Xenia Hotels & Resorts, Inc. (NYSE: XHR) today announced results for the quarter and year ended December 31, 2022. Fourth Quarter 2022 Highlights
- Net Income: Net income attributable to common stockholders was $35.3 million, or $0.31 per share
- Adjusted EBITDAre: $64.6 million, increased 32.0% compared to the fourth quarter of 2021
- Adjusted FFO per Diluted Share: $0.41, increased $0.16 compared to the fourth quarter of 2021
- Same-Property Occupancy: 64.1%, increased 770 basis points compared to the fourth quarter of 2021 and decreased 920 basis points compared to the fourth quarter of 2019
- Same-Property ADR: $260.19, increased 6.9% and 15.0% compared to the fourth quarter of 2021 and 2019, respectively
- Same-Property RevPAR: $166.87, increased 21.5% and 0.6% compared to the fourth quarter of 2021 and 2019, respectively
- Same-Property Hotel EBITDA: $65.4 million, increased 23.5% and 3.3% compared to the fourth quarter of 2021 and 2019, respectively
- Same-Property Hotel EBITDA Margin: 27.3%, decreased 37 basis points and increased 17 basis points compared to the fourth quarter of 2021 and 2019, respectively
- Transaction Activity: Sold the 115-room Bohemian Hotel Celebration, Autograph Collection in Celebration, FL for $27.75 million and the 189-room Kimpton Hotel Monaco Denver for $69.75 million.
- Dividends: The Company declared its fourth quarter dividend of $0.10 per share to common stockholders of record on December 30, 2022.
"We are pleased with our fourth quarter results as the continued transition from a leisure-driven recovery to a more traditional mix of leisure, business transient and group demand resulted in Adjusted EBITDAre and FFO per share that came in near the high end of guidance we provided after our third quarter results," said Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "With Same-Property RevPAR increasing by 0.6% over the fourth quarter of 2019, a continued focus on cost controls helped Same-Property Hotel EBITDA Margin grow over the same period in 2019, despite continued cost pressures, particularly in labor and utilities, that are impacting our portfolio and the lodging industry overall. Despite the typical seasonal slowdown in demand as the quarter progressed, December results were particularly encouraging as Same-Property RevPAR increased by 2.6% over 2019, fueled by ADR growth of almost 18% and a declining occupancy gap when compared to the same period in 2019. We continue to be particularly pleased with the resiliency of rate growth within our portfolio as Same-Property ADR for the quarter exceeded 2019 by 15%."
Full Year 2022 Highlights
- Net Income: Net income attributable to common stockholders was $55.9 million, or $0.49 per share.
- Adjusted EBITDAre: $257.0 million, increased 137.8% compared to 2021
- Adjusted FFO per Diluted Share: $1.54, increased $1.26 compared to 2021
- Same-Property Occupancy: 63.9%, increased 1,420 basis points compared to 2021 and decreased 1,270 basis points compared to 2019
- Same-Property ADR: $259.92, increased 15.3% and 13.8% compared to 2021 and 2019, respectively
- Same-Property RevPAR: $166.08, an increase of 48.3% and a decrease of 5.1% compared to 2021 and 2019, respectively
- Same-Property Hotel EBITDA: $256.4 million, an increase of 99.9% and a decrease of 3.0% compared to 2021 and 2019, respectively
- Same-Property Hotel EBITDA Margin: 28.4%, an increase of 623 basis points and 40 basis points compared to 2021 and 2019, respectively
- Transaction Activity: Acquired the 346-room W Nashville for $328.7 million and sold three hotels, reflecting 495 rooms, for $133.5 million in total.
- Balance Sheet: In the first quarter, the Company paid off the $65 million mortgage loan secured by The Ritz-Carlton, Pentagon City.
- Share Repurchases & Dividends: The Company repurchased a total of 1,912,794 shares of common stock at a weighted-average price of $14.74 per share for total consideration of approximately $28.2 million in 2022. Additionally, the Company declared a quarterly dividend in both the third and fourth quarters of $0.10 per share to common stockholders.
"We successfully executed our long-term strategy on several fronts in 2022," commented Mr. Verbaas. "First, we positioned our portfolio to capitalize on strong leisure demand and a broad-based recovery. Second, we remained engaged through transaction activity, thereby improving the overall quality and growth profile of our portfolio. And finally, we balanced capital allocation priorities by returning capital to shareholders while also initiating several important capital projects."
"Building on Xenia's strong track record of successful transformative renovations and expansions, just last month we announced plans to transform and upgrade Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch," continued Mr. Verbaas. "The property will undergo a comprehensive renovation and upbranding to a Grand Hyatt which we expect to be completed by the end of 2024. While the resort has been a very strong performer since our acquisition in 2017, we intend to maximize the value of this very important strategic asset by increasing the property's ability to capture premium group and leisure transient business and optimizing its ability to compete effectively with its luxury competitors in the attractive Phoenix/Scottsdale market."
"Looking ahead, we continue to see opportunities for growth in 2023," said Mr. Verbaas. "We expect to benefit from continued recovery across our portfolio, the ramping up of recently acquired properties, and favorable returns on several meaningful capital projects. Despite the current uncertain macro backdrop, lodging demand remains resilient. Our January 2023 Current Same-Property RevPAR increased 49.5%, and February RevPAR is expected to be up approximately 25% compared to the same months in 2022. We expect our high-quality portfolio to benefit from the continued recovery in business transient and group demand as the year progresses."
