Same-Property RevPAR increased 2.7% compared to the first quarter of 2016 to $147.14, as occupancy increased 123 basis points and ADR increased 1.0%. Excluding the Company's Houston-area hotels, Same-Property RevPAR also increased 2.7%, as occupancy increased 146 basis points and ADR increased 0.7%.
Xenia Hotels & Resorts, Inc. (NYSE: XHR) yesterday announced results for the first quarter ended March 31, 2017.
First Quarter 2017 Highlights
- Net Income: Net income attributable to common stockholders was $8.1 million and net income per diluted share was $0.07.
- Same-Property RevPAR: Same-Property RevPAR increased 2.7% compared to the first quarter of 2016 to $147.14, as occupancy increased 123 basis points and ADR increased 1.0%. Excluding the Company's Houston-area hotels, Same-Property RevPAR also increased 2.7%, as occupancy increased 146 basis points and ADR increased 0.7%.
- Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 29.9%, an increase of 68 basis points compared to the first quarter of 2016.
- Total Portfolio RevPAR: Total Portfolio RevPAR was 6.1% higher than in the first quarter of 2016, reflecting improvements in portfolio performance and composition.
- Adjusted EBITDA: Adjusted EBITDA declined $3.4 million to $59.1 million, a decrease of 5.5% primarily due to net asset dispositions in 2016.
- Adjusted FFO per Diluted Share: Adjusted FFO per diluted share increased 2.3% to $0.44 per diluted share compared to the first quarter of 2016.
- Dividends: The Company declared its first quarter dividend of $0.275 per share to common stockholders of record on March 31, 2017.
"We are pleased with the performance of our portfolio during the quarter and remain focused on enhancing bottom-line efficiency, as demonstrated by our continued margin improvement," commented Marcel Verbaas, President and Chief Executive Officer of Xenia. "Our Houston-area hotels experienced positive RevPAR growth for the quarter as our assets benefited from Super Bowl LI and the Easter shift into April. Additionally, we had several markets that outperformed the overall lodging industry during the quarter. We have made significant strides in upgrading the quality of our portfolio over the past several years and continued this theme through the sale of the Courtyard Birmingham at UAB which was completed in April. We will look to continue improving the quality of our portfolio through transactions as well as capital expenditures during 2017 and beyond."
Operating Results
The Company's results include the following:
|
Three Months Ended March 31, |
||||||||||
|
2017 |
2016 |
Change |
||||||||
|
($ amounts in thousands, except hotel statistics and per share amounts) |
||||||||||
|
Net income (loss) attributable to common stockholders |
$ |
8,113 |
$ |
(8,915) |
191.0 |
% |
||||
|
Net income (loss) per share available to common stockholders |
$ |
0.07 |
$ |
(0.08) |
187.5 |
% |
||||
|
Same-Property Number of Hotels |
42 |
42 |
— |
|||||||
|
Same-Property Number of Rooms |
10,902 |
10,909 |
(7) |
|||||||
|
Same-Property Occupancy |
73.5 |
% |
72.2 |
% |
123 bps |
|||||
|
Same-Property Average Daily Rate |
$ |
200.25 |
$ |
198.36 |
1.0 |
% |
||||
|
Same-Property RevPAR |
$ |
147.14 |
$ |
143.31 |
2.7 |
% |
||||
|
Same-Property Hotel EBITDA(1) |
$ |
65,094 |
$ |
62,478 |
4.2 |
% |
||||
|
Same-Property Hotel EBITDA Margin(1) |
29.9 |
% |
29.2 |
% |
68 bps |
|||||
|
Total Portfolio Number of Hotels(2) |
42 |
50 |
(8) |
|||||||
|
Total Portfolio Number of Rooms(2) |
10,902 |
12,548 |
(1,646) |
|||||||
|
Total Portfolio RevPAR(3) |
$ |
147.14 |
$ |
138.73 |
6.1 |
% |
||||
|
Adjusted EBITDA(1) |
$ |
59,089 |
$ |
62,530 |
(5.5) |
% |
||||
|
Adjusted FFO(1) |
$ |
47,585 |
$ |
47,072 |
1.1 |
% |
||||
|
Adjusted FFO per diluted share |
$ |
0.44 |
$ |
0.43 |
2.3 |
% |
||||
|
"Same-Property" includes all hotels owned as of March 31, 2017. "Same-Property" includes periods prior to the Company's ownership of the Hotel Commonwealth and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented. |
||||||||||
|
(1) See tables later in this press release for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted EBITDA, Funds From Operations ("FFO"), Adjusted FFO, and Same-Property Hotel EBITDA. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Same-Property Hotel EBITDA, and Same-Property Hotel EBITDA Margin are non-GAAP financial measures. |
||||||||||
|
(2) As of end of periods presented. |
||||||||||
|
(3) 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. |
||||||||||
Transactions:
During the first quarter, the Company did not complete any acquisitions or dispositions.
