Xenia Hotels & Resorts Reports Q3 2023 Results

November 1, 2023

Xenia Hotels & Resorts, Inc. (NYSE: XHR) yesterday announced results for the quarter ended September 30, 2023.

Third Quarter 2023 Highlights

  • Net Income: Net loss attributable to common stockholders was $8.5 million, or $0.08 per share
  • Adjusted EBITDAre: $46.3 million, decreased 13.9% compared to the third quarter of 2022
  • Adjusted FFO per Diluted Share: $0.26, decreased $0.05 compared to the third quarter of 2022
  • Same-Property Occupancy: 63.8%, increased 70 basis points compared to the third quarter of 2022
  • Same-Property ADR: $248.58, decreased 0.6% compared to the third quarter of 2022
  • Same-Property RevPAR: $158.48, increased 0.4% compared to the third quarter of 2022. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, which is undergoing a transformative renovation, RevPAR was $166.14, an increase of 4.0% compared to the third quarter of 2022.
  • Same-Property Hotel Net Income: $16.1 million, decreased 14.7% compared to the third quarter of 2022. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, which is undergoing a transformative renovation, Hotel Net Income was $20.9 million, an increase of 14.2% compared to the third quarter of 2022.
  • Same-Property Hotel EBITDA: $51.2 million, decreased 7.9% compared to the third quarter of 2022
  • Same-Property Hotel EBITDA Margin: 22.1%, decreased 169 basis points compared to the third quarter of 2022. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, which is undergoing a transformative renovation, Hotel EBITDA Margin was 23.4%, a decrease of 60 basis points compared to the third quarter of 2022.
  • Capital Markets Activities & Dividends: The Company repurchased a total of 2,070,777 shares of common stock at a weighted-average price of $12.09 per share for a total consideration of approximately $25.0 million. The Company also completed open market repurchases, and subsequently retired, a total of approximately $5.3 million in the aggregate principal amount of its 6.375% Senior Notes due August 2025. The Company declared its third quarter dividend of $0.10 per share to common stockholders of record on September 29, 2023.

“Third quarter results met our expectations as continued positive momentum in business transient and group demand was offset by moderating leisure demand and on-going renovation activity,” said Marcel Verbaas, Chair and Chief Executive Officer of Xenia. “In the quarter, RevPAR at our Same-Property portfolio increased 0.4% as compared to the third quarter of 2022. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, RevPAR increased 4.0% as compared to the third quarter of 2022, despite the results at Grand Bohemian Hotel Orlando and Kimpton Hotel Monaco Salt Lake City also being negatively impacted by the disruption from their significant renovation projects. Overall results in the quarter benefited from solid RevPAR growth in our Texas markets and the two newest additions to our portfolio as Houston, Dallas, Portland and Nashville each achieved double-digit percentage RevPAR growth, while our properties in Pittsburgh and San Francisco also performed well, with RevPAR growth of 8.9% and 7.9%, respectively, for the quarter.”

“Looking ahead, based on recent RevPAR trends and preliminary October results we have revised our full-year outlook to reflect moderately reduced expectations for the fourth quarter,” continued Mr. Verbaas. “In October, we estimate that our Same-Property portfolio generated RevPAR of approximately $191, or 2.3% below the same month in 2022. We estimate that Same-Property occupancy was approximately 70% and ADR approximately $273. Excluding Hyatt Regency Scottsdale, preliminary October RevPAR is estimated to be approximately 2.4% above the same month in 2022, further highlighting the impact of this transformative renovation on our near-term results. However, we are pleased with the continued execution of our major capital improvement projects, as the Salt Lake City project has been completed, the Orlando project is nearing completion in the days ahead and the Scottsdale project is progressing as planned. We remain optimistic that these recently completed and on-going renovations will drive attractive returns in the years to come.”

