Market Overview

Xenia Hotels & Resorts Reports Third Quarter 2017 Results

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ORLANDO, Fla., Nov. 7, 2017 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced results for the quarter ended September 30, 2017. 

Third Quarter 2017 Highlights

  • Net Income: Net income attributable to common stockholders was $11.6 million and net income per diluted share was $0.11.
  • Same-Property RevPAR: Same-Property RevPAR decreased 1.3% compared to the third quarter of 2016 to $157.35, as occupancy increased 68 basis points and ADR decreased 2.2%. Hyatt Centric Key West Resort & Spa, which was closed for a portion of September due to Hurricane Irma, is included in all Same-Property portfolio metrics as if all rooms had been available. Excluding Hyatt Centric Key West Resort & Spa, Same-Property RevPAR decreased 1.1% compared to third quarter 2016.
  • Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 30.7%, a decrease of 16 basis points compared to the third quarter of 2016.
  • Total Portfolio RevPAR: Total Portfolio RevPAR was 0.3% higher than in the third quarter of 2016.
  • Adjusted EBITDA: Adjusted EBITDA declined $9.3 million to $63.6 million, a decrease of 12.8% primarily due to net asset dispositions since the third quarter of 2016.
  • Adjusted FFO per Diluted Share: Adjusted FFO per diluted share was $0.50, a decrease of 12.3% compared to the third quarter of 2016.
  • Transaction Activity: The Company sold the Marriott West Des Moines for $19 million early in the third quarter. Subsequent to quarter end, in early October, the Company completed the acquisition of the 493-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and the 119-room Royal Palms Resort & Spa, part of The Unbound Collection by Hyatt, for a combined purchase price of $305 million. Also in October, the Company completed the acquisition of the 365-room Ritz-Carlton Pentagon City for $105 million.
  • Financing Activity: The Company obtained a new $100 million mortgage loan on the Renaissance Atlanta Waverly Hotel & Convention Center and a new $125 million unsecured term loan.
  • Dividends: The Company declared its third quarter dividend of $0.275 per share to common stockholders of record on September 29, 2017.

Year to Date Highlights

  • Net Income: Net income attributable to common stockholders was $89.2 million and net income per diluted share was $0.83.
  • Same-Property RevPAR: Same-Property RevPAR increased 0.1% to $159.81 compared to the nine months ended September 30, 2016, as occupancy increased 29 basis points and ADR decreased 0.3%.
  • Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 31.8%, an increase of 19 basis points compared to the nine months ended September 30, 2016.
  • Total Portfolio RevPAR: Total Portfolio RevPAR increased 2.4% year over year, reflecting portfolio improvements and portfolio composition.
  • Adjusted EBITDA: Adjusted EBITDA was $202.2 million, a decrease of 9.5% from 2016.
  • Adjusted FFO per Diluted Share: The Company generated Adjusted FFO per diluted share of $1.53, a 7.3% decline from 2016.

"Third quarter operating results exceeded our expectations as the short-term negative impact from Hurricanes Harvey and Irma on the results of a number of our properties was offset by increased post-hurricane demand in Houston, as well as stronger than anticipated performance in markets such as Orlando, San Francisco and Santa Clara," commented Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "While we had anticipated that the third quarter would be challenging as a result of the shift in the timing of holidays and softer group bookings for the quarter, the outperformance in the aforementioned markets resulted in a modest Same-Property RevPAR decrease of 1.3%, inclusive of the results of Hyatt Centric Key West that was closed for part of September.  Additionally, our expense controls were outstanding during the quarter as our Same-Property Hotel EBITDA margin declined by only 16 basis points. We believe our overall performance this quarter is reflective of the strength of our platform and our market strategy, which we expect to continue to benefit us over the quarters and years ahead."

"We have further strengthened the portfolio and our market diversification through the exciting acquisitions of The Ritz-Carlton Pentagon City, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort & Spa," continued Mr. Verbaas. "We believe our transaction expertise is a core strength of our company and our ability to acquire these hotels is further evidence of this.  We are particularly excited we have been able to re-enter the Phoenix/Scottsdale market through the ownership of two premier hotels in the area while also expanding our footprint in the strong and stable Washington D.C. market through the acquisition of our first Ritz-Carlton. We remain steadfast in our belief that an investment strategy focused on primarily investing in a balanced manner in luxury and upper upscale hotels within the top 25 U.S. lodging markets and key leisure destinations will continue to drive long-term value creation."

Operating Results

The Company's results include the following:

     


Three Months Ended
September 30,




Nine Months Ended
September 30,




2017


2016


Change


2017


2016


Change


($ amounts in thousands, except hotel statistics and per share amounts)

Net income attributable to common
stockholders

$

11,638



$

20,242



(42.5)%


$

89,169



$

37,096



140.4%

Net income per share available to
common stockholders

$

0.11



$

0.19



(42.1)%


$

0.83



$

0.34



144.1%













Same-Property Number of Hotels

36



36




36



36



Same-Property Number of Rooms

10,556



10,573



(17)


10,556



10,573



(17)

Same-Property Occupancy(1)

79.3%



78.6%



68 bps


77.7%



77.4%



29 bps

Same-Property Average Daily Rate(1)

$

198.37



$

202.73



(2.2)%


$

205.70



$

206.34



(0.3)%

Same-Property RevPAR(1)

$

157.35



$

159.44



(1.3)%


$

159.81



$

159.70



0.1%

Same-Property Hotel EBITDA(1)(2)

$

68,581



$

70,114



(2.2)%


$

222,321



$

221,064



0.6%

Same-Property Hotel EBITDA Margin(1)(2)

30.7%



30.9%



(16) bps


31.8%



31.6%



19 bps













Total Portfolio Number of Hotels(3)

36



46



(10)


36



46



(10)

Total Portfolio Number of Rooms(3)

10,775



11,594



(819)


10,556



11,594



(1,038)

Total Portfolio RevPAR(4)

$

157.13



$

156.63



0.3%


$

156.18



$

152.49



2.4%













Adjusted EBITDA(2)

$

63,551



$

72,888



(12.8)%


$

202,236



$

223,421



(9.5)%

Adjusted FFO(2)

$

53,140



$

61,749



(13.9)%


$

164,068



$

179,073



(8.4)%

Adjusted FFO per diluted share

$

0.50



$

0.57



(12.3)%


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