RLJ Lodging Trust (RLJ) is back in focus after stronger than expected first quarter 2026 results, with earnings and revenue topping forecasts and its stock setting a fresh 52 week high.

The recent move to a fresh 52 week high and a 1 month share price return of 22.04% caps a strong run. The year to date share price return is 33.20% and the 1 year total shareholder return is 53.20%. However, the 5 year total shareholder return is still down 23.51%, indicating that momentum has picked up only more recently as investors reassess the recovery story and perceived risks after the first quarter beat.

If this rebound in a hotel focused REIT has your attention, it may be a suitable time to see what else is moving and scan 20 top founder-led companies

With RLJ Lodging Trust now trading above analyst price targets yet screening as intrinsically discounted, you have to ask whether the recent surge still leaves room for upside or if the market is already pricing in the recovery story.

Most Popular Narrative: 12.3% Undervalued

On this narrative, RLJ Lodging Trust's fair value of $11.62 sits above the last close at $10.19, which helps frame the recent share price strength.

Focus on growing out of room spend through food and beverage concepts, markets, repurposed meeting space and other ancillary offerings, which already saw non room revenue growth outpace RevPAR, gives RLJ additional revenue streams with attractive margins that can support total revenue and hotel EBITDA even when occupancy is under pressure.

It is worth examining what kind of revenue mix, margin lift and earnings trajectory sit behind that value gap. The narrative leans on specific growth rates and profitability targets that go well beyond a simple rebound story.

Result: Fair Value of $11.62 (UNDERVALUED)

However, this optimistic setup still depends on event-driven urban demand and out-of-room spending trends, so softer calendars or weaker guest spend could quickly challenge it.

Next Steps

With sentiment clearly mixed, and with both risks and rewards on the table, it makes sense to review the numbers yourself and form a clear view based on 3 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.