | 55518 | 182136 | 32666 | 2017 | 15 - 40 years |
| Wyndham New Orleans - French Quarter |  | 300 | 72686 | 3266 | 300 | 75952 | 76252 | 15955 | 2017 | 15 - 40 years |
| Wyndham Philadelphia Historic District |  | 8367 | 51914 | 2328 | 8791 | 53818 | 62609 | 11339 | 2017 | 15 - 40 years |
| Courtyard Pittsburgh University Center |  | 154 | 31625 | 7948 | 493 | 39234 | 39727 | 7501 | 2017 | 15 - 40 years |
| Wyndham San Diego Bayside |  | 989 | 29440 | 8097 | 1377 | 37149 | 38526 | 24400 | 2017 | 5 years |
| AC Hotel Boston Downtown |  | 26560 | 53354 | 236 | 26560 | 53590 | 80150 | 5895 | 2021 | 15 - 40 years |
| Hampton Inn and Suites Atlanta Midtown |  | 5990 | 48321 | 141 | 5993 | 48459 | 54452 | 5357 | 2021 | 15 - 40 years |
| Moxy Denver Cherry Creek | 26112 |  | 48725 | 274 | 90 | 48909 | 48999 | 4997 | 2021 | 15 - 40 years |
| The Bankers Alley Hotel, a Tapestry Collection by Hilton |  | 19807 | 36223 | 3387 | 20253 | 39164 | 59417 | 3442 | 2022 | 15 - 40 years |
| Hotel Teatro - Denver |  | 3433 | 29718 | 346 | 3433 | 30064 | 33497 | 1184 | 2024 | 15 - 40 years |
|  | $180862 | $1092771 | $3405794 | $824029 | $1123123 | $4199471 | $5322594 | $1336914 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The aggregate cost of real estate for federal income tax purposes was approximately $5.2 billion at December 31, 2025.

------

<u>[**Table of Contents**](#i078fbe21061b4d05b7cb6b3f86c170f7_7)</u>

The change in the total cost of the hotel properties is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| **Reconciliation of Land and Buildings and Improvements** |  |  |  |
| Balance at beginning of period | $5340520 | $5115627 | $5033114 |
| Add: Acquisitions |  | 159493 |  |
| Add: Improvements | 83188 | 83903 | 82513 |
| Less: Sale of hotel properties | (101114) | (18503) |  |
| Balance at end of period | $5322594 | $5340520 | $5115627 |

---

The change in the accumulated depreciation of the real estate assets is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| **Reconciliation of Accumulated Depreciation** |  |  |  |
| Balance at beginning of period | $(1230375) | $(1105184) | $(975029) |
| Add: Depreciation for the period | (136283) | (132718) | (130155) |
| Less: Sale of hotel properties | 29744 | 7527 |  |
| Balance at end of period | $(1336914) | $(1230375) | $(1105184) |

---

## Exhibit 10.15

**Exhibit 10.15**

**FREDERICK MCKALIP** 

**EMPLOYMENT AGREEMENT**

THIS EMPLOYMENT AGREEMENT (the "Agreement") is made this 19 of August, 2025 by RLJ Lodging Trust, a Maryland real estate investment trust (the "Company") and RLJ Lodging Trust, L.P., (the "Operating Partnership") a Delaware limited partnership, each with its principal place of business at 7373 Wisconsin Avenue, Suite 1500, Bethesda, MD 20814, and Frederick McKalip, residing at the address on file with the Company (the "Executive").

WHEREAS, the Company is the sole general partner of the Operating Partnership; and

WHEREAS, the Executive and the Company desire to enter into the Agreement to reflect the Executive's executive capacities in the Company's business and provide for the Company's and Operating Partnership's employment of the Executive;

WHEREAS, the Executive assumed the role and responsibilities of Executive Vice President, General Counsel and Corporate Secretary on May 19, 2025, following the departure of his predecessor;

WHEREAS, the Agreement will be effective as of May 19, 2025 ("Commencement Date) to reflect the Executive's early assumption of these responsibilities;

WHEREAS, the allocation of the rights and obligations between the Company and the Operating Partnership shall be determined by separate agreement of those parties; and

WHEREAS, for purposes of this Agreement, the term "Company" shall be understood to include the Operating Partnership, unless the context otherwise requires.

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows:

**1. Term of Employment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby employs the Executive, and the Executive hereby accepts such employment with the Company, upon the terms and conditions set forth in this Agreement for the period next described (the "Employment Period"). Unless terminated earlier pursuant to Section 5, the Executive's employment pursuant to this Agreement shall be for a term beginning on the Commencement Date and ending on the second anniversary of the Commencement Date (the "Initial Term"). If not previously terminated in accordance with this Agreement, the Employment Period shall be extended for an additional twelve (12) month period immediately following the Initial Term (such extension, the "Renewal Term"), unless the Company or the Executive provides written notice to the contrary at least ninety (90) days' before the last day of the Initial Term.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the parties have failed to extend this Agreement or enter into a new agreement on or before the end of the Initial Term or the Renewal Term, as applicable, the Executive's employment shall terminate at the end of the applicable term and, notwithstanding anything to the contrary in Section 6(c), the Company's only obligation to Executive upon such termination will be to accelerate the vesting of any then-outstanding equity awards subject to time-based vesting granted prior to the end of the applicable term and to pay the amounts set forth in Section 6(a); provided however, that the Company shall not provide the acceleration described in this sentence if: (i) the Agreement was not extended because the Executive provided the written notice to the contrary described in Section 1(a) or (ii) the parties did not enter into a new agreement because either the Executive declined to enter into the then standard form executive employment agreement offered to the Executive by the Company or the Executive notified the Company that the Executive did not wish to continue employment with the Company after the applicable term Notwithstanding the foregoing or anything else contained in this Agreement to the contrary, if Executive is employed on the last day of the Initial Term or the Renewal Term, as applicable, the Board shall determine the amount of any annual bonus to award Executive for the fiscal year in which the end of such term occurs, based on the criteria set forth in Section 4(b) and pro-rated for the portion of the fiscal year Executive remains employed. The Company shall pay any such bonus on the date on which the Company's other employees receive bonuses, regardless of whether Executive is employed by the Company on that date.

**2. Title; Duties**

The Executive was formally appointed General Counsel, Executive Vice President and Corporate Secretary as of August 1, 2025, by the Board of Trustees and shall continue his employment in that capacity. The Executive shall report to the President and Chief Executive Officer, who shall have the authority to direct, control and supervise the activities of the Executive. The Executive shall perform such services consistent with his position as may be assigned to him from time to time by the Board of Trustees and are consistent with the bylaws of the Company and the Amended and Restated Agreement of Limited Partnership of the Operating Partnership as it may be further amended from time to time, including, but not limited to, managing the affairs of the Company and Operating Partnership.

**3. Extent of Services**

The Executive agrees not to engage in any business activities during the Employment Period except those which are for the sole benefit of the Company and its subsidiaries, and to devote his entire business time, attention, skill and effort to the performance of his duties under this Agreement. Notwithstanding the foregoing, the Executive may, without impairing or otherwise adversely affecting the Executive's performance of his duties to the Company, (i) engage in personal investments and charitable, professional and civic activities, and (ii) with the prior approval of the Board of Trustees, serve on the boards of directors of corporations other than the Company, provided, however, that no such approval shall be necessary for the Executive's continued service on any board of directors or board of trustees on which he was serving on the date of this Agreement, all of which have been previously disclosed to the Board of Trustees in writing. The Executive shall perform his duties to the best of his ability, shall

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adhere to the Company's published policies and procedures, and shall use his best efforts to promote the Company's interests, reputation, business and welfare.