Operating Results
The Company's results include the following:
| Three Months Ended December 31, | Change From | ||||||||
| 2022 | 2021 | 2019 | 2021 | 2019 | |||||
| ($ amounts in thousands, except hotel statistics and per share amounts) | |||||||||
| Net income (loss) attributable to common stockholders | $ 35,261 | $ (22,935) | $ 15,610 | 253.7 % | 125.9 % | ||||
| Net income (loss) per share available to common stockholders - basic and diluted | $ 0.31 | $ (0.20) | $ 0.14 | 255.0 % | 121.4 % | ||||
| Same-Property Number of Hotels(1) | 30 | 30 | 30 | — | — | ||||
| Same-Property Number of Rooms(1)(5) | 8,562 | 8,564 | 8,565 | (2) | (3) | ||||
| Same-Property Occupancy(1) | 64.1 % | 56.4 % | 73.3 % | 770 bps | (920) bps | ||||
| Same-Property Average Daily Rate(1) | $ 260.19 | $ 243.43 | $ 226.34 | 6.9 % | 15.0 % | ||||
| Same-Property RevPAR(1) | $ 166.87 | $ 137.35 | $ 165.94 | 21.5 % | 0.6 % | ||||
| Same-Property Hotel EBITDA(1)(2) | $ 65,354 | $ 52,922 | $ 63,251 | 23.5 % | 3.3 % | ||||
| Same-Property Hotel EBITDA Margin(1)(2) | 27.3 % | 27.7 % | 27.2 % | (37) bps | 17 bps | ||||
| Total Portfolio Number of Hotels(3) | 32 | 34 | 39 | (2) | (7) | ||||
| Total Portfolio Number of Rooms(3)(5) | 9,508 | 9,659 | 11,245 | (151) | (1,737) | ||||
| Total Portfolio RevPAR(4) | $ 162.93 | $ 128.67 | $ 158.25 | 26.6 % | 3.0 % | ||||
| Adjusted EBITDAre(2) | $ 64,583 | $ 48,927 | $ 71,994 | 32.0 % | (10.3) % | ||||
| Adjusted FFO(2) | $ 46,608 | $ 28,437 | $ 65,749 | 63.9 % | (29.1) % | ||||
| Adjusted FFO per diluted share(2) | $ 0.41 | $ 0.25 | $ 0.58 | 64.0 % | (29.3) % | ||||
| 1. | "Same-Property" includes all hotels owned as of December 31, 2022, except for Hyatt Regency Portland at the Oregon Convention Center and W Nashville. "Same-Property" also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented. |
| 2. | See tables later in this press release for reconciliations from net income (loss) to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, Same-Property Hotel EBITDA and Hotel EBITDA Margin. EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. |
| 3. | As of end of periods presented. |
| 4. | Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company. Includes hotels that had temporarily suspended operations for a portion of the year ended December 31, 2021. |
| 5. | Two rooms at Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch were removed from inventory in 2022 and one room at Grand Bohemian Hotel Mountain Brook, Autograph Collection was removed in 2020. |
| Year Ended December 31, | Change From | ||||||||
| 2022 | 2021 | 2019 | 2021 | 2019 | |||||
| ($ amounts in thousands, except hotel statistics and per share amounts) | |||||||||
| Net income (loss) attributable to common stockholders | $ 55,922 | $ (143,517) | $ 55,400 | 139.0 % | 0.9 % | ||||
| Net income (loss) per share available to common stockholders - basic and diluted | $ 0.49 | $ (1.26) | $ 0.49 | 138.9 % | — % | ||||
| Same-Property Number of Hotels(1) | 30 | 30 | 30 | — | — | ||||
| Same-Property Number of Rooms(1)(5) | 8,562 | 8,564 | 8,565 | (2) | (3) | ||||
| Same-Property Occupancy(1) | 63.9 % | 49.7 % | 76.6 % | 1,420 bps | (1,270) bps | ||||
| Same-Property Average Daily Rate(1) | $ 259.92 | $ 225.39 | $ 228.43 | 15.3 % | 13.8 % | ||||
| Same-Property RevPAR(1) | $ 166.08 | $ 111.96 | $ 175.04 | 48.3 % | (5.1) % | ||||
| Same-Property Hotel EBITDA(1)(2) | $ 256,374 | $ 128,245 | $ 264,253 | 99.9 % | (3.0) % | ||||
| Same-Property Hotel EBITDA Margin(1)(2) | 28.4 % | 22.2 % | 28.0 % | 623 bps | 40 bps | ||||
| Total Portfolio Number of Hotels(3) | 32 | 34 | 39 | (2) | (7) | ||||
| Total Portfolio Number of Rooms(3)(5) | 9,508 | 9,659 | 11,245 | (151) | (1,737) | ||||
| Total Portfolio RevPAR(4) | $ 162.75 | $ 103.64 | $ 168.43 | 57.0 % | (3.4) % | ||||
| Adjusted EBITDAre(2) | $ 256,988 | $ 108,058 | $ 302,118 | 137.8 % | (14.9) % | ||||
| Adjusted FFO(2) | $ 177,316 | $ 32,007 | $ 250,598 | 454.0 % | (29.2) % | ||||
| Adjusted FFO per diluted share(2) | $ 1.54 | $ 0.28 | $ 2.19 | 450.0 % | (29.7) % | ||||
| 1. | "Same-Property" includes all hotels owned as of December 31, 2022, except for Hyatt Regency Portland at the Oregon Convention Center and W Nashville. "Same-Property" also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented. |
| 2. | See tables later in this press release for reconciliations from net income (loss) to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, Same-Property Hotel EBITDA and Hotel EBITDA Margin. EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. |
| 3. | As of end of periods presented. |
| 4. | Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company. Includes hotels that had temporarily suspended operations for a portion of the year ended December 31, 2021. |
| 5. | Two rooms at Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch were removed from inventory in 2022 and one room at Grand Bohemian Hotel Mountain Brook, Autograph Collection was removed in 2020. |
Transactions
In the fourth quarter, the Company sold the 115-room Bohemian Hotel Celebration, Autograph Collection in Celebration, FL for $27.75 million and the 189-room Kimpton Hotel Monaco Denver for $69.75 million. Earlier in the year, the Company sold the 191-room Kimpton Hotel Monaco Chicago for $36 million. The total sales price achieved in these transactions equated to a blended 15.4x multiple on the combined 2019 Hotel EBITDA generated by the three hotels.
Financings and Balance Sheet
As of December 31, 2022, the Company had total outstanding debt of approximately $1.4 billion with a weighted-average interest rate of 5.65%. The Company had approximately $305 million of cash and cash equivalents, including hotel working capital, and full availability on its revolving credit facility, resulting in total liquidity of approximately $755 million as of December 31, 2022. In addition, the Company held approximately $61 million of restricted cash and escrows at the end of the fourth quarter.
Subsequent to year end, the Company entered into a new $675 million credit facility comprised of a $450 million revolving line of credit, a $125 million term loan, and a $100 million delayed draw term loan. The revolving line of credit matures in January 2027 and the term loans mature in March 2026. The Company has the option to extend each tranche of the credit facility for up to an additional year. Pricing for the credit facility ranges between 145 to 275 basis points over the applicable adjusted Term SOFR as determined by the Company's leverage ratio.
Proceeds from the term loans were used to pay off the Company's existing $125 million term loan and the $99.6 million mortgage loan collateralized by Renaissance Atlanta Waverly Hotel & Convention Center.
Also in January 2023, the Company amended the Andaz Napa mortgage loan which changed the variable rate on the $55 million loan from LIBOR-based to SOFR-based and extended the maturity date through January 2028.
As of March 1, 2023, the Company has no maturities until August 2025 and maintains full availability on its revolving line of credit.
Capital Markets
In the quarter, the Company repurchased a total of 1,791,816 shares of common stock at a weighted-average price of $14.69 per share for a total consideration of approximately $26.4 million. For the year ended December 31, 2022, the Company repurchased a total of 1,912,794 shares of common stock at a weighted-average price of $14.74 per share for total consideration of approximately $28.2 million.
The Company repurchased 1,038,543 shares of common stock year-to-date through February 28, 2023 at a weighted-average price of $14.20 per share for total consideration of approximately $14.8 million. The Company currently has $152 million in capacity remaining under its repurchase authorization.
The Company did not issue any shares of its common stock through its At-The-Market ("ATM") program in 2022 and had $200 million of remaining availability as of December 31, 2022.
Capital Expenditures
During the quarter and year ended December 31, 2022, the Company invested $29.7 million and $70.4 million in portfolio improvements, respectively. During 2022, significant projects in the Company's portfolio included:
- Kimpton Canary Hotel Santa Barbara – Comprehensive renovation of public spaces including meeting space, lobby, restaurant, bar and rooftop. Began a comprehensive guest room renovation in the fourth quarter which is expected to be completed in the second quarter of 2023.
- Grand Bohemian Hotel Orlando, Autograph Collection – Comprehensive renovation of public spaces including meeting space, lobby, restaurant, bar, Starbucks, and creation of a rooftop bar expected to be completed in the first quarter of 2023. A comprehensive renovation of the guest rooms will commence in the second quarter of 2023.
