Xenia Hotels & Resorts Reports Third Quarter 2020 Results
Xenia Hotels & Resorts (NYSE: XHR) reported its Q3 2020 results, revealing that 36 of 37 hotels were operational, with a liquidity of approximately $600 million. Despite a net loss of $52.3 million ($0.46 per share) for the quarter, the company's adjusted EBITDAre was $(21.1) million. Significant hotel sales included Residence Inn Boston Cambridge for $107.5 million and Marriott Napa Valley for $100.1 million. Financial covenants were relaxed until Q1 2023, and the company has no debt maturities until 2023, positioning it for gradual recovery amidst ongoing COVID-19 challenges.
- Liquidity of approximately $600 million, providing a strong cash position.
- 36 of 37 hotels are open and operational, indicating resilience.
- Successful sales of hotels generating $391 million, enhancing liquidity.
- Net loss of $52.3 million for Q3 2020.
- Significant revenue declines with RevPAR dropping 75.8% year-over-year.
- Adjusted EBITDAre of $(21.1) million reflects ongoing operational challenges.
ORLANDO, Fla., Oct. 30, 2020 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced results for the quarter ended September 30, 2020.
Company Highlights
- 36 of the Company's 37 hotels and resorts are open and operating, representing approximately
95% of the Company's total room count, as of October 30, 2020. - Currently the Company has approximately $600 million of liquidity, including cash and cash equivalents and availability under its revolving credit facility. The Company's estimate of average monthly recurring net cash expenses has been reduced to approximately
$14.5 million , including debt service and excluding capital expenditures, assuming no changes in current levels of demand. Additionally, the Company has no debt maturities until 2023. - In October the Company completed the sale of Residence Inn Boston Cambridge for
$107.5 million and Marriott Napa Valley Hotel & Spa for$100.1 million . Additionally, the Company entered into two separate agreements to sell Renaissance Austin Hotel and Hotel Commonwealth for$70 million and$113 million , respectively. - The waiver period for the testing of the financial covenants under the Company's revolving credit facility and remaining term loans has been extended through year-end 2021, with relaxed financial covenants through the first quarter of 2023.
- As of October 28, 2020, preliminary operational results have continued to improve at the 36 open and operating hotels with occupancy of approximately
33% and an ADR of approximately$189 , resulting in RevPAR of approximately$63 .
Third Quarter and Year to Date 2020 Highlights
- Hotel Status: The Company had 31 hotels open and operating for the entire third quarter. At the end of the third quarter, 37 of the Company's 39 hotels were open and operating. One additional hotel recommenced operations and two hotels were sold in October 2020. Currently, Hyatt Regency Portland at the Oregon Convention Center is the Company's only hotel with suspended operations.
- Net Loss: Net loss attributable to common stockholders for the three months ended September 30, 2020 was
$52.3 million , or$0.46 per share. Net loss attributable to common stockholders for the nine months ended September 30, 2020 was$187.6 million , or$1.66 per share. - Adjusted EBITDAre: Adjusted EBITDAre for the three and nine months ended September 30, 2020 was
$(21.1) million and$(41.6) million , respectively. - Adjusted FFO per Diluted Share: Adjusted FFO per diluted share was
$(0.27) and$(0.58) for the three and nine months ended September 30, 2020, respectively. - Financing Activity: In the third quarter, the Company issued
$300 million of senior secured notes maturing in August 2025 and utilized the net proceeds to repay a portion of the Company's revolving credit facility and a portion of its two term loans maturing in 2022. Concurrently with the notes offering, the Company effectuated amendments to each of its corporate credit agreements. Subsequent to quarter end, the Company completed a$200 million add-on notes offering at a slight premium to par.
"Our decisive actions since the beginning of the pandemic have allowed us to significantly strengthen our balance sheet and bolster our liquidity as we continue to operate in a very challenging environment," commented Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "As a result of our strategic actions over the past several years, we came into this crisis with several key advantages that continue to serve us well. Our geographic diversification with an emphasis on Sunbelt locations and a focus on key leisure destinations has resulted in us now having 36 of our 37 hotels and resorts open and operating, with 12 of these properties achieving positive Hotel EBITDA in the third quarter. Our flexible balance sheet and proven financial track record helped provide us with the opportunity to issue
"We continue to appreciate the dedication and efforts of all of our operators' associates at our hotels and resorts during these difficult times in our industry. Our operators continue to do an outstanding job minimizing expenses while accessing all potential sources of demand. While the recovery is likely to continue to be gradual and choppy before the wide availability of effective COVID-19 vaccines and therapeutics, we are encouraged by recent demand trends as our occupancy has continued to improve at our open hotels through the month of October despite an increase in COVID-19 cases in many parts of the country," continued Mr. Verbaas. "We continue to believe that our efforts before and during this pandemic to shape our portfolio and balance sheet have positioned us well to deal with these short-term challenges, and we are optimistic about the opportunities that we believe will exist to drive internal and external growth during the inevitable recovery."