In April 2017, the Company sold the 122-room Courtyard Birmingham Downtown at UAB for a sale price of $30 million. The price represented an 11.4x EBITDA multiple on a trailing-twelve-month basis as of March 31, 2017. In addition, the Company retained the $1.1 million balance in the hotel's capital expenditure reserve account.
Financings and Balance Sheet
In February, the Company executed swaps to fix the interest rates on the loans collateralized by the Marriott Dallas City Center and the Hyatt Regency Santa Clara at 4.05% and 3.81%, respectively, through the maturity date of the loans in January 2022.
As of March 31, 2017, the Company had total outstanding debt of $1.1 billion with a weighted average interest rate of 3.48%. In addition, the Company had $202.4 million of cash and cash equivalents, and full availability on its $400 million senior unsecured credit facility. Total net debt to trailing-twelve-month Corporate EBITDA (as defined in Section 1.01 of the Company's unsecured credit facility) was 3.3x.
Subsequent to quarter end, the Company closed a $115 million 10-year, fixed rate mortgage loan collateralized by the Marriott San Francisco Airport Waterfront. The loan bears an interest rate of 4.63% and matures in May 2027.
Also in April, the Company paid off the $45 million mortgage loan collateralized by the Residence Inn Denver City Center and the $27 million mortgage loan collateralized by the Bohemian Hotel Savannah Riverfront.
Proceeds from the Marriott San Francisco Airport Waterfront financing and disposition of the Courtyard Birmingham Downtown at UAB will be utilized for general corporate purposes which may include share repurchases under the Company's existing repurchase authorization, debt repayments, and acquisitions consistent with the Company's long-term strategy of investing in high-quality assets primarily located in top 25 lodging markets and key leisure destinations.
"The strength of our balance sheet continues to be a competitive advantage for the company. We recently completed a new secured financing, which, together with the payoff of two smaller secured loans, increased the weighted-average duration to initial maturity of our debt to 4.8 years and lowered the mix of variable-rate debt to our target of approximately 25%. We are pleased with the evolution of our balance sheet and believe that it positions us well to take advantage of opportunities as they may arise," commented Atish Shah, Chief Financial Officer for Xenia.
Capital Expenditures
During the first quarter, the Company invested $15 million in its portfolio. The Company completed the guestroom renovations at the Andaz San Diego and Bohemian Hotel Celebration, as well as several smaller projects throughout the portfolio. The Company continued the guestroom renovation at the Westin Galleria Houston, including the conversion of 18 guestrooms into nine suites resulting in a reduction in our total room count. Throughout the course of the renovation, the hotel's room count will be reduced by 18 keys through the creation of new suites. Additionally, the Company substantially completed the meeting space renovation at the Marriott San Francisco Airport Waterfront and made significant progress in the planning of several large-scale renovations expected to commence in the second half of the year.
Share Repurchases
During the first quarter, the Company purchased 107,509 shares of common stock under its share repurchase authorization for an aggregate purchase price of $1.8 million.
Year to date through May 5, 2017, the Company repurchased a total of 160,983 shares of common stock at a weighted average price of $16.69 per share, for total consideration of $2.7 million. As of May 5, 2017, the Company had approximately $98.3 million in capacity under its repurchase authorization.
2017 Outlook and Guidance
The Company is updating its guidance for 2017 to reflect the disposition of the Courtyard Birmingham Downtown at UAB and the Company's first quarter performance, while maintaining its operating and financial expectations for the remainder of the year. The Company's outlook for 2017 is based on the current economic environment, incorporates all expected renovation disruption, and assumes no additional acquisitions, dispositions, equity offerings, or share repurchases. RevPAR change includes all 41 hotels owned as of May 9, 2017.
|
2017 Guidance |
Variance to Prior Guidance |
||||||
|
Low End |
High End |
Low End |
High End |
||||
|
($ amounts in millions, except per share data) |
|||||||
|
Net Income |
$36 |
$49 |
$2 |
$1 |
|||
|
RevPAR Change |
(1.75)% |
0.25% |
0.25% |
0.25% |
|||
|
Adjusted EBITDA |
$244 |
$258 |
$3 |
$3 |
|||
|
Adjusted FFO |
$198 |
$212 |
$3 |
$3 |
|||
|
Adjusted FFO per Diluted Share |
$1.85 |
$1.98 |
$0.03 |
$0.03 |
|||
|
Capital Expenditures |
$85 |
$95 |
$— |
$— |
|||
Additional guidance details:
- Average RevPAR declines of 7% to 10% at the Company's Houston-area hotels, due to the impact of continued weakness in corporate demand, the addition of new supply, and disruption due to renovations at the Westin Galleria and Westin Oaks. The Company's Houston-area hotels are expected to negatively impact portfolio RevPAR change by approximately 85 basis points.
