RLJ Lodging TrustRLJ +0.44%76 Operating Margin % is 8.19% as of Mar. 2026, which is 27% below its 10-year median of 11.24. 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 750 REITs companies, RLJ Lodging Trust ranks worse than 88.27% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
RLJ Lodging Trust Operating Margin % Related Terms
RLJ Lodging Trust Operating Margin % Historical Data
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The historical data trend for RLJ Lodging Trust's Operating 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.
RLJ vs XHR, PEB, SVC: Operating Margin % Comparison
For the REIT - Hotel & Motel subindustry, RLJ Lodging Trust's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, RLJ Lodging Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where RLJ Lodging Trust's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
RLJ Lodging Trust's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 8.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on RLJ Lodging Trust and its competitors. This is 27% below median its historical median of 11.24. According to the industry distribution chart, RLJ Lodging Trust ranks #662 out of 750 companies in the REITs industry, placing it in the top 88.3%.
Is RLJ Lodging Trust's Operating Margin % too high?
RLJ Lodging Trust's current Operating Margin % of 8.19% is 27% below median its 10-year median of 11.24. The REITs industry median Operating Margin % is 52.67. RLJ Lodging Trust's value of 8.19% is 84.5% below this industry median. Based on the distribution chart, RLJ Lodging Trust ranks #662 out of 750 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 Operating Margin % compare to XHR and PEB?
According to the REITs industry distribution chart, RLJ Lodging Trust ranks #662 out of 750 companies for Operating Margin %. This places RLJ Lodging Trust in the lower half of its industry. The industry median Operating Margin % is 52.67. RLJ Lodging Trust's value of 8.19% is 84.5% below this benchmark. While the company's 10-year median is 11.24 vs. the industry median of 52.67, 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 Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.67, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RLJ Lodging Trust's current Operating Margin % of 8.19% is 84.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on RLJ Lodging Trust and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RLJ Lodging Trust's current Operating Margin % is 8.19%, which is 27% below median its own 10-year median of 11.24. 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 $11.37 — trading 14.4% above its estimated fair value. The current Operating Margin % is 8.19%, which is 27% below median its 10-year median of 11.24 and 84.5% below the REITs industry median of 52.67. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For RLJ Lodging Trust (RLJ), the current Operating Margin % is 8.19% 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 $11.37 is trading 14.4% above its estimated GF Value™ of $9.94.
GuruFocus considers RLJ Lodging Trust to be Modestly Overvalued.
Key valuation signals for RLJ:
Operating Margin %: 8.19% (27% below median its 10-year median of 11.24)
GF Value™: $9.94 vs. price of $11.37 (14.4% above fair value)
Industry Position: 84.5% below the REITs median (#662 of 750)
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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