**4. Compensation and Benefits**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Salary</u>. The Company shall pay the Executive a gross base annual salary rate ("Base Salary") of Four Hundred Sixty-Five Dollars ($465,000.00). The Base Salary shall be payable in arrears in approximately equal semi-monthly installments (except that the first and last such semi-monthly installments may be prorated if necessary) on the Company's regularly scheduled payroll dates, minus such deductions as may be required by law or reasonably requested by the Executive. The Company's Compensation Committee (the "Compensation Committee") shall review his Base Salary annually in conjunction with its regular review of employee salaries and may increase (but not decrease) Executive's Base Salary as in effect from time to time as the Compensation Committee shall deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Annual Bonus</u>. The Executive shall be entitled to earn bonuses with respect to each fiscal year (or partial fiscal year), based upon Executive's and the Company's achievement of performance objectives set by the Company for each fiscal year of the Employment Period, with a target bonus of 100% of Executive's Base Salary for such fiscal year (or partial fiscal year). Any such bonus earned by the Executive shall be paid annually by March 15 of the year following the end of the year for which the bonus was earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Option, Restricted Share, Restricted Share Unit and LTIP Unit Grants</u>. The Executive will be eligible for grants of options to purchase the Company's common shares of beneficial interest ("common shares"), grants of Company restricted common shares, restricted common share units and long-term incentive units in the Operating Partnership subject to certain time vesting requirements and other conditions set forth in the applicable award agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Other Benefits</u>. The Executive shall be entitled to paid time off and holiday pay in accordance with the Company's policies in effect from time to time and shall be eligible to participate in such life, health, and disability insurance, pension, deferred compensation and incentive plans, options and awards, performance bonuses and other benefits as the Company extends, as a matter of policy, to its executive employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Reimbursement of Business Expenses</u>. The Company shall reimburse the Executive for all reasonable travel, entertainment and other expenses incurred or paid by the Executive in connection with, or related to, the performance of his duties, responsibilities or services under this Agreement, upon presentation by the Executive of documentation, expense statements, vouchers, and/or such other supporting information as the Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Timing of Reimbursements</u>. Any reimbursement under this Agreement that is taxable to the Executive shall be made in no event later than sixty (60) days following the calendar year in which the Executive incurred the expense.

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**5. Termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Termination by the Company for Cause</u>. The Company may terminate the Executive's employment under this Agreement at any time for Cause, upon written notice by the Company to the Executive. For purposes of this Agreement, "Cause" for termination shall mean any of the following: (i) gross negligence or willful misconduct in connection with the performance of duties; (ii) conviction of a felony; (iii) conviction of any other criminal offense involving an act of dishonesty intended to result in substantial personal enrichment of the Executive at the expense of the Company or its subsidiaries; or (iv) material breach of any term of any employment, consulting or other services, confidentiality, intellectual property or non-competition agreements, if any, between the Executive and the Company, which, if such breach is curable, such breach is not cured within fifteen (15) calendar days following the Executive's receipt of written notice of such breach, with such detail as sufficient to apprise Executive of the nature and extent of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Termination by the Company Without Cause or by the Executive Without Good Reason</u>. The Company may terminate this Agreement at any time without Cause or the Executive may resign without Good Reason (as defined below), upon giving the other party thirty (30) days' written notice. At the Company's sole discretion, it may substitute thirty (30) days' Base Salary (or any lesser portion for any shortened period provided) in lieu of notice. Any Base Salary paid to the Executive in lieu of notice shall not be offset against any entitlement the Executive may have to the Severance Payment pursuant to Section 6(c). For purposes of this Agreement, the non-renewal of the Employment Period at the end of the Initial Term or the Renewal Term does not constitute termination without Cause or resignation for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Termination by Executive for Good Reason</u>. The Executive may terminate his employment under this Agreement at any time for Good Reason, upon written notice by the Executive to the Company. For purposes of this Agreement, "Good Reason" for termination shall mean, without the Executive's consent: (i) the assignment to the Executive of substantial duties or responsibilities inconsistent with the Executive's position at the Company, or any other action by the Company which results in a substantial diminution of the Executive's duties or responsibilities other than any such reduction which is remedied by the Company within thirty (30) days of receipt of written notice thereof from the Executive; (ii) a requirement that the Executive work principally from a location that is thirty (30) miles further from the Executive's residence than the Company's address first written above; (iii) a material reduction in the Executive's aggregate Base Salary and other compensation (including the target bonus amount and retirement plans, welfare plans and fringe benefits) taken as a whole, excluding any reductions caused by the failure to achieve performance targets and excluding any reductions on account of the provisions of this Agreement; or (iv) any material breach by the Company of this Agreement. Good Reason shall not exist pursuant to any subsection of this Section 5(c) unless (A) the Executive shall have delivered notice to the Board of Trustees within ninety (90) days of the initial occurrence of such event constituting Good Reason, and (B) the Board fails to remedy the circumstances giving rise to the Executive's notice within thirty (30) days of receipt of notice. The Executive must terminate his employment under this Section 5(c) at a time agreed reasonably with the Company, but in any event within one hundred fifty (150) days from the initial occurrence of an event constituting Good Reason. For purposes of Good Reason, the Company shall be

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defined to include any successor to the Company which has assumed the obligations of the Company through merger, acquisition, stock purchase, asset purchase or otherwise. For purposes of this Agreement, the non-renewal of the Employment Period at the end of the Initial Term or the Renewal Term does not constitute termination without Cause or resignation for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Executive's Death or Disability</u>. The Executive's employment shall terminate immediately upon his death or, upon written notice as set forth below, his Disability. As used in this Agreement, "Disability" shall mean such physical or mental impairment as would render the Executive unable to perform each of the essential duties of the Executive's position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous period of not less than twelve (12) months. If the Employment Period is terminated by reason of the Executive's Disability, either party shall give thirty (30) days' advance written notice to that effect to the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Executive's Retirement</u>. The Executive's employment shall terminate upon his Retirement. As used in this Agreement, "Retirement" shall mean the point in which the Executive has reached the age of sixty-five (65) and has decided to exit the workforce completely. If the Employment Period is terminated by reason of the Executive's Retirement, the Executive shall give one hundred eighty (180) days' advance notice to the effect to the Company.

**6. Effect of Termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>General</u>. Regardless of the reason for any termination of this Agreement and subject to this Section 6, the Executive (or the Executive's estate if the Employment Period ends on account of the Executive's death) shall be entitled to (i) payment of any unpaid portion of his Base Salary through the effective date of termination; (ii) reimbursement for any outstanding reasonable business expense he has incurred in performing his duties hereunder in accordance with Company policy; (iii) continued insurance benefits to the extent required by law; and (iv) payment of any vested but unpaid rights as may be required independent of this Agreement by the terms of any bonus or other incentive pay or equity plan, or any other employee benefit plan or program of the Company. Upon termination of this Agreement for any reason, the Executive shall resign from all boards and committees of the Company, its affiliates and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Termination by the Company for Cause or by Executive Without Good Reason</u>. If the Company terminates the Executive's employment for Cause or the Executive terminates his employment without Good Reason, the Executive shall have no rights or claims against the Company except to receive the payments and benefits described in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Termination by the Company Without Cause or by the Executive with Good Reason</u>. Except as provided in Section 1(b), if during the Employment Period the Company terminates the Executive's employment without Cause pursuant to Section 5(b), or the Executive terminates employment with Good Reason pursuant to Section 5(c), the Executive shall be entitled to receive, in addition to the items referenced in Section 6(a), the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a pro rata bonus for the year of termination but, in connection with a termination other than a termination at or after a "Change of Control" (as defined in the RLJ Lodging Trust 2021 Equity Incentive Plan), only to the extent performance goals for the calendar year of termination are achieved, payable at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)continued payment of his Base Salary, at the rate in effect on his last day of employment (but in no event in an annual amount less than as set forth in Section 4(a)), for a period of twelve (12) months. Such amount shall be paid in approximately equal installments on the Company's regularly scheduled payroll dates, subject to all legally required payroll deductions and withholdings for sums owed by the Executive to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)continued payment by the Company for the Executive's life and health insurance coverage for twelve (12) months to the same extent that the Company paid for such coverage immediately prior to the termination of the Executive's employment and subject to the eligibility requirements and other terms and conditions of such insurance coverage. Notwithstanding the foregoing, (A) if any plan pursuant to which the Company is providing such coverage is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") ("Section 409A") under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover the Executive under its group health plans, then, in either case, an amount equal to the monthly plan premium payment shall thereafter be paid to the Executive as currently taxable compensation in substantially equal monthly installments over the twelve (12) month period (or the remaining portion thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)payment equal to one (1) times the Executive's target annual bonus for the year of termination. The payment provided for in this paragraph (iv) shall be made in a lump sum on the first anniversary of the date of the Executive's termination of employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)vesting as of the last day of his employment in any unvested portion of any equity awards previously granted to the Executive by the Company (other than any award that references and proclaims to supersede this Agreement and as to which the provisions of such award shall control); provided, however, that the Company may, in connection with a termination other than a termination at or after a "Change of Control" (as defined in the RLJ Lodging Trust 2021 Equity Incentive Plan) with respect to awards the vesting of which is conditioned on the achievement of performance goals, condition accelerated vesting on the ultimate achievement of the performance goals, in which case such awards shall remain outstanding until certification of achievement of the performance goals, and such awards shall vest or be forfeited as of such certification date based on the level of achievement of the performance goals.

