RLJ Lodging Trust has announced it is aggressively taking measures to mitigate the operational and financial impacts on its hotels from the COVID-19 pandemic.
The company, along with its operators, has temporarily suspended operations at over 50% of its hotels. It plans to review the suspension of operations at its remaining hotels over the coming weeks.
Under the cost containment initiatives, it has significantly reduced staffing, eliminated non-essential amenities & services and closed several floors and all food & beverage outlets at properties.
RLJ Lodging intends to cut down its 2020 capital expenditure programme by over 80% by deferring all capital investments, other than those projects that are underway and nearing completion.
It also reviewed all 2020 ROI initiatives and has decided to suspended 90% of these projects.
The firm also took the step to boost its liquidity position by drawing $400m under its $600m corporate line of credit, adding to its current cash balance of around $800m. It also has no scheduled debt maturities until 2022.