Operating Results
The Company's results include the following:
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||
($ amounts in thousands, except hotel statistics and per share amounts) | |||||||||||||||||||||
Net income (loss) attributable to | $ | (52,344) | $ | 10,315 | (607.5) | % | $ | (187,608) | $ | 39,791 | (571.5) | % | |||||||||
Net income (loss) per share available | $ | (0.46) | $ | 0.09 | (611.1) | % | $ | (1.66) | $ | 0.35 | (574.3) | % | |||||||||
Same-Property Number of Hotels | 38 | 38 | — | 38 | 38 | — | |||||||||||||||
Same-Property Number of Rooms | 10,645 | 10,645 | — | 10,645 | 10,645 | — | |||||||||||||||
Same-Property Occupancy(2) | 24.7 | % | 76.9 | % | (5,221) | bps | 28.5 | % | 77.7 | % | (4,915) | bps | |||||||||
Same-Property Average Daily Rate(2) | $ | 169.77 | $ | 216.15 | (21.5) | % | $ | 205.21 | $ | 225.12 | (8.8) | % | |||||||||
Same-Property RevPAR(2) | $ | 41.95 | $ | 166.26 | (74.8) | % | $ | 58.49 | $ | 174.82 | (66.5) | % | |||||||||
Same-Property Hotel EBITDA(2)(3) | $ | (15,541) | $ | 65,325 | (123.8) | % | $ | (23,603) | $ | 240,343 | (109.8) | % | |||||||||
Same-Property Hotel EBITDA | (24.4) | % | 25.2 | % | (4,958) | bps | (8.1) | % | 28.6 | % | (3,674) | bps | |||||||||
Total Portfolio Number of Hotels(4) | 39 | 40 | (1) | 39 | 40 | (1) | |||||||||||||||
Total Portfolio Number of Rooms(4) | 11,245 | 11,167 | 78 | 11,245 | 11,167 | 78 | |||||||||||||||
Total Portfolio RevPAR(5) | $ | 39.71 | $ | 164.25 | (75.8) | % | $ | 56.00 | $ | 171.85 | (67.4) | % | |||||||||
Adjusted EBITDAre(3) | $ | (21,121) | $ | 62,579 | (133.8) | % | $ | (41,637) | $ | 230,123 | (118.1) | % | |||||||||
Adjusted FFO(3) | $ | (30,557) | $ | 53,330 | (157.3) | % | $ | (66,184) | $ | 184,848 | (135.8) | % | |||||||||
Adjusted FFO per diluted share | $ | (0.27) | $ | 0.47 | (157.4) | % | $ | (0.58) | $ | 1.62 | (135.8) | % | |||||||||
(1) | Net loss for the three and nine months ended September 30, 2020 reflects the impact of |
(2) | "Same-Property" includes all hotels owned as of September 30, 2020, except for Hyatt Regency Portland at the Oregon Convention Center, which commenced operations in late December 2019. Includes hotels that had temporarily suspended operations for a portion of the three and nine months ended September 30, 2020, as if all hotels rooms were available for sale. "Same-Property" also includes disruption from the COVID-19 pandemic in 2020 and renovation disruption for multiple capital projects during the periods presented, and excludes the NOI guaranty payment at Andaz San Diego. |
(3) | See tables later in this press release for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, and Same-Property Hotel EBITDA. EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, Same-Property Hotel EBITDA, and Same-Property Hotel EBITDA Margin are non-GAAP financial measures. During the third quarter of 2020, the Company changed the year-to-date presentation of Adjusted EBITDAre and Adjusted FFO to exclude income attributed to deposits recognized from terminated transactions as it was considered non-recurring investment activities, which included |
(4) | As of end of periods presented. |
(5) | 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 three and nine months ended September 30, 2020, as if all hotels rooms were available for sale. |
Operations Update
As of September 30, 2020, 37 of the Company's 39 hotels and resorts were open and operating.
The following table provides operating information for the Company's portfolio during the third quarter. This information includes only the days the hotels and resorts were open and operating during the periods presented, categorized by timing of recommencement of operations.
July | August | September | Third Quarter | |||||||||
8 Hotels that Never Suspended Operations in 2020(1) | ||||||||||||
Number of Hotels | 8 | 8 | 8 | 8 | ||||||||
Number of Rooms | 1,345 | 1,345 | 1,345 | 1,345 | ||||||||
Occupancy | 30.0 | % | 35.6 | % | 37.9 | % | 34.5 | % | ||||
Average Daily Rate | $ | 157.74 | $ | 165.97 | $ | 170.00 | $ | 165.00 | ||||
RevPAR | $ | 47.39 | $ | 59.07 | $ | 64.40 | $ | 56.87 | ||||
5 Hotels that Recommenced Operations in May | ||||||||||||
Number of Hotels | 5 | 5 | 5 | 5 | ||||||||
Number of Rooms | 495 | 495 | 495 | 495 | ||||||||
Occupancy | 47.7 | % | 48.4 | % | 55.1 | % | 50.4 | % | ||||
Average Daily Rate | $ | 203.52 | $ | 205.16 | $ | 220.86 | $ | 210.24 | ||||
RevPAR | $ | 97.11 | $ | 99.27 | $ | 121.78 | $ | 105.88 | ||||
13 Hotels that Recommenced Operations in June(2) | ||||||||||||
Number of Hotels | 13 | 13 | 13 | 13 | ||||||||
Number of Rooms | 5,049 | 5,049 | 5,049 | 5,049 | ||||||||
Occupancy | 22.5 | % | 27.2 | % | 31.4 | % | 27.0 | % | ||||
Average Daily Rate | $ | 162.03 | $ | 161.38 | $ | 155.69 | $ | 159.40 | ||||
RevPAR | $ | 36.51 | $ | 43.90 | $ | 48.91 | $ | 43.05 | ||||
9 Hotels that Recommenced Operations in July | ||||||||||||
Number of Hotels | 9 | 9 | 9 | 9 | ||||||||
Number of Rooms | 2,455 | 2,455 | 2,455 | 2,455 | ||||||||
Occupancy | 15.9 | % | 28.0 | % | 26.5 | % | 24.3 | % | ||||
Average Daily Rate | $ | 193.49 | $ | 175.57 | $ | 186.54 | $ | 182.92 | ||||
RevPAR | $ | 30.73 | $ | 49.17 | $ | 49.36 | $ | 44.53 | ||||
All Properties Operating during Some or All of the Quarter(1,2,3) | ||||||||||||
Number of Hotels | 35 | 35 | 37 | 37 | ||||||||
Number of Rooms | 9,344 | 9,344 | 10,176 | 10,176 | ||||||||
Occupancy | 23.9 | % | 29.7 | % | 31.6 | % | 28.5 | % | ||||
Average Daily Rate | $ | 170.04 | $ | 169.45 | $ | 169.45 | $ | 169.60 | ||||
RevPAR | $ | 40.61 | $ | 50.40 | $ | 53.50 | $ | 48.41 | ||||
All Properties Operating during Some or All of the Quarter, and Owned as of October 30, 2020(3,4) | ||||||||||||
Number of Hotels | 33 | 33 | 35 | 35 | ||||||||
Number of Rooms | 8,848 | 8,848 | 9,680 | 9,680 | ||||||||
Occupancy | 23.8 | % | 29.2 | % | 31.4 | % | 28.3 | % | ||||
Average Daily Rate | $ | 169.23 | $ | 169.44 | $ | 168.47 | $ | 169.01 | ||||
RevPAR | $ | 40.21 | $ | 49.40 | $ | 52.93 | $ | 47.76 | ||||
1. | One hotel temporarily suspended operations in June due to property damage sustained during protests in the market. Includes operating information for Residence Inn Boston Cambridge, which was sold on October 1, 2020. |
2. | Includes operating information for Marriott Napa Valley Hotel & Spa, which was sold on October 22, 2020. |
