Xenia Hotels & Resorts Reports Fourth Quarter And Full Year 2017 Results, And Provides 2018 Guidance


ORLANDO, Fla., Feb. 27, 2018 /PRNewswire/ — Xenia Hotels & Resorts, Inc. (NYSE: XHR) (“Xenia” or the “Company”) today announced results for the quarter and full year ended December 31, 2017. 

Fourth Quarter 2017 Highlights

  • Net Income: Net income attributable to common stockholders was $9.7 million and net income per diluted share was $0.09.
  • Same-Property RevPAR: Same-Property RevPAR increased 4.4% compared to the fourth quarter of 2016 to $152.18, driven entirely by occupancy which increased 320 basis points, as ADR remained flat.
  • Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 29.8%, an increase of 111 basis points compared to the fourth quarter of 2016.
  • Total Portfolio RevPAR: Total Portfolio RevPAR was 9.2% higher than in the fourth quarter of 2016.
  • Adjusted EBITDA: Adjusted EBITDA increased $3.9 million to $68.0 million, an increase of 6.1% compared to the fourth quarter of 2016.
  • Adjusted FFO per Diluted Share: Adjusted FFO per diluted share was $0.52, a decrease of 5.5% compared to the fourth quarter of 2016 due to increased income tax expense and interest expense.
  • Impact from Natural Disasters: The wildfires in California, as well as the continued softness in demand in Key West following Hurricane Irma, negatively impacted Adjusted EBITDA by an estimated $3 million. The Company carries business interruption insurance at each of the four impacted hotels and is currently evaluating its ability to recover proceeds for lost business as a result of these natural disasters.
  • Transaction Activity: As previously announced, the Company completed the acquisition of three hotels for total consideration of $410 million. Additionally during the quarter, the Company entered into an agreement to sell the leasehold interest in Aston Waikiki Beach Hotel for $200 million. The buyer has a $10 million deposit at risk and the sale is expected to close in the first quarter 2018, subject to customary closing conditions.
  • Financing Activity: The Company fixed LIBOR through September 2022 on its $125 million term loan maturing in September 2024.
  • Dividends: The Company declared its fourth quarter dividend of $0.275 per share to common stockholders of record on December 29, 2017.

“Overall, we are pleased with our fourth quarter performance, which came in better than anticipated due primarily to strong performance in Houston, Dallas, San Francisco, and Orlando,” stated Marcel Verbaas, Chairman and Chief Executive Officer of Xenia.  “Our Houston-area hotels experienced strong demand following Hurricane Harvey due to market compression, which resulted in RevPAR growth of 16.8% for those hotels in the fourth quarter.  Additionally, we were pleased with the performance of our recent acquisitions, which collectively exceeded our expectations in the fourth quarter. We are proud of our portfolio enhancements in 2017 and we will continue to look for opportunities to upgrade the overall quality and growth profile of our portfolio in 2018, beginning with the expected sale of the Aston Waikiki before the end of the first quarter.”

Full Year 2017 Highlights

  • Net Income: Net income attributable to common stockholders was $98.9 million and net income per diluted share was $0.92.
  • Same-Property RevPAR: Same-Property RevPAR increased 1.4% to $159.90 compared to the year ended December 31, 2016, as occupancy increased 100 basis points and ADR increased 0.1%.
  • Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 30.8%, an increase of 52 basis points compared to the year ended December 31, 2016.
  • Total Portfolio RevPAR: Total Portfolio RevPAR increased 3.9% year over year, reflecting portfolio performance and change in composition.
  • Adjusted EBITDA: Adjusted EBITDA was $270.3 million, a decrease of 5.9% from 2016, primarily as a result of the timing of transactions during the year.
  • Adjusted FFO per Diluted Share: The Company generated Adjusted FFO per diluted share of $2.06, a 6.4% decline from 2016.
  • Transaction Activity: The Company made significant improvements in its portfolio composition during 2017. The Company completed the acquisition of four hotels comprising 1,792 rooms for total consideration of $615.5 million. The acquisitions included Hyatt Regency Grand Cypress in Orlando, Florida, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch in Scottsdale, Arizona, Royal Palms Resort & Spa in Phoenix, Arizona, and The Ritz-Carlton, Pentagon City in Arlington, Virginia. The Company sold seven hotels comprising 1,153 rooms for total consideration of $212 million.
  • Financing Activity: The Company completed $340 million of new debt financings including two mortgage loans and one unsecured term loan, paid off $128 million of mortgage loans, amended its existing $125 million unsecured term loan maturing in October 2022 to reduce the pricing grid, and fixed LIBOR on $266 million of variable rate debt.

“As we reflect back on 2017, despite varying degrees of disruption from the various natural disasters that impacted the United States, and our portfolio in particular, we are proud of the overall performance of our portfolio,” continued Mr. Verbaas.  “Our Same-Property RevPAR growth of 1.4% exceeded the high-end of our previously provided guidance range, as demand across the portfolio came in stronger than anticipated in the fourth quarter.  Our continued dedication towards cost containment and increasing efficiency led to overall expense growth of only 0.7% for the year, resulting in Same-Property Hotel EBITDA Margin growth of 52 basis points, an outstanding result in this low RevPAR growth environment.”

Operating Results

The Company’s results include the following:

Three Months Ended
December 31,

Year Ended December 31,

2017

2016

Change

2017

2016

Change

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

Net income attributable to common
stockholders

$

9,693

$

48,760

(80.1)%

$

98,862

$

85,855

15.1%

Net income per share available to
common stockholders

$

0.09

$

0.44

(79.5)%

$

0.92

$

0.79

16.5%

Same-Property Number of Hotels

39

39

39

39

Same-Property Number of Rooms

11,533

11,550

(17)

11,533

11,550

(17)

Same-Property Occupancy(1)

73.9%

70.7%

320 bps

76.5%

75.5%

100 bps

Same-Property Average Daily Rate(1)

$

206.05

$

206.07

—%

$

208.94

$

208.77

0.1%

Same-Property RevPAR(1)

$

152.18

$

145.78

4.4%

$

159.90

$

157.64

1.4%

Same-Property Hotel EBITDA(1)(2)

$

77,445

$

71,592

8.2%

$

325,649

$

315,391

3.3%

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

29.8%

28.7%

111 bps

30.8%

30.3%

52 bps

Total Portfolio Number of Hotels(3)

39

42

(3)

39

42

(3)

Total Portfolio Number of Rooms(3)

11,533

10,911

622

11,533

10,911

622

Total Portfolio RevPAR(4)

$

152.14

$

139.30

9.2%

$

155.12

$

149.32

3.9%

Adjusted EBITDA(2)

$

68,049

$

64,121

6.1%

$

270,286

$

287,317

(5.9)%

Adjusted FFO(2)

$

55,908

$

59,393

(5.9)%

$

219,978

$

238,241

(7.7)%

Adjusted FFO per diluted share

$

0.52

$

0.55

(5.5)%

$

2.06

$

2.20

(6.4)%

(1)

“Same-Property” includes all hotels owned as of December 31, 2017.  “Same-Property” includes periods prior to the Company’s ownership of Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties. The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors.  Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes. 

(2)

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, Same-Property Hotel EBITDA, and Pro Forma Hotel EBITDA.  EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Same-Property Hotel EBITDA, and Same-Property Hotel EBITDA Margin are non-GAAP financial measures.

(3)

As of end of periods presented.

(4)

Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company.

