RLJ Lodging Trust Highlighted as a Top Pick at Oppenheimer

Oppenheimer analysts provided their views on RLJ Lodging Trust (NYSE:RLJ), highlighting it as their Top Pick in the lodging REIT sector, expecting the company to have the fastest 2023 revenue growth in the sector at 13% year-over-year.

According to the analysts, this will be driven by its exposure to urban markets and favorable comps. The analysts believe urban markets should be outperformers in 2023 given increasing international demand, continued recovery in corporate travel, and strong trends from leisure/group business.

The analysts also think the company has a competitive advantage given its financial flexibility allows it to pursue multiple capital allocation avenues at the same time. They believe shares offer a compelling risk/reward, and maintained their Outperform rating and $17 price target.