3. | Includes operating information for two properties that recommenced operations in September 2020. |
4. | Excludes operating information for Residence Inn Boston Cambridge, which was sold on October 1, 2020, and Marriott Napa Valley Hotel & Spa, which was sold on October 22, 2020. |
Transactions
Subsequent to quarter end, and as previously announced, in October the Company completed the sale of Residence Inn Boston Cambridge for a price of
On October 22, the Company completed the sale of the 275-room Marriott Napa Valley Hotel & Spa in Napa, California for a price of
"We are pleased to have completed the sale of Marriott Napa Valley Hotel & Spa," said Mr. Verbaas. "While we remain bullish on the long-term strength of the Napa market, as evidenced by our ownership of Andaz Napa, a high-quality luxury lifestyle hotel, the sale of Marriott Napa allowed us to create additional balance sheet flexibility and enhance the Company's overall liquidity. The dispositions of Residence Inn Boston Cambridge, our last remaining hotel outside of the Luxury and Upper Upscale segments, and Marriott Napa, our older, lower quality and more group-focused hotel in the Napa market, are in-line with our continued strategy of portfolio enhancement while focusing on our long-term growth profile. Additionally, these sales eliminated the need for us to make significant capital investments into these properties in the years ahead."
In addition to these completed transactions, the Company has entered into two separate agreements to sell the 492-room Renaissance Austin Hotel for a price of
"The agreed-upon dispositions of Renaissance Austin Hotel and Hotel Commonwealth are further evidence of our ability to efficiently enhance our liquidity and balance sheet strength by monetizing diverse assets in our portfolio," continued Mr. Verbaas. "The sale price for Renaissance Austin Hotel is reflective of its nature as a group-oriented hotel with significant short-term capital needs, while the strong pricing for Hotel Commonwealth, at 11.8x 2019 Hotel EBITDA, reflects a very competitive process for this desirable asset. If both of these transactions are completed as anticipated, we will have sold four hotels during this pandemic for a total price of
Capital Markets
In August, the Company issued
In October, the Company issued an additional
During the third quarter, the Company did not repurchase any shares of common stock. Year to date, the Company repurchased a total of 165,516 shares of common stock for total consideration of
During the three and nine months ended September 30, 2020, the Company did not issue any shares of its common stock through its At-The-Market ("ATM") program. As of September 30, 2020, the Company had approximately
Corporate Credit Facility Amendments
In October, the Company entered into further amendments on its corporate credit facilities (the "October CCF Amendments"). The October CCF Amendments became effective upon the prepayment in full of the Company's two term loans maturing in 2022 and the completion of the October add-on senior secured notes offering.
Key terms of the October CCF Amendments include the following:
- Increased commitments under the revolving credit facility by
$23 million to$523 million through February 2022, after which the total commitments will decrease to$450 million through February 2024. This reflects a two year extension of the maturity date. - Extension of the waiver period for the testing of the financial covenants through year end 2021 and extending the modification of certain financial covenants, once quarterly testing resumes, through the first quarter of 2023.
- Modification of the application of mandatory prepayments. The amendments require the Company, in the event that the revolving credit facility outstanding balance is less than
$350 million , to apply50% of net proceeds raised through various activities, including debt issuances, equity issuances, and dispositions, to repay its revolving credit facility, with the balance of the proceeds retained by the Company. If the revolving credit facility outstanding balance is greater than$350 million , there is no change to the application of mandatory prepayments. - Extension of the minimum liquidity covenant through the second quarter of 2022.
Prior to this amendment, the Company completed additional amendments of its corporate credit facilities in August in connection with its
Liquidity and Balance Sheet
As of September 30, 2020, the Company had total outstanding debt of
As a result of its recent capital markets activity, the Company has addressed all near-term maturities with its next maturity occurring in 2023. As of October 30, 2020, the Company had total outstanding debt of
The Company has revised its estimate of average monthly recurring net cash expenses to reflect the recommencement of operations at its properties as follows, assuming current levels of demand:
($ in millions) | Current Estimate(1) as of October 30, 2020 | |
Hotel operations | ||
Real estate taxes, personal property taxes and insurance | 4.5 | |
General and administrative expenses, cash | 1.5 | |
Debt service | 6.5 | |
Average monthly recurring cash expenses | ||
1. | Assumes 36 of 37 hotels are open and operating at current levels of demand. Amounts are rounded. Reflects combination of estimated actual recurring revenues and expenses, as well as monthly expense accruals for certain items that are not paid on a monthly basis. Based on properties owned as of October 30, 2020. |
Capital Expenditures
During the three and nine months ended September 30, 2020, the Company invested
The Company has completed the majority of its transformational renovation at Park Hyatt Aviara Resort, Golf Club & Spa and reopened the resort on September 30, 2020. During the quarter, the Company completed the renovation of the lobby and reception area, including the lobby lounge and bar. Additionally, the Company made substantial progress on the renovation and additions to the pool area and water amenities, which have been completed subsequent to quarter end. The remaining projects at the resort include the conversion of the existing specialty restaurant into a new three-meal dining concept, which is expected to be completed by the end of 2020, and the renovation to the golf club house, including the addition of a new celebrity chef-driven concept, which is expected to be completed by the end of the first quarter of 2021.