 

Transactions

As previously disclosed, in the fourth quarter, the Company completed the acquisition of the 493-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and the 119-room Royal Palms Resort & Spa, part of The Unbound Collection by Hyatt, for a combined purchase price of $305 million. Also in October, the Company completed the acquisition of the 365-room The Ritz-Carlton, Pentagon City for $105 million.

During 2017, the Company acquired four hotels for approximately $615.5 million and sold seven hotels for approximately $212 million.

  • In April, the Company sold the 122-room Courtyard Birmingham Downtown at UAB for a sale price of $30 million.
  • In May, the Company completed the acquisition of the 815-room Hyatt Regency Grand Cypress in Orlando, Florida for a purchase price of $205.5 million.
  • In June, the Company completed the sale of a five-hotel portfolio, including the 203-room Courtyard Fort Worth Downtown/Blackstone, the 123-room Courtyard Kansas City Country Club Plaza, the 182-room Courtyard Pittsburgh Downtown, the 116-room Hampton Inn & Suites Baltimore Inner Harbor, and the 188-room Residence Inn Baltimore Downtown/Inner Harbor, for total consideration of $163 million.
  • In July, the Company sold the 219-room Marriott West Des Moines for $19 million.
  • In October, the Company completed the acquisition of the 493-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and the 119-room Royal Palms Resort & Spa, part of The Unbound Collection by Hyatt, for a combined purchase price of $305 million.
  • Also in October, the Company completed the acquisition of the 365-room The Ritz-Carlton, Pentagon City for $105 million.
  • In December, the Company entered into an agreement to sell the leasehold interest in Aston Waikiki Beach Hotel for $200 million. The price represents a 12.6x multiple on the hotel’s 2017 Hotel EBITDA. The buyer has a $10 million deposit at risk and the sale is expected to close in the first quarter 2018, subject to customary closing conditions.

“2017 was another year of significant improvements throughout our portfolio, with the completion of over $825 million of successful transactions,” Mr. Verbaas continued.  “Pro forma for the sale of the Aston Waikiki Beach Hotel, our Pro Forma Portfolio RevPAR increased 5.7% versus our 2016 year-end portfolio, and we improved our Pro Forma Portfolio EBITDA per key by 7.0%.  Our dispositions allowed us to exit several non-core markets including Fort Worth, Kansas City, Pittsburgh, Baltimore, and Des Moines, while our acquisitions allowed us to increase our presence in the vibrant Orlando and Washington, DC markets, and to re-enter the Phoenix/Scottsdale market with two institutional-quality assets.  These transactions not only improved our portfolio quality and lowered the supply growth forecast for our portfolio, but also further diversified our geographic and brand mix.  We believe our pro forma portfolio provides an enhanced growth profile as we look ahead.” 

Financings and Balance Sheet

In the fourth quarter, the Company executed a series of swaps to fix LIBOR through September 2022 on its $125 million unsecured term loan maturing in September 2024. Based on the Company’s current leverage ratio, including the swaps, the effective interest rate is 3.62%.

During 2017, the Company originated two new mortgage loans, including a $115 million loan collateralized by the Marriott San Francisco Airport Waterfront and a $100 million loan collateralized by the Renaissance Atlanta Waverly Hotel & Convention Center.  Additionally, the Company completed a new $125 million unsecured term loan, paid off three mortgage loans totaling $128 million, repriced its $125 million unsecured term loan maturing in October 2022 to reduce the leverage-based pricing grid, and fixed LIBOR on $266 million of variable rate debt.

As of December 31, 2017, the Company had total outstanding debt of $1.3 billion with a weighted average interest rate of 3.71%, with over 70% of its debt fixed or hedged.  In addition, the Company had $71.9 million of cash and cash equivalents, and $360 million of availability on its 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 4.2x.

Pro forma for the pending sale of the Aston Waikiki Beach Hotel and recent financing activities, as detailed below, the Company’s total net debt to trailing twelve month Corporate EBITDA is expected to be reduced to approximately 3.7x.

Subsequent to year-end, and as previously announced, the Company amended, restated, and upsized its Senior Unsecured Revolving Credit Facility (“Credit Facility”).  The Credit Facility was upsized from $400 million to $500 million and the maturity was extended three years to February 2022, with two additional six-month extension options. The Credit Facility’s interest rate is now based on a pricing grid with a range of 150 to 225 basis points over LIBOR as determined by the Company’s leverage ratio, a reduction from the previous pricing grid which ranged from 150 to 245 basis points over LIBOR. As of February 27, 2018, the Company had full availability on its Credit Facility.

Additionally, the Company obtained a new $65 million mortgage loan collateralized by The Ritz-Carlton, Pentagon City. As previously announced, the loan bears an interest rate of LIBOR plus 210 basis points and matures in January 2025. 

Finally, the Company paid off the $18.3 million mortgage loan collateralized by Hotel Monaco Chicago.

Capital Expenditures

During the fourth quarter and full year 2017, the Company invested $34 million and $86 million in its portfolio, respectively.  For the full-year 2017, significant projects included:

  • The completion of the guestroom renovation of Westin Galleria Houston, including the creation of 18 dedicated suites from 36 inferior guest rooms, and substantial progress on a major lobby renovation, including the addition of a lobby bar. The property also commenced the transformation of the 24th floor meeting space, including an upgrade of the primary meeting space and the addition of a new fitness center and concierge lounge.
  • Guestroom renovations at Andaz San Diego, Bohemian Hotel Celebration, and Bohemian Hotel Savannah.
  • Meeting space renovations at Marriott San Francisco Airport Waterfront, Loews New Orleans, Renaissance Atlanta Waverly Hotel, and Hyatt Regency Santa Clara.
  • The addition of one room to RiverPlace Hotel.
  • The commencement of guestroom renovations at seven properties including Westin Oaks at the Galleria, Hilton Garden Inn Washington D.C., Lorien Hotel & Spa, Hotel Monaco Denver, Residence Inn Denver City Center, Andaz Savannah, and Marriott Chicago at Medical District/UIC.
  • The commencement of a lobby and great room renovation at Marriott San Francisco Airport Waterfront.
  • The commencement of significant enhancements to and reconcepting of the food and beverage outlets at Hotel Monaco Chicago and RiverPlace Hotel.

Share Repurchases

During the fourth quarter, the Company did not repurchase any shares under its share repurchase authorization.

During the year ended December 31, 2017, the Company repurchased a total of 240,352 shares of common stock at a weighted average price of $17.07 per share, for total consideration of $4.1 million

Since the authorization’s inception in fourth quarter 2015, the Company has repurchased a total of 5.2 million shares of common stock at a weighted average price of $14.99 per share, for total consideration of $78.1 million. As of February 27, 2018, the Company had $96.9 million in capacity remaining under its repurchase authorization. 

2018 Outlook and Guidance

The Company’s outlook for 2018 is based on the current economic environment, incorporates all expected renovation disruption, reflects ownership of Aston Waikiki Beach Hotel through the first quarter 2018, and assumes no additional acquisitions, dispositions, equity offerings, or share repurchases.  Same-Property RevPAR change includes 38 hotels, reflecting all hotels owned as of February 27, 2018 except Aston Waikiki Beach Hotel.

