Xenia Hotels & Resorts Reports Fourth Quarter and Full Year 2024 Results
Fourth Quarter 2024 Highlights
-
Net Loss: Net loss attributable to common stockholders was
$0.6 million , or$0.01 per share -
Adjusted EBITDAre:
$59.2 million , decreased 0.5% compared to the fourth quarter of 2023 -
Adjusted FFO per Diluted Share:
$0.39 , decreased 4.9% compared to the fourth quarter of 2023 - Same-Property Occupancy: 64.4%, increased 250 basis points compared to the fourth quarter of 2023
-
Same-Property ADR:
$257.52 , increased 1.0% compared to the fourth quarter of 2023 -
Same-Property RevPAR:
$165.92 , increased 5.1% compared to the fourth quarter of 2023. Excluding Grand Hyatt Scottsdale Resort, which underwent a transformative renovation, RevPAR was$168.34 , an increase of 3.4% compared to the fourth quarter of 2023. -
Same-Property Hotel EBITDA :$62.9 million , decreased 0.6% compared to the fourth quarter of 2023. Excluding Grand Hyatt Scottsdale Resort,Same-Property Hotel EBITDA was$63.0 million , flat compared to the fourth quarter of 2023. -
Same-Property Hotel EBITDA Margin : 24.0%, decreased 120 basis points compared to the fourth quarter of 2023. Excluding Grand Hyatt Scottsdale Resort,Hotel EBITDA Margin was 25.1%, a decrease of 68 basis points compared to the fourth quarter of 2023. -
Financing Activity: As previously disclosed, in November, the Company upsized and extended its corporate credit facility. The amended
$825 million credit facility is comprised of a$500 million revolving line of credit and$325 million in term loans. The amended credit facility matures inNovember 2028 . In November, the Company issued$400 million of 6.625% Senior Notes maturing inMay 2030 . Together with cash on hand, proceeds from the new issuance were used to repay the then outstanding 6.375% Senior Notes dueAugust 2025 . -
Dividends: The Company declared its fourth quarter dividend of
$0.12 per share to common stockholders of record onDecember 31, 2024 . -
Capital Markets Activities: The Company repurchased a total of 515,876 shares of common stock at a weighted-average price of
$14.83 per share for a total consideration of approximately$7.6 million .
Full Year 2024 Highlights
-
Net Income: Net income attributable to common stockholders was
$16.1 million , or$0.15 per share -
Adjusted EBITDAre:
$237.1 million , decreased 5.8% compared to the same period in 2023 -
Adjusted FFO per Diluted Share:
$1.59 , increased 3.2% compared to the same period in 2023 - Same-Property Occupancy: 67.4%, increased 230 basis points compared to the same period in 2023
-
Same-Property ADR:
$255.72 , decreased 1.9% compared to the same period in 2023 -
Same-Property RevPAR:
$172.47 , increased 1.6% compared to the same period in 2023. Excluding Grand Hyatt Scottsdale Resort, RevPAR was$176.62 , an increase of 3.4% compared to the same period in 2023. -
Same-Property Hotel EBITDA :$255.4 million , decreased 5.5% compared to the same period in 2023. Excluding Grand Hyatt Scottsdale Resort,Same-Property Hotel EBITDA was$256.7 million , an increase of 1.3% compared to the same period in 2023. -
Same-Property Hotel EBITDA Margin : 24.7%, decreased 189 basis points compared to the same period in 2023. Excluding Grand Hyatt Scottsdale Resort,Hotel EBITDA Margin was 25.7%, a decrease of 64 basis points compared to the same period in 2023. -
Transaction Activity: Sold the 107-room
Lorien Hotel & Spa inAlexandria, VA for$30.0 million in the third quarter. -
Dividends: For the full year 2024, the Company declared a total of
$0.48 of dividends per share to common stockholders which represented a 3.5% yield relative to the Company's stock price onDecember 29, 2023 . -
Capital Markets Activities: The Company repurchased a total of 1,130,846 shares of common stock at a weighted-average price of
$14.02 per share for a total consideration of approximately$15.8 million .