Additionally during the quarter, the Company completed the guestroom renovation at Marriott Woodlands Waterway Hotel & Convention Center, as well as substantially completed the renovation of the existing ballroom and meeting space at Hyatt Regency Grand Cypress.
Impairment Loss
During the third quarter, the Company recorded a non-cash impairment charge of
2020 Outlook and Guidance
The Company does not expect to issue earnings guidance until it has more clarity on fundamentals and trends within the industry. The Company is providing the following guidance on certain corporate expenses:
- General and administrative expenses are projected to be approximately
$18 million , excluding non-cash share-based compensation and non-recurring restructuring costs. - Interest expense is projected to be approximately
$59 million , excluding non-cash loan related costs. Interest expense reflects the recent issuance of$500 million of senior secured notes and all completed loan pay downs. - Capital expenditures are projected to be approximately
$70 million .
Third Quarter 2020 Earnings Call
The Company will conduct its quarterly conference call on Friday, October 30, 2020 at 1:00 PM Eastern Time. To participate in the conference call, please dial (855) 656-0921. Additionally, a live webcast of the conference call will be available through the Company's website, www.xeniareit.com. A replay of the conference call will be archived and available online through the Investor Relations section of the Company's website for 90 days.
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 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 37 hotels comprising 10,749 rooms across 16 states. Xenia's hotels are in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, and Hilton, as well as leading independent management companies including The Kessler Collection and Sage Hospitality. For more information on Xenia's business, refer to the Company website at www.xeniareit.com.
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements are generally identifiable by use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," references to "outlook" and "guidance," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include, among others, statements about our plans, strategies, the outlook related to the effects of the COVID-19 pandemic, including on the demand for travel, transient and group business, the timing of hotel reopenings, the level of expenses incurred in connection with hotel reopenings, capital expenditures, timing of renovations, status of transactions and escrow deposits, and derivations thereof, financial performance, prospects or future events. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) the impact of the COVID-19 pandemic, including on the demand for travel, transient and group business, and levels of consumer confidence; (ii) actions that governments, businesses, and individuals take in response to the COVID-19 pandemic or any future resurgence, including limiting or banning travel; (iii) the impact of the COVID-19 pandemic and actions taken in response to the pandemic or any future resurgence on global, national, or regional economies, travel and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; (iv) the ability of hotel managers to successfully navigate the impacts of the COVID-19 pandemic; (v) the pace of recovery following the COVID-19 pandemic or any future resurgence; (vi) the Company's dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly, (vii) risks associated with the hotel industry, including competition, increases in wages and benefits, energy costs and other operating costs, actual or threatened terrorist attacks, information technology failures, downturns in general and local economic conditions, prolonged periods of civil unrest in our markets, and cancellation of or delays in the completion of anticipated demand generators, (viii) the availability and terms of financing and capital and the general volatility of securities markets, (ix) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws, (x) interest rate increases, (xi) ability to successfully negotiate amendments and covenant waivers with its unsecured and secured indebtedness; (xii) ability to comply with covenants, restrictions, and limitations in any existing or revised loan agreements with our unsecured and secured lenders; (xiii) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs, (xiv) the possibility of uninsured or underinsured losses, including those relating to natural disasters, terrorism, government shutdowns and closures, or cyber incidents; (xv) risks associated with redevelopment and repositioning projects, including delays and cost overruns, (xvi) levels of spending in business and leisure segments as well as consumer confidence (xvii) declines in occupancy and average daily rate, (xviii) the seasonal and cyclical nature of the real estate and hospitality businesses, (xix) changes in distribution arrangements, such as through Internet travel intermediaries, (xx) relationships with labor unions and changes in labor laws, (xxi) the impact of changes in the tax code and uncertainty as to how some of those changes may be applied, and (xxii) the risk factors discussed in the Company's Annual Report on Form 10-K, as updated in its Quarterly Reports. Accordingly, there is no assurance that the Company's expectations will be realized. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company's website at www.xeniareit.com.
All information in this press release is as of the date of its release. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations.
Availability of Information on Xenia's Website
Investors and others should note that Xenia routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts, and the Xenia Investor Relations website. While not all the information that the Company posts to the Xenia Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Xenia to review the information that it shares at the Investor Relations link located on www.xeniareit.com. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Email Alerts / Investor Information" in the "Corporate Overview" section of Xenia's Investor Relations website at www.xeniareit.com.
For additional information or to receive press releases via email, please visit our website at www.xeniareit.com.
