Xenia Hotels & Resorts(XHR) - 2024 Q4 - Annual Report

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].