2018 Guidance

Low End

High End

($ amounts in millions, except per share data)

Net Income

$58

$72

Same-Property RevPAR Change

—%

2.00%

Adjusted EBITDA

$281

$295

Adjusted FFO

$222

$236

Adjusted FFO per Diluted Share

$2.08

$2.21

Capital Expenditures

$115

$135

 

Additional guidance details:

  • Disruption due to renovations is expected to negatively impact Same-Property RevPAR Change by approximately 75 basis points.
  • In 2017, the seven hotels that were sold during the year contributed approximately $9 million to Adjusted EBITDA. Additionally, the Aston Waikiki Beach Hotel contributed approximately $12 million to Adjusted EBITDA, net of general excise tax, in 2017.
  • General and administrative expense of $21 million to $23 million, excluding non-cash share-based compensation.
  • Interest expense of $50 million to $52 million, excluding non-cash loan related costs.
  • Income tax expense of $7 million to $9 million.
  • Capital Expenditures include the completion of the seven guestroom renovation projects commenced during the fourth quarter of 2017 and guestroom renovation projects at Marriott Dallas City Center and Hotel Monaco Chicago beginning in 2018. Also included are substantial meeting space renovations at the Westin Galleria Houston and Marriott Woodlands Waterway Hotel & Convention Center.
  • In addition, substantial capital expenditures are planned for Hyatt Regency Grand Cypress throughout 2018, consisting of the renovation of all guestrooms, including 36 newly-created suites which were recently converted from 72 guestrooms, and the planning and commencement of construction of a new 25,000 square foot ballroom.

“In 2018, we expect to grow both Adjusted EBITDA and Adjusted FFO per share, driven by the strong earnings of our recent acquisitions, higher performance at recently-renovated hotels, and continued smart capital allocation.  As we look farther ahead, we believe the momentum will continue as we see continued lift in performance of recently acquired hotels through our robust asset management program, post-renovation ramp-up at recently-renovated hotels, and continued outperformance of many of our markets relative to those of our peers.  Consistent with our strategy, the moves we have made to refine the quality of the portfolio are expected to lead to a better earnings profile in terms of growth and quality in the years ahead,” commented Atish Shah, Chief Financial Officer of Xenia.

Fourth Quarter 2017 Earnings Call

The Company will conduct its quarterly conference call on Tuesday, February 27, 2018 at 11:00 AM 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 primarily in premium full service and lifestyle hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 39 hotels, including 37 wholly owned hotels, comprising 11,497 rooms, across 18 states and the District of Columbia. Xenia’s hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott®, Hyatt®, Kimpton®, Aston®, Fairmont®, Hilton®, and Loews®, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, and Davidson Hotels & Resorts. 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 for RevPAR growth, Net Income, Adjusted EBITDA, Adjusted FFO, Adjusted FFO per share, capital expenditures 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 Company’s dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly, (ii) risks associated with the hotel industry, including competition, increases in wages, energy costs and other operating costs, actual or threatened terrorist attacks, downturns in general and local economic conditions and cancellation of or delays in the completion of anticipated demand generators, (iii) the availability and terms of financing and capital and the general volatility of securities markets, (iv) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws, (v) interest rate increases, (vi) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs, (vii) the possibility of uninsured or underinsured losses, including those relating to natural disasters or terrorism, (viii) risks associated with redevelopment and repositioning projects, including delays and cost overruns, (ix) levels of spending in business and leisure segments as well as consumer confidence (x) declines in occupancy and average daily rate, (xi) the seasonal and cyclical nature of the real estate and hospitality businesses, (xii) changes in distribution arrangements, such as through Internet travel intermediaries, (xiii) relationships with labor unions and changes in labor laws, (xiv) the impact of changes in the tax code as a result of recent U.S. federal income tax reform and uncertainty as to how some of those changes may be applied, and (xv) 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 of 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.

Consolidated Balance Sheets

As of December 31, 2017 and December 31, 2016

(Unaudited)

($ amounts in thousands, except per share data)

December 31, 2017

December 31, 2016

Assets

Investment properties:

  Land

$

440,930

$

331,502

  Buildings and other improvements

2,878,375

2,732,062

  Total

$

3,319,305

$

3,063,564

  Less: accumulated depreciation

(628,450)

(619,975)

  Net investment properties

$

2,690,855

$

2,443,589

Cash and cash equivalents

71,884

216,054

Restricted cash and escrows

58,520

70,973

Accounts and rents receivable, net of allowance for doubtful accounts

35,865

22,998

Intangible assets, net of accumulated amortization

68,000

76,912

Deferred tax assets

1,163

1,562

Other assets

36,349

28,257

Assets held for sale

152,672

  Total assets (including $70,269 and $74,440, respectively, related to
  consolidated variable interest entities)

$

3,115,308

$

2,860,345

Liabilities

Debt, net of loan discounts and unamortized deferred financing costs

$

1,322,593

$

1,077,132

Accounts payable and accrued expenses

77,005

71,955

Distributions payable

29,930

29,881

Other liabilities

40,694

29,810

  Total liabilities (including $46,637 and $47,828, respectively, related to
  consolidated variable interest entities)

$

1,470,222

$

1,208,778

Commitments and contingencies

Stockholders’ equity

Common stock, $0.01 par value, 500,000,000 shares authorized, 106,735,336 and
106,794,788 shares issued and outstanding as of December 31, 2017 and
December 31, 2016, respectively

1,068

1,068

Additional paid in capital

1,924,124

1,925,554

Accumulated other comprehensive income

10,677

5,009

Accumulated distributions in excess of net earnings

(320,964)

(302,034)

  Total Company stockholders’ equity

$

1,614,905

$

1,629,597

Non-controlling interests

30,181

21,970

  Total equity

$

1,645,086

$

1,651,567

  Total liabilities and equity

$

3,115,308

$

2,860,345

 

 

Xenia Hotels & Resorts, Inc.

Consolidated Statements of Operations and Comprehensive Income

For the Three Months and Year Ended December 31, 2017 and 2016

(Unaudited)

($ amounts in thousands, except per share data)

Three Months Ended
December 31,

Year Ended

 December 31,

2017

2016

2017

2016

Revenues:

Rooms revenues

$

161,070

$

146,583

$

623,331

$

653,944

Food and beverage revenues

81,947

60,994

266,977

246,479

Other revenues

16,118

12,224

54,969

49,737

Total revenues

$

259,135

$

219,801

$

945,277

$

950,160

Expenses:

Rooms expenses

38,154

34,239

142,561

146,050

Food and beverage expenses

51,796

39,224

173,285

161,699

Other direct expenses

4,687

3,276

14,438

12,848

Other indirect expenses

65,938

53,822

229,510

224,779

Management and franchise fees

10,966

10,119

43,459

47,605

Total hotel operating expenses

$

171,541

$

140,680

$

603,253

$

592,981

Depreciation and amortization

42,381

37,353

152,977

152,418

Real estate taxes, personal property taxes and insurance

12,102

11,373

44,310

46,248

Ground lease expense

1,670

1,336

5,848

5,447

General and administrative expenses

8,073

5,865

31,552

31,374

Acquisition transaction costs

102

6

1,578

154

Impairment and other losses

80

29

2,254

10,035

Total expenses

$

235,949

$

196,642

$

841,772

$

838,657

Operating income

$

23,186

$

23,159

$

103,505

$

111,503

Gain on sale of investment properties

29,403

50,747

30,195

Other income

199

2,461

965

3,377

Interest expense

(13,399)

(10,100)

(46,294)

(48,113)

Loss on extinguishment of debt

(132)

(274)

(5,155)

Net income before income taxes

$

9,986

$

44,791

$

108,649

$

91,807

Income tax (expense) benefit

(163)

4,536

(7,833)

(5,077)

Net income

$

9,823

$

49,327

$

100,816

$

86,730

Non-controlling interests in consolidated real estate
entities

23

63

99

268

Non-controlling interests of common units in Operating
Partnership

(153)

(630)

(2,053)

(1,143)

Net (income) loss attributable to non-controlling interests

$

(130)

$

(567)

$

(1,954)

$

(875)

Net income attributable to common stockholders

$

9,693

$

48,760

$

98,862

$

85,855

 

 

Xenia Hotels & Resorts, Inc.