Xenia Hotels & Resorts, Inc. | |||||||
Condensed Consolidated Balance Sheets | |||||||
As of September 30, 2020 and December 31, 2019 | |||||||
($ amounts in thousands) | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Investment properties: | |||||||
Land | $ | 456,784 | $ | 483,052 | |||
Buildings and other improvements | 3,172,491 | 3,270,056 | |||||
Total | $ | 3,629,275 | $ | 3,753,108 | |||
Less: accumulated depreciation | (875,356) | (826,738) | |||||
Net investment properties | $ | 2,753,919 | $ | 2,926,370 | |||
Cash and cash equivalents | 321,051 | 110,841 | |||||
Restricted cash and escrows | 46,297 | 84,105 | |||||
Accounts and rents receivable, net of allowance for doubtful accounts | 9,093 | 36,542 | |||||
Intangible assets, net of accumulated amortization | 7,066 | 28,997 | |||||
Other assets | 87,642 | 76,151 | |||||
Assets held for sale | 115,173 | — | |||||
Total assets | $ | 3,340,241 | $ | 3,263,006 | |||
Liabilities | |||||||
Debt, net of loan discounts and unamortized deferred financing costs | $ | 1,583,530 | $ | 1,293,054 | |||
Accounts payable and accrued expenses | 73,639 | 88,197 | |||||
Distributions payable | 245 | 31,802 | |||||
Other liabilities | 81,152 | 74,795 | |||||
Liabilities associated with assets held for sale | 65,460 | — | |||||
Total liabilities | $ | 1,804,026 | $ | 1,487,848 | |||
Commitments and Contingencies | |||||||
Stockholders' equity | |||||||
Common stock, | 1,138 | 1,127 | |||||
Additional paid in capital | 2,079,878 | 2,060,924 | |||||
Accumulated other comprehensive loss | (17,224) | (4,596) | |||||
Accumulated distributions in excess of net earnings | (537,339) | (318,434) | |||||
Total Company stockholders' equity | $ | 1,526,453 | $ | 1,739,021 | |||
Non-controlling interests | 9,762 | 36,137 | |||||
Total equity | $ | 1,536,215 | $ | 1,775,158 | |||
Total liabilities and equity | $ | 3,340,241 | $ | 3,263,006 | |||
Xenia Hotels & Resorts, Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income | |||||||||||||||
For the Three and Nine Months Ended September 30, 2020 and 2019 | |||||||||||||||
(Unaudited) | |||||||||||||||
($ amounts in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | |||||||||||||||
Rooms revenues | $ | 41,081 | $ | 168,744 | $ | 172,550 | $ | 523,912 | |||||||
Food and beverage revenues | 11,762 | 79,825 | 87,587 | 282,685 | |||||||||||
Other revenues | 11,111 | 20,362 | 33,992 | 60,306 | |||||||||||
Total revenues | $ | 63,954 | $ | 268,931 | $ | 294,129 | $ | 866,903 | |||||||
Expenses: | |||||||||||||||
Rooms expenses | 14,267 | 40,782 | 56,458 | 123,102 | |||||||||||
Food and beverage expenses | 14,730 | 57,356 | 75,451 | 184,151 | |||||||||||
Other direct expenses | 2,863 | 7,576 | 9,763 | 22,594 | |||||||||||
Other indirect expenses | 33,490 | 70,874 | 130,297 | 215,103 | |||||||||||
Management and franchise fees | 2,043 | 10,592 | 9,212 | 35,103 | |||||||||||
Total hotel operating expenses | $ | 67,393 | $ | 187,180 | $ | 281,181 | $ | 580,053 | |||||||
Depreciation and amortization | 37,307 | 39,072 | 111,660 | 118,760 | |||||||||||
Real estate taxes, personal property taxes and | 13,028 | 13,331 | 39,800 | 38,968 | |||||||||||
Ground lease expense | 478 | 1,071 | 1,604 | 3,319 | |||||||||||
General and administrative expenses | 6,676 | 7,351 | 24,656 | 22,973 | |||||||||||
Gain on business interruption insurance | — | — | — | (823) | |||||||||||
Acquisition, terminated transaction and pre- | 146 | 662 | 994 | 947 | |||||||||||
Impairment and other losses | 8,942 | — | 29,044 | 14,771 | |||||||||||
Total expenses | $ | 133,970 | $ | 248,667 | $ | 488,939 | $ | 778,968 | |||||||
Operating (loss) income | $ | (70,016) | $ | 20,264 | $ | (194,810) | $ | 87,935 | |||||||
Other income | 26,965 | 257 | 29,335 | 540 | |||||||||||
Interest expense | (17,006) | (12,293) | (43,601) | (37,260) | |||||||||||
Loss on extinguishment of debt | — | — | — | (214) | |||||||||||
Net (loss) income before income taxes | $ | (60,057) | $ | 8,228 | $ | (209,076) | $ | 51,001 | |||||||
Income tax benefit (expense) | 6,448 | 2,442 | 16,849 | (9,844) | |||||||||||
Net (loss) income | $ | (53,609) | $ | 10,670 | $ | (192,227) | $ | 41,157 | |||||||
Net loss (income) attributable to non-controlling | 1,265 | (355) | 4,619 | (1,366) | |||||||||||
Net (loss) income attributable to common | $ | (52,344) | $ | 10,315 | $ | (187,608) | $ | 39,791 | |||||||
Xenia Hotels & Resorts, Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - Continued | |||||||||||||||
For the Three and Nine Months Ended September 30, 2020 and 2019 | |||||||||||||||
(Unaudited) | |||||||||||||||
($ amounts in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Basic and diluted (loss) earnings per share | |||||||||||||||
Net (loss) income per share available to common | $ | (0.46) | $ | 0.09 | $ | (1.66) | $ | 0.35 | |||||||
Weighted average number of common shares | 113,730,716 | 112,641,568 | 113,407,217 | 112,634,174 | |||||||||||
Weighted average number of common shares | 113,730,716 | 112,932,952 | 113,407,217 | 112,918,790 | |||||||||||
Comprehensive (Loss) Income: | |||||||||||||||
Net (loss) income | $ | (53,609) | $ | 10,670 | $ | (192,227) | $ | 41,157 | |||||||
Other comprehensive (loss) income: | |||||||||||||||
Unrealized gain (loss) on interest rate derivative | 264 | (2,168) | (18,535) | (16,703) | |||||||||||
Reclassification adjustment for amounts | 2,840 | (802) | 5,511 | (3,403) | |||||||||||
$ | (50,505) | $ | 7,700 | $ | (205,251) | $ | 21,051 | ||||||||
Comprehensive loss (income) attributable to | 1,191 | (257) | 5,015 | (703) | |||||||||||
Comprehensive (loss) income attributable to the | $ | (49,314) | $ | 7,443 | $ | (200,236) | $ | 20,348 | |||||||
Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of 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 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.
