Xenia Hotels & Resorts Reports Fourth Quarter and Full Year 2025 Results
Fourth Quarter 2025 Highlights
-
Net Income: Net income attributable to common stockholders was
$6.1 million , or$0.07 per share -
Adjusted EBITDAre:
$63.6 million , increased 7.5% compared to the fourth quarter of 2024 - Adjusted FFO per Diluted Share: $0.45, increased 15.4% compared to the fourth quarter of 2024
- Same-Property Occupancy: 66.1%, increased 130 basis points compared to the fourth quarter of 2024
- Same-Property ADR: $266.88, increased 2.5% compared to the fourth quarter of 2024
- Same-Property RevPAR: $176.45, increased 4.5% compared to the fourth quarter of 2024
- Same-Property Total RevPAR: $325.52, increased 6.7% compared to the fourth quarter of 2024
-
Same-Property Hotel EBITDA :$68.8 million , increased 16.3% compared to the fourth quarter of 2024 -
Same-Property Hotel EBITDA Margin : 25.9%, increased 214 basis points compared to the fourth quarter of 2024 -
Dividends: Declared a fourth quarter dividend of
$0.14 per share for stockholders of record onDecember 31, 2025 -
Capital Markets Activities: Repurchased a total of 2,697,110 shares of common stock at a weighted-average price of
$13.56 per share for a total consideration of approximately$36.6 million
Full Year 2025 Highlights
-
Net Income: Net income attributable to common stockholders was
$63.1 million , or$0.64 per share - Adjusted EBITDAre: $258.3 million, increased 8.9% compared to the same period in 2024
- Adjusted FFO per Diluted Share: $1.76, increased 10.7% compared to the same period in 2024
- Same-Property Occupancy: 68.6%, increased 100 basis points compared to the same period in 2024
- Same-Property ADR: $265.38, increased 2.5% compared to the same period in 2024
-
Same-Property RevPAR:
$181.97 , increased 3.9% compared to the same period in 2024 - Same-Property Total RevPAR: $328.57, increased 8.0% compared to the same period in 2024
-
Same-Property Hotel EBITDA : $274.3 million, increased 13.5% compared to the same period in 2024 -
Same-Property Hotel EBITDA Margin : 25.8%, increased 129 basis points compared to the same period in 2024 -
Transaction Activity: In March, acquired the fee simple interest in the land underlying
Hyatt Regency Santa Clara for$25 million . In April, sold the 545-roomFairmont Dallas for$111.0 million , or approximately$203,670 per key. The sales price was exclusive of an estimated$80 million of near-term capital expenditures needs. -
Dividends: Declared a total of
$0.56 of dividends per share to common stockholders -
Capital Markets Activity: Repurchased a total of 9,353,816 shares of common stock at a weighted-average price of
$12.87 per share for a total consideration of approximately$120.4 million
"Strong group and transient demand drove a Same-Property RevPAR increase of 4.5% for the quarter, building on the 5.6% RevPAR growth our Same-Property portfolio achieved in the fourth quarter of 2024," said
"As we reflect back on 2025, we are proud of the performance that our portfolio of high-quality hotels and resorts achieved during the year," continued
"Looking ahead, we are optimistic about our positive trajectory as lodging demand remains resilient despite continued uncertainty in the broader overall economic climate," said
Operating Results
The Company's results include the following:
|
|
Three Months Ended |
|
|
||
|
|
2025 |
|
2024 |
|
Change |
|
|
($ amounts in thousands, except hotel statistics and per share amounts) |
||||
|
Net income (loss) attributable to common stockholders |
$ 6,084 |
|
$ (638) |
|
1,053.6 % |
|
Net income (loss) per share available to common stockholders - |
$ 0.07 |
|
$ (0.01) |
|
800.0 % |
|
|
|
|
|
|
|
|
Same-Property Number of Hotels(1) |
30 |
|
30 |
|
— |
|
Same-Property Number of Rooms(1)(6) |
8,868 |
|
8,863 |
|
5 |
|
Same-Property Occupancy(1) |
66.1 % |
|
64.8 % |
|
130 bps |
|