Consolidated Statements of Operations and Comprehensive Income – Continued

For the Three Months and Year Ended December 31, 2017 and 2016

(Unaudited)

($ amounts in thousands, except per share data)

Three Months Ended
December 31,

Year Ended
December 31,

2017

2016

2017

2016

Basic and diluted earnings per share

Net income per share available to common stockholders –
basic and diluted

$

0.09

$

0.44

$

0.92

$

0.79

Weighted average number of common shares (basic)

106,729,984

106,905,988

106,767,108

108,012,708

Weighted average number of common shares (diluted)

107,015,619

107,071,562

107,019,152

108,142,998

Comprehensive Income:

Net income

$

9,823

$

49,327

$

100,816

$

86,730

Other comprehensive income (loss):

  Unrealized (loss) gain on interest rate derivative
  instruments

5,319

13,961

3,388

(322)

  Reclassification adjustment for amounts recognized in net
  income (interest expense)

479

963

2,396

3,833

$

15,621

$

64,251

$

106,600

$

90,241

Comprehensive (income) loss attributable to non-
controlling interests:

  Non-controlling interests in consolidated real estate
  entities

23

63

99

268

  Non-controlling interests of common units in Operating
  Partnership

(269)

(825)

(2,169)

(1,188)

Comprehensive income attributable to non-controlling
interests

$

(246)

$

(762)

$

(2,070)

$

(920)

Comprehensive income attributable to the Company

$

15,375

$

63,489

$

104,530

$

89,321

 

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, 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, as well as similar adjustments for unconsolidated partnership and joint ventures.  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, the cumulative effect of changes in accounting principles, impairment of real estate assets, 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.

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 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 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 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 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 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, 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 shares of common stock 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, Same-Property Hotel EBITDA,

and Pro Forma Hotel EBITDA

For the Three Months and Year Ended December 31, 2017 and 2016

(Unaudited)

($ amounts in thousands)

Three Months Ended
December 31,

Year Ended

December 31,

2017

2016

2017

2016

Net income

$

9,823

$

49,327

$

100,816

$

86,730

Adjustments:

Interest expense

13,399

10,100

46,294

48,113

Income tax expense

163

(4,536)

7,833

5,077

Depreciation and amortization related to investment
properties

42,276

37,281

152,544

152,274

Non-controlling interests in consolidated real estate entities

23

63

99

268

Adjustments related to non-controlling interests in
consolidated real estate entities

(336)

(318)

(1,323)

(1,259)

EBITDA attributable to common stock and unit holders

$

65,348

$

91,917

$

306,263

$

291,203

Reconciliation to Adjusted EBITDA and Same-Property Hotel EBITDA

Impairment and other losses(1)

80

29

2,254

10,035

Gain on sale of investment property

(29,403)

(50,747)

(30,195)

Loss on extinguishment of debt

132

274

5,155

Acquisition transaction costs

102

6

1,578

154

Amortization of share-based compensation expense

2,342

1,919

9,930

8,968

Amortization of above and below market ground leases and
straight-line rent expense

177

459

734

944

Management transition and severance expenses

1,991

Other non-recurring expenses(2)

(938)

(938)

Adjusted EBITDA attributable to common stock and unit
holders

$

68,049

$

64,121

$

270,286

$

287,317

Corporate-level costs and expenses

9,642

4,737

26,676

21,926

Income from sold properties(3)

(198)

(6,328)

(8,583)

(36,982)

Pro forma hotel level adjustments, net(3)

(48)

10,633

37,947

45,264

Other reimbursements

(1,571)

(677)

(2,134)

Same-Property Hotel EBITDA attributable to common
stock and unit holders(3)

$

77,445

$

71,592

$

325,649

$

315,391

Aston Waikiki Beach Hotel

(3,777)

(4,317)

(15,894)

(18,002)

Pro Forma Hotel EBITDA attributable to common stock
and unit holders(4)

$

73,668

$

67,275

$

309,755

$

297,389

(1)

During the third quarter of 2017, Hurricanes Harvey and Irma impacted several of the Company’s hotels. The Company recorded a loss of $950 thousand, which represents damage sustained during the storms, net of estimated insurance recoveries, and expensed $1.3 million of hurricane-related repairs and cleanup costs.  These amounts are included in impairment and other losses on the consolidated statement of operations for the year ended December 31, 2017.

(2)

Other non-recurring expenses for the three months and year ended December 31, 2016 represents adjustments related to hotels sold prior to our spin-off.

(3)

Same-Property Hotel EBITDA is adjusted to include the results of the Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City for periods prior to Company ownership, and exclude the NOI guaranty payment at the Andaz San Diego.  See the reconciliation of Total Revenues and Total Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the year ended December 31, 2017 on page 18.

(4)

Pro Forma Hotel EBITDA is calculated in the same manner as Same-Property, but excludes the Aston Waikiki Beach Hotel.

 

 

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to FFO and Adjusted FFO

For the Three Months and Year Ended December 31, 2017 and 2016

(Unaudited)

($ amounts in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2017

2016

2017

2016

Net income

$

9,823

$

49,327

$

100,816

$

86,730

Adjustments:

Depreciation and amortization related to investment
properties

42,276

37,281

152,544

152,274

Impairment and other losses(1)

29

950

10,035

Gain on sale of investment property

(29,403)

(50,747)

(30,195)

Non-controlling interests in consolidated real estate entities

23

63

99

268

Adjustments related to non-controlling interests in
consolidated real estate entities

(225)

(224)

(902)

(897)

FFO attributable to common stock and unit holders

$

51,897

$

57,073

$

202,760

$

218,215

Reconciliation to Adjusted FFO

Loss on extinguishment of debt

132

274

5,155

Acquisition transaction costs

102

6

1,578

154

Loan related costs, net of adjustment related to non-
controlling interests(2)

745

742

2,833

3,752

Amortization of share-based compensation expense

2,342

1,919

9,930

8,968

Amortization of above and below market ground leases and
straight-line rent expense

177

459

734

944

Non-recurring taxes(3)

565

565

Management transition and severance expenses

1,991

Other non-recurring expenses (4)

80

(938)

1,304

(938)

Adjusted FFO attributable to common stock and unit
holders

$

55,908

$

59,393

$

219,978

$

238,241

(1)

During the third quarter of 2017, Hurricanes Harvey and Irma impacted several of the Company’s hotels. The Company recorded a loss of $950 thousand, which represents damage sustained during the storms, net of estimated insurance recoveries.  This amount is included in impairment and other losses on the consolidated statement of operations for the year ended December 31, 2017.

(2)

Loan related costs included amortization of debt discounts, premiums and deferred loan origination costs.