- Park Hyatt Aviara Resort, Golf Club & Spa – Golf course refurbishment including replacement of turfgrass, bunkers, irrigation heads and controls, cart paths and curbing. Creation of a Combined Heat & Power System which will result in substantial energy savings and is expected to be completed in the first quarter of 2023. Additionally, the Company began work in the fourth quarter on a significant upgrade to the resort's spa and wellness amenities which will be branded as a Miraval Life in Balance Spa upon completion late in the second quarter of 2023.
- Waldorf Astoria Atlanta Buckhead – Guest room renovation including all softgoods. Renovations of the restaurant & lobby including reconcepting of the restaurant and bar.
- Marriott Dallas Downtown – Renovation of meeting space.
- Marriott San Francisco Airport Waterfront – Refurbishment of the exterior envelope and replacement of signage.
- Marriott Woodlands Waterway Hotel & Convention Center – Renovation of bathrooms including conversion of tubs to showers in 75 percent of guest rooms.
- Royal Palms Resort & Spa, The Unbound Collection by Hyatt – Renovation of meeting space and pre-function areas.
- Fairmont Pittsburgh – Renovation of meeting space and addition of Starbucks to the lobby.
- The Ritz-Carlton, Denver – Renovation and reconfiguration of suites which will result in three additional keys upon completion in the first quarter of 2023.
- Kimpton Hotel Monaco Salt Lake City – Continued planning work on a comprehensive renovation of meeting space, restaurant, bar and guest rooms that is expected to commence in the second quarter of 2023.
Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch Renovation
In February, the Company announced the comprehensive renovation and upbranding of the 491-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch to a Grand Hyatt. The investment is expected to maximize value of this strategic asset, thereby increasing the property's ability to capture premium group and leisure transient business. The renovation is expected to begin in June 2023 with completion of all phases by the end of 2024. Upon completion, the property will have five additional keys, or 496 rooms.
The resort will undergo extensive renovations and enhancements of its two-acre pool complex, guestrooms, all food and beverage venues, and public areas and amenities, including the expansion of the property's indoor and outdoor meeting and event spaces. The expansion of the existing 75,000 square feet of meeting space includes doubling the size of the largest existing ballroom to 24,000 square feet, along with the reconfiguration and expansion of pre-function and support space.
Hurricane Update
In late September, Hurricane Ian caused limited property damage and disruption at the Company's Key West, Orlando, Savannah, and Charleston, SC hotels. All hotels remained open during and after the storm. In early November, Hurricane Nicole had a minor impact to one of our hotels in Orlando.
The total impact of both storms, inclusive of revenue disruption and repair and cleanup costs, was less than $2.0 million.
Full Year 2023 Outlook and Guidance
The Company is providing its full year outlook based on the current economic environment. The broad range below reflects the Company's limited visibility in forecasting due to macroeconomic uncertainty and does not take into account any unanticipated impacts to the business or operating environment. Furthermore, this guidance assumes no additional acquisitions, dispositions, equity offerings, or share repurchases. The Current Same-Property (32 Hotel) RevPAR change shown includes all hotels owned as of March 1, 2023.
| Full Year 2023 Guidance | ||
| Low End | High End | |
| ($ in millions, except stats and per share data) | ||
| Net Income | $3 | $31 |
| Current Same-Property (32 Hotel) RevPAR Change (vs. 2022) | 4 % | 8 % |
| Adjusted EBITDAre | $243 | $271 |
| Adjusted FFO | $154 | $182 |
| Adjusted FFO per Diluted Share | $1.36 | $1.60 |
| Capital Expenditures | $130 | $150 |
Full year 2023 guidance is inclusive of the following assumptions:
- Renovation disruption results in a negative impact of 200 basis points to Current Same-Property (32 Hotel) RevPAR Change based on the scope and timing of capital improvement projects. In addition, the Company expects disruption to non-room revenues. These estimates result in a negative impact of approximately $15 million to Adjusted EBITDAre and Adjusted FFO.
- General and administrative expense of approximately $25 million, excluding non-cash share-based compensation.
- Interest expense of approximately $85 million, excluding non-cash loan related costs.
- Income tax expense of approximately $4 million.
- The three hotels that were sold last year contributed approximately $6 million to Adjusted EBITDAre in 2022.
- 113.8 million weighted-average diluted shares/units.
About Xenia Hotels & Resorts, Inc.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts with a focus on the top 25 lodging markets as well as key leisure destinations in the United States. The Company owns 32 hotels and resorts comprising 9,508 rooms across 14 states. Xenia's hotels are in the luxury and upper upscale segments, and are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, The Kessler Collection, and Davidson.
Xenia Hotels & Resorts, Inc.
| Consolidated Balance Sheets | |||
| As of December 31, 2022 and December 31, 2021 | |||
| ($ amounts in thousands, except per share data) | |||
| December 31, 2022 | December 31, 2021 | ||
| Assets | (Unaudited) | (Audited) | |
| Investment properties: | |||
| Land | $ 460,536 | $ 431,427 | |
| Buildings and other improvements | 3,086,785 | 2,856,671 | |
| Total | $ 3,547,321 | $ 3,288,098 | |
| Less: accumulated depreciation | (945,786) | (888,717) | |
| Net investment properties | $ 2,601,535 | $ 2,399,381 | |
| Cash and cash equivalents | 305,103 | 517,377 | |
| Restricted cash and escrows | 60,807 | 36,854 | |
| Accounts and rents receivable, net of allowance for doubtful accounts | 37,562 | 28,528 | |
| Intangible assets, net of accumulated amortization | 5,060 | 5,446 | |
| Other assets | 69,988 | 65,109 | |
| Assets held for sale | — | 34,621 | |
| Total assets | $ 3,080,055 | $ 3,087,316 | |
| Liabilities | |||
| Debt, net of loan premiums, discounts and unamortized deferred financing costs | $ 1,429,105 | $ 1,494,231 | |
| Accounts payable and accrued expenses | 107,097 | 84,051 | |
| Distributions payable | 11,455 | 89 | |
| Other liabilities | 72,390 | 68,559 | |
| Liabilities associated with assets held for sale | — | 2,305 | |
| Total liabilities | $ 1,620,047 | $ 1,649,235 | |
| Commitments and Contingencies | |||
| Stockholders' equity | |||
| Common stock, $0.01 par value, 500,000,000 shares authorized, 112,519,672 and 114,306,727 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | $ 1,126 | $ 1,143 | |
| Additional paid in capital | 2,063,273 | 2,090,393 | |
| Accumulated other comprehensive loss | — | (4,089) | |
| Accumulated distributions in excess of net earnings | (623,216) | (656,461) | |
| Total Company stockholders' equity | $ 1,441,183 | $ 1,430,986 | |
| Non-controlling interests | 18,825 | 7,095 | |
| Total equity | $ 1,460,008 | $ 1,438,081 | |
| Total liabilities and equity | $ 3,080,055 | $ 3,087,316 | |
| Xenia Hotels & Resorts, Inc. | |||||||
| Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||
| For the Three Months and Years Ended December 31, 2022 and 2021 | |||||||
| ($ amounts in thousands, except per share data) | |||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||
| Revenues: | |||||||
| Rooms revenues | $ 144,897 | $ 116,426 | $ 576,279 | $ 377,020 | |||
| Food and beverage revenues | 97,123 | 67,296 | 337,792 | 173,035 | |||
| Other revenues | 21,121 | 19,856 | 83,536 | 66,133 | |||
| Total revenues | $ 263,141 | $ 203,578 | $ 997,607 | $ 616,188 | |||
| Expenses: | |||||||
