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Financial Data and Key Metrics Changes - The company reported a net loss of $638,000 for Q4 2024, with adjusted EBITDAre at $59.2 million and adjusted FFO per share at $0.39, slightly exceeding the midpoint of previous guidance [5][7] - For the full year 2024, net income was $16.1 million, adjusted EBITDAre was $237.1 million, and adjusted FFO per share was $1.59 [7][8] - Same property RevPAR increased by 1.6% in 2024, significantly impacted by the Grand Hyatt Scottsdale renovation [8][9] Business Line Data and Key Metrics Changes - Same property hotel EBITDA for Q4 2024 was $62.9 million, a decrease of 0.6% compared to Q4 2023, with a margin erosion of 120 basis points [6][31] - Excluding Grand Hyatt Scottsdale, Q4 same property hotel EBITDA was flat compared to last year, reflecting a 68 basis point decline in margin [6][31] - For the full year, same property hotel EBITDA was $255.4 million, down 5.5% from 2023, with margins decreasing by 189 basis points [9][31] Market Data and Key Metrics Changes - The company experienced double-digit RevPAR growth in several markets during Q4 2024, including Nashville, Santa Barbara, and Pittsburgh [6][8] - The group segment saw a 5% increase in same property group room revenues for the full year, excluding Grand Hyatt Scottsdale [10][30] - Corporate transient demand showed improvement, particularly in mid-week occupancy, although leisure demand moderated [11][12] Company Strategy and Development Direction - The company is focused on improving its portfolio through capital expenditures aimed at driving strong returns on investment and selective property dispositions [19][20] - The completion of the Grand Hyatt Scottsdale renovation is expected to significantly enhance cash flow and competitive positioning [4][37] - The company anticipates a slight increase in capital expenditures for 2025, primarily due to ongoing projects [13][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects for 2025, despite economic uncertainties, citing strong group bookings and the completion of the Scottsdale renovation [16][67] - The company expects same property RevPAR to grow by 5% in 2025, with adjusted EBITDAre increasing by 7% and adjusted FFO per share rising by 3.5% [52][66] - Management highlighted the importance of group demand and business transient recovery in driving future revenue growth [53][56] Other Important Information - The company repurchased over 500,000 shares of common stock in Q4 2024, with a total of about 1.1 million shares repurchased throughout the year [49] - A first-quarter dividend of $0.14 per share is expected, up from $0.12 per share in the previous quarter, reflecting a yield of over 4% [50] Q&A Session Summary Question: Can you help unpack the RevPAR guidance? - Management acknowledged strong group pace but noted economic uncertainty affecting other segments, leading to a cautious outlook on RevPAR growth [70][72] Question: What is the expected EBITDA contribution from Scottsdale in 2025? - Management expects Scottsdale to generate low twenties in EBITDA for 2025, with stabilization anticipated in about three years [76][82] Question: Can you expand on the softening group business outside urban areas? - Management identified Orlando and Park Hyatt Aviara as markets experiencing softening group demand but expects a return to normalized business in 2025 [88][90] Question: What is the outlook for the W Nashville EBITDA? - Management indicated that 2024 was a transitional year, with expectations for improved group business and a better mix in 2025 [105][107] Question: What markets are expected to drive above-average RevPAR growth in 2025? - Management highlighted Houston, Orlando, and Nashville as key markets for above-average RevPAR growth, driven by strong group components [111][113]