"We are pleased to have finished a challenging 2024 with positive momentum in the fourth quarter, both from a portfolio performance perspective and through the completion of the significant capital improvement projects that weighed on our portfolio results during the year," said
"We are thrilled to have substantially completed the transformative renovation and upbranding of Grand Hyatt Scottsdale, with just some minor components remaining to be finished in 2025. The opening of the expanded
"We are proud of all the hard work that was done in the last year, not only across our portfolio of hotels and resorts, but also on our financing and capital markets activities. We addressed all near term debt maturities and have further strengthened our balance sheet, positioning us to capitalize on strategic opportunities in the years ahead," said
Operating Results
The Company's results include the following:
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|
Three Months Ended |
|
|
||
|
|
2024 |
|
2023 |
|
Change |
|
|
($ amounts in thousands, except hotel statistics and per share amounts) |
||||
|
Net income (loss) attributable to common stockholders |
$ (638) |
|
$ 7,599 |
|
(108.4) % |
|
Net income (loss) per share available to common stockholders - basic and diluted |
$ (0.01) |
|
$ 0.07 |
|
(114.3) % |
|
|
|
|
|
|
|
|
Same-Property Number of Hotels(1) |
31 |
|
31 |
|
— |
|
Same-Property Number of Rooms(1)(5) |
9,408 |
|
9,407 |
|
1 |
|
Same-Property Occupancy(1) |
64.4 % |
|
61.9 % |
|
250 bps |
|
Same-Property Average Daily Rate(1) |
$ 257.52 |
|
$ 255.01 |
|
1.0 % |
|
Same-Property RevPAR(1) |
$ 165.92 |
|
$ 157.92 |
|
5.1 % |
|
|
$ 62,932 |
|
$ 63,341 |
|
(0.6) % |
|
|
24.0 % |
|
25.2 % |
|
(120) bps |
|
|
|
|
|
|
|
|
Total Portfolio Number of Hotels(3) |
31 |
|
32 |
|
(1) |
|
Total Portfolio Number of Rooms(3)(5) |
9,408 |
|
9,514 |
|
(106) |
|
Total Portfolio RevPAR(4) |
$ 165.92 |
|
$ 157.69 |
|
5.2 % |
|
|
|
|
|
|
|
|
Adjusted EBITDAre(2) |
$ 59,164 |
|
$ 59,442 |
|
(0.5) % |
|
Adjusted FFO(2) |
$ 40,030 |
|
$ 44,045 |
|
(9.1) % |
|
Adjusted FFO per diluted share(2) |
$ 0.39 |
|
$ 0.41 |
|
(4.9) % |
|
|
|
|
1. |
"Same-Property" includes all hotels owned as of |
|
2. |
EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and |
|
3. |
As of end of periods presented. |
|
4. |
Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company. |
|
5. |
One room was added at |
|
|
Year Ended |
|
|||
|
|
2024 |
|
2023 |
|
Change |
|
|
($ amounts in thousands, except hotel statistics and per share amounts) |
||||
|
Net income attributable to common stockholders |
$ 16,143 |
|
$ 19,142 |
|
(15.7) % |
|
Net income per share available to common stockholders - basic and diluted |
$ 0.15 |
|
$ 0.17 |
|
(11.8) % |
|
|
|
|
|
|
|
|
Same-Property Number of Hotels(1) |
31 |
|
31 |
|
— |
|
Same-Property Number of Rooms(1)(5) |
9,408 |
|
9,407 |
|
1 |
|
Same-Property Occupancy(1) |
67.4 % |
|
65.1 % |
|
230 bps |
|
Same-Property Average Daily Rate(1) |
$ 255.72 |
|
$ 260.74 |
|
(1.9) % |
|
Same-Property RevPAR(1) |
$ 172.47 |
|
$ 169.74 |
|
1.6 % |
|
|
$ 255,415 |
|
$ 270,205 |
|
(5.5) % |
|
|
24.7 % |
|
26.6 % |
|
(189) bps |
|
|
|
|
|
|
|
|
Total Portfolio Number of Hotels(3) |
31 |
|
32 |
|
(1) |
|
Total Portfolio Number of Rooms(3)(5) |
9,408 |
|
9,514 |
|
(106) |
|
Total Portfolio RevPAR(4) |
$ 172.36 |
|
$ 169.46 |
|
1.7 % |
|
|
|
|
|
|
|
|
Adjusted EBITDAre(2) |
$ 237,123 |
|
$ 251,740 |
|
(5.8) % |
|
Adjusted FFO(2) |
$ 165,342 |
|
$ 170,211 |
|
(2.9) % |
|
Adjusted FFO per diluted share(2) |
$ 1.59 |
|
$ 1.54 |
|
3.2 % |
|
|
|
|
1. |
"Same-Property" includes all hotels owned as of |
|
2. |
EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and |
|
3. |
As of end of periods presented. |
|
4. |
Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company. |
|
5. |
One room was added at |
Liquidity and Balance Sheet
As of
Corporate Credit Facility
In November, the Company upsized and extended its corporate credit facility. The amended credit facility is comprised of a
Capital Markets
In November, the Company issued
In the quarter, the Company repurchased 515,876 shares of common stock at a weighted-average price of
First Quarter 2024 Dividend
The Company's Board of Directors has increased the quarterly cash dividend by approximately 17% to
The Company has completed all major components of the transformative renovation of the former
The components of the transformative renovation and their respective completion dates were as follows:
-
Pool complex, pool bars, and amenities – Full renovation, including significant redesign of the pool, pool deck, and pool bars. The adult pool and H2Oasis pool bar were completed in
mid-January 2024 and the remainder of the pool complex was completed in earlyApril 2024 . -
Guest rooms and corridors – Full renovation of all guest rooms including new case goods, soft goods, bathrooms, and fan coil units. Guest rooms were completed on a continually phased basis with all 496 rooms, including the addition of five guest rooms, fully completed in
September 2024 . Certain premium suites and casitas were finished inJanuary 2025 . -
Arizona Ballroom expansion and meeting space renovation – Renovation of existing ballrooms, meeting rooms, and pre-function spaces, all completed inOctober 2024 . Expansion of theArizona Ballroom by approximately 12,000 square feet was completed and available for groups in earlyJanuary 2025 . -
Public spaces and food and beverage outlets – Major renovation of all areas, including lobby, lobby bar, hotel market, and significant expansion of outdoor dining space. Reconcepting and redesign of all food & beverage venues, including La Zozzona, an upscale modern-Italian steak and seafood concept which opened in
November 2024 ,Tiki Taka , a global small plate concept, including a sushi bar which opened in earlyJanuary 2025 , Mesa Central, an innovative, three-meal southwestern grill which opened in earlyNovember 2024 , andGrand Vista Lounge , a reinvention of the hotel's renowned lobby bar which opened in lateOctober 2024 . All of these outlets were designed and concepted in collaboration with celebrity chefRichard Blais and were substantially complete in early November while openings were phased in coordination with business levels. - Building façade, infrastructure, and grounds – Redesign of several elements of the building façade, replacement of all exterior lighting, redesign of existing solar panels, and new exterior signage, all of which were completed by the end of 2024, with the exception of certain exterior projects, including a parking lot renovation which will be completed during 2025.