Same-Property Average Daily Rate(1) |
$ 266.88 |
|
$ 260.43 |
|
2.5 % |
|
Same-Property RevPAR(1) |
$ 176.45 |
|
$ 168.81 |
|
4.5 % |
|
Same-Property Total RevPAR(1)(2) |
$ 325.52 |
|
$ 305.20 |
|
6.7 % |
|
|
$ 68,849 |
|
$ 59,197 |
|
16.3 % |
|
|
25.9 % |
|
23.8 % |
|
214 bps |
|
|
|
|
|
|
|
|
Total Portfolio Number of Hotels(4) |
30 |
|
31 |
|
(1) |
|
Total Portfolio Number of Rooms(4)(6) |
8,868 |
|
9,408 |
|
(540) |
|
Total Portfolio RevPAR(5) |
$ 176.45 |
|
$ 165.92 |
|
6.3 % |
|
Total Portfolio Total RevPAR(2)(5) |
$ 325.52 |
|
$ 302.53 |
|
7.6 % |
|
|
|
|
|
|
|
|
Adjusted EBITDAre(3) |
$ 63,613 |
|
$ 59,164 |
|
7.5 % |
|
Adjusted FFO(3) |
$ 43,070 |
|
$ 40,030 |
|
7.6 % |
|
Adjusted FFO per diluted share(3) |
$ 0.45 |
|
$ 0.39 |
|
15.4 % |
|
|
|
|
1. |
"Same-Property" includes all hotels owned as of |
|
2. |
Total Revenues per available room for the period presented. |
|
3. |
EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and |
|
4. |
As of end of periods presented. |
|
5. |
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. |
|
6. |
Five rooms were added to inventory at |
|
|
Year Ended |
|
|||
|
|
2025 |
|
2024 |
|
Change |
|
|
($ amounts in thousands, except hotel statistics and per share amounts) |
||||
|
Net income attributable to common stockholders |
$ 63,088 |
|
$ 16,143 |
|
290.8 % |
|
Net income per share available to common stockholders - basic and |
$ 0.64 |
|
$ 0.15 |
|
326.7 % |
|
|
|
|
|
|
|
|
Same-Property Number of Hotels(1) |
30 |
|
30 |
|
— |
|
Same-Property Number of Rooms(1)(6) |
8,868 |
|
8,863 |
|
5 |
|
Same-Property Occupancy(1) |
68.6 % |
|
67.6 % |
|
100 bps |
|
Same-Property Average Daily Rate(1) |
$ 265.38 |
|
$ 259.03 |
|
2.5 % |
|
Same-Property RevPAR(1) |
$ 181.97 |
|
$ 175.18 |
|
3.9 % |
|
Same-Property Total RevPAR(1)(2) |
$ 328.57 |
|
$ 304.12 |
|
8.0 % |
|
|
$ 274,282 |
|
$ 241,688 |
|
13.5 % |
|
|
25.8 % |
|
24.5 % |
|
129 bps |
|
|
|
|
|
|
|
|
Total Portfolio Number of Hotels(4) |
30 |
|
31 |
|
(1) |
|
Total Portfolio Number of Rooms(4)(6) |
8,868 |
|
9,408 |
|
(540) |
|
Total Portfolio RevPAR(5) |
$ 180.65 |
|
$ 172.36 |
|
4.8 % |
|
Total Portfolio Total RevPAR(2)(5) |
$ 326.61 |
|
$ 299.93 |
|
8.9 % |
|
|
|
|
|
|
|
|
Adjusted EBITDAre(3) |
$ 258,344 |
|
$ 237,123 |
|
8.9 % |
|
Adjusted FFO(3) |
$ 174,718 |
|
$ 165,342 |
|
5.7 % |
|
Adjusted FFO per diluted share(3) |
$ 1.76 |
|
$ 1.59 |
|
10.7 % |
|
|
|
|
1. |
"Same-Property" includes all hotels owned as of |
|
2. |
Total Revenues per available room for the period presented. |
|
3. |
EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and |
|
4. |
As of end of periods presented. |
|
5. |
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. |
|
6. |
Five rooms were added to inventory at |
Liquidity and Balance Sheet
As of
In
Capital Markets
In the quarter, the Company repurchased 2,697,110 shares of common stock at a weighted-average price of
Transactions
As previously disclosed, in March, the Company acquired the fee simple interest in the land underlying
First Quarter 2026 Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Capital Expenditures
During the quarter and year ended
In addition to the completion of the Grand Hyatt Scottsdale transformative renovation, for the full year 2025 significant projects in the Company's portfolio included:
- Select upgrades to guest rooms at several properties including Renaissance Atlanta Waverly Hotel & Convention Center,
Marriott San Francisco Airport Waterfront ,Hyatt Centric Key West Resort & Spa ,Hyatt Regency Santa Clara ,Grand Bohemian Hotel Mountain Brook ,Grand Bohemian Hotel Charleston and Kimpton RiverPlace Hotel all of which were substantially completed during the fourth quarter. - Performing significant infrastructure upgrades at ten hotels, including façade waterproofing, chiller replacements, elevator and escalator modernization projects and fire alarm system upgrades.