Interest Rate Risk Management - Xenia Hotels & Resorts, Inc. is subject to market risks associated with changes in interest rates, with a potential impact of approximately $0.1 million on future earnings and cash flows for a 1% change in variable rate debt [431]. - As of December 31, 2023, all variable rate debt was fixed by interest rate swaps, mitigating the impact of interest rate fluctuations until mid-February 2025 [431]. - The company has taken steps to reduce variable rate debt exposure by paying off floating rate mortgage debt and entering into interest rate swap agreements [433]. - The company monitors interest rate risk using various techniques, including cash flow sensitivity analysis and evaluating refinancing opportunities for near-term maturing loans [433]. - Xenia's interest rate risk management objectives include limiting the impact of interest rate changes on earnings and cash flows while lowering overall borrowing costs [431]. Operational Risks - The company relies on third-party hotel management companies for operations, which introduces operational risks [14]. - Economic uncertainties and inflation could adversely affect demand for hotel services and reduce operating profit margins [13]. - The lodging industry is subject to seasonal and cyclical volatility, impacting occupancy and average daily rates (ADR) [13]. - The company faces risks from supply chain disruptions affecting the sourcing of furniture and equipment necessary for hotel operations [13]. Financial Performance and Debt - Future performance projections are inherently uncertain and subject to various risks, including changes in consumer preferences and competitive environment [15]. - As of December 31, 2024, total debt outstanding is $1,349.278 million with a fair value of $1,314.837 million [436]. - Fixed rate debt amounts to $1,061.198 million, with a weighted-average interest rate of 5.49% [436]. - Variable rate debt totals $278.080 million, with a weighted-average interest rate of 5.69% [436]. - The revolving credit facility is $10 million, with a weighted-average interest rate of 6.39% [436]. - The fixed rate debt maturing in 2025 is $4.431 million, while the amount maturing in 2026 is $55.381 million [436]. - The total fixed rate debt maturing in 2029 is $500 million, and thereafter is $400 million [436]. - The weighted-average interest rate on fixed rate debt maturing in 2029 is 4.88% [436]. - The weighted-average interest rate on variable rate debt maturing in 2027 is 5.72% [436]. - The debt maturity excludes net mortgage loan discounts, premiums, and unamortized deferred loan costs of $14.6 million [437]. - All fixed rate debt and variable rate debt swapped to fixed rates are included in the total debt figures [437].

For the quarter ended December 2024, Xenia Hotels & Resorts (XHR) reported revenue of $261.85 million, up 3.3% over the same period last year. EPS came in at $0.39, compared to $0.07 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $257.63 million, representing a surprise of +1.64%. The company delivered an EPS surprise of +2.63%, with the consensus EPS estimate being $0.38.While investors closely watch year-over-year changes in headline numbers -- revenue and earning ...

Core Viewpoint - Xenia Hotels & Resorts reported quarterly funds from operations (FFO) of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, but down from $0.41 per share a year ago [1][2]. Financial Performance - The FFO surprise for the quarter was 2.63%, with the company having surpassed consensus FFO estimates three times over the last four quarters [2]. - Revenues for the quarter ended December 2024 were $261.85 million, surpassing the Zacks Consensus Estimate by 1.64% and up from $253.38 million year-over-year [3]. Market Performance - Xenia Hotels & Resorts shares have declined approximately 6.1% since the beginning of the year, while the S&P 500 has gained 1.7% [4]. - The current consensus FFO estimate for the upcoming quarter is $0.48 on revenues of $275.81 million, and for the current fiscal year, it is $1.71 on revenues of $1.08 billion [8]. Industry Outlook - The REIT and Equity Trust - Other industry is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [9].