None of the benefits described in this Section 6(c) (the "Severance Payment") will be payable unless the Executive has signed a general release (attached hereto as Exhibit A) within forty-five (45) days of date of termination,

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which has (and not until it has) become irrevocable, satisfactory to the Company in the reasonable exercise of its discretion, releasing the Company, its affiliates, and its trustees, directors, officers and employees, from any and all claims or potential claims arising from or related to the Executive's employment or termination of employment. Any payment conditioned on execution of the general release that was not made because the general release was not signed and had not become irrevocable shall be made within ten (10) days after the general release becomes irrevocable, provided that as to payments and benefits which are subject to Section 409A if the end of the forty-five (45) day plus seven (7) day revocation period occurs in a year subsequent to the year in which the termination of employment occurs, the payments will be made in the subsequent year. Any payments delayed pursuant to this Section 6(c) shall be paid to the Executive in a lump sum, and all remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Termination In the Event of Death, Disability or Retirement</u>.

In the event of a termination of employment due to death, Disability or Retirement, the Executive shall be entitled to receive the items referenced in Section 6(a), as well as any performance bonus for that fiscal year and accelerating vesting of equity awards, each as specifically set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If the Executive's employment terminates because of his death, the unvested portion of any equity awards previously granted to the Executive by the Company (other than any award that references and proclaims to supersede this Agreement and as to which the provisions of such award shall control) shall become fully vested as of the date of his death, and the Executive's estate shall be entitled to receive a pro-rata share of any performance bonus to which he otherwise would have been entitled for the fiscal year in which his death occurs (regardless of whether performance goals for that fiscal year are achieved) payable at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)In the event the Executive's employment terminates due to his Disability, as of the effective date of the termination notice specified in Section 5(d), the Executive shall vest in any unvested portion of any equity awards previously granted to the Executive by the Company (other than any award that references and proclaims to supersede this Agreement and as to which the provisions of such award shall control) and the Executive shall be entitled to receive a pro-rata share of any performance bonus to which he otherwise would have been entitled for the fiscal year in which his Disability occurs (regardless of whether performance goals for that fiscal year are achieved) payable at the same time bonuses are paid for such year

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but in no event later than March 15 of the fiscal year following his Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)In the event the Executive's employment terminates due to his Retirement, the unvested portion of any equity awards previously granted to the Executive by the Company shall be fully vested as of the date of his termination (other than any award that references and proclaims to supersede this Agreement and as to which the provisions of such award shall control); provided, however, that the Company may, with respect to awards the vesting of which is conditioned on the achievement of performance goals, condition accelerated vesting on the ultimate achievement of the performance goals, in which case such awards shall remain outstanding until certification of achievement of the performance goals, and such awards shall vest or be forfeited as of such certification date based on the level of achievement of the performance goals. The Executive also shall be entitled to payment of a pro rata portion of any performance bonus for the fiscal year of Executive's Retirement only to the extent performance goals for that fiscal year are achieved. The pro rata performance bonus, if any, shall be paid to the Executive at the same time bonuses are paid for such year but in no event later than March 15 of the fiscal year following his Retirement.

**7. Confidentiality**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Definition of Proprietary Information</u>. The Executive acknowledges that he may be furnished or may otherwise receive or have access to confidential information which relates to the Company's past, present or future business activities, strategies, services or products, research and development; financial analysis and data; improvements, inventions, processes, techniques, designs or other technical data; profit margins and other financial information; fee arrangements; compilations for marketing or development; confidential personnel and payroll information; or other information regarding administrative, management, or financial activities of the Company, or of a third party which provided proprietary information to the Company on a confidential basis. All such information, including in any electronic form, and including any materials or documents containing such information, shall be considered by the Company and the Executive as proprietary and confidential (the "Proprietary Information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Exclusions</u>. Notwithstanding the foregoing, Proprietary Information shall not include information in the public domain not as a result of a breach of any duty by the Executive or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Obligations</u>. The Executive shall maintain the confidentiality of the Proprietary Information and shall not (i) disclose or disseminate the Proprietary Information to any third party, including employees of the Company (or its affiliates) without a legitimate business need to know during the Employment Period; (ii) remove the Proprietary Information from the Company's premises without a valid business purpose; or (iii) use the Proprietary Information for his own benefit or for the benefit of any third party. Nothing herein shall prevent the Executive from (A) complying with a valid subpoena or other legal requirement for disclosure of

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the Proprietary Information, provided that the Executive shall use good faith efforts to notify the Company promptly and in advance of disclosure if he believes that he is under a legal requirement to disclose the Proprietary Information otherwise protected from disclosure under this subsection and if the Executive remains legally compelled to make such disclosure, the Executive may only disclose that portion of the information that the Executive is required to disclose and shall use best efforts to ensure that such information is afforded confidential treatment; (B) disclosing the terms and conditions of this Agreement to the Executive's spouse or tax, accounting, financial or legal advisors, so long as they agree verbally or in writing to be bound by the obligations of this subsection; or (C) reporting a possible violation of law to a governmental entity or law enforcement, including making a disclosure that is protected under the whistle blower protections of applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Defend Trade Secrets Act</u>. The Executive hereby acknowledges and understands that an individual may not be held liable under any criminal or civil federal or state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, the Executive further acknowledges and understands that an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Return of Proprietary Information</u>. The Executive acknowledges and agrees that all the Proprietary Information used or generated during the course of working for the Company is the property of the Company. The Executive agrees to deliver to the Company all documents and other tangibles containing the Proprietary Information immediately upon termination of his employment.

