The historical rank and industry rank for RLJ Lodging Trust's Gross Margin % or its related term are showing as below:
RLJ'
s Gross Margin % Range Over the Past 10 Years
Min: -4.64 Med: 30.76 Max: 35.74
Current: 28.07
During the past 13 years, the highestGross Margin % of RLJ Lodging Trust was 35.74%. The lowest was -4.64%. And the median was 30.76%.
RLJ's Gross Margin % is ranked worse than 95.07% of 689
companies
in the REITs industry
Industry Median: 68.85
vs RLJ: 28.07
RLJ Lodging Trust had a gross margin of 26.56% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for RLJ Lodging Trust was 0.00% per year.
RLJ Lodging Trust Gross Margin % Historical Data
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.
Competitive Comparison of RLJ Lodging Trust's Gross Margin %
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's Gross Margin % Distribution in the 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.
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 26.56% for the quarter that ended in Dec. 2024 => 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
Thank you for viewing the detailed overview of RLJ Lodging Trust's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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