| Rooms expenses | 35,786 | 28,514 | 137,589 | 93,538 | |||
| Food and beverage expenses | 62,595 | 44,699 | 224,391 | 125,233 | |||
| Other direct expenses | 6,032 | 5,265 | 23,847 | 18,258 | |||
| Other indirect expenses | 68,483 | 54,241 | 249,992 | 186,517 | |||
| Management and franchise fees | 8,698 | 7,492 | 36,456 | 22,501 | |||
| Total hotel operating expenses | $ 181,594 | $ 140,211 | $ 672,275 | $ 446,047 | |||
| Depreciation and amortization | 33,521 | 31,112 | 132,648 | 129,393 | |||
| Real estate taxes, personal property taxes and insurance | 10,936 | 9,620 | 44,388 | 40,888 | |||
| Ground lease expense | 758 | (34) | 2,793 | 1,153 | |||
| General and administrative expenses | 8,409 | 8,318 | 34,250 | 30,564 | |||
| Gain on business interruption insurance | — | (486) | (2,487) | (1,602) | |||
| Other operating expenses | 1,070 | (25) | 1,070 | 213 | |||
| Impairment and other losses | — | 16,344 | 1,278 | 30,416 | |||
| Total expenses | $ 236,288 | $ 205,060 | $ 886,215 | $ 677,072 | |||
| Operating income (loss) | $ 26,853 | $ (1,482) | $ 111,392 | $ (60,884) | |||
| Gain (loss) on sale of investment properties | 27,286 | (75) | 27,286 | (75) | |||
| Other income (loss) | 1,507 | 206 | 4,178 | (2,297) | |||
| Interest expense | (21,253) | (21,486) | (82,727) | (81,285) | |||
| Loss on extinguishment of debt | — | — | (294) | (1,356) | |||
| Net income (loss) before income taxes | $ 34,393 | $ (22,837) | $ 59,835 | $ (145,897) | |||
| Income tax benefit (expense) | 1,943 | (341) | (2,205) | (718) | |||
| Net income (loss) | $ 36,336 | $ (23,178) | $ 57,630 | $ (146,615) | |||
| Net (income) loss attributable to non-controlling interests | (1,075) | 243 | (1,708) | 3,098 | |||
| Net income (loss) attributable to common stockholders | $ 35,261 | $ (22,935) | $ 55,922 | $ (143,517) | |||
| Xenia Hotels & Resorts, Inc. | |||||||
| Consolidated Statements of Operations and Comprehensive Income (Loss) - Continued | |||||||
| For the Three Months and Years Ended December 31, 2022 and 2021 | |||||||
| ($ amounts in thousands, except per share data) | |||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||
| Basic and diluted income (loss) per share: | |||||||
| Net income (loss) per share available to common stockholders - basic and diluted | $ 0.31 | $ (0.20) | $ 0.49 | $ (1.26) | |||
| Weighted-average number of common shares (basic) | 113,273,383 | 113,811,052 | 114,068,733 | 113,801,862 | |||
| Weighted-average number of common shares (diluted) | 113,515,951 | 113,811,052 | 114,418,177 | 113,801,862 | |||
| Comprehensive income (loss): | |||||||
| Net income (loss) | $ 36,336 | $ (23,178) | $ 57,630 | $ (146,615) | |||
| Other comprehensive income (loss): | |||||||
| Unrealized gain on interest rate derivative instruments | — | 601 | 2,932 | 2,991 | |||
| Reclassification adjustment for amounts recognized in net income (loss) (interest expense) | (97) | 1,599 | 1,600 | 7,597 | |||
| $ 36,239 | $ (20,978) | $ 62,162 | $ (136,027) | ||||
| Comprehensive (income) loss attributable to non-controlling interests | 3 | 197 | (2,151) | 2,846 | |||
| Comprehensive income (loss) attributable to the Company | $ 36,242 | $ (20,781) | $ 60,011 | $ (133,181) | |||
Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDAre, Same-Property Hotel EBITDA, Same-Property Hotel EBITDA Margin, FFO, Adjusted FFO, and Adjusted FFO per diluted share. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss, operating profit, cash from operations, or any other operating performance measure as prescribed per GAAP.
EBITDA, EBITDAre and Adjusted EBITDAre
EBITDA is a commonly used measure of performance in many industries and is defined as net income or loss (calculated in accordance with GAAP) excluding interest expense, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization. The Company considers EBITDA useful to investors, in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results, even though EBITDA does not represent an amount that accrues directly to common stockholders. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions and, along with FFO and Adjusted FFO, is used by management in the annual budget process for compensation programs.
We calculate EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre as EBITDA plus or minus losses and gains on the disposition of depreciated property, including gains or losses on change of control, plus impairments of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates.
We further adjust EBITDAre to exclude the impact of non-controlling interests in consolidated entities other than our Operating Partnership Units because our Operating Partnership Units may be redeemed for common stock. We also adjust EBITDAre for certain additional items such as depreciation and amortization related to corporate assets, hotel property acquisition, terminated transaction and pre-opening expenses, amortization of share-based compensation, non-cash ground rent and straight-line rent expense, the cumulative effect of changes in accounting principles, and other costs we believe do not represent recurring operations and are not indicative of the performance of our underlying hotel property entities. We believe it is meaningful for investors to understand Adjusted EBITDAre attributable to all common stock and unit holders. We believe Adjusted EBITDAre attributable to common stock and unit holders provides investors with another useful financial measure in evaluating and facilitating comparison of operating performance between periods and between REITs that report similar measures.
Same-Property Hotel EBITDA and Same-Property Hotel EBITDA Margin
Same-Property hotel data includes the actual operating results for all hotels owned as of the end of the reporting period. We then adjust the Same-Property hotel data for comparability purposes by including pre-acquisition operating results of asset(s) acquired during the period, which provides investors a basis for understanding the acquisition(s) historical operating trends and seasonality. The pre-acquisition operating results for the comparable period are obtained from the seller and/or manager of the hotels during the acquisition due diligence process and have not been audited or reviewed by our independent auditors. We further adjust the Same-Property hotel data to remove dispositions during the respective reporting periods, and, in certain cases, hotels that are not fully open due to significant renovation, re-positioning, or disruption or whose room counts have materially changed during either the current or prior year as these historical operating results are not indicative of or expected to be comparable to the operating performance of our hotel portfolio on a prospective basis.
Same-Property Hotel EBITDA represents net income or loss excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate-level costs and expenses, (5) hotel acquisition and terminated transaction costs, and (6) certain state and local excise taxes resulting from our ownership structure. We believe that Same-Property Hotel EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance excluding the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortization), income taxes, and our corporate-level expenses (corporate expenses and hotel acquisition and terminated transaction costs). We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and the effectiveness of our third-party management companies that operate our business on a property-level basis. Same-Property Hotel EBITDA Margin is calculated by dividing Same-Property Hotel EBITDA by Same-Property Total Revenues.
As a result of these adjustments the Same-Property hotel data we present does not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and comprehensive income (loss) include such amounts, all of which should be considered by investors when evaluating our performance.