**8. Noncompetition**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Restriction on Competition</u>. For the period of the Executive's employment with the Company and for twelve (12) months following the expiration or termination of the Executive's employment by the Company (the "Restricted Period"), the Executive agrees not to engage, directly or indirectly, as a manager, employee, consultant, partner, principal, agent, representative, or in any other individual or representative capacity in any material business that the Company conducts as of the date of the Executive's termination of employment, including but not limited to investments primarily in premium-branded, focused-service and compact full-service hotels, where material is defined as fifteen percent (15%) of the gross revenues of the Company based on the most recent quarterly earnings. Executive further agrees that for the period of the Executive's employment with the Company and for the Restricted Period, the Executive will not engage, directly or indirectly, as an owner, director, trustee, member, stockholder, or in any other corporate capacity in any material business that the Company conducts as of the date of the Executive's termination of employment. Notwithstanding the foregoing, the Executive shall not be deemed to have violated this Section 8(a) solely (i) by reason of his passive ownership of 1% or less of the outstanding stock of any publicly traded corporation or other entity, (ii) by providing legal, accounting or audit services as an employee or partner of a professional services

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organization or (iii) by providing services to any investment banking or other institution that do not relate to any material business that the Company conducts as of the date of the Executive's termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Non-Solicitation of Clients</u>. During the Restricted Period, the Executive agrees not to solicit, directly or indirectly, on his own behalf or on behalf of any other person(s), any client of the Company to whom the Company had provided services at any time during the Executive's employment with the Company in any line of business that the Company conducts as of the date of the Executive's termination of employment or that the Company is actively soliciting, for the purpose of marketing or providing any service competitive with any service then offered by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Non-Solicitation of Employees</u>. During the Restricted Period, the Executive agrees that he will not, directly or indirectly, hire or attempt to hire or cause any business, other than an affiliate of the Company, to hire any person who is then or was at any time during the preceding six (6) months an employee of the Company and who is at the time of such hire or attempted hire, or was at the date of such employee's separation from the Company a vice president, senior vice president or executive vice president or other senior executive employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Acknowledgement</u>. The Executive acknowledges that he will acquire much Proprietary Information concerning the past, present and future business of the Company as the result of his employment, as well as access to the relationships between the Company and its clients and employees. The Executive further acknowledges that the business of the Company is very competitive and that competition by him in that business during his employment, or after his employment terminates, would severely injure the Company. The Executive understands and agrees that the restrictions contained in this Section 8 are reasonable and are required for the Company's legitimate protection, and do not unduly limit his ability to earn a livelihood.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Rights and Remedies upon Breach</u>. The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 7 and 8 (the "Restrictive Covenants") would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the Company and its affiliates shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company and its affiliates under law or in equity (including, without limitation, the recovery of damages):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The right and remedy to have the Restrictive Covenants specifically enforced (without posting bond and without the need to prove damages) by any court of competent jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then continuing, of such covenants; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The right and remedy to require the Executive to account for and pay over to the Company and its affiliates all compensation, profits, monies,

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accruals, increments or other benefits (collectively, "Benefits") derived or received by him as the result of any transactions constituting a breach of the Restrictive Covenants, and the Executive shall account for and pay over such Benefits to the Company and, if applicable, its affected affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Without limiting Section 14(k), if any court or other decision-maker of competent jurisdiction determines that any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.

**9. Executive Representation**

The Executive represents and warrants to the Company that he is not now under any obligation of a contractual or other nature to any person, business or other entity which is inconsistent or in conflict with this Agreement or which would prevent him from performing his obligations under this Agreement.

**10. Mediation and Arbitration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as provided in Section 10(b) and 10(c), any disputes between the Company and the Executive in any way concerning the Executive's employment, the termination of his employment, this Agreement or its enforcement shall be subject to mediation. If the Company and the Executive cannot agree upon a mediator, each shall select one name from a list of mediators maintained by any bona fide dispute resolution provider or other private mediator; the two selected shall then choose a third person who will serve as the sole mediator. The first mediation session shall occur within forty-five (45) calendar days following the notice of a dispute. If within sixty (60) days of the first mediation session the claim is not resolved, either party may request that the dispute be settled exclusively by arbitration in the State of Maryland by a single arbitrator, selected in the same manner as the mediator, in accordance with the Employment Arbitration Rules of the American Arbitration Association in effect at the time of submission to arbitration. Judgment may be entered on the arbitrator's award in any court having jurisdiction. For purposes of entering any judgment upon an award rendered by the arbitrator, any or all of the following courts have jurisdiction: (i) the United States District Court for the District of Maryland, (ii) any of the courts of the State of Maryland, or (iii) any other court having jurisdiction. Any service of process or notice requirements in any such proceeding shall be satisfied if the rules of such court relating thereto have been substantially satisfied. The Company and the Executive waive to the fullest extent permitted by applicable law, any objection which it may now or hereafter have to such jurisdiction and any defense of inconvenient forum. A judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each party shall bear its or his costs and expenses arising in connection with any arbitration proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the foregoing, the Company, in its sole discretion, may bring an action in any court of competent jurisdiction to seek injunctive relief and such

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other relief as the Company shall elect to enforce the Restrictive Covenants. If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of breadth of scope or otherwise it is the intention of the Company and the Executive that such determination not bar or in any way affect the Company's right, or the right of any of its affiliates, to the relief provided in Section 8(e) above in the courts of any other jurisdiction within the geographical scope of such Restrictive Covenants, as to breaches of such Restrictive Covenants in such other respective jurisdictions, such Restrictive Covenants as they relate to each jurisdiction being, for this purpose, severable, diverse and independent covenants, subject, where appropriate, to the doctrine of res judicata. The parties hereby agree to waive any right to a trial by jury for any and all disputes hereunder (whether or not relating to the Restrictive Covenants).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the Company or the Executive may bring an action in any court of competent jurisdiction to resolve any dispute under or seek the enforcement of Section 6.

**11. Section 409A**.

To the extent the Executive would be subject to the additional twenty percent (20%) tax imposed on certain deferred compensation arrangements pursuant to Section 409A, as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such tax and preserve to the maximum extent possible the original intent and economic benefit to the Executive and the Company, and the parties shall promptly execute any amendment reasonably necessary to implement this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For purposes of Section 409A, the Executive's right to receive installment payments pursuant to this Agreement including, without limitation, each severance payment and health insurance payment shall be treated as a right to receive a series of separate and distinct payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Executive will be deemed to have a date of termination for purposes of determining the timing of any payments or benefits hereunder that are classified as deferred compensation only upon a "separation from service" within the meaning of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding any other provision of this Agreement to the contrary, if at the time of the Executive's separation from service, (i) the Executive is a specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time), and (ii) the Company makes a good faith determination that an amount payable on account of such separation from service to the Executive constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six (6) month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A (the "Delay Period"), then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after such six (6) month period (or upon the Executive's death, if earlier), together with interest for the period of delay, compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as of the dates the payments should otherwise have been provided. To the extent that any benefits to be provided during the Delay

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Period are considered deferred compensation under Section 409A provided on account of a "separation from service," and such benefits are not otherwise exempt from Section 409A, the Executive shall pay the cost of such benefit during the Delay Period, and the Company shall reimburse the Executive, to the extent that such costs would otherwise have been paid by the Company or to the extent that such benefits would otherwise have been provided by the Company at no cost to the Executive, the Company's share of the cost of such benefits upon expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures specified herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)(A) Any amount that the Executive is entitled to be reimbursed under this Agreement will be reimbursed to the Executive as promptly as practical and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred, (B) any right to reimbursement or in kind benefits will not be subject to liquidation or exchange for another benefit, and (C) the amount of the expenses eligible for reimbursement during any taxable year will not affect the amount of expenses eligible for reimbursement in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion of the Company.

**12. Parachute Payment Limitations**

&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Agreement or of any other agreement, contract, or understanding heretofore or hereafter entered into by the Executive and the Company or its affiliates, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this Section 12 (the "Other Agreements"), and notwithstanding any formal or informal plan or other arrangement heretofore or hereafter adopted by the Company or any of its affiliates for the direct or indirect compensation of the Executive (including groups or classes of participants or beneficiaries of which the Executive is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Executive (a "Benefit Arrangement"), if the Executive is a "disqualified individual," as defined in Section 280G(c) of the Code, any right to receive any payment or other benefit under this Agreement shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for Executive under the Agreement, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Executive under this Agreement to be considered a "parachute payment" within the meaning of Section 280G(b)(2) of the Code as then in effect (a "Parachute Payment") <u>and</u> (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Executive from the Company or any of its affiliates under this Agreement, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by Executive without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any

------

such right to exercise, vesting, payment, or benefit under this Agreement, in conjunction with all other rights, payments, or benefits to or for the Executive under the Agreement, any Other Agreement or any Benefit Arrangement would cause the Executive to be considered to have received a Parachute Payment under this Agreement that would have the effect of decreasing the after-tax amount received by the Executive as described in clause (ii) of the preceding sentence, then the Executive shall have the right, in the Executive's sole discretion, to designate those rights, payments, or benefits under this Agreement, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Executive under this Agreement be deemed to be a Parachute Payment; provided, however, that, to the extent any payment or benefit constitutes deferred compensation under Section 409A, in order to comply with Section 409A, the reduction or elimination will be performed in the following order: (A) reduction of cash payments; (B) reduction of COBRA benefits; (C) cancellation of acceleration of vesting on any equity awards for which the exercise price exceeds the then fair market value of the underlying equity; and (D) cancellation of acceleration of vesting of equity awards not covered under (C) above; provided, however that in the event that acceleration of vesting of equity awards is to be cancelled, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such equity awards, that is, later granted equity awards shall be canceled before earlier granted equity awards.

