RLJ Lodging TrustRLJ +0.62%76 Interest Coverage is 1.08 as of Mar. 2026, which is 50% below its 10-year median of 2.14. 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 701 REITs companies, RLJ Lodging Trust ranks worse than 85.02% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. RLJ Lodging Trust's
Operating Income
for the
three
months ended in Mar. 2026 was $28 Mil. RLJ Lodging Trust's Interest Expense for the
three
months ended in Mar. 2026 was $-26 Mil.
RLJ Lodging Trust's interest coverage for the quarter that ended in Mar. 2026 was 1.08.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for RLJ Lodging Trust's Interest Coverage or its related term are showing as below:
RLJ'
s Interest Coverage Range Over the Past 10 Years
Min: 1.21 Med: 2.14 Max: 4.02
Current: 1.23
RLJ's Interest Coverage is ranked worse than 85.02% of 701
companies
in the REITs industry
Industry Median: 3.12
vs RLJ: 1.23
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
RLJ Lodging Trust Interest Coverage Related Terms
RLJ Lodging Trust Interest Coverage Historical Data
* Premium members only.
The historical data trend for RLJ Lodging Trust's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
RLJ vs XHR, PEB, SVC: Interest Coverage Comparison
For the REIT - Hotel & Motel subindustry, RLJ Lodging Trust's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, RLJ Lodging Trust's Interest Coverage distribution charts can be found below:
* The bar in red indicates where RLJ Lodging Trust's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
RLJ Lodging Trust (RLJ) has a Interest Coverage of 1.08 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on RLJ Lodging Trust and its competitors. This is 50% below median its historical median of 2.14. Over the past decade, RLJ Lodging Trust's Interest Coverage has ranged from 1.21 to 4.02. According to the industry distribution chart, RLJ Lodging Trust ranks #596 out of 701 companies in the REITs industry, placing it in the top 85%.
Is RLJ Lodging Trust's Interest Coverage too high?
RLJ Lodging Trust's current Interest Coverage of 1.08 is 50% below median its 10-year median of 2.14. Over the past 10 years, this metric has ranged from a low of 1.21 to a high of 4.02. The REITs industry median Interest Coverage is 3.12. RLJ Lodging Trust's value of 1.08 is 65.4% below this industry median. Based on the distribution chart, RLJ Lodging Trust ranks #596 out of 701 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 Interest Coverage compare to XHR and PEB?
According to the REITs industry distribution chart, RLJ Lodging Trust ranks #596 out of 701 companies for Interest Coverage. This places RLJ Lodging Trust in the lower half of its industry. The industry median Interest Coverage is 3.12. RLJ Lodging Trust's value of 1.08 is 65.4% below this benchmark. Historically, RLJ Lodging Trust's own Interest Coverage has ranged from 1.21 to 4.02 over the past decade. While the company's 10-year median is 2.14 vs. the industry median of 3.12, 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 Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLJ Lodging Trust's current Interest Coverage of 1.08 is 65.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on RLJ Lodging Trust and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLJ Lodging Trust's current Interest Coverage is 1.08, which is 50% below median its own 10-year median of 2.14. 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 $11.39 — trading 14.6% above its estimated fair value. The current Interest Coverage is 1.08, which is 50% below median its 10-year median of 2.14 and 65.4% below the REITs industry median of 3.12. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For RLJ Lodging Trust (RLJ), the current Interest Coverage is 1.08 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 $11.39 is trading 14.6% above its estimated GF Value™ of $9.94.
GuruFocus considers RLJ Lodging Trust to be Modestly Overvalued.
Key valuation signals for RLJ:
Interest Coverage: 1.08 (50% below median its 10-year median of 2.14)
GF Value™: $9.94 vs. price of $11.39 (14.6% above fair value)
Industry Position: 65.4% below the REITs median (#596 of 701)
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
Get the complete analysis for RLJ
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