Xenia Hotels & Resorts Inc (XHR) Q2 2024 Earnings Call Highlights: Strategic Moves Amidst ...

GuruFocus News
4 min read

In This Article:

  • Net Income: $15.3 million for Q2 2024.

  • Adjusted EBITDAre: $68.4 million for Q2 2024.

  • Adjusted FFO per Share: $0.52 for Q2 2024.

  • Same-Property RevPAR: Increased by 1.8% for the quarter.

  • RevPAR Excluding Hyatt Regency Scottsdale: Increased by 5% for the quarter.

  • Occupancy: Increased by 389 basis points for the 31 hotels excluding Hyatt Regency Scottsdale.

  • ADR: Decreased by 0.5% for the 31 hotels excluding Hyatt Regency Scottsdale.

  • Same-Property Hotel EBITDA: $73.4 million, 7.5% below 2023 levels.

  • Hotel EBITDA Margin: Decreased by 238 basis points.

  • Capital Expenditure Projection: $125 million to $135 million for 2024.

  • Sale of Lorien Hotel & Spa: Sold for $30 million, representing a 21.3 times multiple on hotel EBITDA.

  • Leverage Ratio: Approximately 5.2 times trailing 12-month net debt-to-EBITDA.

  • 2024 RevPAR Growth Guidance: Lowered to 3% at the midpoint.

  • 2024 Adjusted EBITDAre Guidance: Lowered to $249 million at the midpoint.

  • 2024 Adjusted FFO per Share Guidance: Reduced to $1.68.

Release Date: August 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Xenia Hotels & Resorts Inc (NYSE:XHR) reported meaningful RevPAR growth in the second quarter, driven by improvements in corporate transient and group demand.

  • The transformational renovation of Hyatt Regency Scottsdale is on track, with excitement building for its relaunch as the luxury Grand Hyatt Scottsdale Resort.

  • The company successfully sold the Lorien Hotel & Spa for $30 million, representing a 21.3 times multiple on hotel EBITDA, reflecting prudent capital allocation.

  • Group room revenues, excluding Hyatt Regency Scottsdale, increased by 5% compared to the second quarter last year, indicating strong group demand recovery.

  • Xenia Hotels & Resorts Inc (NYSE:XHR) maintains a strong balance sheet with significant unencumbered assets and ample liquidity, positioning it well for future opportunities.

Negative Points

  • Hotel EBITDA margin in the second quarter was lower than projected, contributing to adjusted EBITDAre being approximately $2 million below internal estimates.

  • The renovation disruption at Hyatt Regency Scottsdale continues to be a substantial headwind, impacting year-over-year comparisons negatively.

  • Same-property hotel EBITDA decreased by 7.5% compared to 2023 levels, with a margin decline of 238 basis points.

  • Leisure demand softened during the quarter, impacting overall portfolio performance.

  • The company has slightly reduced its estimates for adjusted EBITDAre for 2024 due to recent operating results and greater uncertainty regarding market performance in the second half of the year.

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