- Disruption due to renovations is expected to negatively impact portfolio RevPAR change by approximately 50 basis points.
- General and administrative expense of $22 million to $24 million, excluding non-cash share-based compensation.
- Interest expense of approximately $42 million, excluding non-cash loan related costs.
- Income tax expense of approximately $6 million.
About Xenia Hotels & Resorts, Inc.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service, lifestyle and urban upscale hotels, with a focus on the top 25 lodging markets as well as key leisure destinations in the United States. The Company owns 41 hotels, including 39 wholly owned hotels, comprising 10,780 rooms, across 20 states and the District of Columbia. Xenia's hotels are operated and/or licensed by industry leaders such as Marriott®, Kimpton®, Hyatt®, Aston®, Fairmont®, Hilton®, and Loews®, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, Davidson Hotels & Resorts and Concord Hospitality.
|
Xenia Hotels & Resorts, Inc. Consolidated Balance Sheets As of March 31, 2017 and December 31, 2016 ($ amounts in thousands, except per share data) |
|||||
|
March 31, 2017 |
December 31, 2016 |
||||
|
Assets |
(Unaudited) |
||||
|
Investment properties: |
|||||
|
Land |
$ |
329,949 |
$ |
331,502 |
|
|
Building and other improvements |
2,720,027 |
2,732,062 |
|||
|
Total |
$ |
3,049,976 |
$ |
3,063,564 |
|
|
Less: accumulated depreciation |
(645,491) |
(619,975) |
|||
|
Net investment properties |
$ |
2,404,485 |
$ |
2,443,589 |
|
|
Cash and cash equivalents |
202,370 |
216,054 |
|||
|
Restricted cash and escrows |
69,200 |
70,973 |
|||
|
Accounts and rents receivable, net of allowance for doubtful accounts |
32,289 |
22,998 |
|||
|
Intangible assets, net of accumulated amortization of $4,662 and $4,324, respectively |
74,287 |
76,912 |
|||
|
Other assets |
35,200 |
29,819 |
|||
|
Assets held for sale |
16,651 |
— |
|||
|
Total assets (including $73,456 and $74,440, respectively, related to consolidated variable interest entities) |
$ |
2,834,482 |
$ |
2,860,345 |
|
|
Liabilities |
|||||
|
Debt, net of loan discounts and unamortized deferred financing costs |
$ |
1,076,989 |
$ |
1,077,132 |
|
|
Accounts payable and accrued expenses |
65,455 |
71,955 |
|||
|
Distributions payable |
29,873 |
29,881 |
|||
|
Other liabilities |
29,576 |
29,810 |
|||
|
Liabilities associated with assets held for sale |
267 |
— |
|||
|
Total liabilities (including $47,474 and $47,828, respectively, related to consolidated variable interest entities) |
$ |
1,202,160 |
$ |
1,208,778 |
|
|
Commitments and contingencies |
|||||
|
Stockholders' equity |
|||||
|
Common stock, $0.01 par value, 500,000,000 shares authorized, 106,849,093 and 106,794,788 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively |
1,069 |
1,068 |
|||
|
Additional paid in capital |
1,924,425 |
1,925,554 |
|||
|
Accumulated other comprehensive income |
6,925 |
5,009 |
|||
|
Accumulated distributions in excess of net earnings |
(323,401) |
(302,034) |
|||
|
Total Company stockholders' equity |
$ |
1,609,018 |
$ |
1,629,597 |
|
|
Non-controlling interests |
23,304 |
21,970 |
|||
|
Total equity |
$ |
1,632,322 |
$ |
1,651,567 |
|
|
Total liabilities and equity |
$ |
2,834,482 |
$ |
2,860,345 |
|
|
Xenia Hotels & Resorts, Inc. Consolidated Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2017 and 2016 (Unaudited) ($ amounts in thousands, except per share data) |
|||||
|
Three Months Ended March 31, |
|||||
|
2017 |
2016 |
||||
|
Revenues: |
|||||
|
Rooms revenues |
$ |
144,451 |
$ |
159,318 |
|
|
Food and beverage revenues |
61,825 |
63,468 |
|||
|
Other revenues |
12,184 |
12,249 |
|||
|
Total revenues |
$ |
218,460 |
$ |
235,035 |
|
|
Expenses: |
|||||
|
Rooms expenses |
33,630 |
36,775 |
|||
|
Food and beverage expenses |
39,184 |
42,233 |
|||
|
Other direct expenses |
3,007 |
3,965 |
|||
|
Other indirect expenses |
53,037 |
57,967 |
|||
|
Management and franchise fees |
11,378 |
12,248 |
|||
|
Total hotel operating expenses |
$ |
140,236 |
$ |
153,188 |
|
|
Depreciation and amortization |
36,478 |
38,951 |
|||
|
Real estate taxes, personal property taxes and insurance |
11,360 |
12,033 |
|||
|
Ground lease expense |
1,376 |
1,353 |
|||
|
General and administrative expenses |
8,613 |
10,624 |
|||
|
Acquisition transaction costs |
6 |
140 |
|||
|
Provision for asset impairment |
— |
7,594 |
|||
|
Total expenses |
$ |
198,069 |
$ |
223,883 |
|
|
Operating income |
$ |
20,391 |
$ |
11,152 |
|
|
Gain on sale of investment properties |
— |
882 |
|||
|
Other income |
152 |
84 |
|||
|
Interest expense |
(10,150) |
(12,840) |
|||
|
Loss on extinguishment of debt |
— |
(4,742) |