(3)

The Tax Cuts and Jobs Act was signed into law in December 3017, which introduced many significant changes to the U.S. federal income tax code, including a significant reduction in our future estimated tax rates.  For the three months and year ended December 31, 2017, we recorded a one-time adjustment to our net deferred tax asset resulting in the recognition of $0.6 million in deferred income tax expense.  This amount has been excluded from Adjusted FFO attributable to common stock and unit holders for the three months and year ended December 31, 2017. 

(4)

Other non-recurring expenses for the three months and year ended December 31, 2017 represents hurricane-related repairs and cleanup costs.  Other non-recurring expenses for the three months and year ended December 31, 2016 represents adjustments related to hotels sold prior to our spin-off.

 

 

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to Adjusted EBITDA

for Current Full Year 2018 Guidance

($ amounts in millions)

Guidance
Midpoint

Net income

$65

Adjustments:

Interest expense

54

Income tax expense

8

Depreciation and amortization related to investment properties

154

Adjustments related to non-controlling interests

(1)

EBITDA

$280

Amortization of share-based compensation expense

7

Other(1)

1

Adjusted EBITDA

$288

(1)

Includes amortization of above and below market ground leases and straight-line rent, acquisition and pursuit costs, loss on extinguishment of debt.

 

Reconciliation of Net Income to Adjusted FFO

for Current Full Year 2018 Guidance

($ amounts in millions)

Guidance
Midpoint

Net income

$65

Adjustments:

Depreciation and amortization related to investment properties

154

Adjustments related to non-controlling interests

(1)

FFO

$218

Amortization of share-based compensation expense

7

Other(2)

4

Adjusted FFO

$229

(2)

Includes amortization of above and below market ground leases and straight-line rent, acquisition and pursuit costs, loss on extinguishment of debt and loan related costs.

 

 

Xenia Hotels & Resorts, Inc.

Debt Summary

($ amounts in thousands)

Rate Type

Rate(1)

Initial
Maturity Date

Fully Extended
Maturity

 Date(2)

Outstanding as of
December 31,
2017

Outstanding as of
February 27,
2018

    Hotel Monaco Denver

Fixed(3)

2.98%

January 2019

January 2020

$

41,000

$

41,000

    Andaz Napa

Fixed(3)

2.99%

March 2019

March 2020

38,000

38,000

    Marriott Charleston Town Center

 Fixed

3.85%

July 2020

July 2020

15,908

15,866

    Grand Bohemian Hotel Charleston (VIE)

 Variable

4.07%

November 2020

November 2020

19,026

18,979

    Loews New Orleans Hotel

 Variable

3.92%

February 2019

November 2020

37,500

37,500

    Grand Bohemian Hotel Mountain Brook (VIE)

 Variable

4.07%

December 2019

December 2020

25,229

25,178

    Andaz Savannah

 Variable

3.57%

January 2019

January 2021

21,500

21,500

    Hotel Monaco Chicago

 Variable

3.82%

January 2019

January 2021

18,344

    Westin Galleria Houston & Westin Oaks Houston
    at The Galleria

 Variable

4.07%

May 2019

May 2021

110,000

110,000

    Marriott Dallas City Center

Fixed(3)

4.05%

January 2022

January 2022

51,000

51,000

    Hyatt Regency Santa Clara

Fixed(3)

3.81%

January 2022

January 2022

90,000

90,000

    Hotel Palomar Philadelphia

Fixed(3)

4.14%

January 2023

January 2023

59,750

59,750

    Renaissance Atlanta Waverly Hotel & Convention
    Center

Variable

3.67%

August 2024

August 2024

100,000

100,000

    The Ritz-Carlton, Pentagon City

Variable

3.67%

January 2025

January 2025

65,000

    Residence Inn Boston Cambridge

 Fixed

4.48%

November 2025

November 2025

62,833

62,833

    Grand Bohemian Hotel Orlando

 Fixed

4.53%

March 2026

March 2026

60,000

60,000

    Marriott San Francisco Airport Waterfront

 Fixed

4.63%

May 2027

May 2027

115,000

115,000

  Total Mortgage Loans

4.01%

(4)

$

865,090

$

911,606

    Mortgage Loan Discounts, net(5)

(255)

(255)

    Unamortized Deferred Financing Costs, net

(7,242)

(7,242)

  Senior Unsecured Credit Facility(6)

 Variable

3.07%

February 2019

February 2020

40,000

  Term Loan $175M

Partially Fixed(7)

2.74%

February 2021

February 2021

175,000

175,000

  Term Loan $125M

Partially Fixed(7)

3.28%

October 2022

October 2022

125,000

125,000

  Term Loan $125M

Partially Fixed(8)

3.62%

September 2024

September 2024

125,000

125,000

Total Debt, net of mortgage loan discounts and
unamortized deferred financing costs

3.71%

(4)

$

1,322,593

$

1,329,109

(1)

Variable index is one-month LIBOR. Interest rates as of December 31, 2017.

(2)

The majority of loans require minimum Debt Service Coverage Ratio and/or Loan to Value maximums in order to be extended.  If the requirements are met, loan extension is at the discretion of Xenia and may require payment of an extension fee.

(3)

A variable interest loan for which the interest rate has been fixed for the entire term.

(4)

Weighted average interest rate as of December 31, 2017.

(5)

Loan discounts upon issuance of new mortgage loan or modification.

(6)

Subsequent to year end, the Company amended and restated its existing Credit Facility which increased the capacity to $500 million, extended the maturity to February 2023 including extension options, and reduced the leveraged-based pricing grid.

(7)

A variable interest loan for which LIBOR has been fixed for the entire term of the loan.  The spread to LIBOR may vary, as it is determined by the Company’s leverage ratio.

(8)

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.

 

 

Xenia Hotels & Resorts, Inc.

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

For the Three Months and Year Ended December 31, 2017 and 2016

($ amounts in thousands)

Three Months Ended December 31,

Year Ended December 31,

2017

2016

Change

2017

2016

Change

Same-Property Revenues(1):

Room revenues

$

161,465

$

154,893

4.2%

$

673,368

$

666,350

1.1%

Food and beverage revenues

82,221

79,132

3.9%

319,221

313,768

1.7%

Other revenues

16,169

15,499

4.3%

64,795

61,686

5.0%

Total same-property revenues

$

259,855

$

249,524

4.1%

$

1,057,384

$

1,041,804

1.5%

Same-Property Expenses(1):

Room expenses

$

38,536

$

37,838

1.8%

$

157,272

$

156,854

0.3%

Food and beverage expenses

52,067

51,910

0.3%

207,018

207,726

(0.3)%

Other direct expenses

4,705

4,777

(1.5)%

18,896

18,679

1.2%

Other indirect expenses

62,322

60,486

3.0%

248,952

245,377

1.5%

Management and franchise fees

11,075

9,789

13.1%

46,045

44,879

2.6%

Real estate taxes, personal
property taxes and insurance

12,200

11,659

4.6%

47,288

46,862

0.9%

Ground lease expense

1,505

1,473

2.2%

6,264

6,036

3.8%

Total same-property hotel
operating expenses

$

182,410

$

177,932

2.5%

$

731,735

$

726,413

0.7%

Same-Property Hotel EBITDA(1)

$

77,445

$

71,592

8.2%

$

325,649

$

315,391

3.3%

Same-Property Hotel EBITDA
Margin(1)

29.8%

28.7%

111 bps

30.8%

30.3%

52 bps

(1)

“Same-Property” includes all hotels owned as of December 31, 2017.  “Same-Property” includes periods prior to the Company’s ownership of Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties.  The following is a reconciliation of Total Revenues and Total Expenses consolidated on a GAAP basis to Total Same-Property Revenues and Total Same-Property Expenses for the three months and year ended December 31, 2017:

 

Three Months Ended
December 31,

Year Ended

December 31,

2017

2016

2017

2016

Total Revenues – GAAP

$

259,135

$

219,801

$

945,277

$

950,160

Hotel revenues from prior ownership(a)

720

48,569

136,796

199,249

Hotel revenues from sold hotels

(18,611)

(24,012)

(107,355)

Other revenues

(235)

(677)

(250)

Total Same-Property Revenues

$

259,855

$

249,524

$

1,057,384

$

1,041,804

Total Hotel Operating Expenses – GAAP

$

171,541

$

140,680

$

603,253

$

592,981

Real estate taxes, personal property taxes and insurance

12,102

11,373

44,310

46,248

Ground lease expense, net(b)

1,505

1,180

5,216

4,801

Other (income)

(57)

(311)

(316)

(586)

Corporate-level costs and expenses

(3,648)

(643)

(4,148)

(643)

Hotel expenses from prior ownership(a)

768

37,936

98,849

153,985

Hotel expenses from sold hotels

199

(12,283)

(15,429)

(70,373)

Total Same-Property Hotel Operating Expenses

$

182,410

$

177,932

$

731,735

$

726,413

(a)

The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors.  Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes.

(b)

Excludes amortization of ground lease intangibles.

 

 

Xenia Hotels & Resorts, Inc.

Portfolio Data by Market

As of December 31, 2017

Pro Forma Portfolio(3)

Market(1)

% of 2017 Same-
Property Hotel
EBITDA(2)

Number
of Hotels

Number
of Rooms

% of 2017 Pro
Forma Portfolio
Hotel EBITDA(3)

Number of
Hotels

Number of
Rooms

Orlando, FL

10%

3

1,177

10%

3

1,141

Houston, TX

9%

3

1,218

10%

3

1,218

Phoenix, AZ

7%

2

612

8%

2

612

San Francisco/San
Mateo, CA

7%

1

688

7%

1

688

Washington, DC-
MD-VA

7%

3

772

7%

3

772

Dallas, TX

7%

2

961

7%

2

961

Boston, MA

6%

2

466

6%

2

466

San Jose/Santa
Cruz, CA

6%

1

505

6%

1

505

California North

5%

2

416

5%

2

416

Oahu Island, HI

5%

1

645

—%

Atlanta, GA

4%

1

522

4%

1

522

Other

27%

18

3,551

30%

18

3,551

Total

100%

39

11,533

100%

38

10,852

(1)

As defined by STR, Inc.

(2)

“Same-Property” includes all hotels owned as of December 31, 2017. “Same-Property” includes periods prior to the Company’s ownership of Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties. The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors. Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes. 

(3)

“Pro Forma Portfolio” is calculated in the same manner as “Same-Property,” but reflects the conversion of 72 guestrooms into 36 newly created suites at Hyatt Regency Grand Cypress in Orlando, FL and excludes the Aston Waikiki Beach Hotel.

 

 

Xenia Hotels & Resorts, Inc.

Same-Property(1) Statistical Data by Market

For the Three Months and Year Ended December 31, 2017 and 2016

Three Months Ended

Three Months Ended

December 31, 2017

December 31, 2016

% Change

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Market(2)

Orlando, FL

76.4

%

$

197.66

$

150.97

73.4

%

$

192.31

$

141.08

7.0

%

Houston, TX

73.6

%

166.44

122.45

62.1

%

168.82

104.88

16.8

%

Phoenix, AZ

66.1

%

262.75

173.71

63.9

%

257.88

164.68

5.5

%

San Francisco/San
Mateo, CA

84.6

%

230.18

194.69

80.0

%

217.10

173.68

12.1

%

Washington, DC-MD-VA

77.2

%

236.44

182.49

73.0

%

236.86

172.84

5.6

%

Dallas, TX

67.6

%

188.83

127.66

58.6

%

191.29

112.07

13.9

%

Boston, MA

75.6

%

262.06

198.03

72.3

%

259.39

187.42

5.7

%

San Jose/Santa Cruz, CA

79.3

%

244.47

193.77

74.1

%

249.16

184.71

4.9

%

California North

68.3

%

254.35

173.72

72.6

%

275.95

200.44

(13.3)

%

Oahu Island, HI

81.7

%

163.31

133.49

86.8

%

170.33

147.86

(9.7)

%

Atlanta, GA

71.8

%

149.89

107.56

72.8

%

141.26

102.78

4.7

%

Other

70.7

%

207.01

146.37

69.9

%

207.05

144.71

1.1

%

Total

73.9

%

$

206.05

$

152.18

70.7

%

$

206.07

$

145.78

4.4

%

 

Year Ended

Year Ended

December 31, 2017

December 31, 2016

% Change

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Market(2)

Orlando, FL

78.4

%

$

191.37

$

150.10

76.6

%

$

189.82

$

145.35

3.3

%

Houston, TX

69.4

%

175.48

121.79

66.6

%

181.07

120.68

0.9

%

Phoenix, AZ

69.7

%

264.92

184.59

69.9

%

256.93

179.64

2.8

%

San Francisco/San
Mateo, CA

87.4

%

230.28

201.37

85.0

%

230.39

195.93

2.8

%

Washington, DC-MD-VA

82.5

%

238.57

196.72

80.4

%

230.61

185.50

6.0

%

Dallas, TX

66.5

%

186.70

124.07

63.9

%

191.74

122.60

1.2

%

Boston, MA

80.6

%

273.69

220.63

78.8

%

273.86

215.72

2.3

%

San Jose/Santa Cruz, CA

80.0

%

251.93

201.48

79.9

%

245.47

196.17

2.7

%

California North

75.0

%

281.53

211.11

70.7

%

276.89

195.74

7.9

%

Oahu Island, HI

85.0

%

163.50

138.97

88.5

%

168.30

148.99

(6.7)

%

Atlanta, GA

77.9

%

153.00

119.19

77.6

%

146.34

113.49

5.0

%

Other

75.1

%

207.15

155.58

75.1

%

209.34

157.28

(1.1)

%

Total

76.5

%

$

208.94

$

159.90

75.5

%

$

208.77

$

157.64

1.4

%

(1)

“Same-Property” includes all hotels owned as of December 31, 2017. “Same-Property” includes periods prior to the Company’s ownership of Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties. The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors. Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes. 

(2)

As defined by STR, Inc. Market rank based on 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

75.2

%

78.8

%

77.8

%

73.9

%

76.5

%

ADR

$

216.32

$

216.26

$

201.71

$

206.05

$

208.94

RevPAR

$

162.74

$

170.37

$

156.96

$

152.18

$

159.90

Hotel Revenues

$

271,780

$

280,470

$

245,279

$

259,855

$

1,057,384

Hotel EBITDA

$

84,117

$

93,671

$

70,416

$

77,445

$

325,649

Hotel EBITDA Margin

31.0

%

33.4

%

28.7

%

29.8

%

30.8

%

 

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2016

2016

2016

2016

2016

Occupancy

73.6

%

79.9

%

77.8

%

70.7

%

75.5

%

ADR

$

212.56

$

214.65

$

201.71

$

206.07

$

208.77

RevPAR

$

156.52

$

171.42

$

156.96

$

145.78

$

157.64

Hotel Revenues

$

261,825

$

280,579

$

249,876

$

249,524

$

1,041,804

Hotel EBITDA

$

77,408

$

94,112

$

72,279

$

71,592

$

315,391

Hotel EBITDA Margin

29.6

%

33.5

%

28.9

%

28.7

%

30.3

%

(1)

“Same-Property” includes all hotels owned as of December 31, 2017. “Same-Property” includes periods prior to the Company’s ownership of Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties. These amounts include pre-acquisition operating results. The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors.  Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes. 