We then 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/losses on change of control, plus impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of the 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 believe it is meaningful for the investor to understand Adjusted EBITDAre attributable to all common stock and Operating Partnership unit holders. 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 Adjusted EBITDAre attributable to common stock and unit holders provides investors with another 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 the investor 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 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), 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 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 whitepaper, 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 common stock and units 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, operating results from properties that are sold 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 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 (Loss) Income to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA | |||||||||||||||
For the Three and Nine Months Ended September 30, 2020 and 2019 | |||||||||||||||
(Unaudited) | |||||||||||||||
($ amounts in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net (loss) income | $ | (53,609) | $ | 10,670 | $ | (192,227) | $ | 41,157 | |||||||
Adjustments: | |||||||||||||||
Interest expense | 17,006 | 12,293 | 43,601 | 37,260 | |||||||||||
Income tax (benefit) expense | (6,448) | (2,442) | (16,849) | 9,844 | |||||||||||
Depreciation and amortization | 37,307 | 39,072 | 111,660 | 118,760 | |||||||||||
EBITDA | $ | (5,744) | $ | 59,593 | $ | (53,815) | $ | 207,021 | |||||||
Impairment and other losses(1) | 8,942 | — | 29,044 | 14,771 | |||||||||||
Loss (gain) on sale of investment properties | — | — | — | — | |||||||||||
EBITDAre | $ | 3,198 | $ | 59,593 | $ | (24,771) | $ | 221,792 | |||||||
Reconciliation to Adjusted EBITDAre | |||||||||||||||
Depreciation and amortization related to corporate | (98) | (99) | (292) | (303) | |||||||||||
Loss on extinguishment of debt | — | — | — | 214 | |||||||||||
Acquisition, terminated transaction and pre- | 146 | 662 | 994 | 947 | |||||||||||
Amortization of share-based compensation | 2,265 | 2,295 | 8,574 | 7,091 | |||||||||||
Non-cash ground rent and straight-line rent | 80 | 128 | 237 | 382 | |||||||||||
Other income attributed to deposits recognized | (26,750) | — | (28,750) | — | |||||||||||
Other non-recurring expenses(2) | 38 | — | 2,371 | — | |||||||||||
Adjusted EBITDAre attributable to common | $ | (21,121) | $ | 62,579 | $ | (41,637) | $ | 230,123 | |||||||
Corporate-level costs and expenses | 4,349 | 5,058 | 14,378 | 16,946 | |||||||||||
Income from transaction properties | 1,231 | (2,447) | 3,937 | (6,199) | |||||||||||
Pro forma hotel level adjustments, net(4) | — | 135 | (281) | 296 | |||||||||||
Gain on business interruption insurance | — | — | — | (823) | |||||||||||
Same-Property Hotel EBITDA attributable to | $ | (15,541) | $ | 65,325 | $ | (23,603) | $ | 240,343 | |||||||
(1) | During the three months ended September 30, 2020, the Company recorded an |
(2) | During the nine months ended September 30, 2020, the Company restructured its corporate office in order to preserve capital over the long-term as a result of the material and adverse impact COVID-19 has had, and is expected to continue to have, on the Company's results of operations. As a result during the nine months ended September 30, 2020, the Company incurred |
(3) | During the three and nine months ended September 30, 2020, the Company recognized other income of |
(4) | Includes the NOI guaranty payment at Andaz San Diego for the nine months ended September 30, 2020 and a prior ownership adjustment for Fairmont Pittsburgh for the nine months ended September 30, 2019. |
(5) | 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 and nine months ended September 30, 2020 and 2019 on page 20. |
Xenia Hotels & Resorts, Inc. | |||||||||||||||
Reconciliation of Net (Loss) Income to FFO and Adjusted FFO | |||||||||||||||
For the Three and Nine Months Ended September 30, 2020 and 2019 | |||||||||||||||
(Unaudited) | |||||||||||||||
($ amounts in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net (loss) income | $ | (53,609) | $ | 10,670 | $ | (192,227) | $ | 41,157 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization related to | 37,209 | 38,973 | 111,368 | 118,457 | |||||||||||
Impairment of investment properties(1) | 8,942 | — | 29,044 | 14,771 | |||||||||||
FFO attributable to common stock and unit | $ | (7,458) | $ | 49,643 | $ | (51,815) | $ | 174,385 | |||||||
Reconciliation to Adjusted FFO | |||||||||||||||
Loss on extinguishment of debt | — | — | — | 214 | |||||||||||
Acquisition, terminated transaction and pre- | 146 | 662 | 994 | 947 | |||||||||||
Loan related costs, net of adjustment related to | 1,122 | 602 | 2,205 | 1,829 | |||||||||||
Amortization of share-based compensation | 2,265 | 2,295 | 8,574 | 7,091 | |||||||||||
Non-cash ground rent and straight-line rent | 80 | 128 | 237 | 382 | |||||||||||
Other income attributed to deposits recognized | (26,750) | — | (28,750) | — | |||||||||||
Other non-recurring expenses(3) | 38 | — | 2,371 | — | |||||||||||
Adjusted FFO attributable to common stock | $ | (30,557) | $ | 53,330 | $ | (66,184) | $ | 184,848 | |||||||
