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RLJ Lodging Trust (RLJ Lodging Trust) Gross Margin %

: 27.36% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. RLJ Lodging Trust's Gross Profit for the three months ended in Dec. 2023 was $87.47 Mil. RLJ Lodging Trust's Revenue for the three months ended in Dec. 2023 was $319.71 Mil. Therefore, RLJ Lodging Trust's Gross Margin % for the quarter that ended in Dec. 2023 was 27.36%.


The historical rank and industry rank for RLJ Lodging Trust's Gross Margin % or its related term are showing as below:

RLJpA.PFD' s Gross Margin % Range Over the Past 10 Years
Min: -4.64   Med: 31.22   Max: 35.74
Current: 29.47


During the past 13 years, the highest Gross Margin % of RLJ Lodging Trust was 35.74%. The lowest was -4.64%. And the median was 31.22%.

RLJpA.PFD's Gross Margin % is ranked worse than
94.63% of 633 companies
in the REITs industry
Industry Median: 68.71 vs RLJpA.PFD: 29.47

RLJ Lodging Trust had a gross margin of 27.36% for the quarter that ended in Dec. 2023 => 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.

* Premium members only.

RLJ Lodging Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.27 -4.64 23.58 30.35 29.47

RLJ Lodging Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.37 28.25 33.74 28.09 27.36

Competitive Comparison

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 % Distribution

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.



RLJ Lodging Trust Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

RLJ Lodging Trust's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=390.7 / 1325.577
=(Revenue - Cost of Goods Sold) / Revenue
=(1325.577 - 934.896) / 1325.577
=29.47 %

RLJ Lodging Trust's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=87.5 / 319.708
=(Revenue - Cost of Goods Sold) / Revenue
=(319.708 - 232.241) / 319.708
=27.36 %

* 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  (NYSE:RLJpA.PFD) Gross Margin % Explanation

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 27.36% for the quarter that ended in Dec. 2023 => 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

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RLJ Lodging Trust (RLJ Lodging Trust) Business Description

Traded in Other Exchanges
Address
3 Bethesda Metro Center, Suite 1000, Bethesda, MD, USA, 20814
RLJ Lodging Trust is a real estate investment trust that acquires focused-service and compact full-service hotels. Its portfolio consists of hotels in various states across the United States and the District of Columbia. Its hotels are under the Marriott, Hilton, and Hyatt brand names. These hotels are concentrated in urban areas, dense suburban markets, and business districts within metropolitan areas where utmost of their customers are business, leisure, and other travelers. Its revenue streams include hotel operations revenue, which is composed of the sale of rooms, food, and beverages, and other property revenue. The company derives the substantial majority of its revenue from the operation of hotels.