RLJ Lodging TrustRLJ +0.27%76 Gross Margin % is 25.89% as of Mar. 2026, which is 13% below its 10-year median of 29.91. GuruFocus rates RLJ with a GF Score™ of 76/100 and a GF Value™ of $9.94 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 680 REITs companies, RLJ Lodging Trust ranks worse than 94.56% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
RLJ Lodging Trust had a gross margin of 25.89% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
RLJ Lodging Trust Gross Margin % Related Terms
RLJ Lodging Trust Gross Margin % Historical Data
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The historical data trend for RLJ Lodging Trust's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Hotel & Motel subindustry, RLJ Lodging Trust's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RLJ Lodging Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, RLJ Lodging Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RLJ Lodging Trust's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
RLJ Lodging Trust (RLJ) has a Gross Margin % of 25.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on RLJ Lodging Trust and its competitors. This is 13% below median its historical median of 29.91. According to the industry distribution chart, RLJ Lodging Trust ranks #643 out of 680 companies in the REITs industry, placing it in the top 94.6%.
Is RLJ Lodging Trust's Gross Margin % too high?
RLJ Lodging Trust's current Gross Margin % of 25.89% is 13% below median its 10-year median of 29.91. The REITs industry median Gross Margin % is 69.61. RLJ Lodging Trust's value of 25.89% is 62.8% below this industry median. Based on the distribution chart, RLJ Lodging Trust ranks #643 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, RLJ Lodging Trust has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RLJ Lodging Trust's Gross Margin % compare to XHR and PEB?
According to the REITs industry distribution chart, RLJ Lodging Trust ranks #643 out of 680 companies for Gross Margin %. This places RLJ Lodging Trust in the lower half of its industry. The industry median Gross Margin % is 69.61. RLJ Lodging Trust's value of 25.89% is 62.8% below this benchmark. While the company's 10-year median is 29.91 vs. the industry median of 69.61, RLJ Lodging Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.61, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLJ Lodging Trust's current Gross Margin % of 25.89% is 62.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on RLJ Lodging Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLJ Lodging Trust's current Gross Margin % is 25.89%, which is 13% below median its own 10-year median of 29.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RLJ Lodging Trust stock overvalued right now?
Based on GuruFocus' analysis, RLJ Lodging Trust (RLJ) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.94, compared to a current price of $11.35 — trading 14.2% above its estimated fair value. The current Gross Margin % is 25.89%, which is 13% below median its 10-year median of 29.91 and 62.8% below the REITs industry median of 69.61. RLJ Lodging Trust's overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For RLJ Lodging Trust (RLJ), the current Gross Margin % is 25.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RLJ Lodging Trust (RLJ) Overvalued in 2026?
Based on GuruFocus' analysis, RLJ Lodging Trust stock appears to be overvalued.
The current stock price of $11.35 is trading 14.2% above its estimated GF Value™ of $9.94.
GuruFocus considers RLJ Lodging Trust to be Modestly Overvalued.
Key valuation signals for RLJ:
Gross Margin %: 25.89% (13% below median its 10-year median of 29.91)
GF Value™: $9.94 vs. price of $11.35 (14.2% above fair value)
Industry Position: 62.8% below the REITs median (#643 of 680)
No single metric tells the full story. See the RLJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RLJ Lodging Trust is a real estate investment trust focused on premium-branded, rooms-oriented, high-margin, focused-service, and compact full-service hotels located within the heart of demand locations. Its hotels are geographically diverse and concentrated in urban markets providing multiple demand generators from business, leisure, and other travelers. Its hotels are under the Marriott, Hilton, and Hyatt brand names. The Hotel is a single reportable segment. Its hotel segment revenues are derived from the operation of hotel properties which includes room revenue by renting hotel rooms, food and beverage revenue from the sale of food and beverages, and other revenue from parking fees, resort fees, gift shop sales, and other guest service fees.
76GF Score
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