ORLANDO, Fla., May 2, 2024 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE:XHR) ("Xenia" or the "Company") today announced results for the quarter ended March 31, 2024. First Quarter 2024 Highlights Net Income: Net income attributable to common stockholders was $8.5 million, or $0.08 per share Adjusted EBITDAre: $65.3 million, decreased 8.5% compared to the first quarter of 2023 Adjusted FFO per Diluted Share: $0.44, increased $0.04 compared to the first quarter of 2023 Same-Property Occupancy: 67.4%, increased 130 basis points compared to the first quarter of 2023 Same-Property ADR: $262.39, decreased 3.5% compared to the first quarter of 2023 Same-Property RevPAR: $176.86, decreased 1.5% compared to the first quarter of 2023. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, which is undergoing a transformative renovation, RevPAR was $178.07, an increase of 3.7% compared to the first quarter of 2023. Same-Property Hotel Net Income: $36.7, decreased 10.1% compared to the first quarter of 2023. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Hotel Net Income was $34.6 million, an increase of 15.6% compared to the first quarter of 2023. Same-Property Hotel EBITDA: $70.7 million, decreased 8.5% compared to the first quarter of 2023. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Same-Property Hotel EBITDA was $67.2 million, an increase of 4.7% compared to the first quarter of 2023. Same-Property Hotel EBITDA Margin: 26.4%, decreased 228 basis points compared to the first quarter of 2023. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Hotel EBITDA Margin was 26.4%, a decrease of 14 basis points compared to the first quarter of 2023. Capital Markets Activities & Dividends: The Company repurchased a total of 468,107 shares of common stock at a weighted-average price of $13.51 per share for a total consideration of approximately $6.3 million. The Company also declared its first quarter dividend of $0.12 per share to common stockholders of record on March 28, 2024. "We are pleased with our first quarter results as our portfolio RevPAR and Adjusted EBITDAre exceeded our expectations for the quarter," said Marcel Verbaas, Chair and Chief Executive Officer of Xenia. "Despite the impact of the shift in the timing of Easter weighing on March results, our Same-Property RevPAR increased by 3.7% for the quarter when excluding the results at Hyatt Regency Scottsdale. While this healthy increase was driven by broad-based positive results in the portfolio, we saw strong growth at our larger group-oriented hotels in Santa Clara, Houston, Portland, San Francisco and San Diego as well as at our recently renovated hotels, particularly Grand Bohemian Hotel Orlando and Canary Hotel Santa Barbara. The continuation of group demand recovery, gradual improvement in business transient demand and stabilizing leisure demand, coupled with the growth potential we believe exists within our high-quality portfolio, continue to fuel our belief that we are poised for outperformance in the years ahead." "We are encouraged by early results in the second quarter, as we estimate that Same-Property RevPAR, excluding Hyatt Regency Scottsdale, grew by approximately 6.2% in April," continued Mr. Verbaas. "The transformative renovation and upbranding of Hyatt Regency Scottsdale is progressing as planned and we continue to expect completion by the end of the year. While this large project will continue to weigh on overall near-term results and visibility into overall demand for the remainder of the year remains limited in the current operating environment, we are maintaining the midpoint of our previously provided Adjusted EBITDAre guidance range. We remain bullish that the soon-to-be launched Grand Hyatt Scottsdale, as well as other recently completed renovations and our most recent acquisitions, will drive meaningful earnings growth in 2025 and beyond." Operating Results The Company's results include the following: Three Months Ended March 31, 2024 2023 Change ($ amounts in thousands, except hotel statistics and per share amounts) Net income attributable to common stockholders $                 8,534 $                 6,280 35.9 % Net income per share available to common stockholders - basic and diluted $                   0.08 $                   0.06 33.3 % Same-Property Number of Hotels(1) 32 32 — Same-Property Number of Rooms(1)(5) 9,515 9,508 7 Same-Property Occupancy(1) 67.4 % 66.1 %                    130  bps Same-Property Average Daily Rate(1) $               262.39 $               271.79 (3.5) % Same-Property RevPAR(1) $               176.86 $               179.55 (1.5) % Same-Property Hotel Net Income(1) $               36,666 $               40,797 (10.1) % Same-Property Hotel EBITDA(1)(2) $               70,669 $               77,202 (8.5) % Same-Property Hotel EBITDA Margin(1)(2) 26.4 % 28.7 %                  (228)  bps Total Portfolio Number of Hotels(3) 32 32 — Total Portfolio Number of Rooms(3)(5) 9,515 9,508 7 Total Portfolio RevPAR(4) $               176.86 $               179.55 (1.5) % Adjusted EBITDAre(2) $               65,251 $               71,300 (8.5) % Adjusted FFO(2) $               45,498 $               45,230 0.6 % Adjusted FFO per diluted share(2) $                   0.44 $                   0.40 10.0 % "Same-Property" includes all hotels owned as of March 31, 2024 and also includes renovation disruption for multiple capital projects during the periods presented. EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. See definitions and tables later in this press release for how we define these non-GAAP financial measures and 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, Same-Property Hotel EBITDA and Hotel EBITDA Margin. As of end of periods presented. 