Capital Expenditures
During the quarter and year ended
- Waldorf Astoria Atlanta Buckhead – Renovation of all meeting rooms
-
Bohemian Hotel Savannah Riverfront , Autograph Collection – Reconcepting and renovation of the hotel's restaurant into Coastal 15, a modern seafood concept -
The Ritz-Carlton,
Denver – Renovation of ELWAY'S Downtown restaurant -
Westin Oaks Houston at the Galleria – Renovation of the lobby and restaurant, relocation of the fitness facility, Heavenly Bed upgrades, addition of a concierge lounge and meeting space -
Westin Galleria Houston – Renovation of the lobby and Heavenly Bed upgrades -
Marriott Woodlands Waterway Hotel & Convention Center – Renovation of the lobby, restaurant, and bar and addition of anM Club , completed inJanuary 2025
The Company also made select upgrades to guestrooms at
The Company has planned renovations for 2025 that include:
- Andaz Napa – The first phase of a comprehensive rooms renovation to begin in the fourth quarter of 2025
-
The Ritz-Carlton,
Denver – Renovation of guest rooms and corridors to begin in the fourth quarter of 2025
The Company will incorporate select upgrades to guestrooms and public areas at a number of properties. These projects will be done based on hotel seasonality and are expected to result in minimal disruption. In addition, the Company expects to perform infrastructure and façade upgrades at approximately nine hotels throughout the year.
Full Year 2025 Outlook and Guidance
The Company is providing its full year 2025 outlook. The range below reflects the Company's limited visibility in forecasting due to macroeconomic uncertainty and is based on the current economic environment and does not take into account any unanticipated impacts to the business or operations. Furthermore, this guidance assumes no additional acquisitions, dispositions, equity issuances, or share and/or senior note repurchases. The Same-Property (31 Hotel) RevPAR change shown includes all hotels owned as of
|
|
Full Year 2025 Guidance |
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|
|
Low End |
High End |
|
|
($ in millions, except stats and |
|
|
Net Income |
|
|
|
Same-Property RevPAR Change (vs. 2024) |
3.5 % |
6.5 % |
|
Adjusted EBITDAre |
|
|
|
Adjusted FFO |
|
|
|
Adjusted FFO per Diluted Share |
|
|
|
Capital Expenditures |
|
|
Full year 2025 guidance is inclusive of the following assumptions:
- Capital expenditures are expected to have minimal disruption to revenues. Final capital expenditures related to the transformative renovation of
Grand Hyatt Scottsdale Resort are included in guidance. - General and administrative expense of approximately
$24 million , excluding non-cash share-based compensation - Interest expense of approximately
$80 million , excluding non-cash loan related costs - Income tax expense of approximately
$3 million - 103.8 million weighted-average diluted shares/units
Supplemental Financial Information
Please refer to the Company's Supplemental Financial Information package for the Fourth Quarter 2024 available online though the Press Release section of the Company's Investor Relations website for additional financial information.
Fourth Quarter 2024 Earnings Call
The Company will conduct its quarterly conference call on
About
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements are generally identifiable by use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," references to "outlook" and "guidance" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include, among others, statements about our plans, statements about our performance relative to the industry and/or our peers, strategies, or other future events, the outlook related to macroeconomic factors, our beliefs or expectations relating to our future performance including our 2025 outlook and guidance, results of operations and financial conditions, and the timing of renovations and capital expenditures projects. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) general economic uncertainty and a contraction in the
For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's
All information in this press release is as of the date of its release. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations.
Availability of Information on Xenia's Website
Investors and others should note that Xenia routinely announces material information to investors and the marketplace using
For additional information or to receive press releases via email, please visit our website at www.xeniareit.com.