**13. Clawback Policies&nbsp;&nbsp;&nbsp;&nbsp;**

The Executive is subject to any recoupment or clawback policies that the Company may implement or maintain at any time regarding incentive-based compensation, which is granted or awarded to Executive on or after the date of this Agreement. Such policies may include the right to recover incentive-based compensation (including stock options awarded as compensation) awarded or received during the three-year period preceding the date on which the Company is required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under federal securities laws. The Executive agrees to amend any awards and agreements entered into on or after the date of this Agreement as the Company may request to reasonably implement to policies.

**14. Miscellaneous**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Payment of Financial Obligations</u>.&nbsp;&nbsp;&nbsp;&nbsp;The payment or provision to the Executive by the Company of any remuneration, benefits or other financial obligations pursuant to this Agreement and any indemnification obligations, shall be allocated between the Company and the Operating Partnership by the Compensation Committee based on any reasonable method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Notices</u>. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective (i) upon personal delivery, (ii) upon deposit with the United States Postal Service, by registered or certified mail, postage prepaid, or (iii) in the case of facsimile transmission or delivery by nationally recognized overnight delivery service, when received, addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If to the Company, to:

RLJ Lodging Trust

------

7373 Wisconsin Avenue

Suite 1500

Bethesda, MD 20814

Attention: Leslie Hale, President and Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If to the Executive, to:

Frederick McKalip

Address on file with the Company

or to such other address or addresses as either party shall designate to the other in writing from time to time by like notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Pronouns</u>. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Entire Agreement</u>. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Amendment</u>. This Agreement may be amended or modified only by a written instrument executed by the Company and the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Governing Law</u>. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Maryland, without regard to its conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any entity with which or into which the Company may be merged or which may succeed to its assets or business or any entity to which the Company may assign its rights and obligations under this Agreement; provided, however, that the obligations of the Executive are personal and shall not be assigned or delegated by him.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Waiver</u>. No delays or omission by the Company or the Executive in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent by the Company shall not be effective unless consented to by the Operating Partnership and vice versa. A waiver or consent given by the Company or the Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Captions</u>. The captions appearing in this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Severability</u>. In case any provision of this Agreement shall be held by a court or arbitrator with jurisdiction over the parties to this Agreement to be invalid, illegal or otherwise unenforceable, such provision shall be restated to reflect as nearly as

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possible the original intentions of the parties in accordance with applicable law, and the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

RLJ LODGING TRUST

By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Leslie D. Hale</u> 

Name:&nbsp;&nbsp;&nbsp;&nbsp;Leslie D. Hale

Title:&nbsp;&nbsp;&nbsp;&nbsp;President & Chief Executive Officer

RLJ LODGING TRUST, L.P.

By:&nbsp;&nbsp;&nbsp;&nbsp;RLJ Lodging Trust, its<br>general partner

By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Leslie D. Hale</u> 

Name:&nbsp;&nbsp;&nbsp;&nbsp;Leslie D. Hale

Title:&nbsp;&nbsp;&nbsp;&nbsp;President & Chief Executive Officer

EXECUTIVE

<u>/s/ Frederick McKalip</u> 

Frederick McKalip

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<u>Exhibit A</u>

**WAIVER AND RELEASE AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;THIS WAIVER AND RELEASE AGREEMENT (this "**Release**") is entered into as of [ ] (the "**Effective Date**"), by &nbsp;&nbsp;&nbsp;&nbsp;Frederick McKalip ("**Executive**") in consideration of severance pay (the "**Severance Payment**") provided to Executive by RLJ Lodging Trust, a Maryland real estate investment trust (the "**Company**") and RLJ Lodging Trust, L.P. (together with the Company, the "**Company Group**"), pursuant to the Employment Agreement by and among the Company Group and Executive (the "**Employment Agreement**").

**<u>Waiver and Release</u>.** Subject to the last sentence of the first paragraph of this Section 1, Executive, on his own behalf and on behalf of his heirs, executors, administrators, attorneys and assigns, hereby unconditionally and irrevocably releases, waives and forever discharges the Company Group and each of their affiliates, parents, successors, predecessors, and the subsidiaries, directors, trustees, owners, members, shareholders, officers, agents, and employees of the Company Group and their affiliates, parents, successors, predecessors, and subsidiaries (collectively, all of the foregoing are referred to as the "**Employer**"), from any and all causes of action, claims and damages, including attorneys' fees, whether known or unknown, foreseen or unforeseen, presently asserted or otherwise arising through the date of his signing of this Release, concerning his employment or separation from employment. Subject to the last sentence of the first paragraph of this Section 1, this Release includes, but is not limited to, any payments, benefits or damages arising under any federal law (including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, Executive Order 11246, the Family and Medical Leave Act, and the Worker Adjustment and Retraining Notification Act, each as amended, and all other employment discrimination laws whatsoever as may be created or amended from time to time); any claim arising under any state or local laws, ordinances or regulations (including, but not limited to, any state or local laws, ordinances or regulations requiring that advance notice be given of certain workforce reductions); and any claim arising under any common law principle or public policy, including, but not limited to, all suits in tort or contract, such as wrongful termination, defamation, emotional distress, invasion of privacy or loss of consortium. Notwithstanding any other provision of this Release to the contrary, this Release does not encompass, and Executive does not release, waive or discharge, the obligations of the Company Group (a) to make the payments and provide the other benefits contemplated by the Employment Agreement, or (b) under any restricted stock agreement, option agreement or other agreement pertaining to Executive's equity ownership, or (c) under any indemnification or similar agreement with Executive or indemnification under the Articles of Incorporation, Amended and Restated Agreement of Limited Partnership, Bylaws or other governing instruments of the Company Group.

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&nbsp;&nbsp;&nbsp;&nbsp;Executive understands that by signing this Release, he is not waiving any claims or administrative charges which cannot be waived by law. Nothing in this Release shall be construed to prohibit Executive from commencing or otherwise assisting in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other federal, state or local government agency; provided, however, Executive waives any right to monetary recovery or individual relief in connection with any such proceeding or should one be pursued on his behalf arising out of or related to his employment with and/or separation from employment with the Company Group. For the avoidance of doubt, nothing herein prevents Executive from pursuing a whistleblower claim under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;Executive further agrees without any reservation whatsoever, never to sue the Employer or become a party to a lawsuit on the basis of any and all claims of any type lawfully and validly released in this Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Acknowledgments</u>.** Executive is signing this Release knowingly and voluntarily. He acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;He is hereby advised in writing to consult an attorney before signing this Release;

&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;He has relied solely on his own judgment and/or that of his attorney regarding the consideration for and the terms of this Release and is signing this Release knowingly and voluntarily of his own free will;

&nbsp;&nbsp;&nbsp;&nbsp;€&nbsp;&nbsp;&nbsp;&nbsp;He is not entitled to the Severance Payment unless he agrees to and honors the terms of this Release;

&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;He has been given at least twenty-one (21) calendar days to consider this Release, or he expressly waives his right to have at least twenty-one (21) days to consider this Release;

&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;He may revoke this Release within seven (7) calendar days after signing it by submitting a written notice of revocation to the Employer. He further understands that this Release is not effective or enforceable until after the seven (7) day period of revocation has expired without revocation, and that if he revokes this Release within the seven (7) day revocation period, he will not receive the Severance Payment;

