Xenia Hotels & Resorts(XHR)2025-02-25 22:29Financial Data and Key Metrics Changes - The company reported a net loss of 59.2 million and adjusted FFO per share at 16.1 million, adjusted EBITDAre 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 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 0.12 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]