Financial Performance - Net loss attributable to common stockholders for Q4 2024 was $0.6 million, or $0.01 per share, compared to a net income of $7.6 million in Q4 2023, representing a 108.4% decline[4] - Adjusted EBITDAre for Q4 2024 was $59.2 million, a decrease of 0.5% compared to Q4 2023[4] - For the full year 2024, net income attributable to common stockholders was $16.1 million, or $0.15 per share, down 15.7% from $19.1 million in 2023[12] - Total revenues for the year ended December 31, 2024, increased to $1,039,047,000, up from $1,025,443,000 in 2023, representing a growth of 1.4%[38] - Net income attributable to common stockholders for the year ended December 31, 2024, was $16,143,000, compared to $19,142,000 in 2023, reflecting a decrease of 15.6%[40] - For the year ended December 31, 2024, net income was $16,870,000, compared to $19,874,000 in 2023, indicating a decline of about 15.1%[59] - Adjusted FFO for the year ended December 31, 2024, was $165,342,000, down from $170,211,000 in 2023, a decrease of approximately 2.5%[66] Occupancy and Revenue Metrics - Same-Property RevPAR increased by 5.1% to $165.92 in Q4 2024, with a notable increase of 3.4% to $168.34 when excluding the Grand Hyatt Scottsdale Resort[4] - Same-Property occupancy for the full year 2024 was 67.4%, an increase of 230 basis points compared to 65.1% in 2023[12] - Same-Property RevPAR rose by 5.1% to $165.92 in Q4 2024 compared to $157.92 in Q4 2023[86] - Total Same-Property revenues for the year ended December 31, 2024, reached $1,033.82 million, a 1.7% increase from $1,016.13 million in 2023[88] - Same-Property Hotel EBITDA for the year ended December 31, 2024, was $255.42 million, down 5.5% from $270.21 million in 2023[86] Dividends and Share Repurchase - The company declared a total of $0.48 in dividends per share for the full year 2024, yielding 3.5% relative to the stock price on December 29, 2023[6] - The Board of Directors increased the quarterly cash dividend by approximately 17% to $0.14 per share for the first quarter of 2025[18] - The company repurchased 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 in 2024[6] - The Company repurchased 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 in the quarter[17] - The Company has $117.9 million remaining under its share repurchase authorization and $200 million of remaining availability under its ATM program as of December 31, 2024[17] Debt and Financial Position - Total outstanding debt as of December 31, 2024, was approximately $1.3 billion, with a weighted-average interest rate of 5.54%[13] - The company’s total debt as of January 31, 2025, is $1,424.33 million, with a weighted-average interest rate of 5.58%[82] - The company’s total mortgage loans outstanding as of December 31, 2024, amounted to $214.28 million, with a weighted-average interest rate of 4.88%[77] - Total liabilities decreased to $1,551,283,000 as of December 31, 2024, from $1,584,730,000 in 2023, a reduction of 2.1%[36] - Cash and cash equivalents decreased significantly to $78,201,000 in 2024 from $164,725,000 in 2023, a drop of 52.5%[36] Capital Expenditures and Renovations - The company completed significant capital improvement projects, including the renovation and upbranding of the Grand Hyatt Scottsdale, which is expected to drive strong cash flow moving forward[6] - The Company invested $24.4 million in capital expenditures during the quarter and $140.6 million for the full year 2024, with ongoing upgrades planned for 2025[21][22] - The transformative renovation of the Grand Hyatt Scottsdale Resort was completed, including a full renovation of 496 guest rooms and the expansion of the Arizona Ballroom by approximately 12,000 square feet[19][20] - Future renovations planned for 2025 include upgrades to guest rooms and public areas at several properties, with minimal disruption expected[22] Guidance and Projections - The company expects Same-Property RevPAR for Q1 2025 to grow by 7.3% compared to the same period in 2024, indicating positive momentum[7] - The full year 2025 guidance includes a net income range of $9 million to $29 million and a Same-Property RevPAR change of 3.5% to 6.5% compared to 2024[25] - Adjusted FFO per diluted share is projected to be between $1.55 and $1.74 for the full year 2025[25] - The guidance for full year 2025 indicates a net income of $19 million and Adjusted EBITDAre of $254 million[70] - Interest expense for the full year 2025 guidance is projected at $85 million[70] - Depreciation and amortization for the full year 2025 guidance is estimated at $133 million[70] Other Financial Metrics - Total hotel operating expenses for the year ended December 31, 2024, were $730,414,000, compared to $703,770,000 in 2023, an increase of 3.8%[38] - The company reported a loss of $777,000 for the three months ended December 31, 2024, compared to a profit of $7,794,000 in the same period of 2023[39] - Basic and diluted net income (loss) per share for the year ended December 31, 2024, was $0.15, down from $0.17 in 2023, a decrease of 11.8%[40] - The company’s total equity decreased to $1,280,333,000 as of December 31, 2024, from $1,317,497,000 in 2023, a decline of 2.8%[36] - Adjusted FFO for the three months ended December 31, 2024, was $40,030,000, compared to $44,045,000 in 2023, reflecting a decrease of approximately 9.1%[62] - Same-Property Hotel EBITDA for the three months ended December 31, 2024, was $62,932,000, slightly down from $63,341,000 in 2023[55] - The company reported a Same-Property Hotel EBITDA Margin of 24.0% for Q4 2024, a decrease of 120 basis points from 25.2% in Q4 2023[86]