Operating Results

The Company’s results include the following:

Three Months Ended September 30,

2023

2022

Change

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

Net income (loss) attributable to common stockholders

$               (8,529)

$               (1,663)

(412.9) %

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

$                 (0.08)

$                 (0.01)

(700.0) %

Same-Property Number of Hotels(1)

32

32

—

Same-Property Number of Rooms(1)(5)

9,511

9,508

3

Same-Property Occupancy(1)

63.8 %

63.1 %

                     70  bps

Same-Property Average Daily Rate(1)

$               248.58

$               250.16

(0.6) %

Same-Property RevPAR(1)

$               158.48

$               157.91

0.4 %

Same-Property Hotel Net Income(1)

$               16,055

$               18,822

(14.7) %

Same-Property Hotel EBITDA(1)(2)

$               51,221

$               55,607

(7.9) %

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

22.1 %

23.8 %

                 (169) bps

Total Portfolio Number of Hotels(3)

32

34

(2)

Total Portfolio Number of Rooms(3)(5)

9,511

9,812

(301)

Total Portfolio RevPAR(4)

$               158.48

$               157.91

0.4 %

Adjusted EBITDAre(2)

$               46,330

$               53,836

(13.9) %

Adjusted FFO(2)

$               28,708

$               35,590

(19.3) %

Adjusted FFO per diluted share(2)

$                   0.26

$                   0.31

(16.1) %

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes renovation disruption for multiple capital projects during the periods presented.

2.

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.

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.

5.

Three rooms were added at The Ritz-Carlton, Denver in April 2023.

Nine Months Ended September 30,

2023

2022

Change

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

Net income (loss) attributable to common stockholders

$               11,543

$               20,661

(44.1) %

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

$                    0.10

$                    0.18

(44.4) %

Same-Property Number of Hotels(1)

32

32

—

Same-Property Number of Rooms(1)(5)

9,511

9,508

3

Same-Property Occupancy(1)

66.1 %

62.7 %

                   340  bps

Same-Property Average Daily Rate(1)

$               262.24

$               260.13

0.8 %

Same-Property RevPAR(1)

$               173.43

$               163.04

6.4 %

Same-Property Hotel Net Income(1)

$             100,443

$               97,690

2.8 %

Same-Property Hotel EBITDA(1)(2)

$             207,808

$             206,080

0.8 %

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

26.9 %

28.5 %

                 (154) bps

Total Portfolio Number of Hotels(3)

32

34

(2)

Total Portfolio Number of Rooms(3)(5)

9,511

9,812

(301)

Total Portfolio RevPAR(4)

$               173.43

$               162.69

6.6 %

Adjusted EBITDAre(2)

$             192,298

$             192,405

(0.1) %

Adjusted FFO(2)

$             126,166

$             130,708

(3.5) %

Adjusted FFO per diluted share(2)

$                    1.13

$                    1.13

— %

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented. “Same-Property” also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

2.

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.

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.

5.

Three rooms were added at The Ritz-Carlton, Denver in April 2023.

Liquidity and Balance Sheet

As of September 30, 2023, the Company had total outstanding debt of approximately $1.4 billion with a weighted-average interest rate of 5.46%. The Company had approximately $219 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 $669 million as of September 30, 2023. In addition, the Company held approximately $57 million of restricted cash and escrows at the end of the third quarter.

The Company has no debt maturities until August 2025 and maintains full availability on its revolving line of credit.

Capital Markets

In the third quarter, the Company repurchased a total of 2,070,777 shares of common stock at a weighted-average price of $12.09 per share for a total consideration of approximately $25.0 million.

In the fourth quarter-to-date, the Company repurchased an additional 849,762 shares of common stock at a weighted-average price of $11.77 per share for total consideration of approximately $10.0 million. The Company currently has $72.7 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 September 30, 2023.

Also in the third quarter, the Company repurchased in the open market, and subsequently retired, a total of approximately $5.3 million in the aggregate principal amount of its 6.375% Senior Notes due August 2025 for a total consideration of $5.2 million exclusive of accrued interest.