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. Three rooms were added at The Ritz-Carlton, Denver in April 2023, three rooms were added at Marriott Woodlands Waterway Hotel & Convention Center in November 2023, and one room was added at Grand Bohemian Hotel Orlando, Autograph Collection in March 2024. Liquidity and Balance Sheet As of March 31, 2024, the Company had total outstanding debt of approximately $1.4 billion with a weighted-average interest rate of 5.47%. The Company had approximately $140 million of cash and cash equivalents, including hotel working capital, and full availability on its revolving line of credit, resulting in total liquidity of approximately $590 million as of March 31, 2024. In addition, the Company held approximately $57 million of restricted cash and escrows at the end of the first quarter. The Company has no debt maturities until August 2025 and maintains full availability on its revolving line of credit. Capital Markets In the quarter, the Company repurchased a total of 468,107 shares of common stock at a weighted-average price of $13.51 per share for a total consideration of approximately $6.3 million. The Company currently has $127.4 million in capacity remaining under its repurchase authorization. The Company did not issue any shares of its common stock through its At-The-Market ("ATM") program in the quarter and had $200 million of remaining availability as of  March 31, 2024. Capital Expenditures During the quarter ended March 31, 2024, the Company invested $33.4 million in portfolio improvements. Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch Update In June of last year, the Company commenced the transformative renovation and upbranding of the 491-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch to a Grand Hyatt which includes the following components: Pool complex, pool bars, and amenities – Full renovation, including significant redesign of the pool, pool deck, and pool bars. The adult pool and H2Oasis pool bar were completed in mid-January and the remainder of the pool complex was completed and fully operational in early April. Guest rooms and corridors – Full renovation of all guest rooms including new case goods, soft goods, and fan coil units. Guest rooms are being completed on a continual phased basis with approximately 230 rooms completed, and the remaining, including the addition of five guest rooms, expected to be completed by the end of the third quarter. Arizona Ballroom expansion and meeting space renovation – Expansion of the Arizona Ballroom by approximately 12,000 square feet. Renovation of existing ballrooms, meeting rooms, and pre-function spaces, all expected to be completed by the end of 2024. Public spaces and food & beverage outlets – Major renovation of all areas, including lobby, lobby bar, hotel market, and significant expansion of outdoor dining space. Reconcepting and redesign of all food & beverage venues, including the addition of an upscale modern-Italian steak and seafood concept and a global small-plate concept, including a Sushi Bar, all in collaboration with celebrity chef Richard Blais, and expected to be completed by the end of the third quarter. Building façade, infrastructure, and grounds – Redesign of several elements of the building façade, replacement of all exterior lighting, redesign of existing solar panels, and new exterior signage, all expected to be completed by the end of 2024. Other significant projects that were completed in the first quarter included: Waldorf Astoria Atlanta Buckhead – Renovation of all meeting rooms. Bohemian Hotel Savannah Riverfront, Autograph Collection – Reconcepting and renovation of the hotel's restaurant into Coastal 15, a modern seafood concept. The Ritz-Carlton, Denver – Renovation of ELWAY'S Downtown restaurant. Current Full Year 2024 Outlook and Guidance The Company has updated its full year 2024 outlook. The range below reflects the Company's limited visibility in forecasting due to macroeconomic uncertainty and is based on the current economic environment and does not take into account any unanticipated impacts to the business or operations. Furthermore, this guidance assumes no additional acquisitions, dispositions, equity issuances, or share and/or senior note repurchases. The Same-Property (32 Hotel) RevPAR change shown includes all hotels owned as of  March 31, 2024. The Same-Property (31 Hotel) RevPAR change shown includes all hotels owned as of  March 31, 2024, except Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch. Current Full Year 2024 Guidance Variance to Prior Guidance Low End High End Low End High End ($ in millions, except