We include Same-Property hotel data as supplemental information for investors. Management believes that providing Same-Property hotel data is useful to investors because it represents comparable operations for our portfolio as it exists at the end of the respective reporting periods presented, which allows investors and management to evaluate the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at Same-Property hotels or from other factors, such as the effect of acquisitions or dispositions.
FFO and Adjusted FFO
The Company calculates FFO in accordance with standards established by Nareit, as amended in the December 2018 restatement white paper, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, amortization and impairments, gains or losses from sales of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and consolidated variable interest entities, and items classified by GAAP as extraordinary. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. The Company believes that the presentation of FFO provides useful supplemental information to investors regarding operating performance by excluding the effect of real estate depreciation and amortization, gains or losses from sales for real estate, impairments of real estate assets, extraordinary items and the portion of these items related to unconsolidated entities, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance. The Company believes that the presentation of FFO can facilitate comparisons of operating performance between periods and between REITs, even though FFO does not represent an amount that accrues directly to common stockholders. The calculation of FFO may not be comparable to measures calculated by other companies who do not use the Nareit definition of FFO or do not calculate FFO per diluted share in accordance with Nareit guidance. Additionally, FFO may not be helpful when comparing Xenia to non-REITs. The Company presents FFO attributable to common stock and unit holders, which includes its Operating Partnership Units because its Operating Partnership Units may be redeemed for common stock. The Company believes it is meaningful for investors to understand FFO attributable to common stock and unit holders.
We further adjust FFO for certain additional items that are not in Nareit's definition of FFO such as hotel property acquisition, terminated transaction and pre-opening expenses, amortization of debt origination costs and share-based compensation, non-cash ground rent and straight-line rent expense, and other items we believe do not represent recurring operations. We believe that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors' complete understanding of our operating performance.
Adjusted FFO per diluted share
The diluted weighted-average common share count used for the calculation of Adjusted FFO per diluted share differs from diluted weighted-average common share count used to derive net income or loss per share available to common stockholders. The Company calculates Adjusted FFO per diluted share by dividing the Adjusted FFO by the diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership units. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.
| Xenia Hotels & Resorts, Inc. | |||||
| Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA | |||||
| For the Three Months Ended December 31, 2022, 2021, and 2019 | |||||
| (Unaudited) | |||||
| ($ amounts in thousands) | |||||
| Three Months Ended December 31, | |||||
| 2022 | 2021 | 2019 | |||
| Net income (loss) | $ 36,336 | $ (23,178) | $ 16,086 | ||
| Adjustments: | |||||
| Interest expense | 21,253 | 21,486 | 11,345 | ||
| Income tax (benefit) expense | (1,943) | 341 | (4,477) | ||
| Depreciation and amortization | 33,521 | 31,112 | 36,367 | ||
| EBITDA | $ 89,167 | $ 29,761 | $ 59,321 | ||
| Impairment of investment properties(1) | — | 15,827 | 9,400 | ||
| (Gain) loss on sale of investment properties | (27,286) | 75 | 947 | ||
| EBITDAre | $ 61,881 | $ 45,663 | $ 69,668 | ||
| Reconciliation to Adjusted EBITDAre | |||||
| Depreciation and amortization related to corporate assets | $ (133) | $ (103) | $ (96) | ||
| Acquisition, terminated transaction and pre-opening expenses | — | 1 | 7 | ||
| Amortization of share-based compensation expense | 2,813 | 2,802 | 2,289 | ||
| Non-cash ground rent and straight-line rent expense | 9 | 34 | 126 | ||
| Other non-recurring expenses | 13 | 530 | — | ||
| Adjusted EBITDAre attributable to common stock and unit holders | $ 64,583 | $ 48,927 | $ 71,994 | ||
| Corporate-level costs and expenses | 5,820 | 5,167 | 5,579 | ||
| Pro forma hotel adjustments, net | (5,049) | (1,172) | (14,322) | ||
| Same-Property Hotel EBITDA attributable to common stock and unit holders(2) | $ 65,354 | $ 52,922 | $ 63,251 | ||
| 1. | During the three months ended December 31, 2021, the Company recorded a $15.7 million impairment loss related to Kimpton Hotel Monaco Chicago, which was attributed to its net book value exceeding the undiscounted cash flows over a shortened expected hold period. Additionally, the Company wrote off $0.6 million related to previously capitalized design costs for a renovation project that will no longer be completed due to a change of scope. During the three months ended December 31, 2019, the Company recognized a goodwill impairment charge of $9.4 million attributed to Bohemian Hotel Savannah Riverfront, Autograph Collection. |
| 2. | See the reconciliation of Total Revenues and Total Hotel Operating Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the three months ended December 31, 2022 and 2021 on page 22 and for the three months ended December 31, 2022 and 2019 on page 23. |
| Xenia Hotels & Resorts, Inc. | |||||
| Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA | |||||
| For the Years Ended December 31, 2022, 2021 and 2019 | |||||
| (Unaudited) | |||||
| ($ amounts in thousands) | |||||
| Year Ended December 31, | |||||
| 2022 | 2021 | 2019 | |||
| Net income (loss) | $ 57,630 | $ (146,615) | $ 57,243 | ||
| Adjustments: | |||||
| Interest expense | 82,727 | 81,285 | 48,605 | ||
| Income tax expense (benefit) | 2,205 | 718 | 5,367 | ||
| Depreciation and amortization | 132,648 | 129,393 | 155,128 | ||
| EBITDA | $ 275,210 | $ 64,781 | $ 266,343 | ||
| Impairment of investment properties(1) | — | 28,899 | 24,171 | ||
| (Gain) loss on sale of investment properties | (27,286) | 75 | 947 | ||
| EBITDAre | $ 247,924 | $ 93,755 | $ 291,461 | ||
| Reconciliation to Adjusted EBITDAre | |||||
| Depreciation and amortization related to corporate assets | $ (444) | $ (409) | $ (399) | ||
| Gain on insurance recoveries(2) | (3,550) | — | — | ||
| Loss on extinguishment of debt | 294 | 1,356 | 214 | ||
| Acquisition, terminated transaction and pre-opening expenses | — | 1 | 954 | ||
| Amortization of share-based compensation expense | 11,411 | 11,615 | 9,380 | ||
| Non-cash ground rent and straight-line rent expense | 44 | 118 | 508 | ||