|||
|
Net income (loss) before income taxes |
$ |
10,393 |
$ |
(5,464) |
|
|
Income tax expense |
(2,166) |
(3,705) |
|||
|
Net income (loss) |
$ |
8,227 |
$ |
(9,169) |
|
|
Non-controlling interests in consolidated real estate entities |
72 |
164 |
|||
|
Non-controlling interests of common units in Operating Partnership |
(186) |
90 |
|||
|
Net (income) loss attributable to non-controlling interests |
$ |
(114) |
$ |
254 |
|
|
Net income (loss) attributable to common stockholders |
$ |
8,113 |
$ |
(8,915) |
|
|
Xenia Hotels & Resorts, Inc. Consolidated Statements of Operations and Comprehensive Income - Continued For the Three Months Ended March 31, 2017 and 2016 (Unaudited) ($ amounts in thousands, except per share data) |
|||||
|
Three Months Ended March 31, |
|||||
|
2017 |
2016 |
||||
|
Basic and diluted earnings per share |
|||||
|
Net income (loss) per share available to common stockholders |
$ |
0.07 |
$ |
(0.08) |
|
|
Weighted average number of common shares (basic) |
106,844,272 |
109,732,721 |
|||
|
Weighted average number of common shares (diluted) |
107,061,056 |
109,732,721 |
|||
|
Comprehensive Income (Loss): |
|||||
|
Net income (loss) |
$ |
8,227 |
$ |
(9,169) |
|
|
Other comprehensive income (loss): |
|||||
|
Unrealized gain (loss) on interest rate derivative instruments |
1,143 |
(10,358) |
|||
|
Reclassification adjustment for amounts recognized in net income (loss) (interest expense) |
812 |
924 |
|||
|
$ |
10,182 |
$ |
(18,603) |
||
|
Comprehensive (income) loss attributable to non-controlling interests: |
|||||
|
Non-controlling interests in consolidated real estate entities |
72 |
164 |
|||
|
Non-controlling interests of common units in Operating Partnership |
(225) |
194 |
|||
|
Comprehensive (income) loss attributable to non-controlling interests |
$ |
(153) |
$ |
358 |
|
|
Comprehensive income (loss) attributable to the Company |
$ |
10,029 |
$ |
(18,245) |
|
Non-GAAP Financial Measures
The Company considers the following useful non-GAAP financial measures to investors as key supplemental measures of operating performance: EBITDA, Adjusted EBITDA, 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 and Adjusted EBITDA
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 an investor regarding results of operations, in evaluating and facilitating comparisons of operating performance between periods and between REITs by removing the impact of capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from 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, it is used by management in the annual budget process for compensation programs. The Company presents EBITDA 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 the investor to understand EBITDA attributable to all common stock and Operating Partnership units.
The Company further adjusts EBITDA for certain additional items such as hotel property acquisitions and pursuit costs, amortization of share-based compensation, equity investment adjustments, the cumulative effect of changes in accounting principles, impairment of real estate assets, operating results from properties sold and other costs it believes do not represent recurring operations and are not indicative of the performance of its underlying hotel property entities. The Company believes Adjusted EBITDA provides investors with another financial measure in evaluating and facilitating comparison of operating performance between periods and between REITs that report similar measures.
Hotel EBITDA and Hotel EBITDA Margin
The Company calculates Hotel EBITDA in accordance with the current edition of USALI, which is defined as net income or loss (calculated in accordance with GAAP) after adding back replacement reserves. Hotel EBITDA Margin is calculated by dividing Hotel EBITDA by Total Revenues.
FFO and Adjusted FFO
The Company calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, amortization and impairments, gains (losses) from sales of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and joint ventures, 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 (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 the investor to understand FFO attributable to all common stock and Operating Partnership units.
The Company further adjusts FFO for certain additional items that are not in NAREIT's definition of FFO such as hotel property acquisition and pursuit costs, amortization of debt origination costs and share-based compensation, operating results from properties that are sold and other expenses it believes do not represent recurring operations. The Company believes 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 operating performance.