|
Consolidated Balance Sheets
As of ($ amounts in thousands, except per share data) |
|||
|
|
|||
|
|
|
|
|
|
Assets: |
(Unaudited) |
|
(Audited) |
|
Investment properties: |
|
|
|
|
Land |
$ 455,907 |
|
$ 460,307 |
|
Buildings and other improvements |
3,188,885 |
|
3,097,711 |
|
Total |
$ 3,644,792 |
|
$ 3,558,018 |
|
Less: accumulated depreciation |
(1,053,971) |
|
(963,052) |
|
Net investment properties |
$ 2,590,821 |
|
$ 2,594,966 |
|
Cash and cash equivalents |
78,201 |
|
164,725 |
|
Restricted cash and escrows |
65,381 |
|
58,350 |
|
Accounts and rents receivable, net of allowance for doubtful accounts |
25,758 |
|
32,432 |
|
Intangible assets, net of accumulated amortization |
4,856 |
|
4,898 |
|
Deferred tax assets |
5,345 |
|
— |
|
Other assets |
61,254 |
|
46,856 |
|
Total assets |
$ 2,831,616 |
|
$ 2,902,227 |
|
Liabilities: |
|
|
|
|
Debt, net of loan premiums, discounts and unamortized deferred financing costs |
$ 1,334,703 |
|
$ 1,394,906 |
|
Accounts payable and accrued expenses |
102,896 |
|
102,389 |
|
Distributions payable |
12,566 |
|
10,788 |
|
Other liabilities |
101,118 |
|
76,647 |
|
Total liabilities |
$ 1,551,283 |
|
$ 1,584,730 |
|
Commitments and Contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, |
$ 1,013 |
|
$ 1,024 |
|
Additional paid in capital |
1,921,006 |
|
1,934,775 |
|
Accumulated other comprehensive income |
925 |
|
2,439 |
|
Accumulated distributions in excess of net earnings |
(679,841) |
|
(647,246) |
|
|
$ 1,243,103 |
|
$ 1,290,992 |
|
Non-controlling interests |
37,230 |
|
26,505 |
|
Total equity |
$ 1,280,333 |
|
$ 1,317,497 |
|
Total liabilities and equity |
$ 2,831,616 |
|
$ 2,902,227 |
|
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the Three Months and Years Ended ($ amounts in thousands, except per share data) |
|||||||
|
|
|||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
Revenues: |
|
|
|
|
|
|
|
|
Rooms revenues |
$ 143,610 |
|
$ 138,023 |
|
$ 597,097 |
|
$ 588,278 |
|
Food and beverage revenues |
94,095 |
|
94,142 |
|
350,738 |
|
354,114 |
|
Other revenues |
24,144 |
|
21,215 |
|
91,212 |
|
83,051 |
|
Total revenues |
$ 261,849 |
|
$ 253,380 |
|
$ 1,039,047 |
|
$ 1,025,443 |
|
Expenses: |
|
|
|
|
|
|
|
|
Rooms expenses |
37,377 |
|
36,408 |
|
152,133 |
|
145,274 |
|
Food and beverage expenses |
63,599 |
|
61,516 |
|
241,186 |
|
235,961 |
|
Other direct expenses |
6,185 |
|
5,920 |
|
25,009 |
|
23,467 |
|
Other indirect expenses |
69,865 |
|
65,937 |
|
275,579 |
|
263,833 |
|
Management and franchise fees |
8,861 |
|
8,417 |
|
36,507 |
|
35,235 |
|
Total hotel operating expenses |
$ 185,887 |
|
$ 178,198 |
|
$ 730,414 |
|
$ 703,770 |
|
Depreciation and amortization |
33,123 |
|
31,698 |
|
128,749 |
|
132,023 |
|
Real estate taxes, personal property taxes and insurance |
13,195 |
|
12,295 |
|
53,140 |
|
50,491 |
|
Ground lease expense |
767 |
|
771 |
|
3,179 |
|
3,016 |
|
General and administrative expenses |
7,830 |
|
8,839 |
|
36,245 |
|
37,219 |
|
Gain on business interruption insurance |
(1,593) |
|
— |
|
(2,338) |
|
(218) |
|
Other operating expenses |
1,199 |
|
714 |
|
2,303 |
|
1,530 |
|
Impairment and other losses |
49 |
|
— |
|
520 |
|
— |
|
Total expenses |
$ 240,457 |
|
$ 232,515 |
|
$ 952,212 |
|
$ 927,831 |
|
Operating income |
$ 21,392 |
|
$ 20,865 |
|
$ 86,835 |
|
$ 97,612 |
|
Gain on sale of investment properties |
— |
|
— |
|
1,628 |
|
— |
|
Other income |
2,103 |
|
3,683 |
|
9,399 |
|
9,895 |
|
Interest expense |
(20,135) |
|
(20,689) |
|
(80,882) |
|
(84,997) |
|
Loss on extinguishment of debt |
(3,850) |
|
— |
|
(3,850) |
|
(1,189) |
|
Net income (loss) before income taxes |
$ (490) |
|
$ 3,859 |
|
$ 13,130 |
|
$ 21,321 |
|
Income tax benefit (expense) |
(287) |
|
3,935 |
|
3,740 |
|
(1,447) |
|
Net income (loss) |
$ (777) |
|
$ 7,794 |
|
$ 16,870 |
|
$ 19,874 |
|
Net (income) loss attributable to non-controlling interests |
139 |
|
(195) |
|
(727) |
|
(732) |
|
Net income (loss) attributable to common stockholders |
$ (638) |
|
$ 7,599 |
|
$ 16,143 |
|
$ 19,142 |
|
Consolidated Statements of Operations and Comprehensive Income (Loss) - Continued
For the Three Months and Years Ended ($ amounts in thousands, except per share data) |
|||||||
|
|
|||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
Basic and diluted income (loss) per share: |
|
|
|
|
|
||
|
Net income (loss) per share available to common stockholders - basic and diluted |
$ (0.01) |
|
$ 0.07 |
|
$ 0.15 |
|
$ 0.17 |
|
Weighted-average number of common shares (basic) |
101,578,304 |
|
104,767,518 |
|
101,846,303 |
|
108,192,148 |
|
Weighted-average number of common shares (diluted) |
101,578,304 |
|
104,980,819 |
|
102,271,394 |
|
108,412,485 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss): |
|
|
|
|
|
|
|
|
Net income (loss) |
$ (777) |
|
$ 7,794 |
|
$ 16,870 |
|
$ 19,874 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
Unrealized gain (loss) on interest rate derivative instruments |
970 |
|
(2,362) |
|
2,517 |
|
5,220 |
|
Reclassification adjustment for amounts recognized in net income (loss) (interest expense) |
(703) |
|
(1,147) |
|
(4,081) |
|
(2,690) |
|
|
$ (510) |
|
$ 4,285 |
|
$ 15,306 |
|
$ 22,404 |
|
Comprehensive (income) loss attributable to non-controlling interests |
132 |
|
(26) |
|
(677) |
|
(823) |
|
Comprehensive income (loss) attributable to the Company |
$ (378) |
|
$ 4,259 |
|
$ 14,629 |
|
$ 21,581 |
Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of its operating performance: EBITDA, EBITDAre, Adjusted EBITDAre,
EBITDA, EBITDAre and Adjusted EBITDAre
EBITDA is a commonly used measure of performance in many industries and is defined as net income or loss (calculated in accordance with GAAP) excluding interest expense, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization. The Company considers EBITDA useful to investors in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results, even though EBITDA does not represent an amount that accrues directly to common stockholders. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions and, along with FFO and Adjusted FFO, is used by management in the annual budget process for compensation programs.