| Other non-recurring expenses(3) | 1,309 | 1,622 | — | ||
| Adjusted EBITDAre attributable to common stock and unit holders | $ 256,988 | $ 108,058 | $ 302,118 | ||
| Corporate-level costs and expenses | 22,932 | 20,827 | 21,302 | ||
| Pro forma hotel level adjustments, net | (23,546) | (640) | (59,167) | ||
| Same-Property Hotel EBITDA attributable to common stock and unit holders(4) | $ 256,374 | $ 128,245 | $ 264,253 | ||
| 1. | During the year ended December 31, 2021, the Company recorded a $12.6 million and $15.7 million impairment charge related to Marriott Charleston Town Center and Kimpton Hotel Monaco Chicago, respectively, which were attributed to their respective net book value exceeding the undiscounted cash flows over a shortened hold period. Additionally, during the year ended December 31, 2021, the Company wrote off $0.6 million related to previously capitalized design costs for a renovation project that will no longer be completed due to a change of scope. During the year ended December 31, 2019, the Company recognized a long-lived asset impairment charge of $14.8 million attributed to Marriott Chicago at Medical District/UIC and a goodwill impairment charge of $9.4 million attributed to Bohemian Hotel Savannah Riverfront, Autograph Collection. |
| 2. | During the year ended December 31, 2022, the Company recorded $3.6 million of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021 which are included in other income (loss) on the condensed consolidated statement of operations and comprehensive income (loss) for the period then ended. |
| 3. | During the year ended December 31, 2022, the Company recorded hurricane-related repair and cleanup costs of $1.3 million and during the year ended December 31, 2021, the Company recorded estimated hurricane-related repair and cleanup costs of $1.1 million related to the damage sustained at Loews New Orleans Hotel during Hurricane Ida and $0.4 million related to Texas winter storm-related repair and cleanup costs at two hotels. These amounts are included in impairment and other losses on the condensed consolidated statement of operations and comprehensive income (loss) for the period then ended. |
| 4. | See the reconciliation of Total Revenues and Total Hotel Operating Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the years ended December 31, 2022 and 2021 on page 22 and for the years ended December 31, 2022 and 2019 on page 23. |
| Xenia Hotels & Resorts, Inc. | |||||
| Reconciliation of Net Income (Loss) to FFO and Adjusted FFO | |||||
| For the Three Months Ended December 31, 2022, 2021, and 2019 | |||||
| (Unaudited) | |||||
| (amounts in thousands) | |||||
| Three Months Ended December 31, | |||||
| 2022 | 2021 | 2019 | |||
| Net income (loss) | $ 36,336 | $ (23,178) | $ 16,086 | ||
| Adjustments: | |||||
| Depreciation and amortization related to investment properties | 33,388 | 31,009 | 36,271 | ||
| Impairment of investment properties(1) | — | 15,827 | 9,400 | ||
| (Gain) loss on sale of investment properties | (27,286) | 75 | 947 | ||
| FFO attributable to common stock and unit holders | $ 42,438 | $ 23,733 | $ 62,704 | ||
| Reconciliation to Adjusted FFO | |||||
| Acquisition, terminated transaction and pre-opening expenses | — | 1 | 7 | ||
| Loan related costs, net of adjustment related to non-controlling interests(2) | 1,335 | 1,337 | 623 | ||
| Amortization of share-based compensation expense | 2,813 | 2,802 | 2,289 | ||
| Non-cash ground rent and straight-line rent expense | 9 | 34 | 126 | ||
| Other non-recurring expenses | 13 | 530 | — | ||
| Adjusted FFO attributable to common stock and unit holders | $ 46,608 | $ 28,437 | $ 65,749 | ||
| Weighted-average shares outstanding - Diluted(3) | 114,621 | 114,324 | 114,338 | ||
| Adjusted FFO per diluted share | $ 0.41 | $ 0.25 | $ 0.58 | ||
| 1. | During the three months ended December 31, 2021, the Company recorded a $15.7 million impairment loss related to Kimpton Hotel Monaco Chicago, which was attributed to its net book value exceeding the undiscounted cash flows over a shortened expected hold period. Additionally, during the three months ended December 31, 2021, the Company wrote off $0.6 million related to previously capitalized design costs for a renovation project that will no longer be completed due to a change of scope. During the three months ended December 31, 2019, the Company recognized a goodwill impairment charge of $9.4 million attributed to Bohemian Hotel Savannah Riverfront, Autograph Collection. |
| 2. | Loan related costs includes amortization of debt premiums, discounts and deferred loan origination costs. |
| 3. | Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership units for the respective periods presented in thousands. |
| Xenia Hotels & Resorts, Inc. | |||||
| Reconciliation of Net Income (Loss) to FFO and Adjusted FFO | |||||
| For the Years Ended December 31, 2022, 2021 and 2019 | |||||
| (Unaudited) | |||||
| ($ amounts in thousands) | |||||
| Year Ended December 31, | |||||
| 2022 | 2021 | 2019 | |||
| Net income (loss) | $ 57,630 | $ (146,615) | $ 57,243 | ||
| Adjustments: | |||||
| Depreciation and amortization related to investment properties | 132,204 | 128,984 | 154,729 | ||
| Impairment of investment properties(1) | — | 28,899 | 24,171 | ||
| (Gain) loss on sale of investment properties | (27,286) | 75 | 947 | ||
| FFO attributable to common stock and unit holders | $ 162,548 | $ 11,343 | $ 237,090 | ||
| Reconciliation to Adjusted FFO | |||||
| Gain on insurance recoveries(2) | (3,550) | — | — | ||
| Loss on extinguishment of debt | 294 | 1,356 | 214 | ||
| Acquisition, terminated transaction and pre-opening expenses | — | 1 | 954 | ||
| Loan related costs, net of adjustment related to non-controlling interests(3) | 5,260 | 5,952 | 2,452 | ||
| Amortization of share-based compensation expense | 11,411 | 11,615 | 9,380 | ||
| Non-cash ground rent and straight-line rent expense | 44 | 118 | 508 | ||
| Other non-recurring expenses(4) | 1,309 | 1,622 | — | ||
| Adjusted FFO attributable to common stock and unit holders | $ 177,316 | $ 32,007 | $ 250,598 | ||
| Weighted-average shares outstanding - Diluted(5) | 115,490 | 114,532 | 114,296 | ||
| Adjusted FFO per diluted share | $ 1.54 | $ 0.28 | $ 2.19 | ||
| 1. | During the year ended December 31, 2021, the Company recorded a $12.6 million and $15.7 million impairment charge related to Marriott Charleston Town Center and Kimpton Hotel Monaco Chicago, respectively, which were attributed to their respective net book value exceeding the undiscounted cash flows over a shortened hold period. Additionally, during the year ended December 31, 2021, the Company wrote off $0.6 million related to previously capitalized design costs for a renovation project that will no longer be completed due to a change of scope. During the year ended December 31, 2019, the Company recognized a long-lived asset impairment charge of $14.8 million attributed to Marriott Chicago at Medical District/UIC and a goodwill impairment charge of $9.4 million attributed to Bohemian Hotel Savannah Riverfront, Autograph Collection. |