- Commencing a limited guest room renovation at Fairmont Pittsburgh which we expect to complete in the first quarter of 2026 and a renovation of the
M Club at Marriott Dallas Downtown which was completed in early 2026. - Commencing work related to a major reconcepting of the food & beverage facilities at
W Nashville pursuant to agreements with José Andrés Group ("JAG"), in which JAG will operate and/or license substantially all of the hotel's food & beverage outlets. This includes Zaytinya, an Eastern Mediterranean concept, serving lunch and dinner which opened in mid February; Bar Mar, a coastal seafood and premium meat dinner concept and Butterfly, a high-energy rooftop bar with a Mexican-inspired menu, both of which are expected to open by late March; and Glowbird, a new pool deck concept, with an expanded bar and upgraded food and beverage offerings, which is expected to open by the end of April.
The Company has planned renovations for 2026 that include:
- Andaz Napa – The first phase of a comprehensive renovation of guestrooms and corridors expected to begin in the fourth quarter
- The Ritz-Carlton,
Denver – Renovation of guest rooms, corridors and meeting space expected to begin in the fourth quarter
Full Year 2026 Outlook and Guidance
The Company is providing its full year 2026 outlook. The range below reflects the Company's limited visibility in forecasting due to continued 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 RevPAR change shown includes all hotels owned as of
|
|
Full Year 2026 Guidance |
|
|
|
Low End |
High End |
|
|
($ in millions, except stats and |
|
|
Net Income |
|
|
|
Same-Property RevPAR Change (vs. 2025) |
1.50 % |
4.50 % |
|
Same-Property Total RevPAR Change (vs. 2025) |
2.75 % |
5.75 % |
|
Adjusted EBITDAre |
|
|
|
Adjusted FFO |
|
|
|
Adjusted FFO per Diluted Share |
|
|
|
Capital Expenditures |
|
|
Full year 2026 guidance is inclusive of the following assumptions:
- Disruption due to renovations is expected to negatively impact Adjusted EBITDAre and Adjusted FFO by approximately
$1 million - General and administrative expense of approximately
$24 million , excluding non-cash share-based compensation - Interest expense of approximately
$78 million , excluding non-cash loan related costs - Income tax expense of approximately
$2 million - 95.7 million weighted-average diluted shares/units
Supplemental Financial Information
Please refer to the Company's Supplemental Financial Information package for the Fourth Quarter and Full Year 2025 available online through the Press Release section of the Company's Investor Relations website for additional financial information.
Fourth Quarter 2025 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 strategies or plans, our performance relative to the industry and/or peers, 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 and the potential impact on the same due to the imposition of reciprocal and retaliatory tariffs. 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.