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&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;He has read and understands the Release and further understands that, subject to the limitations contained herein, it includes a general release of any and all known and unknown, foreseen or unforeseen claims presently asserted or otherwise arising through the date of his signing of this Release that he may have against the Employer; and

&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;No statements made or conduct by the Employer has in any way coerced or unduly influenced him to execute this Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;**<u>No Admission of Liability</u>.** This Release does not constitute an admission of liability or wrongdoing on the part of the Employer, the Employer does not admit there has been any wrongdoing whatsoever against the Executive, and the Employer expressly denies that any wrongdoing has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Entire Agreement</u>.** There are no other agreements of any nature between the Employer and Executive with respect to the matters discussed in this Release, except as expressly stated herein, and in signing this Release, Executive is not relying on any agreements or representations, except those expressly contained in this Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Execution</u>.** It is not necessary that the Employer sign this Release following Executive's full and complete execution of it for it to become fully effective and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Severability</u>.** If any provision of this Release is found, held or deemed by a court of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or controlling law, the remainder of this Release shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Governing Law</u>.** This Release shall be governed by the laws of the State of Maryland, excluding the choice of law rules thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;**<u>Headings</u>.** Section and subsection headings contained in this Release are inserted for the convenience of reference only. Section and subsection headings shall not be deemed to be a part of this Release for any purpose, and they shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.

IN WITNESS WHEREOF, the undersigned has duly executed this Agreement as of the day and year first herein above written.

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&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE:

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;Frederick McKalip

## Exhibit 21.1

**EXHIBIT 21.1**

**List of Subsidiaries of RLJ Lodging Trust**

**As of December 31, 2025&nbsp;&nbsp;&nbsp;&nbsp;**

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| | |
|:---|:---|
| **SUBSIDIARY** | **JURISDICTION OF ORGANIZATION** |
| RLJ LODGING TRUST, L.P. | DELAWARE |
| RLJ LODGING TRUST LIMITED PARTNER, LLC | DELAWARE |
| RLJ LODGING ACQUISITIONS, LLC | DELAWARE |
| RLJ LODGING TRUST MASTER TRS, INC. | DELAWARE |
| RLJ LODGING II REIT SUB, LLC | DELAWARE |
| RLJ REAL ESTATE III REIT SUB, LLC | DELAWARE |
| RLJ ART NASHVILLE LESSEE, LLC | DELAWARE |
| RLJ ART NASHVILLE, LLC | DELAWARE |
| RLJ C CHARLESTON HD LESSEE, LLC | DELAWARE |
| RLJ C CHARLESTON HD, LLC | DELAWARE |
| RLJ C HOUSTON HUMBLE GENERAL PARTNER, LLC | DELAWARE |
| RLJ C HOUSTON HUMBLE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ C HOUSTON HUMBLE LESSEE, LP | DELAWARE |
| RLJ C HOUSTON HUMBLE, LP | DELAWARE |
| RLJ C NY UPPER EASTSIDE LESSEE, LLC | DELAWARE |
| RLJ C NY UPPER EASTSIDE, LLC | DELAWARE |
| RLJ C PORTLAND DT LESSEE, LLC | DELAWARE |
| RLJ C PORTLAND DT, LLC | DELAWARE |
| RLJ C SAN FRANCISCO GENERAL PARTNER, LLC | DELAWARE |
| RLJ C SAN FRANCISCO LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ C SAN FRANCISCO LESSEE, LP | DELAWARE |
| RLJ C SAN FRANCISCO, LP | DELAWARE |
| RLJ C WAIKIKI LESSEE, LLC | DELAWARE |
| RLJ C WAIKIKI, LLC | DELAWARE |
| RLJ CABANA MIAMI BEACH LESSEE, LLC | DELAWARE |
| RLJ CABANA MIAMI BEACH, LLC | DELAWARE |
| RLJ DBT KEY WEST CONDOS, LLC | DELAWARE |
| RLJ DBT KEY WEST LESSEE, LLC | DELAWARE |
| RLJ DBT KEY WEST, LLC | DELAWARE |
| RLJ DENVER DT, LLC | DELAWARE |
| RLJ DENVER DT LESSEE, LLC | DELAWARE |
| RLJ EM IRVINE GENERAL PARTNER, LLC | DELAWARE |
| RLJ EM IRVINE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ EM IRVINE LESSEE, LP | DELAWARE |
| RLJ EM IRVINE, LP | DELAWARE |
| RLJ EM WALTHAM LESSEE, LLC | DELAWARE |
| RLJ EM WALTHAM, LLC | DELAWARE |
| RLJ HA ATLANTA MIDTOWN LESSEE, LLC | DELAWARE |
| RLJ HA ATLANTA MIDTOWN, LLC | DELAWARE |
| RLJ HGN EMERYVILLE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HGN EMERYVILLE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HGN EMERYVILLE LESSEE, LP | DELAWARE |

---

------

**EXHIBIT 21.1**

---

| | |
|:---|:---|
| RLJ HGN EMERYVILLE, LP | DELAWARE |
| RLJ HP FREMONT GENERAL PARTNER, LLC | DELAWARE |
| RLJ HP FREMONT LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HP FREMONT LESSEE, LP | DELAWARE |
| RLJ HP FREMONT, LP | DELAWARE |
| RLJ HP MADISON DT LESSEE, LLC | DELAWARE |
| RLJ HP MADISON DT, LLC | DELAWARE |
| RLJ HP WASHINGTON DC LESSEE, LLC | DELAWARE |
| RLJ HP WASHINGTON DC, LLC | DELAWARE |
| RLJ HS SEATTLE LYNNWOOD LESSEE, LLC | DELAWARE |
| RLJ HS SEATTLE LYNNWOOD, LLC | DELAWARE |
| RLJ HY ATLANTA MIDTOWN, LLC | DELAWARE |
| RLJ HY ATLANTA MIDTOWN LESSEE, LLC | DELAWARE |
| RLJ HyH CHARLOTTE LESSEE, LLC | DELAWARE |
| RLJ HyH CHARLOTTE, LLC | DELAWARE |
| RLJ HyH CYPRESS GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH CYPRESS LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH CYPRESS LESSEE, LP | DELAWARE |
| RLJ HyH CYPRESS, LP | DELAWARE |
| RLJ HyH EMERYVILLE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH EMERYVILLE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH EMERYVILLE LESSEE, LP | DELAWARE |
| RLJ HyH EMERYVILLE, LP | DELAWARE |
| RLJ HyH SAN DIEGO GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SAN DIEGO LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SAN DIEGO LESSEE, LP | DELAWARE |
| RLJ HyH SAN DIEGO, LP | DELAWARE |
| RLJ HyH SAN JOSE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SAN JOSE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SAN JOSE LESSEE, LP | DELAWARE |
| RLJ HyH SAN JOSE, LP | DELAWARE |
| RLJ HyH SAN RAMON LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SAN RAMON GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SAN RAMON LESSEE, LP | DELAWARE |
| RLJ HyH SAN RAMON, LP | DELAWARE |
| RLJ HyH SANTA CLARA GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SANTA CLARA LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH SANTA CLARA LESSEE, LP | DELAWARE |
| RLJ HyH SANTA CLARA, LP | DELAWARE |
| RLJ HyH WOODLANDS GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH WOODLANDS LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ HyH WOODLANDS LESSEE, LP | DELAWARE |
| RLJ HyH WOODLANDS, LP | DELAWARE |
| RLJ II - C AUSTIN DT LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - C AUSTIN DT LESSEE, LP | DELAWARE |
| RLJ II - C CHICAGO MAG MILE LESSEE, LLC | DELAWARE |
| RLJ II - C CHICAGO MAG MILE, LLC | DELAWARE |