stats and per share data) Net Income $17 $33 $2 $(2) Same-Property (32 Hotel) RevPAR Change (vs. 2023) 2.25 % 4.75 % 0.25 % (0.25) % Excluding Hyatt Regency Scottsdale, Same-Property (31 Hotel) RevPAR Change (vs. 2023) 2.75 % 5.25 % 0.25 % (0.25) % Adjusted EBITDAre $246 $262 $2 $(2) Adjusted FFO $167 $183 $2 $(2) Adjusted FFO per Diluted Share $1.61 $1.76 $0.02 $(0.02) Capital Expenditures $120 $130 $— $— Current full year 2024 guidance is inclusive of the following assumptions: Disruption due to renovations is expected to negatively impact Adjusted EBITDAre and Adjusted FFO by approximately $16 million - an increase of approximately $2 million from prior guidance. General and administrative expense of approximately $25 million, excluding non-cash share-based compensation - no change from prior guidance Interest expense of approximately $77 million, excluding non-cash loan related costs - no change from prior guidance Income tax expense of approximately $2 million - no change from prior guidance $65 - $70 million of capital expenditures for Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch - no change from prior guidance 104.1 million weighted-average diluted shares/units - an increase of 0.1 million shares/units from prior guidance First Quarter 2024 Earnings Call The Company will conduct its quarterly conference call on Friday, May 3, 2024 at 10:00 AM Eastern Time. To participate in the conference call, please dial (833) 470-1428, access code 514506. 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 lodging markets as well as key leisure destinations in the United States. The Company owns 32 hotels and resorts comprising 9,515 rooms across 14 states. Xenia's hotels are in the luxury and upper upscale segments, and are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, The Kessler Collection, and Davidson. 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, or other future events, the outlook related to macroeconomic factors and general economic uncertainty and a potential contraction in the U.S. or global economy or low levels of economic growth, including such effects on the demand for travel, transient and group business, capital expenditures, timing of renovations, financial performance and potential dividends, 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) general economic uncertainty and a contraction in the U.S. or global economy or low levels of economic growth; (ii) macroeconomic and other factors beyond our control that can adversely affect and reduce demand for hotel rooms, food and beverage services, and/or meeting facilities, such as wars, global conflicts and geopolitical unrest, actual or threatened terrorist or cyber-attacks, mass casualty events, government shutdowns and closures, travel-related health concerns, global outbreaks of pandemics (such as the COVID-19 pandemic) or contagious diseases, or fear of such outbreaks, weather and climate-related events, such as hurricanes, tornadoes, floods, wildfires, and droughts, and natural or man-made disasters; (iii) inflation and inflationary pressures which increases labor costs and other costs of providing services to guests and complying with hotel brand standards, as well as costs related to construction and other capital expenditures, property and other taxes, and insurance costs which could result in reduced operating profit margins; (iv) bank failures and concerns over a  potential domestic and/or global recession; (v) the Company's dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly; (vi) risks associated with the hotel industry, including competition, increases in wages and benefits, energy costs and other operating costs, cyber incidents, information technology failures, downturns in general and local economic conditions, prolonged periods of civil unrest in our markets, and disruption caused by cancellation of or delays in the completion of anticipated demand generators; (vii) the availability and terms of financing and capital and the general volatility of securities markets; (viii) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws; (ix) interest rate increases; (x) ability to successfully negotiate amendments and covenant waivers with its unsecured and secured indebtedness; (xi) the Company's ability to comply with covenants, restrictions, and limitations in any existing or revised loan agreements with our unsecured and secured lenders; (xii) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs; (xiii) the possibility of uninsured or underinsured losses, including those relating to natural disasters, terrorism, government shutdowns and closures, civil unrest, or cyber incidents; (xiv) risks associated with redevelopment and repositioning projects, including disruption, delays and cost overruns; (xv) levels of spending in business and leisure segments as well as consumer confidence; (xvi) declines in occupancy and average daily rate; (xvii) the seasonal and cyclical nature of the real estate and hospitality businesses; (xviii) changes in distribution arrangements, such as through Internet travel intermediaries; (xix) relationships with labor unions and changes in labor laws, including increases to minimum wages and/or