The Company calculates EBITDAre in accordance with standards established by the
The Company further adjusts EBITDAre to exclude the impact of non-controlling interests in consolidated entities other than its Operating Partnership Units because its Operating Partnership Units may be redeemed for common stock. The Company also adjusts EBITDAre for certain additional items such as depreciation and amortization related to corporate assets, terminated transaction and pre-opening expenses, amortization of share-based compensation, non-cash ground rent and straight-line rent expense, the cumulative effect of changes in accounting principles, and other costs it believes do not represent recurring operations and are not indicative of the performance of its underlying hotel property entities. The Company believes it is meaningful for investors to understand Adjusted EBITDAre attributable to all common stock and unit holders. The Company believes Adjusted EBITDAre attributable to common stock and unit holders provides investors with another useful financial measure in evaluating and facilitating comparison of operating performance between periods and between REITs that report similar measures.
Same-Property hotel data includes the actual operating results for all hotels owned as of the end of the reporting period. The Company then adjusts the Same-Property hotel data for comparability purposes by including pre-acquisition operating results of asset(s) acquired during the period, which provides investors a basis for understanding the acquisition(s) historical operating trends and seasonality. The pre-acquisition operating results for the comparable period are obtained from the seller and/or manager of the hotel(s) during the acquisition due diligence process and have not been audited or reviewed by our independent auditors. The Company further adjusts the Same-Property hotel data to remove dispositions during the respective reporting periods, and, in certain cases, hotels that are not fully open due to significant renovation, re-positioning, or disruption or whose room counts have materially changed during either the current or prior year as these historical operating results are not indicative of or expected to be comparable to the operating performance of the hotel portfolio on a prospective basis.
As a result of these adjustments the Same-Property hotel data presented does not represent the Company's total revenues, expenses, operating profit or net income and should not be used to evaluate performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of operating performance. Our consolidated statements of operations and comprehensive income include such amounts, all of which should be considered by investors when evaluating our performance.
We include Same-Property hotel data as supplemental information for investors. Management believes that providing Same-Property hotel data is useful to investors because it represents comparable operations for our portfolio as it exists at the end of the respective reporting periods presented, which allows investors and management to evaluate the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at Same-Property hotels or from other factors, such as the effect of acquisitions or dispositions.
FFO and Adjusted FFO
The Company calculates FFO in accordance with standards established by Nareit, as amended in the 2018 Restatement White Paper, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, amortization and impairments, gains or losses from sales of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and consolidated variable interest entities, and items classified by GAAP as extraordinary. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. The Company believes that the presentation of FFO provides useful supplemental information to investors regarding operating performance by excluding the effect of real estate depreciation and amortization, gains or losses from sales for real estate, impairments of real estate assets, extraordinary items and the portion of these items related to unconsolidated entities, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance. The Company believes that the presentation of FFO can facilitate comparisons of operating performance between periods and between REITs, even though FFO does not represent an amount that accrues directly to common stockholders. The calculation of FFO may not be comparable to measures calculated by other companies who do not use the Nareit definition of FFO or do not calculate FFO per diluted share in accordance with Nareit guidance. Additionally, FFO may not be helpful when comparing Xenia to non-REITs. The Company presents FFO attributable to common stock and unit holders, which includes its Operating Partnership Units because its Operating Partnership Units may be redeemed for common stock. The Company believes it is meaningful for investors to understand FFO attributable to common stock and unit holders.
The Company further adjusts FFO for certain additional items that are not in Nareit's definition of FFO such as terminated transaction and pre-opening expenses, amortization of debt origination costs and share-based compensation, non-cash ground rent and straight-line rent expense, and other items we believe do not represent recurring operations. The Company believes that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors' complete understanding of our operating performance.
Adjusted FFO per diluted share
The diluted weighted-average common share count used for the calculation of Adjusted FFO per diluted share differs from diluted weighted-average common share count used to derive net income or loss per share available to common stockholders. The Company calculates Adjusted FFO per diluted share by dividing the Adjusted FFO by the diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.