Weighted average shares outstanding - Diluted(5) | 114,398 | 114,353 | 114,403 | 114,282 | |||||||||||
Adjusted FFO per diluted share | $ | (0.27) | $ | 0.47 | $ | (0.58) | $ | 1.62 | |||||||
(1) | During the three months ended September 30, 2020, the Company recorded an |
(2) | Loan related costs included amortization of debt discounts and deferred loan origination costs. |
(3) | During the nine months ended September 30, 2020, the Company restructured its corporate office in order to preserve capital over the long-term as a result of the material and adverse impact COVID-19 has had, and is expected to continue to have, on the Company's results of operations. As a result during the nine months ended September 30, 2020, the Company incurred |
(4) | During the three and nine months ended September 30, 2020, the Company recognized other income of |
(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. | |||||||||
Debt Summary as of September 30, 2020 | |||||||||
($ amounts in thousands) | |||||||||
Rate Type | Rate(1) | Maturity Date | Outstanding as of | ||||||
Mortgage Loans | |||||||||
Marriott Dallas Downtown | Fixed(3) | January 2022 | 51,000 | ||||||
Kimpton Hotel Palomar Philadelphia | Fixed(3) | January 2023 | 57,910 | ||||||
Renaissance Atlanta Waverly Hotel & | Partially Fixed(4) | August 2024 | 100,000 | ||||||
Andaz Napa | Variable | September 2024 | 56,000 | ||||||
The Ritz-Carlton, Pentagon City | Fixed(5) | January 2025 | 65,000 | ||||||
Residence Inn Boston Cambridge | Fixed | November 2025 | 60,269 | ||||||
Grand Bohemian Hotel Orlando, Autograph | Fixed | March 2026 | 57,857 | ||||||
Marriott San Francisco Airport Waterfront | Fixed | May 2027 | 116,194 | ||||||
Total Mortgage Loans | (6) | $ | 564,230 | ||||||
Corporate Credit Facilities | |||||||||
Revolving Credit Facility | Variable | February 2022 | 306,200 | ||||||
Corporate Credit Facility Term Loan | Partially Fixed(7) | February 2022 | 123,900 | ||||||
Corporate Credit Facility Term Loan | Partially Fixed(8) | October 2022 | 88,500 | ||||||
Corporate Credit Facility Term Loan | Partially Fixed(9) | August 2023 | 150,000 | ||||||
Corporate Credit Facility Term Loan | Partially Fixed(10) | September 2024 | 125,000 | ||||||
Total Corporate Credit Facilities | (6) | $ | 793,600 | ||||||
Senior Secured Notes | Fixed | August 2025 | 300,000 | ||||||
Loan discounts and unamortized deferred | (14,204) | ||||||||
Total Debt, net of loan discounts and | (6) | $ | 1,643,626 | ||||||
(1) | The variable index for secured mortgage loans is one-month LIBOR and the variable index for corporate credit facilities reflects a 25 to 50 basis point LIBOR floor which is applicable for the value of all corporate credit facilities not currently subject to an interest rate hedge. |
(2) | For certain secured mortgage loans, includes deferred interest balances in accordance with the respective amended loan agreement as applicable. |
(3) | A variable interest loan for which the interest rate has been fixed through maturity. |
(4) | A variable interest loan for which the interest rate has been fixed on |
(5) | A variable interest loan for which the interest rate has been fixed through January 2023. |
(6) | Weighted average interest rate as of September 30, 2020. |
(7) | A variable interest loan for which LIBOR has been fixed through February 2021. The spread to LIBOR is fixed at |
(8) | A variable interest loan for which LIBOR has been fixed through maturity. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio after the covenant compliance date specified in the applicable Corporate Credit Facility Term Loan agreement. |
(9) | A variable interest loan for which LIBOR has been fixed on |
(10) | A variable interest loan for which LIBOR has been fixed through September 2022. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. |
(11) | Includes loan discounts upon modification and deferred financing costs, net of the accumulated amortization. |
Xenia Hotels & Resorts, Inc. | |||||||||
Debt Summary as of October 30, 2020(1) | |||||||||
($ amounts in thousands) | |||||||||
Rate Type | Rate(2) | Maturity Date | Outstanding as of | ||||||
Mortgage Loans | |||||||||
Kimpton Hotel Palomar Philadelphia | Fixed(4) | January 2023 | 57,910 | ||||||
Renaissance Atlanta Waverly Hotel & | Partially Fixed(5) | August 2024 | 100,000 | ||||||
Andaz Napa | Partially Fixed(6) | September 2024 | 56,000 | ||||||
The Ritz-Carlton, Pentagon City | Fixed(7) | January 2025 | 65,000 | ||||||
Grand Bohemian Hotel Orlando, Autograph | Fixed | March 2026 | 57,857 | ||||||
Marriott San Francisco Airport Waterfront | Fixed | May 2027 | 116,194 | ||||||
Total Mortgage Loans | (8) | $ | 452,961 | ||||||
Corporate Credit Facilities | |||||||||
Revolving Credit Facility(9) | Variable | February 2024 | 251,202 | ||||||
Corporate Credit Facility Term Loan | Partially Fixed(10) | August 2023 | 150,000 | ||||||
Corporate Credit Facility Term Loan | Partially Fixed(11) | September 2024 | 125,000 | ||||||
Total Corporate Credit Facilities | (8) | $ | 526,202 | ||||||
Senior Secured Notes | Fixed | August 2025 | 500,000 | ||||||
Loan discounts and unamortized deferred | (14,204) | ||||||||
Total Debt, net of loan discounts and | (8) | $ | 1,464,959 | ||||||
(1) | Subsequent to quarter end, the Company completed a |