work rule requirements; (xx) the impact of changes in the tax code and uncertainty as to how some of those changes may be applied; (xxi) monthly cash expenditures and the uncertainty around predictions; (xxii) labor shortages; (xxiii) disruptions in supply chains resulting in delays or inability to procure required products; and (xiv) 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 Investor Relations section of Xenia's website. While not all the information that the Company posts to the Xenia 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 March 31, 2024 and December 31, 2023 ($ amounts in thousands, except per share data) March 31, 2024 December 31, 2023 Assets: (Unaudited) (Audited) Investment properties: Land $                      460,272 $                    460,307 Buildings and other improvements 3,130,465 3,097,711 Total $                   3,590,737 $                 3,558,018 Less: accumulated depreciation (994,906) (963,052) Net investment properties $                   2,595,831 $                 2,594,966 Cash and cash equivalents 140,109 164,725 Restricted cash and escrows 56,847 58,350 Accounts and rents receivable, net of allowance for doubtful accounts 41,320 32,432 Intangible assets, net of accumulated amortization 4,878 4,898 Other assets 62,881 46,856 Total assets $                   2,901,866 $                 2,902,227 Liabilities: Debt, net of loan premiums, discounts and unamortized deferred financing costs $                   1,395,096 $                 1,394,906 Accounts payable and accrued expenses 106,470 102,389 Distributions payable 12,577 10,788 Other liabilities 75,684 76,647 Total liabilities $                   1,589,827 $                 1,584,730 Commitments and Contingencies Stockholders' equity: Common stock, $0.01 par value, 500,000,000 shares authorized, 101,963,677 and 102,372,589 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively $                          1,020 $                        1,024 Additional paid in capital 1,928,667 1,934,775 Accumulated other comprehensive income 3,481 2,439 Accumulated distributions in excess of net earnings (650,702) (647,246) Total Company stockholders' equity $                   1,282,466 $                 1,290,992 Non-controlling interests 29,573 26,505 Total equity $                   1,312,039 $                 1,317,497 Total liabilities and equity $                   2,901,866 $                 2,902,227   Xenia Hotels & Resorts, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income For the Three Months Ended March 31, 2024 and 2023  ($ amounts in thousands, except per share data) Three Months Ended March 31, 2024 2023 (Unaudited) (Unaudited) Revenues: Rooms revenues $                153,124 $           153,645 Food and beverage revenues 92,773 96,124 Other revenues 21,591 19,204 Total revenues $                267,488 $           268,973 Expenses: Rooms expenses 38,193 36,203 Food and beverage expenses 60,480 60,687 Other direct expenses 6,087 5,698 Other indirect expenses 67,633 66,499 Management and franchise fees 10,633 10,189 Total hotel operating expenses $                183,026 $           179,276 Depreciation and amortization 31,964 33,741 Real estate taxes, personal property taxes and insurance 13,493 12,470 Ground lease expense 786 710 General and administrative expenses 10,258 8,783 Gain on business interruption insurance (745) — Other operating expenses 830 232 Impairment and other losses 250 — Total expenses $                239,862 $           235,212 Operating income $                  27,626 $             33,761 Other income 2,427 1,284 Interest expense (20,358) (22,134) Loss on extinguishment of debt — (1,140) Net income before income taxes $                    9,695 $             11,771 Income tax expense (728) (5,218) Net income $                    8,967 $                6,553 Net income attributable to non-controlling interests (433) (273) Net income attributable to common stockholders $                    8,534 $                6,280   Xenia Hotels & Resorts, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income - Continued For the Three Months Ended March 31, 2024 and 2023  ($ amounts in thousands, except per share data) Three Months Ended March 31, 2024 2023 (Unaudited) (Unaudited) Basic and diluted income per share: Net income per share available to common stockholders - basic and diluted $                      0.08 $                   0.06 Weighted-average number of common shares (basic) 101,959,418 111,777,894 Weighted-average number of common shares (diluted) 102,364,928 112,037,369 Comprehensive income: Net income $                    8,967 $                6,553 Other comprehensive income: Unrealized gain on interest rate derivative instruments 2,259 — Reclassification adjustment for amounts recognized in net income (interest expense) (1,132) — $                  10,094 $                6,553 Comprehensive income attributable to non-controlling interests (518) (273) Comprehensive income attributable to the Company $                    9,576 $                6,280     Non-GAAP Financial Measures The Company considers the following non-GAAP financial measures to be useful to investors ...