Core Insights - Xenia Hotels & Resorts, Inc. reported a challenging year in 2024 but ended with positive momentum in the fourth quarter, driven by portfolio performance and completion of significant capital improvement projects [4][6] - The company experienced a 5.1% increase in Same-Property RevPAR in Q4 2024 compared to the previous year, with notable growth in various markets [4][5] - The Grand Hyatt Scottsdale Resort underwent a transformative renovation, which is expected to deliver meaningful returns as it becomes fully operational [4][19] Fourth Quarter 2024 Highlights - Net loss attributable to common stockholders was $0.6 million, or $0.01 per share [5] - Adjusted EBITDAre for Q4 2024 was $59.2 million, a decrease of 0.5% compared to Q4 2023 [5] - Same-Property Occupancy increased to 64.4%, up 250 basis points from Q4 2023 [5] - Same-Property RevPAR reached $165.92, a 5.1% increase from Q4 2023 [5][7] Full Year 2024 Highlights - Net income attributable to common stockholders was $16.1 million, or $0.15 per share, down 15.7% from 2023 [10] - Adjusted FFO per diluted share increased by 3.2% to $1.59 compared to 2023 [11] - Same-Property RevPAR for the full year was $172.47, a 1.6% increase from 2023 [11] Capital and Financing Activities - The company upsized and extended its corporate credit facility to $825 million, maturing in November 2028 [14][15] - Issued $400 million of 6.625% Senior Notes maturing in May 2030, used to repay existing debt [16] - Repurchased 515,876 shares of common stock in Q4 2024 at an average price of $14.83 per share [17] Renovation and Capital Expenditures - Invested $24.4 million in capital improvements during Q4 2024 and $140.6 million for the full year [20] - Completed major renovations at Grand Hyatt Scottsdale, including guest rooms and public spaces, with some components expected to finish in 2025 [19][24] 2025 Outlook and Guidance - The company anticipates Same-Property RevPAR growth of 3.5% to 6.5% for 2025 [22][23] - Full year 2025 guidance includes Adjusted EBITDAre between $244 million and $264 million [23] - Capital expenditures for 2025 are projected to be between $100 million and $110 million [23]

Company Overview - Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that focuses on investing in luxury and upper upscale hotels and resorts in the top 25 lodging markets and key leisure destinations in the United States [2] - The company owns 31 hotels comprising 9,408 rooms across 14 states, with properties operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection [2] Upcoming Events - The 2025 Annual Meeting of Stockholders is scheduled to be held in Orlando, Florida on May 13, 2025 [1] - March 21, 2025, has been established as the record date for determining stockholders entitled to vote at the 2025 Annual Stockholders Meeting [1]

Xenia Hotels & Resorts (XHR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The ...

Company Overview - Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that focuses on investing in luxury and upper upscale hotels and resorts in the top 25 lodging markets and key leisure destinations in the United States [3] - The company owns 31 hotels comprising 9,408 rooms across 14 states, with properties operated and/or licensed by leading industry brands such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection [3] Anniversary Celebration - Xenia announced the celebration of its 10th anniversary of listing on the New York Stock Exchange by ringing The Closing Bell [1] - The CEO, Marcel Verbaas, highlighted the achievement as a testament to the hard work and dedication of the team, emphasizing the company's ability to identify and embrace opportunities despite challenges in the lodging industry [2] - The company has improved its portfolio quality, brand and geographic diversification, and maintains a strong balance sheet, positioning itself well for future strategic objectives [2]