 

 

Xenia Hotels & Resorts, Inc.

Pro Forma Portfolio(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

74.7

%

78.2

%

77.8

%

73.4

%

76.0

%

ADR

$

219.55

$

220.11

$

199.59

$

208.87

$

211.95

RevPAR

$

164.06

$

172.20

$

155.20

$

153.28

$

161.14

Hotel Revenues

$

261,733

$

270,174

$

234,686

$

249,996

$

1,016,589

Hotel EBITDA

$

80,280

$

89,618

$

66,189

$

73,668

$

309,755

Hotel EBITDA Margin

30.7

%

33.2

%

28.2

%

29.5

%

30.5

%

 

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2016

2016

2016

2016

2016

Occupancy

72.8

%

79.3

%

77.0

%

69.8

%

74.7

%

ADR

$

215.90

$

218.43

$

203.27

$

208.70

$

211.61

RevPAR

$

157.28

$

173.23

$

156.58

$

145.66

$

158.15

Hotel Revenues

$

251,478

$

270,206

$

238,029

$

238,821

$

998,534

Hotel EBITDA

$

73,173

$

89,904

$

67,037

$

67,275

$

297,389

Hotel EBITDA Margin

29.1

%

33.3

%

28.2

%

28.2

%

29.8

%

1.

“Pro Forma Portfolio” is calculated in the same manner as “Same-Property,” but excludes the Aston Waikiki Beach Hotel.

 

 

Xenia Hotels & Resorts, Inc.

Statistical Data by Property

For the Year Ended December 31, 2017 and 2016

December 31, 2017

December 31, 2016

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR
Change

Andaz Napa

81.4

%

$

325.84

$

265.18

79.8

%

$

322.79

$

257.70

2.9

%

Andaz San Diego

74.9

%

237.08

177.56

78.7

%

233.13

183.44

(3.2)

%

Andaz Savannah

84.2

%

200.13

168.59

84.9

%

204.19

173.39

(2.8)

%

Aston Waikiki Beach Hotel

85.0

%

163.50

138.97

88.5

%

168.30

148.99

(6.7)

%

Bohemian Hotel Celebration

77.4

%

174.83

135.39

75.2

%

175.74

132.11

2.5

%

Bohemian Hotel Savannah Riverfront

85.1

%

291.16

247.89

84.8

%

280.97

238.38

4.0

%

Canary Santa Barbara

76.7

%

399.83

306.64

81.1

%

380.71

308.56

(0.6)

%

Fairmont Dallas

68.5

%

181.56

124.41

64.8

%

186.07

120.63

3.1

%

Grand Bohemian Hotel Charleston

82.4

%

313.99

258.84

79.8

%

290.06

231.50

11.8

%

Grand Bohemian Hotel Mountain Brook

76.9

%

247.05

189.98

74.6

%

233.59

174.15

9.1

%

Grand Bohemian Hotel Orlando

79.9

%

231.62

185.04

77.9

%

225.39

175.67

5.3

%

Hilton Garden Inn Washington DC Downtown

86.6

%

242.17

209.69

88.4

%

236.74

209.24

0.2

%

Hotel Commonwealth

83.8

%

277.82

232.74

79.2

%

287.63

227.84

2.2

%

Hotel Monaco Chicago

76.4

%

202.61

154.71

78.8

%

212.88

167.64

(7.7)

%

Hotel Monaco Denver

81.1

%

208.49

169.14

81.3

%

211.78

172.14

(1.7)

%

Hotel Monaco Salt Lake City

83.0

%

179.61

149.00

75.2

%

171.95

129.30

15.2

%

Hotel Palomar Philadelphia

84.1

%

221.40

186.10

86.5

%

240.12

207.63

(10.4)

%

Hyatt Centric Key West Resort & Spa

87.8

%

368.76

323.76

90.4

%

379.43

342.87

(5.6)

%

Hyatt Regency Grand Cypress

78.1

%

181.21

141.59

76.4

%

180.78

138.03

2.6

%

Hyatt Regency Santa Clara

80.0

%

251.93

201.48

79.9

%

245.47

196.17

2.7

%

Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch

69.5

%

256.22

178.13

70.3

%

245.87

172.89

3.0

%

Loews New Orleans Hotel

75.6

%

201.31

152.17

73.7

%

200.60

147.87

2.9

%

Lorien Hotel & Spa

83.8

%

205.48

172.21

80.8

%

195.09

157.62

9.3

%

Marriott Charleston Town Center

65.8

%

117.74

77.49

69.8

%

122.04

85.22

(9.1)

%

Marriott Chicago at Medical District/UIC

80.5

%

200.22

161.10

83.5

%

196.89

164.45

(2.0)

%

Marriott Dallas City Center

63.7

%

193.94

123.62

62.8

%

199.42

125.18

(1.2)

%

Marriott Griffin Gate Resort & Spa

66.6

%

147.23

98.10

65.1

%

148.00

96.34

1.8

%

Marriott Napa Valley Hotel & Spa

71.7

%

255.75

183.40

66.0

%

248.43

163.97

11.8

%

Marriott San Francisco Airport Waterfront

87.4

%

230.28

201.37

85.0

%

230.39

195.93

2.8

%

Xenia Hotels & Resorts, Inc.

Statistical Data by Property (Continued)

For the Year Ended December 31, 2017 and 2016

December 31, 2017

December 31, 2016

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR
Change

Marriott Woodlands Waterway Hotel & Convention Center

71.9

%

207.61

149.36

67.1

%

216.21

144.98

3.0

%

Renaissance Atlanta Waverly Hotel & Convention Center

77.9

%

153.00

119.19

77.6

%

146.34

113.49

5.0

%

Renaissance Austin Hotel

71.1

%

167.55

119.08

69.9

%

174.28

121.74

(2.2)

%

Residence Inn Boston Cambridge

77.1

%

268.73

207.21

78.3

%

258.42

202.29

2.4

%

Residence Inn Denver City Center

82.6

%

181.14

149.54

80.4

%

179.74

144.44

3.5

%

The Ritz-Carlton, Pentagon City

78.7

%

245.64

193.24

73.8

%

235.97

174.17

10.9

%

RiverPlace Hotel

85.5

%

277.98

237.54

87.2

%

284.24

247.78

(4.1)

%

Royal Palms Resort & Spa

70.3

%

300.55

211.34

68.3

%

304.13

207.61

1.8

%

Westin Galleria Houston & Westin Oaks Houston at The Galleria

68.4

%

162.31

111.04

66.5

%

167.46

111.34

(0.3)

%

Same-Property Portfolio(1)

76.5

%

$

208.94

$

159.90

75.5

%

$

208.77

$

157.64

1.4

%

Pro Forma Portfolio(2)

76.0

%

$

211.95

$

161.14

74.7

%

$

211.61

$

158.15

1.9

%

(1)

“Same-Property” includes all hotels owned as of December 31, 2017.  “Same-Property” includes periods prior to the Company’s ownership of Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties. The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors.  Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes.

