Raymond James downgrades RLJ Lodging Trust stock rating on valuation

Raymond James has downgraded RLJ Lodging Trust's stock rating to Market Perform from Outperform due to valuation concerns. The firm highlighted that RLJ Lodging Trust shares have risen 50% year-to-date, trading at approximately 20% below its net asset value and at 11 times the 2027 enterprise value to EBITDA. Despite the stock's impressive performance, which includes a 55% year-to-date total return and 62% gain over the past year, Raymond James believes there are more attractive opportunities within the lodging REIT sector.

The company reported strong Q2 2026 earnings, surpassing expectations with adjusted earnings per share of $0.16 and revenue of $382.99 million, while also experiencing a 6.8% increase in comparable RevPAR.

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