Aegis Value Fund on RLJ Lodging Trust
Thesis
Aegis continued building its RLJ Lodging Trust position during the first half. The hotel REITs in the portfolio were trading at steep discounts to replacement cost while the fund expected a favorable 2026 demand calendar from the FIFA World Cup and America's 250th anniversary. Hotel supply growth has also remained unusually subdued, which Aegis believes supports industry fundamentals. The investment therefore combines depressed asset valuation with a potentially improving demand backdrop.
“we continued to build our position in RLJ Lodging Trust (RLJ)”