Adjusted FFO per diluted share
The Company calculates Adjusted FFO per diluted share by dividing the Adjusted FFO for the respective period by the diluted weighted average number of common stock shares for the corresponding period. The Company's diluted weighted average number of common shares outstanding is calculated by taking the weighted average of the common stock outstanding for the respective period plus the effect of any dilutive securities. Any anti-dilutive securities are excluded from the diluted earnings per-share calculation.
|
Xenia Hotels & Resorts, Inc. Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Same-Property Hotel EBITDA For the Three Months Ended March 31, 2017 and 2016 (Unaudited) ($ amounts in thousands) |
|||||
|
Three Months Ended March 31, |
|||||
|
2017 |
2016 |
||||
|
Net income (loss) |
$ |
8,227 |
$ |
(9,169) |
|
|
Adjustments: |
|||||
|
Interest expense |
10,150 |
12,840 |
|||
|
Income tax expense |
2,166 |
3,705 |
|||
|
Depreciation and amortization related to investment properties |
36,359 |
38,951 |
|||
|
Non-controlling interests in consolidated real estate entities |
72 |
164 |
|||
|
Adjustments related to non-controlling interests in consolidated real estate entities |
(322) |
(312) |
|||
|
EBITDA attributable to common stock and unit holders |
$ |
56,652 |
$ |
46,179 |
|
|
Reconciliation to Adjusted EBITDA and Same-Property Hotel EBITDA |
|||||
|
Impairment of investment properties |
— |
7,594 |
|||
|
Gain on sale of investment property |
— |
(882) |
|||
|
Loss on extinguishment of debt |
— |
4,742 |
|||
|
Acquisition transaction costs |
6 |
140 |
|||
|
Amortization of share-based compensation expense |
2,230 |
2,697 |
|||
|
Amortization of above and below market ground leases and straight-line rent expense |
201 |
170 |
|||
|
Management transition and severance expenses |
— |
1,890 |
|||
|
Adjusted EBITDA attributable to common stock and unit holders |
$ |
59,089 |
$ |
62,530 |
|
|
Corporate expenses |
6,648 |
6,168 |
|||
|
Income from sold properties |
— |
(5,923) |
|||
|
Pro forma hotel level adjustments, net(1) |
(643) |
(297) |
|||
|
Same-Property Hotel EBITDA attributable to common stock and unit holders |
$ |
65,094 |
$ |
62,478 |
|
|
(1) Same-Property Hotel EBITDA adjusted to include the results of the Hotel Commonwealth for periods prior to Company ownership for the three months ended March 31, 2016 and exclude the NOI guaranty payment at the Andaz San Diego for the three months ended March 31, 2017 and 2016. |
|||||
|
Xenia Hotels & Resorts, Inc. Reconciliation of Net Income to FFO and Adjusted FFO For the Three Months Ended March 31, 2017 and 2016 (Unaudited) ($ amounts in thousands) |
|||||
|
Three Months Ended March 31, |
|||||
|
2017 |
2016 |
||||
|
Net income (loss) |
$ |
8,227 |
$ |
(9,169) |
|
|
Adjustments: |
|||||
|
Depreciation and amortization related to investment properties |
36,359 |
38,951 |
|||
|
Impairment of investment property |
— |
7,594 |
|||
|
Gain on sale of investment property |
— |
(882) |
|||
|
Non-controlling interests in consolidated real estate entities |
72 |
164 |
|||
|
Adjustments related to non-controlling interests in consolidated real estate entities |
(225) |
(224) |
|||
|
FFO attributable to common stock and unit holders |
$ |
44,433 |
$ |
36,434 |
|
|
Reconciliation to Adjusted FFO |
|||||
|
Loss on extinguishment of debt |
— |
4,742 |
|||
|
Acquisition transaction costs |
6 |
140 |
|||
|
Loan related costs(1) |
719 |
1,003 |
|||
|
Adjustment related to non-controlling interests loan related costs |
(4) |
(4) |
|||
|
Amortization of share-based compensation expense |
2,230 |
2,697 |
|||
|