(2)

“Pro Forma Portfolio” is calculated in the same manner as “Same-Property,” but excludes the Aston Waikiki Beach Hotel.

 

 

Xenia Hotels & Resorts, Inc.

Financial Data by Property

For the Year Ended December 31, 2017 and 2016

Year Ended December 31, 2017

Year Ended December 31, 2016

Hotel EBITDA
($000s)

EBITDA /
Key

Hotel EBITDA
Margin

Hotel EBITDA
($000s)

EBITDA /
Key

Hotel EBITDA
Margin

EBITDA
Change

Margin
Change

Andaz Napa

$

7,440

$

52,766

43.1

%

$

7,092

$

50,298

42.1

%

4.9

%

99 bps

Andaz San Diego

2,629

16,535

17.3

%

3,984

25,057

23.0

%

(34.0)

%

(570) bps

Andaz Savannah

3,651

24,179

30.9

%

4,376

28,980

36.4

%

(16.6)

%

(549) bps

Aston Waikiki Beach Hotel

15,894

24,642

39.0

%

18,002

27,910

41.6

%

(11.7)

%

(264) bps

Bohemian Hotel Celebration

1,825

15,870

21.4

%

1,842

16,017

21.1

%

(0.9)

%

38 bps

Bohemian Hotel Savannah Riverfront

4,245

56,600

32.9

%

4,453

59,373

34.3

%

(4.7)

%

(137) bps

Canary Santa Barbara

5,723

59,000

31.8

%

5,606

57,794

31.5

%

2.1

%

30 bps

Fairmont Dallas

12,529

22,989

29.3

%

11,157

20,472

28.5

%

12.3

%

82 bps

Grand Bohemian Hotel Charleston

1,552

31,040

19.3

%

1,040

20,800

12.7

%

49.2

%

652 bps

Grand Bohemian Hotel Mountain Brook

3,357

33,570

23.7

%

2,925

29,250

21.0

%

14.8

%

261 bps

Grand Bohemian Hotel Orlando

9,542

38,632

34.0

%

8,268

33,474

30.9

%

15.4

%

313 bps

Hilton Garden Inn Washington DC Downtown

9,797

32,657

39.6

%

10,044

33,480

40.3

%

(2.5)

%

(62) bps

Hotel Commonwealth

10,369

42,322

37.5

%

9,520

38,857

36.6

%

8.9

%

92 bps

Hotel Monaco Chicago

2,052

10,743

13.8

%

3,671

19,220

22.5

%

(44.1)

%

(868) bps

Hotel Monaco Denver

5,568

29,460

28.3

%

6,963

36,841

33.4

%

(20.0)

%

(512) bps

Hotel Monaco Salt Lake City

6,288

27,947

33.0

%

5,191

23,071

30.7

%

21.1

%

227 bps

Hotel Palomar Philadelphia

7,447

32,378

35.7

%

9,051

39,352

39.2

%

(17.7)

%

(346) bps

Hyatt Centric Key West Resort & Spa

8,049

67,075

42.3

%

8,283

69,025

41.4

%

(2.8)

%

90 bps

Hyatt Regency Grand Cypress

20,551

25,216

26.0

%

16,624

20,398

22.0

%

23.6

%

406 bps

Hyatt Regency Santa Clara

18,028

35,699

32.5

%

17,617

34,885

32.5

%

2.3

%

(4) bps

Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch

19,217

38,980

28.9

%

17,551

35,600

27.5

%

9.5

%

138 bps

Loews New Orleans Hotel

5,826

20,442

23.1

%

4,968

17,432

20.5

%

17.3

%

261 bps

Lorien Hotel & Spa

2,977

27,822

23.8

%

2,577

24,084

21.3

%

15.5

%

248 bps

Marriott Charleston Town Center

2,522

7,165

17.0

%

3,122

8,869

19.5

%

(19.2)

%

(249) bps

Marriott Chicago at Medical District/UIC

1,227

10,858

15.1

%

1,719

15,212

20.6

%

(28.6)

%

(549) bps

Marriott Dallas City Center

9,596

23,067

36.4

%

9,452

22,721

35.7

%

1.5

%

76 bps

Marriott Griffin Gate Resort & Spa

7,153

17,489

26.1

%

6,671

16,311

25.4

%

7.2

%

72 bps

Marriott Napa Valley Hotel & Spa

9,011

32,767

33.4

%

7,456

27,113

30.6

%

20.9

%

283 bps

Marriott San Francisco Airport Waterfront

22,450

32,631

32.4

%

21,642

31,456

31.9

%

3.7

%

51 bps

Xenia Hotels & Resorts, Inc.

Financial Data by Property (Continued)

For the Year Ended December 31, 2017 and 2016

Year Ended December 31, 2017

Year Ended December 31, 2016

Hotel EBITDA
($000s)

EBITDA /
Key

Hotel EBITDA
Margin

Hotel EBITDA
($000s)

EBITDA /
Key

Hotel EBITDA
Margin

EBITDA
Change

Margin
Change

Marriott Woodlands Waterway Hotel & Convention Center

14,924

43,510

39.0

%

14,230

41,487

38.0

%

4.9

%

99 bps

Renaissance Atlanta Waverly Hotel & Convention Center

14,294

27,383

35.0

%

13,300

25,479

32.5

%

7.5

%

250 bps

Renaissance Austin Hotel

11,156

22,675

29.7

%

10,587

21,518

28.5

%

5.4

%

112 bps

Residence Inn Boston Cambridge

8,354

37,801

47.8

%

8,195

37,081

48.0

%

1.9

%

(23) bps

Residence Inn Denver City Center

7,630

33,465

53.2

%

7,954

34,886

56.9

%

(4.1)

%

(375) bps

The Ritz-Carlton, Pentagon City

9,614

26,340

23.2

%

7,025

19,247

19.6

%

36.9

%

363 bps

RiverPlace Hotel

3,584

42,165

30.1

%

3,911

46,560

32.9

%

(8.4)

%

(276) bps

Royal Palms Resort & Spa

4,722

39,681

20.2

%

4,410

37,059

18.7

%

7.1

%

140 bps

Westin Galleria Houston & Westin Oaks Houston at The Galleria

14,856

16,978

26.1

%

14,912

16,699

25.1

%

(0.4)

%

102 bps

Same-Property Portfolio(1)

$

325,649

$

28,236

30.8

%

$

315,391

$

27,307

30.3

%

3.3

%

52 bps

Pro Forma Portfolio(2)

$

309,755

$

28,449

30.5

%

$

297,389

$

27,271

29.8

%

4.2

%

69 bps

(1)

“Same-Property” includes all hotels owned as of December 31, 2017.  “Same-Property” includes periods prior to the Company’s ownership of Hotel Commonwealth, Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon City, 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 and hurricane disruption at multiple properties. The pre-acquisition operating results were obtained from the seller and/or the manager of the hotels during the acquisition due diligence process. We have made no adjustments to the historical operating amounts provided to us by the seller and/or the manager, other than to reflect the removal of historical intercompany lease revenue/expense or any other items, such as amounts related to guaranty/key money payments, that are not applicable to us under our ownership. The pre-acquisition operating results are not audited or reviewed by our independent auditors.  Pre-acquisition operating results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included only in “Same-Property” for comparison purposes. 

(2)

“Pro Forma Portfolio” is calculated in the same manner as “Same-Property,” but excludes the Aston Waikiki Beach Hotel.

 

 

 

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SOURCE Xenia Hotels & Resorts, Inc.