RLJ Lodging Trust (NYSE:RLJ) Downgraded to Sell at StockNews.com

RLJ Lodging Trust (NYSERLJ) is a real estate investment trust that owns and operates hotels in the United States. The company's portfolio consists of 127 hotels with over 15,000 rooms located primarily in the Mid-Atlantic region.

On August 31, 2021, StockNews.com downgraded RLJ Lodging Trust from a "Hold" to a "Sell" rating. This change was based on several factors, including the company's declining revenue and earnings per share (EPS) in recent quarters.

In the second quarter of 2021, RLJ Lodging Trust reported revenue of $54.8 million, which was a 37% decline from the same period last year. The company also reported an EPS of $0.19, which was a 67% decline from the same period last year. These declines were primarily due to the ongoing impact of the COVID-19 pandemic on the hospitality industry.

In addition to its declining financial performance, RLJ Lodging Trust also faces several other challenges. The company has a high level of debt, with a debt-to-equity ratio of 5.2x as of June 30, 2021. This high level of debt makes the company more vulnerable to economic downturns and increases its risk of defaulting on its debt obligations.

Furthermore, the hospitality industry is highly competitive, with many other companies operating in the same space. RLJ Lodging Trust faces competition from both established players and new entrants, which could make it difficult for the company to maintain its market position and generate consistent returns for its shareholders.

Overall, based on these factors, StockNews.com downgraded RLJ Lodging Trust from a "Hold" to a "Sell" rating. This suggests that investors may want to consider selling their shares in the company and looking for other investment opportunities with better growth prospects and lower risk.