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Consolidated Balance Sheets
As of ($ amounts in thousands, except per share data) |
|||
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|
|||
|
|
|
|
|
|
Assets: |
(Unaudited) |
|
(Audited) |
|
Investment properties: |
|
|
|
|
Land |
$ 472,648 |
|
$ 455,907 |
|
Buildings and other improvements |
3,128,322 |
|
3,190,885 |
|
Total |
$ 3,600,970 |
|
$ 3,646,792 |
|
Less: accumulated depreciation |
(1,098,972) |
|
(1,054,704) |
|
Net investment properties |
$ 2,501,998 |
|
$ 2,592,088 |
|
Cash and cash equivalents |
140,427 |
|
78,201 |
|
Restricted cash and escrows |
82,682 |
|
65,381 |
|
Accounts and rents receivable, net of allowance for doubtful accounts |
26,937 |
|
25,758 |
|
Intangible assets, net of accumulated amortization |
4,850 |
|
4,856 |
|
Deferred tax assets, net |
5,544 |
|
5,345 |
|
Other assets |
46,237 |
|
59,987 |
|
Total assets |
$ 2,808,675 |
|
$ 2,831,616 |
|
Liabilities: |
|
|
|
|
Debt, net of loan premiums, discounts and unamortized deferred financing costs |
$ 1,422,881 |
|
$ 1,334,703 |
|
Finance lease liabilities |
7,606 |
|
1,971 |
|
Accounts payable and accrued expenses |
93,541 |
|
102,896 |
|
Distributions payable |
13,538 |
|
12,566 |
|
Other liabilities |
87,572 |
|
99,147 |
|
Total liabilities |
$ 1,625,138 |
|
$ 1,551,283 |
|
Commitments and Contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, |
$ 922 |
|
$ 1,013 |
|
Additional paid in capital |
1,803,644 |
|
1,921,006 |
|
Accumulated other comprehensive income |
86 |
|
925 |
|
Accumulated distributions in excess of net earnings |
(670,434) |
|
(679,841) |
|
|
$ 1,134,218 |
|
$ 1,243,103 |
|
Non-controlling interests |
49,319 |
|
37,230 |
|
Total equity |
$ 1,183,537 |
|
$ 1,280,333 |
|
Total liabilities and equity |
$ 2,808,675 |
|
$ 2,831,616 |
|
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 |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
Revenues: |
|
|
|
|
|
|
|
|
Rooms revenues |
$ 143,956 |
|
$ 143,610 |
|
$ 596,536 |
|
$ 597,097 |
|
Food and beverage revenues |
95,616 |
|
94,095 |
|
380,269 |
|
350,738 |
|
Other revenues |
26,005 |
|
24,144 |
|
101,695 |
|
91,212 |
|
Total revenues |
$ 265,577 |
|
$ 261,849 |
|
$ 1,078,500 |
|
$ 1,039,047 |
|
Expenses: |
|
|
|
|
|
|
|
|
Rooms expenses |
37,669 |
|
37,377 |
|
153,646 |
|
152,133 |
|
Food and beverage expenses |
64,049 |
|
63,599 |
|
254,305 |
|
241,186 |
|
Other direct expenses |
6,581 |
|
6,185 |
|
27,500 |
|
25,009 |
|
Other indirect expenses |
67,276 |
|
69,865 |
|
274,227 |
|
275,579 |
|
Management and franchise fees |
9,398 |
|
8,861 |
|
38,900 |
|
36,507 |
|
Total hotel operating expenses |
$ 184,973 |
|
$ 185,887 |
|
$ 748,578 |
|
$ 730,414 |
|
Depreciation and amortization |
32,315 |
|
33,123 |
|
130,721 |
|
128,749 |
|
Real estate taxes, personal property taxes and insurance |
12,058 |
|
13,195 |
|
50,823 |
|
53,140 |
|
Ground lease expense |
228 |
|
767 |
|
1,850 |
|
3,179 |
|
General and administrative expenses |
8,266 |
|
7,830 |
|
36,792 |
|
36,245 |
|
Gain on business interruption insurance |
— |
|
(1,593) |
|
(510) |
|
(2,338) |
|
Other operating expenses |
1,002 |
|
1,199 |
|
2,434 |
|
2,303 |
|
Impairment and other losses |