|
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and
For the Three Months Ended (Unaudited) ($ amounts in thousands) |
|||
|
|
|||
|
|
Three Months Ended |
||
|
|
2024 |
|
2023 |
|
Net income (loss) |
$ (777) |
|
$ 7,794 |
|
Adjustments: |
|
|
|
|
Interest expense |
20,135 |
|
20,689 |
|
Income tax benefit (expense) |
287 |
|
(3,935) |
|
Depreciation and amortization |
33,123 |
|
31,698 |
|
EBITDA |
$ 52,768 |
|
$ 56,246 |
|
Gain on sale of investment properties |
— |
|
— |
|
EBITDAre |
$ 52,768 |
|
$ 56,246 |
|
|
|
|
|
|
Reconciliation to Adjusted EBITDAre |
|
|
|
|
Depreciation and amortization related to corporate assets |
$ (92) |
|
$ (78) |
|
Gain on insurance recoveries(1) |
(2,081) |
|
— |
|
Loss on extinguishment of debt |
3,850 |
|
— |
|
Amortization of share-based compensation expense |
2,543 |
|
3,307 |
|
Non-cash ground rent and straight-line rent expense |
(51) |
|
(33) |
|
Other non-recurring expenses(2) |
2,227 |
|
— |
|
Adjusted EBITDAre attributable to common stock and unit holders |
$ 59,164 |
|
$ 59,442 |
|
Corporate-level costs and expenses |
3,723 |
|
4,347 |
|
Pro forma hotel adjustments, net(3) |
45 |
|
(448) |
|
|
$ 62,932 |
|
$ 63,341 |
|
|
|
|
1. |
During the three months ended |
|
2. |
During the three months ended |
|
3. |
Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. |
|
4. |
See the reconciliation of Total Revenues and |
|
Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and
For the Years Ended (Unaudited) ($ amounts in thousands) |
|||
|
|
|||
|
|
Years Ended |
||
|
|
2024 |
|
2023 |
|
Net income |
$ 16,870 |
|
$ 19,874 |
|
Adjustments: |
|
|
|
|
Interest expense |
80,882 |
|
84,997 |
|
Income tax benefit (expense) |
(3,740) |
|
1,447 |
|
Depreciation and amortization |
128,749 |
|
132,023 |
|
EBITDA |
$ 222,761 |
|
$ 238,341 |
|
Gain on sale of investment properties |
(1,628) |
|
— |
|
EBITDAre |
$ 221,133 |
|
$ 238,341 |
|
|
|
|
|
|
Reconciliation to Adjusted EBITDAre |
|
|
|
|
Depreciation and amortization related to corporate assets |
$ (341) |
|
$ (348) |
|
Gain on insurance recoveries(1) |
(4,428) |
|
(535) |
|
Loss on extinguishment of debt |
3,850 |
|
1,189 |
|
Amortization of share-based compensation expense |
13,658 |
|
13,168 |
|
Non-cash ground rent and straight-line rent expense |
(435) |
|
(75) |
|
Other non-recurring expenses(2) |
3,686 |
|
— |
|
Adjusted EBITDAre attributable to common stock and unit holders |
$ 237,123 |
|
$ 251,740 |
|
Corporate-level costs and expenses |
19,275 |
|
20,042 |
|
Pro forma hotel level adjustments, net(3) |
(983) |
|
(1,577) |
|
|
$ 255,415 |
|
$ 270,205 |
|
|
|
|
1. |
During the years ended |
|
2. |
During the year ended |
|
3. |
Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. |
|
4. |
See the reconciliation of Total Revenues and |
|
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
For the Three Months Ended (Unaudited) ($ amounts in thousands) |
|||
|
|
|||
|
|
Three Months Ended |
||
|
|
2024 |
|
2023 |
|
Net income (loss) |
$ (777) |
|
$ 7,794 |
|
Adjustments: |
|
|
|
|
Depreciation and amortization related to investment properties |
33,031 |
|
31,620 |
|
FFO attributable to common stock and unit holders |
$ 32,254 |
|
$ 39,414 |
|
|
|
|
|
|
Reconciliation to Adjusted FFO |
|
|
|
|
Gain on insurance recoveries(1) |
(2,081) |
|
— |
|
Loss on extinguishment of debt |
3,850 |
|
— |
|
Loan related costs, net of adjustment related to non-controlling interests(2) |
1,288 |
|
1,357 |
|
Amortization of share-based compensation expense |
2,543 |
|
3,307 |
|
Non-cash ground rent and straight-line rent expense |
(51) |
|
(33) |
|
Other non-recurring expenses(3) |
2,227 |
|
— |
|
Adjusted FFO attributable to common stock and unit holders |
$ 40,030 |
|
$ 44,045 |
|
Weighted-average shares outstanding - Diluted(4) |
103,313 |
|
106,643 |
|
Adjusted FFO per diluted share |
$ 0.39 |
|
$ 0.41 |
|
|
|
|
1. |
During the three months ended |
|
2. |
Loan related costs include amortization of debt premiums, discounts and deferred loan origination costs. |
|
3. |
During the three months ended |
|
4. |
Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units for the respective periods presented in thousands. |
|
Reconciliation of Net Income to FFO and Adjusted FFO
For the Years Ended (Unaudited) ($ amounts in thousands) |
|||
|
|
|||