Amortization of above and below market ground leases and straight-line rent expense |
201 |
170 |
|||
|
Management transition and severance expenses |
— |
1,890 |
|||
|
Adjusted FFO attributable to common stock and unit holders |
$ |
47,585 |
$ |
47,072 |
|
|
(1) Loan related costs included amortization of debt discounts, premiums and deferred loan origination costs. |
|||||
|
Xenia Hotels & Resorts, Inc. Reconciliation of Net Income to Adjusted EBITDA for Current Full Year 2017 Guidance ($ amounts in millions) |
|
|
Guidance Midpoint |
|
|
Net income |
$42 |
|
Adjustments: |
|
|
Depreciation and amortization related to investment properties |
147 |
|
Interest expense |
46 |
|
Income tax expense |
6 |
|
Adjustments related to non-controlling interests |
(1) |
|
EBITDA attributable to common stock and unit holders |
$240 |
|
Amortization of share-based compensation expense |
10 |
|
Other(1) |
1 |
|
Adjusted EBITDA attributable to common stock and unit holders |
$251 |
|
(1) Includes amortization of above and below market ground leases and straight-line rent. |
|
|
Reconciliation of Net Income to Adjusted FFO for Current Full Year 2017 Guidance ($ amounts in millions) |
|
|
Guidance Midpoint |
|
|
Net income |
$42 |
|
Adjustments: |
|
|
Depreciation and amortization related to investment properties |
147 |
|
Adjustments related to non-controlling interests |
(1) |
|
FFO attributable to common stock and unit holders |
$188 |
|
Amortization of share-based compensation expense |
10 |
|
Other(2) |
7 |
|
Adjusted FFO attributable to common stock and unit holders |
$205 |
|
(2) Includes amortization of above and below market ground leases and loan related costs. |
|
|
Xenia Hotels & Resorts, Inc. Debt Summary ($ amounts in thousands) |
|||||||||||
|
Rate Type |
Rate(1) |
Fully Extended Maturity Date(2) |
Outstanding as of March 31, 2017 |
Outstanding as of May 9, 2017 |
|||||||
|
Residence Inn Denver City Center(3) |
Variable |
3.23% |
April 2018 |
$ |
45,210 |
$ |
— |
||||
|
Bohemian Hotel Savannah Riverfront(3) |
Variable |
3.33% |
December 2018 |
27,480 |
— |
||||||
|
Fairmont Dallas |
Variable |
2.98% |
April 2019 |
55,312 |
55,312 |
||||||
|
Andaz Savannah |
Variable |
2.98% |
January 2020 |
21,500 |
21,500 |
||||||
|
Hotel Monaco Denver |
Fixed(4) |
2.98% |
January 2020 |
41,000 |
41,000 |
||||||
|
Andaz Napa |
Fixed(4) |
2.99% |
March 2020 |
38,000 |
38,000 |
||||||
|
Marriott Charleston Town Center |
Fixed |
3.85% |
July 2020 |
16,279 |
16,279 |
||||||
|
Grand Bohemian Hotel Charleston (JV) |
Variable |
3.48% |
November 2020 |
19,471 |
19,471 |
||||||
|
Loews New Orleans Hotel |
Variable |
3.33% |
November 2020 |
37,500 |
37,500 |
||||||
|
Grand Bohemian Hotel Mountain Brook (JV) |
Variable |
3.48% |
December 2020 |
25,724 |
25,724 |
||||||
|
Hotel Monaco Chicago |
Variable |
3.23% |
January 2021 |
21,644 |
21,644 |
||||||
|
Westin Galleria Houston & Westin Oaks Houston at The Galleria |
Variable |
3.48% |
May 2021 |
110,000 |
110,000 |
||||||
|
Marriott Dallas City Center |
Fixed(4) |
4.05% |
January 2022 |
51,000 |
51,000 |
||||||
|
Hyatt Regency Santa Clara |
Fixed(4) |
3.81% |
January 2022 |
90,000 |
90,000 |
||||||
|
Hotel Palomar Philadelphia |
Fixed(4) |
4.14% |
January 2023 |
60,000 |
60,000 |
||||||
|
Residence Inn Boston Cambridge |
Fixed |
4.48% |
November 2025 |
63,000 |
63,000 |
||||||
|
Grand Bohemian Hotel Orlando |
Fixed |
4.53% |
March 2026 |
60,000 |
60,000 |
||||||
|
Marriott San Francisco Airport Waterfront(5) |
Fixed |
4.63% |
May 2027 |
— |
115,000 |
||||||
|
Total Mortgage Loans |
3.64% |
(6) |
$ |
783,120 |
$ |
825,430 |
|||||
|
Mortgage Loan Discounts, net(7) |
(303) |
(303) |
|||||||||
|
Unamortized Deferred Financing Costs, net |