— |
|
49 |
|
279 |
|
520 |
|
Total expenses |
$ 238,842 |
|
$ 240,457 |
|
$ 970,967 |
|
$ 952,212 |
|
Operating income |
$ 26,735 |
|
$ 21,392 |
|
$ 107,533 |
|
$ 86,835 |
|
Gain on sale of investment properties |
— |
|
— |
|
39,953 |
|
1,628 |
|
Other income |
1,377 |
|
2,103 |
|
7,526 |
|
9,399 |
|
Interest expense |
(21,927) |
|
(20,135) |
|
(86,722) |
|
(80,882) |
|
Loss on extinguishment of debt |
— |
|
(3,850) |
|
— |
|
(3,850) |
|
Net income (loss) before income taxes |
$ 6,185 |
|
$ (490) |
|
$ 68,290 |
|
$ 13,130 |
|
Income tax (expense) benefit |
174 |
|
(287) |
|
(1,391) |
|
3,740 |
|
Net income (loss) |
$ 6,359 |
|
$ (777) |
|
$ 66,899 |
|
$ 16,870 |
|
Net (income) loss attributable to non-controlling interests |
(275) |
|
139 |
|
(3,811) |
|
(727) |
|
Net income (loss) attributable to common stockholders |
$ 6,084 |
|
$ (638) |
|
$ 63,088 |
|
$ 16,143 |
|
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 |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
Basic and diluted income (loss) per share: |
|
|
|
|
|
||
|
Net income (loss) per share available to common stockholders |
$ 0.07 |
|
$ (0.01) |
|
$ 0.64 |
|
$ 0.15 |
|
Weighted-average number of common shares (basic) |
93,379,622 |
|
101,578,304 |
|
96,711,589 |
|
101,846,303 |
|
Weighted-average number of common shares (diluted) |
93,856,606 |
|
101,578,304 |
|
97,162,875 |
|
102,271,394 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss): |
|
|
|
|
|
|
|
|
Net income (loss) |
$ 6,359 |
|
$ (777) |
|
$ 66,899 |
|
$ 16,870 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
Unrealized gain (loss) on interest rate derivative instruments |
12 |
|
970 |
|
(169) |
|
2,517 |
|
Reclassification adjustment for amounts recognized in net |
(111) |
|
(703) |
|
(706) |
|
(4,081) |
|
|
$ 6,260 |
|
$ (510) |
|
$ 66,024 |
|
$ 15,306 |
|
Comprehensive (income) loss attributable to non-controlling |
(269) |
|
132 |
|
(3,775) |
|
(677) |
|
Comprehensive income (loss) attributable to the Company |
$ 5,991 |
|
$ (378) |
|
$ 62,249 |
|
$ 14,629 |
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 |
||
|
|
2025 |
|
2024 |
|
Net income (loss) |
$ 6,359 |
|
$ (777) |
|
Adjustments: |
|
|
|
|
Interest expense |
21,927 |
|
20,135 |
|
Income tax expense (benefit) |
(174) |
|
287 |
|
Depreciation and amortization |
32,315 |
|
33,123 |
|
EBITDA and EBITDAre |
$ 60,427 |
|
$ 52,768 |
|
|
|
|
|
|
Reconciliation to Adjusted EBITDAre |
|
|
|
|
Depreciation and amortization related to corporate assets |
$ (79) |
|
$ (92) |
|
Gain on insurance recoveries(1) |
— |
|
(2,081) |
|
Loss on extinguishment of debt |
— |
|
3,850 |
|
Amortization of share-based compensation expense |
2,607 |
|
2,543 |
|
Non-cash ground rent and straight-line rent expense |
87 |
|
(51) |
|
Other non-recurring expenses(2) |
571 |
|
2,227 |
|
Adjusted EBITDAre attributable to common stock and unit holders |
$ 63,613 |
|
$ 59,164 |
|
Corporate-level costs and expenses |
5,139 |
|
3,723 |
|
Pro forma hotel adjustments, net(3) |
97 |
|
(3,690) |
|
|
$ 68,849 |
|
$ 59,197 |
|
|
|
|
1. |
During the three months ended |
|
2. |
Includes adjustments for pre-opening expenses, repair and clean-up costs related to property damage and other non-recurring items. |