---

------

**EXHIBIT 21.1**

---

| | |
|:---|:---|
| RLJ II - C HOUSTON GALLERIA GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - C HOUSTON GALLERIA, L.P. | DELAWARE |
| RLJ II - C HOUSTON GALLERIA LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - C HOUSTON GALLERIA LESSEE, L.P. | DELAWARE |
| RLJ II - C INDY CAPITOL LESSEE, LLC | DELAWARE |
| RLJ II - C MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - C MIDWAY, LLC | DELAWARE |
| RLJ II - CR AUSTIN DT GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - CR AUSTIN DT, LP | DELAWARE |
| RLJ II - EM DOWNEY GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - EM DOWNEY LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - EM DOWNEY LESSEE, LP | DELAWARE |
| RLJ II - EM DOWNEY, LP | DELAWARE |
| RLJ II - F KEY WEST LESSEE, LLC | DELAWARE |
| RLJ II - F KEY WEST, LLC | DELAWARE |
| RLJ II - F MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - F MIDWAY, LLC | DELAWARE |
| RLJ II - HA GARDEN CITY LESSEE, LLC | DELAWARE |
| RLJ II - HA GARDEN CITY, LLC | DELAWARE |
| RLJ II - HA MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - HA MIDWAY, LLC | DELAWARE |
| RLJ II - HG MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - HG MIDWAY, LLC | DELAWARE |
| RLJ II - HOLX MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - HOLX MIDWAY, LLC | DELAWARE |
| RLJ II - INDY CAPITOL HOTELS, LLC | DELAWARE |
| RLJ II - MH DENVER S LESSEE, LLC | DELAWARE |
| RLJ II - MH DENVER S, LLC | DELAWARE |
| RLJ II - MH LOUISVILLE DT LESSEE, LLC | DELAWARE |
| RLJ II - MH LOUISVILLE DT, LLC | DELAWARE |
| RLJ II - MH MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - MH MIDWAY, LLC | DELAWARE |
| RLJ II - MIDWAY PARKING, LLC | DELAWARE |
| RLJ II - MIDWAY RESTAURANT LESSEE, LLC | DELAWARE |
| RLJ II - MIDWAY RESTAURANT, LLC | DELAWARE |
| RLJ II - R AUSTIN DT LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ II - R AUSTIN DT LESSEE, LP | DELAWARE |
| RLJ II - R INDY CANAL LESSEE, LLC | DELAWARE |
| RLJ II - R LOUISVILLE DT KY LESSEE, LLC | DELAWARE |
| RLJ II - R LOUISVILLE DT KY, LLC | DELAWARE |
| RLJ II - RH BOULDER LESSEE, LLC | DELAWARE |
| RLJ II - RH BOULDER, LLC | DELAWARE |
| RLJ II - RH PLANTATION LESSEE, LLC | DELAWARE |
| RLJ II - RH PLANTATION, LLC | DELAWARE |
| RLJ II - SLE MIDWAY LESSEE, LLC | DELAWARE |
| RLJ II - SLE MIDWAY, LLC | DELAWARE |
| RLJ II JUNIOR MEZZANINE BORROWER, LLC | DELAWARE |

---

------

**EXHIBIT 21.1**

---

| | |
|:---|:---|
| RLJ II JUNIOR MEZZANINE LESSEE, LLC | DELAWARE |
| RLJ II SENIOR MEZZANINE BORROWER, LLC | DELAWARE |
| RLJ II SENIOR MEZZANINE LESSEE, LLC | DELAWARE |
| RLJ III - EM FORT MYERS, LLC | DELAWARE |
| RLJ III - EM FORT MYERS LESSEE, LLC | DELAWARE |
| RLJ III - EM TAMPA DT, LLC | DELAWARE |
| RLJ III - EM TAMPA DT LESSEE, LLC | DELAWARE |
| RLJ III - EM WEST PALM BEACH, LLC | DELAWARE |
| RLJ III - EM WEST PALM BEACH LESSEE, LLC | DELAWARE |
| RLJ III - EM WEST PALM BEACH PARENT, LLC | DELAWARE |
| RLJ III - F WASHINGTON DC, LLC | DELAWARE |
| RLJ III - F WASHINGTON DC LESSEE, LLC | DELAWARE |
| RLJ III - HG NEW ORLEANS CONVENTION CENTER LESSEE, LLC | DELAWARE |
| RLJ III - HG NEW ORLEANS CONVENTION CENTER, LLC | DELAWARE |
| RLJ III - HGN HOLLYWOOD GENERAL PARTNER, LLC | DELAWARE |
| RLJ III - HGN HOLLYWOOD LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ III - HGN HOLLYWOOD LESSEE, LP | DELAWARE |
| RLJ III - HGN HOLLYWOOD, LP | DELAWARE |
| RLJ III - HGN PITTSBURGH GENERAL PARTNER, LLC | DELAWARE |
| RLJ III - HGN PITTSBURGH LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ III - HGN PITTSBURGH LESSEE, LP | DELAWARE |
| RLJ III - HGN PITTSBURGH, LP | DELAWARE |
| RLJ III - HS WASHINGTON DC, LLC | DELAWARE |
| RLJ III - HS WASHINGTON DC LESSEE, LLC | DELAWARE |
| RLJ III - R NATIONAL HARBOR LESSEE, LLC | DELAWARE |
| RLJ III - R NATIONAL HARBOR, LLC | DELAWARE |
| RLJ III - RH PITTSBURGH GENERAL PARTNER, LLC | DELAWARE |
| RLJ III - RH PITTSBURGH LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ III - RH PITTSBURGH LESSEE, LP | DELAWARE |
| RLJ III - RH PITTSBURGH, LP | DELAWARE |
| RLJ III - ST. CHARLES AVE HOTEL LESSEE, LLC | DELAWARE |
| RLJ III - ST. CHARLES AVE HOTEL, LLC | DELAWARE |
| RLJ MACH BOSTON LESSEE, LLC | DELAWARE |
| RLJ MACH BOSTON, LLC | DELAWARE |
| RLJ MX CHERRY CREEK LESSEE, LLC | DELAWARE |
| RLJ MX CHERRY CREEK, LLC | DELAWARE |
| RLJ R ATLANTA MIDTOWN LESSEE, LLC | DELAWARE |
| RLJ R ATLANTA MIDTOWN, LLC | DELAWARE |
| RLJ R BETHESDA LESSEE, LLC | DELAWARE |
| RLJ R BETHESDA, LLC | DELAWARE |
| RLJ R HOUSTON HUMBLE GENERAL PARTNER, LLC | DELAWARE |
| RLJ R HOUSTON HUMBLE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ R HOUSTON HUMBLE LESSEE, LP | DELAWARE |
| RLJ R HOUSTON HUMBLE, LP | DELAWARE |
| RLJ R LOS ALTOS GENERAL PARTNER, LLC | DELAWARE |
| RLJ R LOS ALTOS LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ R LOS ALTOS LESSEE, LP | DELAWARE |