(5,828) |
(6,532) |
|||||||||
|
Senior Unsecured Credit Facility |
Variable |
2.50% |
February 2020 |
— |
— |
||||||
|
Term Loan $175M |
Fixed(8) |
2.74% |
February 2021 |
175,000 |
175,000 |
||||||
|
Term Loan $125M |
Fixed(8) |
3.53% |
October 2022 |
125,000 |
125,000 |
||||||
|
Total Debt, net of mortgage loan discounts and unamortized deferred financing costs |
3.48% |
(6) |
$ |
1,076,989 |
$ |
1,118,595 |
|||||
|
(1) Variable index is one month LIBOR. Interest rates as of March 31, 2017. |
|||||||||||
|
(2) Loan extension is at the discretion of Xenia. The majority of loans require minimum Debt Service Coverage Ratio and/or Loan to Value maximums and payment of an extension fee. |
|||||||||||
|
(3) Subsequent to quarter-end, the loan was paid off. |
|||||||||||
|
(4) A variable interest loan for which the interest rate has been fixed for the entire term. |
|||||||||||
|
(5) Subsequent to quarter-end, the Company entered into a new loan collateralized by the hotel. |
|||||||||||
|
(6) Weighted average interest rate. |
|||||||||||
|
(7) Loan discounts upon issuance of new mortgage loan or modification. |
|||||||||||
|
(8) A variable interest loan for which LIBOR has been fixed for the entire term. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. |
|||||||||||
|
Xenia Hotels & Resorts, Inc. Same-Property(1) Hotel EBITDA and Hotel EBITDA Margin For the Three Months Ended March 31, 2017 and 2016 ($ amounts in thousands) |
||||||||||
|
Three Months Ended March 31, |
||||||||||
|
2017 |
2016 |
Change |
||||||||
|
Revenues: |
||||||||||
|
Room revenues |
$ |
144,454 |
$ |
142,252 |
1.5 |
% |
||||
|
Food and beverage revenues |
61,825 |
60,111 |
2.9 |
% |
||||||
|
Other revenues |
11,553 |
11,551 |
— |
% |
||||||
|
Total revenues |
$ |
217,832 |
$ |
213,914 |
1.8 |
% |
||||
|
Expenses: |
||||||||||
|
Room expenses |
$ |
33,603 |
$ |
33,056 |
1.7 |
% |
||||
|
Food and beverage expenses |
39,183 |
39,681 |
(1.3) |
% |
||||||
|
Other direct expenses |
3,007 |
3,839 |
(21.7) |
% |
||||||
|
Other indirect expenses |
52,911 |
51,913 |
1.9 |
% |
||||||
|
Management and franchise fees |
11,455 |
10,970 |
4.4 |
% |
||||||
|
Real estate taxes, personal property taxes and insurance |
11,358 |
10,803 |
5.1 |
% |
||||||
|
Ground lease expense |
1,221 |
1,174 |
4.0 |
% |
||||||
|
Total hotel operating expenses |
$ |
152,738 |
$ |
151,436 |
0.9 |
% |
||||
|
Hotel EBITDA |
$ |
65,094 |
$ |
62,478 |
4.2 |
% |
||||
|
Hotel EBITDA Margin |
29.9 |
% |
29.2 |
% |
68 bps |
|||||
|
(1) "Same-Property" includes all hotels owned as of March 31, 2017. "Same-Property" includes periods prior to the Company's ownership of the Hotel Commonwealth and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented. |
||||||||||
|
Xenia Hotels & Resorts, Inc. First Quarter Portfolio Data by Market As of March 31, 2017(1) |
|||||||
|
As of March 31, 2017 |
|||||||
|
Market(2) |
% of Hotel EBITDA(3) |
Number of Hotels |
Number of Rooms |
||||
|
Houston, TX |
10% |
3 |
1,227 |
||||
|
San Francisco/San Mateo, CA |
8% |
1 |
688 |
||||
|
Dallas, TX |
7% |
2 |
961 |
||||
|
Boston, MA |
6% |
2 |
466 |
||||
|
Oahu Island, HI |
6% |
1 |
645 |
||||
|
San Jose/Santa Cruz, CA |
6% |
1 |
505 |
||||
|
Denver, CO |
5% |
2 |
417 |
||||
|
California North |
5% |
2 |
416 |
||||
|
Atlanta, GA |
5% |
1 |
522 |
||||
|
Washington, DC-MD-VA |
4% |
2 |
407 |
||||
|
Other |
38% |
25 |
4,648 |
||||
|
Total |
100% |
42 |
10,902 |
||||
|
(1) "Same-Property" includes all hotels owned as of March 31, 2017. "Same-Property" includes periods prior to the Company's ownership of the Hotel Commonwealth and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented. |
|||||||