|
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) |
|||
|
|
|||
|
|
Year Ended |
||
|
|
2025 |
|
2024 |
|
Net income |
$ 66,899 |
|
$ 16,870 |
|
Adjustments: |
|
|
|
|
Interest expense |
86,722 |
|
80,882 |
|
Income tax expense (benefit) |
1,391 |
|
(3,740) |
|
Depreciation and amortization |
130,721 |
|
128,749 |
|
EBITDA |
$ 285,733 |
|
$ 222,761 |
|
Impairment of investment properties |
279 |
|
— |
|
Gain on sale of investment properties |
(39,953) |
|
(1,628) |
|
EBITDAre |
$ 246,059 |
|
$ 221,133 |
|
|
|
|
|
|
Reconciliation to Adjusted EBITDAre |
|
|
|
|
Depreciation and amortization related to corporate assets |
$ (278) |
|
$ (341) |
|
Gain on insurance recoveries(1) |
(1,649) |
|
(4,428) |
|
Loss on extinguishment of debt |
— |
|
3,850 |
|
Amortization of share-based compensation expense |
13,069 |
|
13,658 |
|
Non-cash ground rent and straight-line rent expense |
113 |
|
(435) |
|
Other non-recurring expenses(2) |
1,030 |
|
3,686 |
|
Adjusted EBITDAre attributable to common stock and unit holders |
$ 258,344 |
|
$ 237,123 |
|
Corporate-level costs and expenses |
21,447 |
|
19,271 |
|
Pro forma hotel level adjustments, net(3) |
(5,509) |
|
(14,706) |
|
|
$ 274,282 |
|
$ 241,688 |
|
|
|
|
1. |
During the years ended |
|
2. |
Includes adjustments for pre-opening expenses, repair and clean-up costs related to property damage and other non-recurring items. |
|
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 |
||
|
|
2025 |
|
2024 |
|
Net income (loss) |
$ 6,359 |
|
$ (777) |
|
Adjustments: |
|
|
|
|
Depreciation and amortization related to investment properties |
32,236 |
|
33,031 |
|
FFO attributable to common stock and unit holders |
$ 38,595 |
|
$ 32,254 |
|
|
|
|
|
|
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) |
1,210 |
|
1,288 |
|
Amortization of share-based compensation expense |
2,607 |
|
2,543 |
|
Non-cash ground rent and straight-line rent expense |
87 |
|
(51) |
|
Other non-recurring expenses(3) |
571 |
|
2,227 |
|
Adjusted FFO attributable to common stock and unit holders |
$ 43,070 |
|
$ 40,030 |
|
Weighted-average shares outstanding - Diluted(4) |
95,888 |
|
103,313 |
|
Adjusted FFO per diluted share |
$ 0.45 |
|
$ 0.39 |
|
|
|
|
1. |
During the three months ended |
|
2. |
Loan related costs include amortization of debt premiums, discounts and deferred loan origination costs. |
|
3. |
Includes adjustments for pre-opening expenses, repair and clean-up costs related to property damage and other non-recurring items. |
|
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) |
|||
|
|
|||
|
|
Year Ended |
||
|
|
2025 |
|
2024 |
|
Net income |
$ 66,899 |
|
$ 16,870 |
|
Adjustments: |
|
|
|
|
Depreciation and amortization related to investment properties |
130,443 |
|
128,408 |
|
Impairment of investment properties |
279 |
|
— |
|
Gain on sale of investment properties |
(39,953) |
|
(1,628) |
|
FFO attributable to common stock and unit holders |
$ 157,668 |
|
$ 143,650 |
|
|
|
|
|
|
Reconciliation to Adjusted FFO |
|
|
|
|
Gain on insurance recoveries(1) |
(1,649) |
|
(4,428) |
|
Loss on extinguishment of debt |
— |
|
3,850 |
|
Loan related costs, net of adjustment related to non-controlling interests(2) |
