Stock fact sheet · data as of
RLJ Lodging Trust (RLJ): fair value, margin of safety and Wheel Score
Real Estate · REIT - Hotel & Motel · United States · High Yield Income
Is RLJ undervalued?
RLJ Lodging Trust (RLJ) closed at 11.38 on 16 Oct 2026, close to the GLS average fair value of 10.77 (5.6% above fair value). 2 of the 9 models that produced a number sit above the price, 7 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
The 9 models disagree widely: GLS Growth gives 1.83 while 10 Cap gives 35.76. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RLJ under High Yield Income: a dividend yield above 4%.
Nine valuation models for RLJ
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 14.88 | +31% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.70 | -32% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 10.47 | -8% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.58 | -60% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1.83 | -84% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 35.76 | +214% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 10.87 | -4% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 8.83 | -22% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.03 | -82% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -13.52 | -219% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 11.75 | +3% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - RLJ passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 1.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 0.6%, ROE 1.3%, ROA 0.6% - with debt at 1.07 times equity and a free-cash-flow yield of 15.4%.
The dividend yield is high at 5.27% (payout ratio 425%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Occupancy 81%, Food and Beverage 11%, Hotel, Other 7% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 0.6% |
|---|---|---|---|
| GLS Moat | 1.8 / 10 | ROE | 1.3% |
| Debt / equity | 1.07 | ROA | 0.6% |
| Free-cash-flow yield | 15.4% | Payout ratio | 425% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 63: Fair
RLJ scores 63 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 10/25, Health 13/20, Moat 3/15, Premium 20/20, Stability 17/20. Moat (3/15) is where the points are missing.
Implied volatility is 60% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. Chain open interest is 5,343 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.8M shares a day on a market cap of $1.7B, with a beta of 1.14; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 10 / 25 | -6% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 3 / 15 | moat 1.8/10 | |
| Premium | 20 / 20 | implied volatility 60% | |
| Stability | 17 / 20 | 1.8M shares/day, $1.7B cap, beta 1.14 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (after the close), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Hotel & Motel
The 12 companies below are the closest to RLJ Lodging Trust by market cap within the REIT - Hotel & Motel industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| XHR Xenia Hotels & Resorts, Inc. | 18.32 | 29.26 | +37% | 45Weak | $1.7B |
| SHO Sunstone Hotel Investors, Inc. | 11.51 | 10.57 | -9% | 63Fair | $2.1B |
| PEB Pebblebrook Hotel Trust | 19.11 | 37.02 | +48% | 45Weak | $2.2B |
| DRH DiamondRock Hospitality Company | 13.28 | 9.32 | -43% | 58Fair | $2.7B |
| PK Park Hotels & Resorts Inc. | 15.15 | 14.96 | -1% | 45Weak | $3.1B |
| SVC Service Properties Trust | 5.85 | 97.79 | +94% | 45Weak | $758M |
| APLE Apple Hospitality REIT, Inc. | 16.86 | 17.08 | +1% | 67Good | $4.0B |
| INN Summit Hotel Properties, Inc. | 6.42 | 35.04 | +82% | 45Weak | $692M |
| CLDT Chatham Lodging Trust | 14.14 | 11.54 | -23% | 52Fair | $658M |
| RHP Ryman Hospitality Properties, Inc. | 122.83 | 133.99 | +8% | 68Good | $8.4B |
| HST Host Hotels & Resorts, Inc. | 23.85 | 21.56 | -11% | 67Good | $16.3B |
| BHR Braemar Hotels & Resorts Inc. | 1.39 | 34.92 | +96% | 45Weak | $95M |
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Start free See the Sunday ScanQuestions about RLJ
Is RLJ undervalued right now?
Not meaningfully: at 11.38 the stock trades within a few percent of the GLS average fair value of 10.77 (5.6% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of RLJ and what does it mean?
RLJ scores 63 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RLJ?
10.77 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does RLJ Lodging Trust report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RLJ have listed options, and how liquid are they?
Yes. The nightly snapshot found 86 listed contracts with 5,343 open interest across all expiries and implied volatility of 60% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.