|
|
Years Ended |
||
|
|
2024 |
|
2023 |
|
Net income |
$ 16,870 |
|
$ 19,874 |
|
Adjustments: |
|
|
|
|
Depreciation and amortization related to investment properties |
128,408 |
|
131,675 |
|
Gain on sale of investment properties |
(1,628) |
|
— |
|
FFO attributable to common stock and unit holders |
$ 143,650 |
|
$ 151,549 |
|
|
|
|
|
|
Reconciliation to Adjusted FFO |
|
|
|
|
Gain on insurance recoveries(1) |
(4,428) |
|
(535) |
|
Loss on extinguishment of debt |
3,850 |
|
1,189 |
|
Loan related costs, net of adjustment related to non-controlling interests(2) |
5,361 |
|
4,915 |
|
Amortization of share-based compensation expense |
13,658 |
|
13,168 |
|
Non-cash ground rent and straight-line rent expense |
(435) |
|
(75) |
|
Other non-recurring expenses(3) |
3,686 |
|
— |
|
Adjusted FFO attributable to common stock and unit holders |
$ 165,342 |
|
$ 170,211 |
|
Weighted-average shares outstanding - Diluted(4) |
103,978 |
|
110,187 |
|
Adjusted FFO per diluted share |
$ 1.59 |
|
$ 1.54 |
|
|
|
|
1. |
During the years ended |
|
2. |
Loan related costs include amortization of debt premiums, discounts and deferred loan origination costs. |
|
3. |
During the year ended |
|
4. |
Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units for the respective periods presented in thousands. |
|
Reconciliation of Net Income to Adjusted EBITDAre for Full Year 2025 Guidance ($ amounts in millions) |
|
|
|
|
|
|
Guidance |
|
|
Full Year |
|
Net income |
$ 19 |
|
Adjustments: |
|
|
Interest expense(1) |
85 |
|
Income tax expense |
3 |
|
Depreciation and amortization |
133 |
|
EBITDA and EBITDAre |
$ 240 |
|
Amortization of share-based compensation expense |
14 |
|
Other |
— |
|
Adjusted EBITDAre |
$ 254 |
|
Reconciliation of Net Income to Adjusted FFO for Full Year 2025 Guidance ($ amounts in millions) |
|
|
|
|
|
|
Guidance |
|
|
Full Year |
|
Net income |
$ 19 |
|
Adjustments: |
|
|
Depreciation and amortization related to investment properties |
133 |
|
FFO |
$ 152 |
|
Amortization of share-based compensation expense |
14 |
|
Other(1) |
5 |
|
Adjusted FFO |
$ 171 |
|
|
|
|
1. |
Includes non-cash loan amortization costs. |
|
Debt Summary as of (Unaudited) ($ amounts in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
Rate Type |
|
Rate(1) |
|
Maturity Date |
|
Outstanding as |
|
Mortgage Loans |
|
|
|
|
|
|
|
|
|
Fixed |
|
4.53 % |
|
|
|
$ 53,306 |
|
|
Fixed |
|
4.63 % |
|
|
|
105,972 |
|
Andaz Napa |
Fixed(2) |
|
5.72 % |
|
|
|
55,000 |
|
Total Mortgage Loans |
|
|
4.88 % |
(3) |
|
|
$ 214,278 |
|
Corporate Credit Facilities(4) |
|
|
|
|
|
|
|
|
Corporate Credit Facility Term Loan |
Fixed(5) |
|
5.65 % |
|
|
|
$ 225,000 |
|
Revolving Credit Facility |
Variable(6) |
|
6.39 % |
|
|
|
10,000 |
|
Total Corporate Credit Facilities |
|
|
|
|
|
|
$ 235,000 |
|
2021 Senior Notes |
Fixed |
|
4.88 % |
|
|
|
500,000 |
|
2024 Senior Notes |
Fixed |
|
6.63 % |
|
|
|
400,000 |
|
Loan premiums, discounts and unamortized deferred |
|
|
|
|
|
|
(14,575) |
|
Total Debt, net of loan premiums, discounts and unamortized |
|
|
5.54 % |
(3) |
|
|
$ 1,334,703 |
|
|
|
|
1. |
Represents annual interest rates. |
|
2. |
A variable interest loan for which SOFR has been fixed through |
|
3. |
Weighted-average interest rate. |
|
4. |
In November, the Company successfully amended its corporate credit facility. The amended facility consists of a |
|
5. |
A variable interest loan for which the credit spread may vary, as it is determined by the Company's leverage ratio. SOFR was fixed until |
|
6. |
The Revolving Credit Facility has a total capacity of |
|
7. |
Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization. |
|
Debt Summary as of (Unaudited) ($ amounts in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
Rate Type |
|
Rate(1) |
|
Maturity Date |
|
Outstanding as 2025 |
|
Mortgage Loans |
|
|
|
|
|
|
|
|
|
Fixed |
|
4.53 % |
|
|
|
$ 53,202 |
|
|
Fixed |
|
4.63 % |
|
|
|
105,789 |
|
Andaz Napa |
Fixed(2) |
|
5.72 % |
|
|
|
55,000 |
|
Total Mortgage Loans |
|
|
4.88 % |
(3) |
|
|
$ 213,991 |
|
Corporate Credit Facilities(4) |
|
|
|
|
|
|
|
|
Corporate Credit Facility Term Loan |
Fixed(5) |
|
5.65 % |
|
|
|
$ 225,000 |
|
Corporate Credit Facility Term Loan |
Variable(6) |
|
6.23 % |
|
|
|
100,000 |
|
Revolving Credit Facility |
Variable(7) |
|
6.23 % |