4,487 |
|
5,361 |
|
Amortization of share-based compensation expense |
13,069 |
|
13,658 |
|
Non-cash ground rent and straight-line rent expense |
113 |
|
(435) |
|
Other non-recurring expenses(3) |
1,030 |
|
3,686 |
|
Adjusted FFO attributable to common stock and unit holders |
$ 174,718 |
|
$ 165,342 |
|
Weighted-average shares outstanding - Diluted(4) |
99,152 |
|
103,978 |
|
Adjusted FFO per diluted share |
$ 1.76 |
|
$ 1.59 |
|
|
|
|
1. |
During the years ended |
|
2. |
Loan related costs include amortization of debt premiums, discounts and deferred loan origination costs. |
|
3. |
Includes adjustments for pre-opening expenses, repair and clean-up costs related to property damage and other non-recurring items. |
|
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 2026 Guidance ($ amounts in millions) |
|
|
|
|
|
|
Guidance |
|
|
Full Year |
|
Net income |
$ 31 |
|
Adjustments: |
|
|
Interest expense |
82 |
|
Income tax expense |
2 |
|
Depreciation and amortization |
131 |
|
EBITDA and EBITDAre |
$ 246 |
|
Amortization of share-based compensation expense |
13 |
|
Other(1) |
1 |
|
Adjusted EBITDAre |
$ 260 |
|
Reconciliation of Net Income to Adjusted FFO for Full Year 2026 Guidance ($ amounts in millions) |
|
|
|
|
|
|
Guidance |
|
|
Full Year |
|
Net income |
$ 31 |
|
Adjustments: |
|
|
Depreciation and amortization related to investment properties |
131 |
|
FFO |
$ 162 |
|
Amortization of share-based compensation expense |
13 |
|
Other(2) |
5 |
|
Adjusted FFO |
$ 180 |
|
|
|
|
1. |
Includes below market ground rent and preopening expenses. |
|
2. |
Includes below market ground rent, loan cost amortization, and preopening expenses. |
|
Debt Summary as of (Unaudited) ($ amounts in thousands) |
|||||||
|
|
|||||||
|
|
Rate Type |
|
Rate(1) |
|
Maturity Date |
|
Outstanding as |
|
Mortgage Loans |
|
|
|
|
|
|
|
|
|
Fixed |
|
4.53 % |
|
|
|
$ 52,034 |
|
|
Fixed |
|
4.63 % |
|
|
|
103,732 |
|
Andaz Napa |
Fixed(3) |
|
5.72 % |
|
|
|
54,081 |
|
Total Mortgage Loans |
|
|
4.89 % |
(4) |
|
|
$ 209,847 |
|
Corporate Credit Facilities |
|
|
|
|
|
|
|
|
Corporate Credit Facility Term Loan |
Variable(5) |
|
5.50 % |
|
|
|
$ 225,000 |
|
Corporate Credit Facility Term Loan |
Variable(5) |
|
5.50 % |
|
|
|
100,000 |
|
Revolving Credit Facility |
Variable(6) |
|
5.50 % |
|
|
|
— |
|
Total Corporate Credit Facilities |
|
|
|
|
|
|
$ 325,000 |
|
2029 Senior Notes |
Fixed |
|
4.88 % |
|
|
|
500,000 |
|
2030 Senior Notes |
Fixed |
|
6.63 % |
|
|
|
400,000 |
|
Loan premiums, discounts and unamortized deferred |
|
|
|
|
|
|
(11,966) |
|
Total Debt, net of loan premiums, discounts and unamortized |
|
|
5.51 % |
(4) |
|
|
$ 1,422,881 |
|
|
|
|
1. |
Represents annual interest rates. |
|
2. |
In |
|
3. |
A variable interest loan for which SOFR has been fixed through |
|
4. |
Weighted-average interest rate. |
|
5. |
A variable interest loan for which the credit spread may vary, as it is determined by the Company's leverage ratio. |
|
6. |
The Revolving Credit Facility has a total capacity of |
|
7. |
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 |
||||||||
|
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
Same-Property Occupancy(1) |
|
66.1 % |
