Xenia Hotels Results

Xenia Hotels & Resorts Reports First Quarter Results

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

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.



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