---

------

**EXHIBIT 21.1**

---

| | |
|:---|:---|
| RLJ R LOS ALTOS, LP | DELAWARE |
| RLJ S HILLSBORO LESSEE, LLC | DELAWARE |
| RLJ S HILLSBORO, LLC | DELAWARE |
| RLJ S HOUSTON HUMBLE GENERAL PARTNER, LLC | DELAWARE |
| RLJ S HOUSTON HUMBLE LESSEE GENERAL PARTNER, LLC | DELAWARE |
| RLJ S HOUSTON HUMBLE LESSEE, LP | DELAWARE |
| RLJ S HOUSTON HUMBLE, LP | DELAWARE |
| RLJ W BEACON HILL, LLC | DELAWARE |
| RANGERS SUB I, LLC | MARYLAND |
| RANGERS GENERAL PARTNER, LLC | DELAWARE |
| RLJ LODGING FUND II ACQUISITIONS, LLC | DELAWARE |
| RLJ REAL ESTATE FUND III ACQUISITIONS, LLC | DELAWARE |
| BHR OPERATIONS, L.L.C. | DELAWARE |
| BIRMINGHAM ES HOTEL, L.L.C. | DELAWARE |
| BIRMINGHAM ES LEASING, L.L.C. | DELAWARE |
| BIRMINGHAM HOTEL HOLDCO, L.L.C. | DELAWARE |
| BIRMINGHAM LEASING HOLDCO, L.L.C. | DELAWARE |
| CHARLESTON MILLS HOUSE HOTEL HOLDCO, L.L.C. | DELAWARE |
| CHARLESTON MILLS HOUSE HOTEL, L.L.C. | DELAWARE |
| CHARLESTON MILLS HOUSE LESSEE, L.L.C. | DELAWARE |
| DEERFIELD BEACH ES HOTEL, L.L.C. | DELAWARE |
| DEERFIELD BEACH ES LEASING, L.L.C. | DELAWARE |
| DEERFIELD BEACH HOTEL HOLDCO, L.L.C. | DELAWARE |
| DEERFIELD BEACH LEASING HOLDCO, L.L.C. | DELAWARE |
| DJONT OPERATIONS, L.L.C. | DELAWARE |
| DJONT/CMB BUCKHEAD LEASING, L.L.C. | DELAWARE |
| DJONT/CMB ORSOUTH LEASING, L.L.C. | DELAWARE |
| DJONT/CMB SSF LEASING, L.L.C. | DELAWARE |
| DJONT/JPM HOSPITALITY LEASING (SPE), L.L.C. | DELAWARE |
| DJONT/JPM HOSPITALITY LEASING HOLDCO (SPE), L.L.C. | DELAWARE |
| DJONT/JPM LEASING, L.L.C. | DELAWARE |
| DJONT/JPM PHOENIX LEASING, L.L.C. | DELAWARE |
| FCH HH KNICKERBOCKER LEASING, L.L.C. | DELAWARE |
| FCH HH KNICKERBOCKER OWNER, L.P. | DELAWARE |
| FELCOR AUSTIN DOWNTOWN HOTEL, L.L.C. | DELAWARE |
| FELCOR AUSTIN DOWNTOWN LESSEE, L.L.C. | DELAWARE |
| FELCOR CHAT-LEM, L.L.C. | DELAWARE |
| FELCOR FQ HOTEL, L.L.C. | DELAWARE |
| FELCOR FQ LESSEE, L.L.C. | DELAWARE |
| FELCOR HOLDINGS TRUST | MASSACHUSETTS |
| FELCOR HOTEL ASSET COMPANY, L.L.C. | DELAWARE |
| FELCOR HOTEL OPERATING COMPANY, L.L.C. | DELAWARE |
| FELCOR LAX LESSEE, L.L.C. | DELAWARE |
| FELCOR LODGING LIMITED PARTNERSHIP | DELAWARE |
| FELCOR MILPITAS OWNER, L.L.C. | DELAWARE |
| FELCOR PENNSYLVANIA COMPANY, L.L.C. | DELAWARE |
| FELCOR SANTA MONICA LESSEE, L.L.C. | DELAWARE |

---

------

**EXHIBIT 21.1**

---

| | |
|:---|:---|
| FELCOR SANTA MONICA OWNER, L.L.C. | DELAWARE |
| FELCOR TRS BORROWER 4, L.L.C. | DELAWARE |
| FELCOR TRS HOLDINGS, L.L.C. | DELAWARE |
| FELCOR UNION SQUARE HOTEL, L.L.C. | DELAWARE |
| FELCOR UNION SQUARE LESSEE, L.L.C. | DELAWARE |
| FELCOR/CMB BUCKHEAD HOTEL, L.L.C. | DELAWARE |
| FELCOR/CMB ORSOUTH HOLDINGS, L.P. | DELAWARE |
| FELCOR/CMB ORSOUTH HOTEL, L.L.C. | DELAWARE |
| FELCOR/CMB SSF HOLDINGS, L.P. | DELAWARE |
| FELCOR/CMB SSF HOTEL, L.L.C. | DELAWARE |
| FELCOR/CSS (SPE), L.L.C. | DELAWARE |
| FELCOR/CSS HOLDINGS, L.P. | DELAWARE |
| FELCOR/CSS HOTELS, L.L.C. | DELAWARE |
| FELCOR/IOWA-NEW ORLEANS CHAT-LEM HOTEL, L.L.C. | DELAWARE |
| FELCOR/JPM HOSPITALITY (SPE), L.L.C. | DELAWARE |
| FELCOR/JPM HOSPITALITY HOLDCO (SPE), L.L.C. | DELAWARE |
| FELCOR/JPM HOTELS, L.L.C. | DELAWARE |
| FELCOR/JPM PHOENIX HOTEL, L.L.C. | DELAWARE |
| FELCOR/LAX HOTELS, L.L.C. | DELAWARE |
| FT. LAUDERDALE ES HOTEL, L.L.C. | DELAWARE |
| FT. LAUDERDALE ES LEASING, L.L.C. | DELAWARE |
| FT. LAUDERDALE HOTEL HOLDCO, L.L.C. | DELAWARE |
| FT. LAUDERDALE LEASING HOLDCO, L.L.C. | DELAWARE |
| HI CHAT-LEM/IOWA-NEW ORLEANS VENTURE | LOUISIANA |
| KNICKERBOCKER HOLDING PARTNERSHIP, L.P. | DELAWARE |
| KNICKERBOCKER HOTEL OWNER GP, L.L.C. | DELAWARE |
| KNICKERBOCKER HOTEL OWNER, L.L.C. | DELAWARE |
| KNICKERBOCKER LEASING HOLDCO GP, L.L.C. | DELAWARE |
| KNICKERBOCKER LEASING HOLDCO, L.L.C. | DELAWARE |
| KNICKERBOCKER MASTER LESSEE, L.P. | DELAWARE |
| KNICKERBOCKER TRS, L.L.C. | DELAWARE |
| MIAMI AP HOTEL HOLDCO, L.L.C. | DELAWARE |
| MIAMI AP HOTEL LESSEE, L.L.C. | DELAWARE |
| MIAMI AP HOTEL, L.L.C. | DELAWARE |
| MINNEAPOLIS ES HOTEL, L.L.C. | DELAWARE |
| MINNEAPOLIS ES LEASING, L.L.C. | DELAWARE |
| MINNEAPOLIS HOTEL HOLDCO, L.L.C. | DELAWARE |
| MINNEAPOLIS LEASING HOLDCO, L.L.C. | DELAWARE |

---

## Exhibit 23.1

**EXHIBIT 23.1**

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-281753 and No. 333-281751) and Form S-8 (No. 333-203947 and No. 333-255753) of RLJ Lodging Trust of our report dated February 27, 2026 relating to the financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Washington, District of Columbia

February 27, 2026

## Exhibit 31.1

**EXHIBIT 31.1**

**Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Leslie D. Hale, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this Annual Report on Form 10-K of RLJ Lodging Trust;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Dated: February 27, 2026 | /s/ LESLIE D. HALE |
| | **Leslie D. Hale** |
|  | President and Chief Executive Officer |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Nikhil Bhalla, certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this Annual Report on Form 10-K of RLJ Lodging Trust;

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Dated: February 27, 2026 | /s/ NIKHIL BHALLA |
| | **Nikhil Bhalla** |
|  | Senior Vice President, Chief Financial Officer and Treasurer |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**Certification Pursuant To**

**18 U.S.C. Section 1350, as Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report of RLJ Lodging Trust (the "Company") on Form 10-K for the period ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Leslie D. Hale, President and Chief Executive Officer of the Company, and I, Nikhil Bhalla, Senior Vice President, Chief Financial Officer and Treasurer of the Company, certify, to our knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Dated: February 27, 2026 | /s/ LESLIE D. HALE |
| | **Leslie D. Hale** |
|  | President and Chief Executive Officer |
|  | /s/ NIKHIL BHALLA |
| | **Nikhil Bhalla** |
|  | Senior Vice President, Chief Financial Officer and Treasurer |

---

<br>