|
64.8 % |
|
130 bps |
|
68.6 % |
|
67.6 % |
|
100 bps |
|
Same-Property Average Daily Rate(1) |
|
$ 266.88 |
|
$ 260.43 |
|
2.5 % |
|
$ 265.38 |
|
$ 259.03 |
|
2.5 % |
|
Same-Property RevPAR(1) |
|
$ 176.45 |
|
$ 168.81 |
|
4.5 % |
|
$ 181.97 |
|
$ 175.18 |
|
3.9 % |
|
Same-Property Total RevPAR(1)(2) |
|
$ 325.52 |
|
$ 305.20 |
|
6.7 % |
|
$ 328.57 |
|
$ 304.12 |
|
8.0 % |
|
Same-Property Revenues(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms revenues |
|
$ 143,956 |
|
$ 137,650 |
|
4.6 % |
|
$ 588,998 |
|
$ 568,239 |
|
3.7 % |
|
Food and beverage revenues |
|
95,616 |
|
87,394 |
|
9.4 % |
|
373,722 |
|
329,677 |
|
13.4 % |
|
Other revenues |
|
26,005 |
|
23,811 |
|
9.2 % |
|
100,778 |
|
88,574 |
|
13.8 % |
|
Total Same-Property revenues |
|
$ 265,577 |
|
$ 248,855 |
|
6.7 % |
|
$ 1,063,498 |
|
$ 986,490 |
|
7.8 % |
|
Same-Property Expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms expenses |
|
$ 37,669 |
|
$ 35,709 |
|
5.5 % |
|
$ 151,750 |
|
$ 144,069 |
|
5.3 % |
|
Food and beverage expenses |
|
64,049 |
|
60,587 |
|
5.7 % |
|
251,486 |
|
230,641 |
|
9.0 % |
|
Other direct expenses |
|
6,581 |
|
6,186 |
|
6.4 % |
|
27,500 |
|
24,573 |
|
11.9 % |
|
Other indirect expenses |
|
66,744 |
|
66,844 |
|
(0.1) % |
|
268,640 |
|
258,880 |
|
3.8 % |
|
Management and franchise fees |
|
9,398 |
|
8,513 |
|
10.4 % |
|
38,462 |
|
35,087 |
|
9.6 % |
|
Real estate taxes, personal property taxes and |
|
12,141 |
|
12,632 |
|
(3.9) % |
|
50,131 |
|
50,659 |
|
(1.0) % |
|
Ground lease expense |
|
146 |
|
780 |
|
(81.3) % |
|
1,757 |
|
3,231 |
|
(45.6) % |
|
Gain on business interruption insurance |
|
— |
|
(1,593) |
|
(100.0) % |
|
(510) |
|
(2,338) |
|
(78.2) % |
|
Total Same-Property hotel operating expenses |
|
$ 196,728 |
|
$ 189,658 |
|
3.7 % |
|
$ 789,216 |
|
$ 744,802 |
|
6.0 % |
|
Same-Property Hotel EBITDA(1) |
|
$ 68,849 |
|
$ 59,197 |
|
16.3 % |
|
$ 274,282 |
|
$ 241,688 |
|
13.5 % |
|
Same-Property Hotel EBITDA Margin(1) |
|
25.9 % |
|
23.8 % |
|
214 bps |
|
25.8 % |
|
24.5 % |
|
129 bps |
|
|
|
|
1. |
"Same-Property" includes all properties owned as of |
|
2. |
Total Revenues per available room for the period presented. |
|
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Total Revenues - GAAP |
|
$ 265,577 |
|
$ 261,849 |
|
$ 1,078,500 |
|
$ 1,039,047 |
|
Pro forma hotel level adjustments(a) |
|
— |
|
(12,994) |
|
(15,002) |
|
(52,557) |
|
Total Same-Property Revenues |
|
$ 265,577 |
|
$ 248,855 |
|
$ 1,063,498 |
|
$ 986,490 |
|
|
|
$ 184,973 |
|
$ 185,887 |
|
$ 748,578 |
|
$ 730,414 |
|
Real estate taxes, personal property taxes and insurance |
|
12,058 |
|
13,195 |
|
50,823 |
|
53,140 |
|
Ground lease expense, net(b) |
|
146 |
|
780 |
|
1,757 |
|
3,231 |
|
Other income |
|
13 |
|
1,046 |
|
(3) |
|
(148) |
|
Gain on business interruption insurance |
|
— |
|
(1,593) |
|
(510) |
|
(2,338) |
|
Corporate-level costs and expenses |
|
(545) |
|
(366) |
|
(2,077) |
|
(1,685) |
|
Pro forma hotel level adjustments, net(a) |
|
83 |
|
(9,291) |
|
(9,352) |
|
(37,812) |
|
|
|
$ 196,728 |
|
$ 189,658 |
|
$ 789,216 |
|
$ 744,802 |
|
|
|
|
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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