(2) | The variable index for secured mortgage loans is one-month LIBOR and the variable index for corporate credit facilities reflects a 25 basis point LIBOR floor which is applicable for the value of all corporate credit facilities not currently subject to an interest rate hedge. |
(3) | For certain secured mortgage loans, includes deferred interest balances in accordance with the respective amended loan agreement as applicable. |
(4) | A variable interest loan for which the interest rate has been fixed through maturity. |
(5) | A variable interest loan for which the interest rate has been fixed on |
(6) | A variable interest loan for which the interest rate has been fixed on |
(7) | A variable interest loan for which the interest rate has been fixed through January 2023. |
(8) | Weighted average interest rate as of October 30, 2020. |
(9) | In October, the Company increased commitments under the revolving credit facility by |
(10) | A variable interest loan for which LIBOR has been fixed on |
(11) | A variable interest loan for which LIBOR has been fixed through September 2022. The spread to LIBOR may vary, as it is determined by the Company's leverage ratio. |
(12) | Includes loan discounts upon modification and deferred financing costs, net of the accumulated amortization. Does not include deferred costs/premiums for new notes or the write off of remaining unamortized balances from debt extinguished in October. |
Xenia Hotels & Resorts, Inc. | ||||||||||||||||||||||
Same-Property(1) Hotel EBITDA and Hotel EBITDA Margin | ||||||||||||||||||||||
For the Three and Nine Months Ended September 30, 2020 and 2019 | ||||||||||||||||||||||
($ amounts in thousands) | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||
Same-Property | ||||||||||||||||||||||
Rooms revenues | $ | 41,082 | $ | 162,821 | (74.8)% | $ | 170,595 | $ | 508,034 | (66.4)% | ||||||||||||
Food and beverage | 11,757 | 77,063 | (84.7)% | 86,438 | 274,993 | (68.6)% | ||||||||||||||||
Other revenues | 10,980 | 19,042 | (42.3)% | 33,532 | 56,974 | (41.1)% | ||||||||||||||||
Total Same-Property | $ | 63,819 | $ | 258,926 | (75.4)% | $ | 290,565 | $ | 840,001 | (65.4)% | ||||||||||||
Same-Property | ||||||||||||||||||||||
Rooms expenses | $ | 14,133 | $ | 39,496 | (64.2)% | $ | 55,170 | $ | 119,521 | (53.8)% | ||||||||||||
Food and beverage | 14,553 | 55,627 | (73.8)% | 73,596 | 179,338 | (59.0)% | ||||||||||||||||
Other direct expenses | 2,863 | 6,920 | (58.6)% | 9,763 | 20,828 | (53.1)% | ||||||||||||||||
Other indirect expenses | 32,911 | 67,500 | (51.2)% | 126,208 | 204,965 | (38.4)% | ||||||||||||||||
Management and | 2,039 | 10,182 | (80.0)% | 9,113 | 33,988 | (73.2)% | ||||||||||||||||
Real estate taxes, | 12,446 | 12,915 | (3.6)% | 38,901 | 38,031 | |||||||||||||||||
Ground lease expense | 415 | 961 | (56.8)% | 1,417 | 2,987 | (52.6)% | ||||||||||||||||
Total Same-Property hotel | $ | 79,360 | $ | 193,601 | (59.0)% | $ | 314,168 | $ | 599,658 | (47.6)% | ||||||||||||
Same-Property Hotel | $ | (15,541) | $ | 65,325 | (123.8)% | $ | (23,603) | $ | 240,343 | (109.8)% | ||||||||||||
Same-Property Hotel | (24.4) | % | 25.2 | % | (4,958) | bps | (8.1) | % | 28.6 | % | (3,674) | bps | ||||||||||
(1) | "Same-Property" includes all hotels owned as of September 30, 2020, except for Hyatt Regency Portland at the Oregon Convention Center, which commenced operations in late December 2019. Includes hotels that had temporarily suspended operations for a portion of the three and nine months ended September 30, 2020. "Same-Property" also includes disruption from the COVID-19 pandemic in 2020 results and renovation disruption for multiple capital projects during the periods presented, and excludes the NOI guaranty payment at Andaz San Diego. 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 and nine months ended September 30, 2020 and 2019: |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Total Revenues - GAAP | $ | 63,954 | $ | 268,931 | $ | 294,129 | $ | 866,903 | ||||||||
Hotel revenues from sold hotels | — | (10,005) | — | (26,902) | ||||||||||||
Other revenues | (135) | — | (3,564) | — | ||||||||||||
Total Same-Property Revenues | $ | 63,819 | $ | 258,926 | $ | 290,565 | $ | 840,001 | ||||||||
Total Hotel Operating Expenses - GAAP | $ | 67,393 | $ | 187,180 | $ | 281,181 | $ | 580,053 | ||||||||
Real estate taxes, personal property taxes | 13,028 | 13,331 | 39,800 | 38,968 | ||||||||||||
Ground lease expense, net(a) | 415 | 961 | 1,417 | 2,987 | ||||||||||||
Other expense / (income) | (64) | (80) | (192) | (205) | ||||||||||||
Corporate-level costs and expenses | (46) | (367) | (817) | (1,699) | ||||||||||||
Hotel expenses from sold hotels | (1,366) | (7,559) | (7,221) | (20,723) | ||||||||||||
Pre-opening and hotel rebranding expenses | — | 135 | — | 277 | ||||||||||||
Total Same-Property Hotel Operating Expenses | $ | 79,360 | $ | 193,601 | $ | 314,168 | $ | 599,658 | ||||||||
(a) | Excludes non-cash ground rent expense. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/xenia-hotels--resorts-reports-third-quarter-2020-results-301163578.html
SOURCE Xenia Hotels & Resorts, Inc.
FAQ
What are Xenia Hotels & Resorts' latest financial results for Q3 2020?
How many hotels does Xenia Hotels & Resorts currently have operational?
What was Xenia Hotels & Resorts' revenue per available room (RevPAR) in Q3 2020?
How has Xenia Hotels & Resorts managed its debt during COVID-19?
What properties did Xenia Hotels & Resorts sell recently?
