UPDATE: Bank of America Merrill Lynch Initiates RLJ Lodging Trust at Neutral

Bank of America Merrill Lynch is out with its report today on RLJ Lodging Trust (NYSE: RLJ), initiating RLJ at Neutral.

In a note to clients, Bank of America Merrill Lynch writes, "We are initiating with a Neutral rating and a $20 Price Objective. RLJ is a self-advised and self-administered hotel REIT focused on acquiring focused service and compact full-service hotels. The company completed its IPO in May 2011. In our opinion, RLJ maintains a competitive edge in the focused service segment of the market and a solid margin profile with yield potential, but its current valuation and its exposure to slower growth markets keeps risk-reward balanced."

Shares of RLJ closed Thursday at $17.38.