|
(2) As defined by STR, Inc. |
|||||||
|
(3) Percentage of "Year-End" 2016 Hotel EBITDA as calculated in the Company's fourth quarter and year end 2016 earnings release. |
|||||||
|
Xenia Hotels & Resorts, Inc. Same-Property(1) Statistical Data by Market For the Three Months Ended March 31, 2017 and 2016 |
||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||
|
March 31, 2017 |
March 31, 2016 |
% Change |
||||||||||||||||||
|
Occupancy |
ADR |
RevPAR |
Occupancy |
ADR |
RevPAR |
RevPAR |
||||||||||||||
|
Market(2) |
||||||||||||||||||||
|
Houston, TX |
69.9 |
% |
$ |
201.60 |
$ |
140.94 |
70.4 |
% |
$ |
195.90 |
$ |
137.97 |
2.2 |
% |
||||||
|
San Francisco/San Mateo, CA |
81.6 |
% |
240.47 |
196.14 |
81.0 |
% |
241.94 |
195.99 |
0.1 |
% |
||||||||||
|
Dallas, TX |
68.3 |
% |
197.78 |
135.09 |
65.2 |
% |
200.60 |
130.73 |
3.3 |
% |
||||||||||
|
Boston, MA |
69.6 |
% |
206.54 |
143.73 |
66.6 |
% |
216.15 |
144.00 |
(0.2) |
% |
||||||||||
|
Oahu Island, HI |
83.8 |
% |
167.69 |
140.57 |
86.9 |
% |
165.25 |
143.68 |
(2.2) |
% |
||||||||||
|
San Jose/Santa Cruz, CA |
74.4 |
% |
267.15 |
198.74 |
76.3 |
% |
263.32 |
200.92 |
(1.1) |
% |
||||||||||
|
Denver, CO |
75.4 |
% |
173.18 |
130.57 |
72.8 |
% |
175.41 |
127.66 |
2.3 |
% |
||||||||||
|
California North |
69.8 |
% |
225.18 |
157.09 |
55.1 |
% |
214.71 |
118.39 |
32.7 |
% |
||||||||||
|
Atlanta, GA |
80.5 |
% |
154.20 |
124.14 |
78.6 |
% |
149.30 |
117.37 |
5.8 |
% |
||||||||||
|
Washington, DC-MD-VA |
82.5 |
% |
240.40 |
198.25 |
81.1 |
% |
208.66 |
169.25 |
17.1 |
% |
||||||||||
|
Other |
74.8 |
% |
205.49 |
153.65 |
73.2 |
% |
201.75 |
147.67 |
4.1 |
% |
||||||||||
|
Total |
73.5 |
% |
$ |
200.25 |
$ |
147.14 |
72.2 |
% |
$ |
198.36 |
$ |
143.31 |
2.7 |
% |
||||||
|
(1) "Same-Property" includes all hotels owned as of March 31, 2017. "Same-Property" includes periods prior to the Company's ownership of the Hotel Commonwealth and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented. |
||||||||||||||||||||
|
(2) As defined by STR, Inc. Market rank based on First Quarter Portfolio Data by Market as presented on prior page. |
||||||||||||||||||||
|
Xenia Hotels & Resorts, Inc. Same-Property(1) Historical Operating Data ($ amounts in thousands, except ADR and RevPAR) |
|||||||||||||||||||
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full Year |
|||||||||||||||
|
2017 |
2017 |
2017 |
2017 |
2017 |
|||||||||||||||
|
Occupancy |
73.5 |
% |
— |
— |
— |
— |
|||||||||||||
|
ADR |
$ |
200.25 |
— |
— |
— |
— |
|||||||||||||
|
RevPAR |
$ |
147.14 |
— |
— |
— |
— |
|||||||||||||
|
Hotel Revenues |
$ |
217,832 |
— |
— |
— |
— |
|||||||||||||
|
Hotel EBITDA |
$ |
65,094 |
— |
— |
— |
— |
|||||||||||||
|
Hotel EBITDA Margin |
29.9 |
% |
— |
— |
— |
— |
|||||||||||||
|
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Full Year |
|||||||||||||||
|
2016 |
2016 |
2016 |
2016 |
2016 |
|||||||||||||||
|
Occupancy |
72.2 |
% |
80.1 |
% |
78.8 |
% |
71.0 |
% |
75.5 |
% |
|||||||||
|
ADR |
$ |
198.36 |
$ |
209.18 |
$ |
201.15 |
$ |
197.99 |
$ |
201.85 |
|||||||||
|
RevPAR |
$ |
143.31 |
$ |
167.47 |
$ |
158.49 |
$ |
140.62 |
$ |
152.46 |
|||||||||
|
Hotel Revenues |
$ |
213,914 |
$ |
243,904 |
$ |
225,119 |
$ |
213,562 |
$ |
896,499 |
|||||||||
|
Hotel EBITDA |
$ |
62,478 |
$ |
88,140 |
$ |
74,184 |
$ |
65,264 |
$ |
290,066 |
|||||||||
|
Hotel EBITDA Margin |
29.2 |
% |
36.1 |
% |
33.0 |
% |
30.6 |
% |
32.4 |
% |
|||||||||
|
(1) "Same-Property" includes all hotels owned as of March 31, 2017. "Same-Property" includes periods prior to the Company's ownership of the Hotel Commonwealth and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented. |
|||||||||||||||||||