|
|
|
— |
|
Total Corporate Credit Facilities |
|
|
|
|
|
|
$ 325,000 |
|
2021 Senior Notes |
Fixed |
|
4.88 % |
|
|
|
500,000 |
|
2024 Senior Notes |
Fixed |
|
6.63 % |
|
|
|
400,000 |
|
Loan premiums, discounts and unamortized deferred |
|
|
|
|
|
|
(14,660) |
|
Total Debt, net of loan premiums, discounts and unamortized |
|
|
5.58 % |
(3) |
|
|
$ 1,424,331 |
|
|
|
|
1. |
Represents annual interest rates. |
|
2. |
A variable interest loan for which SOFR has been fixed through |
|
3. |
Weighted-average interest rate. |
|
4. |
In November, the Company successfully amended its corporate credit facility. The amended facility consists of a |
|
5. |
A variable interest loan for which the credit spread may vary, as it is determined by the Company's leverage ratio. SOFR was fixed until |
|
6. |
A variable interest loan for which the credit spread may vary, as it is determined by the Company's leverage ratio. |
|
7. |
The Revolving Credit Facility has a total capacity of |
|
8. |
Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization. |
|
Same-Property(1)
For the Three Months and Years Ended ($ amounts in thousands) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
Same-Property Occupancy(1) |
64.4 % |
|
61.9 % |
|
250 bps |
|
67.4 % |
|
65.1 % |
|
230 bps |
|
Same-Property Average Daily Rate(1) |
$ 257.52 |
|
$ 255.01 |
|
1.0 % |
|
$ 255.72 |
|
$ 260.74 |
|
(1.9) % |
|
Same-Property RevPAR(1) |
$ 165.92 |
|
$ 157.92 |
|
5.1 % |
|
$ 172.47 |
|
$ 169.74 |
|
1.6 % |
|
Same-Property Revenues(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Rooms revenues |
$ 143,610 |
|
$ 136,671 |
|
5.1 % |
|
$ 593,843 |
|
$ 582,631 |
|
1.9 % |
|
Food and beverage revenues |
94,095 |
|
93,521 |
|
0.6 % |
|
349,601 |
|
351,915 |
|
(0.7) % |
|
Other revenues |
24,144 |
|
20,847 |
|
15.8 % |
|
90,376 |
|
81,587 |
|
10.8 % |
|
Total Same-Property revenues |
$ 261,849 |
|
$ 251,039 |
|
4.3 % |
|
$ 1,033,820 |
|
$ 1,016,133 |
|
1.7 % |
|
Same-Property Expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Rooms expenses |
$ 37,377 |
|
$ 35,995 |
|
3.8 % |
|
$ 151,151 |
|
$ 143,620 |
|
5.2 % |
|
Food and beverage expenses |
63,599 |
|
60,990 |
|
4.3 % |
|
240,152 |
|
233,842 |
|
2.7 % |
|
Other direct expenses |
6,185 |
|
5,722 |
|
8.1 % |
|
24,580 |
|
22,790 |
|
7.9 % |
|
Other indirect expenses |
70,527 |
|
63,519 |
|
11.0 % |
|
272,272 |
|
257,518 |
|
5.7 % |
|
Management and franchise fees |
8,861 |
|
8,351 |
|
6.1 % |
|
36,360 |
|
34,972 |
|
4.0 % |
|
Real estate taxes, personal property taxes and insurance |
13,179 |
|
12,336 |
|
6.8 % |
|
52,996 |
|
50,335 |
|
5.3 % |
|
Ground lease expense |
782 |
|
785 |
|
(0.4) % |
|
3,232 |
|
3,069 |
|
5.3 % |
|
Gain on business interruption insurance |
(1,593) |
|
— |
|
— % |
|
(2,338) |
|
(218) |
|
972.5 % |
|
Total Same-Property hotel operating expenses |
$ 198,917 |
|
$ 187,698 |
|
6.0 % |
|
$ 778,405 |
|
$ 745,928 |
|
4.4 % |
|
Same-Property Hotel EBITDA(1) |
$ 62,932 |
|
$ 63,341 |
|
(0.6) % |
|
$ 255,415 |
|
$ 270,205 |
|
(5.5) % |
|
Same-Property Hotel EBITDA Margin(1) |
24.0 % |
|
25.2 % |
|
(120) bps |
|
24.7 % |
|
26.6 % |
|
(189) bps |
|
|
|
|
1. |
"Same-Property" includes all properties owned as of |
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Total Revenues - GAAP |
$ 261,849 |
|
$ 253,380 |
|
$ 1,039,047 |
|
$ 1,025,443 |
|
Pro forma hotel level adjustments(a) |
— |
|
(2,341) |
|
(5,227) |
|
(9,310) |
|
Total Same-Property Revenues |
$ 261,849 |
|
$ 251,039 |
|
$ 1,033,820 |
|
$ 1,016,133 |
|
|
|
|
|
|
|
|
|
|
|
$ 185,887 |
|
$ 178,198 |
|
$ 730,414 |
|
$ 703,770 |
|
Real estate taxes, personal property taxes and insurance |
13,195 |
|
12,295 |
|
53,140 |
|
50,491 |
|
Ground lease expense, net(b) |
780 |
|
785 |
|
3,232 |
|
3,069 |
|
Other income (expense) |
1,046 |
|
(1,373) |
|
(149) |
|
(1,596) |
|
Gain on business interruption insurance |
(1,593) |
|
— |
|
(2,338) |
|
(218) |
|
Corporate-level costs and expenses |
(366) |
|
(360) |
|
(1,685) |
|
(1,710) |
|
Pro forma hotel level adjustments, net(a) |
(32) |
|
(1,847) |
|
(4,209) |
|
(7,878) |
|
|
$ 198,917 |
|
$ 187,698 |
|
$ 778,405 |
|
$ 745,928 |
|
|
|
|
a. |
Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. |
|
b. |
Excludes non-cash ground rent expense. |
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