Xenia Hotels & Resorts (XHR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net loss was $7.1 million ($0.07 per share), a 16.3% year-over-year improvement; year-to-date net income was $16.8 million ($0.16 per share), up 46.1% from 2023.

• Adjusted EBITDAre for Q3 2024 was $44.3 million, down 4.4% year-over-year; Adjusted FFO per share was $0.25, down 3.8%.

• Portfolio RevPAR increased 1.5%–1.6% year-over-year to $161.20, with occupancy up 320 bps to 67% and ADR down 3.3% to $240.72.

• Major renovation and upbranding of Grand Hyatt Scottsdale Resort completed and relaunched in November 2024.

• Sold Lorien Hotel & Spa for $30 million, realizing a $1.6 million gain and a 21.3x EBITDA multiple.

Financial highlights

• Q3 2024 total revenues were $236.8 million, up 2.1% year-over-year; year-to-date revenues were $777.2 million, up 0.7%.

• Q3 same-property hotel EBITDA was $48.1 million, down 6.3% year-over-year; margin decreased 200 bps to 20.3%.

• Year-to-date same-property hotel EBITDA was $192.5 million, down 7.0%; margin decreased 210 bps to 24.9%.

• Q3 Adjusted FFO was $26.1 million; year-to-date Adjusted FFO was $125.3 million.

• Food and beverage revenue grew nearly 5%, but margin declined 15 bps due to higher costs.

Outlook and guidance

• Full-year 2024 Adjusted EBITDAre guidance: $234–$242 million; Adjusted FFO: $160–$168 million; net income: $9–$17 million.

• Same-property RevPAR growth expected at 1.25%–2.25%; excluding Scottsdale, 2.75%–3.75%.

• Capital expenditures projected at $130–$140 million, with $70–$75 million allocated to Grand Hyatt Scottsdale Resort.

• Group revenue pace for November–December up over 10%; transient revenue pace up over 6%.

• Group revenue pace for 2025 up nearly 20%; excluding Scottsdale, up mid-teens percent.