| 2. | During the year ended December 31, 2022, the Company recorded $3.6 million of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021 which are included in other income (loss) on the condensed consolidated statement of operations and comprehensive income (loss) for the period then ended. |
| 3. | Loan related costs included amortization of debt premiums, discounts and deferred loan origination costs. |
| 4. | During the year ended December 31, 2022, the Company recorded hurricane-related repair and cleanup costs of $1.3 million and during the year ended December 31, 2021, the Company recorded estimated hurricane-related repair and cleanup costs of $1.1 million related to the damage sustained at Loews New Orleans Hotel during Hurricane Ida and $0.4 million related to Texas winter storm-related repair and cleanup costs at two hotels. These amounts are included in impairment and other losses on the condensed consolidated statement of operations and comprehensive income (loss) for the period then ended. |
| 5. | Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership units for the respective periods presented in thousands. |
| Xenia Hotels & Resorts, Inc. | |
| Reconciliation of Net Income to Adjusted EBITDAre | |
| for Full Year 2023 Guidance | |
| ($ amounts in millions) | |
| Guidance Midpoint | |
| Net income | $ 17 |
| Adjustments: | |
| Interest expense | 90 |
| Income tax expense | 4 |
| Depreciation and amortization | 135 |
| EBITDA | $ 246 |
| Gain on sale of investment property | — |
| EBITDAre | $ 246 |
| Amortization of share-based compensation expense | 11 |
| Other | — |
| Adjusted EBITDAre | $ 257 |
| Reconciliation of Net Income to Adjusted FFO | |
| for Full Year 2023 Guidance | |
| ($ amounts in millions) | |
| Guidance Midpoint | |
| Net income | $ 17 |
| Adjustments: | |
| Depreciation and amortization related to investment properties | 135 |
| Gain on sale of investment property | — |
| FFO | $ 152 |
| Amortization of share-based compensation expense | 11 |
| Other(1) | 5 |
| Adjusted FFO | $ 168 |
| 1. | Includes loan cost amortization and non-cash ground rent. |
| Xenia Hotels & Resorts, Inc. | |||||||
| Debt Summary as of December 31, 2022 | |||||||
| (Unaudited) | |||||||
| ($ amounts in thousands) | |||||||
| Rate Type | Rate(1) | Maturity Date | Outstanding as of December 31, 2022 | ||||
| Mortgage Loans | |||||||
| Renaissance Atlanta Waverly Hotel & Convention Center | Variable | 7.03 % | August 2024 | $ 99,590 | |||
| Andaz Napa | Variable | 6.29 % | September 2024 | 54,560 | |||
| Grand Bohemian Hotel Orlando, Autograph Collection | Fixed | 4.53 % | March 2026 | 55,685 | |||
| Marriott San Francisco Airport Waterfront | Fixed | 4.63 % | May 2027 | 110,153 | |||
| Total Mortgage Loans | 5.64 % | (2) | $ 319,988 | ||||
| Corporate Credit Facilities | |||||||
| Revolving Credit Facility(3) | Variable | 6.14 % | February 2024 | — | |||
| Corporate Credit Facility Term Loan(4) | Variable | 5.84 % | September 2024 | 125,000 | |||
| Total Corporate Credit Facilities | $ 125,000 | ||||||
| 2020 Senior Notes | Fixed | 6.38 % | August 2025 | 500,000 | |||
| 2021 Senior Notes | Fixed | 4.88 % | June 2029 | 500,000 | |||
| Loan premiums, discounts and unamortized deferred financing costs, net(5) | (15,883) | ||||||
| Total Debt, net of loan premiums, discounts and unamortized deferred financing costs | 5.65 % | (2) | $ 1,429,105 | ||||
| 1. | The rates shown represent annual interest rates. The variable index for the Renaissance Atlanta Waverly Hotel & Convention Center mortgage loan is daily SOFR and for the Andaz Napa mortgage loan is one-month LIBOR. The variable index for the corporate credit facilities reflects a 25 basis point LIBOR floor which is applicable for the value of all corporate credit facilities. |
| 2. | Weighted-average interest rate. |
| 3. | The Revolving Credit Facility had undrawn capacity of $450 million. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. |
| 4. | A variable interest loan for which the LIBOR spread may vary, as it is determined by the Company's leverage ratio. |
| 5. | Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization. |
| Xenia Hotels & Resorts, Inc. | |||||||
| Debt Summary as of January 31, 2023 | |||||||
| (Unaudited) | |||||||
| ($ amounts in thousands) | |||||||
| Rate Type | Rate(1) | Maturity Date |
Outstanding as of January 31, 2023 | ||||
| Mortgage Loans | |||||||
| Grand Bohemian Hotel Orlando, Autograph Collection | Fixed | 4.53 % | March 2026 | $ 55,590 | |||
| Marriott San Francisco Airport Waterfront | Fixed | 4.63 % | May 2027 | 109,986 | |||
| Andaz Napa | Variable | 6.80 % | January 2028 | 55,000 | |||
| Total Mortgage Loans | 5.15 % | (2) | $ 220,576 | ||||
| Corporate Credit Facilities | |||||||
| Corporate Credit Facility Term Loan(3) | Variable | 6.05 % | March 2026 | $ 125,000 | |||
| Corporate Credit Facility Term Loan(3) | Variable | 6.05 % | March 2026 | 100,000 | |||
| Revolving Credit Facility(4) | Variable | 6.05 % | January 2027 | — | |||
| Total Corporate Credit Facilities | $ 225,000 | ||||||
| 2020 Senior Notes | Fixed | 6.38 % | August 2025 | 500,000 | |||
| 2021 Senior Notes | Fixed | 4.88 % | June 2029 | 500,000 | |||
| Loan premiums, discounts and unamortized deferred financing costs, net(5) | (16,173) | ||||||
| Total Debt, net of loan premiums, discounts and unamortized deferred financing costs | 5.62 % | (2) | $ 1,429,403 | ||||
| 1. | The rates shown represent annual interest rates. The variable index for the Andaz Napa mortgage loan is Term SOFR. |
| 2. | Weighted-average interest rate. |
| 3. | A variable interest loan for which the Term SOFR spread may vary, as it is determined by the Company's leverage ratio. |
| 4. | The Revolving Credit Facility had undrawn capacity of $450 million. The spread to Term SOFR may vary, as it is determined by the Company's leverage ratio. |
| 5. | Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization. |
| Xenia Hotels & Resorts, Inc. | |||||||||||
| Same-Property(1) Hotel EBITDA and Hotel EBITDA Margin | |||||||||||
| For the Three Months and Years Ended December 31, 2022 and 2021 | |||||||||||
| ($ amounts in thousands) | |||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
| Same-Property Occupancy(1) | 64.1 % | 56.4 % | 770 bps | 63.9 % | 49.7 % | 1,420 bps | |||||
| Same-Property Average Daily Rate(1) | $ 260.19 | $ 243.43 | 6.9 % | $ 259.92 | $ 225.39 | 15.3 % | |||||
| Same-Property RevPAR(1) | $ 166.87 | $ 137.35 | 21.5 % | $ 166.08 | $ 111.96 | 48.3 % | |||||
| Same-Property Revenues(1): | |||||||||||
| Rooms revenues | $ 131,381 | $ 108,213 | 21.4 % | $ 519,042 | $ 349,965 | 48.3 % | |||||
| Food and beverage revenues | 87,472 | 63,627 | 37.5 % | 302,640 | 163,696 | 84.9 % | |||||
| Other revenues | 20,299 | 19,227 | 5.6 % | 79,621 | 63,568 | 25.3 % | |||||
| Total Same-Property revenues | $ 239,152 | $ 191,067 | 25.2 % | $ 901,303 | $ 577,229 | 56.1 % | |||||
| Same-Property Expenses(1): | |||||||||||
| Rooms expenses | $ 32,369 | $ 26,035 | 24.3 % | $ 124,219 | $ 85,376 | 45.5 % | |||||
| Food and beverage expenses | 55,192 | 42,026 | 31.3 % | 198,009 | 117,707 | 68.2 % | |||||
| Other direct expenses | 5,742 | 5,162 | 11.2 % | 22,907 | 17,805 | 28.7 % | |||||
| Other indirect expenses | 61,526 | 49,261 | 24.9 % | 223,655 | 168,477 | 32.8 % | |||||
| Management and franchise fees | 7,955 | 7,008 | 13.5 % | 33,339 | 20,991 | 58.8 % | |||||
| Real estate taxes, personal property taxes and insurance | 10,243 | 8,691 | 17.9 % | 39,954 | 37,549 | 6.4 % | |||||
| Ground lease expense | 771 | (38) | (2,128.9) % | 2,846 | 1,079 | 163.8 % | |||||
| Total Same-Property hotel operating expenses | $ 173,798 | $ 138,145 | 25.8 % | $ 644,929 | $ 448,984 | 43.6 % | |||||
| Same-Property Hotel EBITDA(1) | $ 65,354 | $ 52,922 | 23.5 % | $ 256,374 | $ 128,245 | 99.9 % | |||||
| Same-Property Hotel EBITDA Margin(1) | 27.3 % | 27.7 % | (37) bps | 28.4 % | 22.2 % | 623 bps | |||||
| 1. | "Same-Property" includes all hotels owned as of December 31, 2022, except for Hyatt Regency Portland at the Oregon Convention Center and W Nashville. "Same-Property" also includes disruption from the COVID-19 pandemic in 2022 and 2021 results and renovation disruption for multiple capital projects during the periods presented. The following is a reconciliation of Total Revenues and Total Hotel Operating Expenses consolidated on a GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses for the three months and years ended December 31, 2022 and 2021. |
| Three Months Ended December 31, | Year Ended December 31, | ||||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Total Revenues - GAAP | $ 263,141 | $ 203,578 | $ 997,607 | $ 616,188 | |||
| Pro forma hotel level adjustments | (23,989) | (12,511) | (96,304) | (38,959) | |||
| Total Same-Property Revenues | $ 239,152 | $ 191,067 | $ 901,303 | $ 577,229 | |||
| Total Hotel Operating Expenses - GAAP | $ 181,594 | $ 140,211 | $ 672,275 | $ 446,047 | |||
| Real estate taxes, personal property taxes and insurance | 10,936 | 9,620 | 44,388 | 40,888 | |||
| Ground lease expense, net(a) | 771 | (39) | 2,846 | 1,079 | |||
| Other income | (32) | (65) | (227) | (259) | |||
| Corporate-level costs and expenses | (539) | (283) | (1,813) | (663) | |||
| Pro forma hotel level adjustments, net(b) | (18,932) | (11,299) | (72,540) | (38,108) | |||
| Total Same-Property Hotel Operating Expenses | $ 173,798 | $ 138,145 | $ 644,929 | $ 448,984 | |||
| a. | Excludes non-cash ground rent expense. |
| b. | Includes adjustments for hotel expenses from sold hotels and for Hyatt Regency Portland at the Oregon Convention Center and W Nashville, which are not included in Same-Property amounts. |
| Xenia Hotels & Resorts, Inc. | ||||||||||||
| Same-Property(1) Hotel EBITDA and Hotel EBITDA Margin | ||||||||||||
| For the Three Months and Years Ended December 31, 2022 and 2019 | ||||||||||||
| ($ amounts in thousands) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2022 | 2019 | Change | 2022 | 2019 | Change | |||||||
| Same-Property Occupancy(1) | 64.1 % | 73.3 % | (920) bps | 63.9 % | 76.6 % | (1,270) bps | ||||||
| Same-Property Average Daily Rate(1) | $ 260.19 | $ 226.34 | 15.0 % | $ 259.92 | $ 228.43 | 13.8 % | ||||||
| Same-Property RevPAR(1) | $ 166.87 | $ 165.94 | 0.6 % | $ 166.08 | $ 175.04 | (5.1) % | ||||||
| Same-Property Revenues(1): | ||||||||||||
| Rooms revenues | $ 131,381 | $ 130,758 | 0.5 % | $ 519,042 | $ 547,208 | (5.1) % | ||||||
| Food and beverage revenues | 87,472 | 84,656 | 3.3 % | 302,640 | 326,208 | (7.2) % | ||||||
| Other revenues | 20,299 | 17,503 | 16.0 % | 79,621 | 68,715 | 15.9 % | ||||||
| Total Same-Property revenues | $ 239,152 | $ 232,917 | 2.7 % | $ 901,303 | $ 942,131 | (4.3) % | ||||||
| Same-Property Expenses(1): | ||||||||||||
| Rooms expenses | $ 32,369 | $ 31,828 | 1.7 % | $ 124,219 | $ 130,958 | (5.1) % | ||||||
| Food and beverage expenses | 55,192 | 54,281 | 1.7 % | 198,009 | 212,569 | (6.8) % | ||||||
| Other direct expenses | 5,742 | 6,493 | (11.6) % | 22,907 | 25,897 | (11.5) % | ||||||
| Other indirect expenses | 61,526 | 57,025 | 7.9 % | 223,655 | 228,453 | (2.1) % | ||||||
| Management and franchise fees | 7,955 | 9,222 | (13.7) % | 33,339 | 36,572 | (8.8) % | ||||||
| Real estate taxes, personal property taxes and insurance | 10,243 | 9,879 | 3.7 % | 39,954 | 39,613 | 0.9 % | ||||||
| Ground lease expense | 771 | 938 | (17.8) % | 2,846 | 3,816 | (25.4) % | ||||||
| Total Same-Property hotel operating expenses | $ 173,798 | $ 169,666 | 2.4 % | $ 644,929 | $ 677,878 | (4.9) % | ||||||
| Same-Property Hotel EBITDA(1) | $ 65,354 | $ 63,251 | 3.3 % | $ 256,374 | $ 264,253 | (3.0) % | ||||||
| Same-Property Hotel EBITDA Margin(1) | 27.3 % | 27.2 % | 17 bps | 28.4 % | 28.0 % | 40 bps | ||||||
| 1. | "Same-Property" includes all hotels owned as of December 31, 2022, except for Hyatt Regency Portland at the Oregon Convention Center and W Nashville. Includes disruption from the COVID-19 pandemic in 2022 results and renovation disruption for multiple capital projects during the periods presented. The following is a reconciliation of Total Revenues and Total Hotel Operating Expenses consolidated on a GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses for the three months and years ended December 31, 2022 and 2019. |
| Three Months Ended December 31, | Year Ended December 31, | ||||||
| 2022 | 2019 | 2022 | 2019 | ||||
| Total Revenues - GAAP | $ 263,141 | $ 282,185 | $ 997,607 | $ 1,149,087 | |||
| Pro forma hotel level adjustments | (23,989) | (49,268) | (96,304) | (206,956) | |||
| Total Same-Property Revenues | $ 239,152 | $ 232,917 | $ 901,303 | $ 942,131 | |||
| Total Hotel Operating Expenses - GAAP | $ 181,594 | $ 192,805 | $ 672,275 | $ 772,857 | |||
| Real estate taxes, personal property taxes and insurance | 10,936 | 11,216 | 44,388 | 50,184 | |||
| Ground lease expense, net(a) | 771 | 938 | 2,846 | 3,816 | |||
| Other income | (32) | (62) | (227) | (268) | |||
| Pre-opening expenses | — | — | — | 277 | |||
| Corporate-level costs and expenses | (539) | (285) | (1,813) | (1,286) | |||
| Pro forma hotel level adjustments, net(b) | (18,932) | (34,946) | (72,540) | (147,702) | |||
| Total Same-Property Hotel Operating Expenses | $ 173,798 | $ 169,666 | $ 644,929 | $ 677,878 | |||
| a. | Excludes non-cash ground rent expense. |
| b. | Includes adjustments for hotel expenses from sold hotels and for Hyatt Regency Portland at the Oregon Convention Center and W Nashville, which are not included in Same-Property amounts. |
SOURCE Xenia Hotels & Resorts, Inc.