Capital Expenditures

During the three and nine months ended September 30, 2023, the Company invested $35.5 million and $69.5 million in portfolio improvements, respectively. Significant projects in the Company’s portfolio include:

  • Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch – In June, commenced the transformative renovation and upbranding of the 491-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch to a Grand Hyatt with completion of all phases expected by the end of 2024. Upon completion, the property will have five additional keys, or 496 rooms.
  • Grand Bohemian Hotel Orlando, Autograph Collection – Earlier in the year, completed the comprehensive renovation of public spaces including meeting space, lobby, restaurant, bar, Starbucks, and creation of a rooftop bar. A comprehensive renovation of the guest rooms began in the second quarter and is expected to be completed in early November.
  • Park Hyatt Aviara Resort, Golf Club & Spa – Completed the significant upgrade to the resort’s spa and wellness amenities which have reopened as a Miraval Life in Balance Spa.
  • Kimpton Hotel Monaco Salt Lake City – Completed the comprehensive renovation of meeting space, lobby, restaurant, bar and guest rooms in the third quarter.

Current Full Year 2023 Outlook and Guidance

The Company has updated its full year 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 updated 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 September 30, 2023.

Current Full Year 2023 Guidance

Variance to Prior Guidance

Low End

High End

Low End

High End

($ in millions, except stats and per share data)

Net Income

$10

$18

$5

$(7)

Same-Property (32 Hotel) RevPAR Change (vs. 2022)

4.0 %

5.0 %

— %

(1.0) %

Adjusted EBITDAre

$246

$254

$2

$(10)

Adjusted FFO

$163

$171

$5

$(7)

Adjusted FFO per Diluted Share

$1.48

$1.55

$0.06

$(0.05)

Capital Expenditures

$120

$130

$—

$(10)

Current full year 2023 guidance is inclusive of the following assumptions:

  • Renovation disruption is estimated to result in a negative impact of 250 basis points to Same-Property (32 Hotel) RevPAR Change based on the scope and timing of capital improvement projects – no change from prior guidance. In addition, the Company expects disruption to non-room revenues. These renovations are estimated to result in a negative impact of approximately $18 million to Adjusted EBITDAre and Adjusted FFO – no change 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 $82 million, excluding non-cash loan related costs – a decrease of approximately $1 million from prior guidance
  • Income tax expense of approximately $2 million – a decrease of approximately $1 million from prior guidance
  • 110.4 million weighted-average diluted shares/units – a decrease of 0.6 million shares/units from prior guidance due to share repurchases during the year

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 9,511 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.

Xenia Hotels & Resorts, Inc.

Condensed Consolidated Balance Sheets

As of September 30, 2023 and December 31, 2022

($ amounts in thousands, except per share data)

September 30, 2023

December 31, 2022

Assets

(Unaudited)

(Audited)

Investment properties:

Land

$                      460,327

$                    460,536

Buildings and other improvements

3,157,652

3,086,785

Total

$                   3,617,979

$                 3,547,321

Less: accumulated depreciation

(1,045,656)

(945,786)

Net investment properties

$                   2,572,323

$                 2,601,535

Cash and cash equivalents

219,165

305,103

Restricted cash and escrows

56,940

60,807

Accounts and rents receivable, net of allowance for doubtful accounts

39,195

37,562

Intangible assets, net of accumulated amortization

4,939

5,060

Other assets

70,154

69,988

Total assets

$                   2,962,716

$                 3,080,055

Liabilities

Debt, net of loan premiums, discounts and unamortized deferred financing costs

$                   1,394,684

$                 1,429,105

Accounts payable and accrued expenses

107,363

107,097

Distributions payable

10,870

11,455

Other liabilities

78,852

72,390

Total liabilities

$                   1,591,769

$                 1,620,047

Commitments and Contingencies

Stockholders’ equity

Common stock, $0.01 par value, 500,000,000 shares authorized, 106,050,821 and 112,519,672 shares issued and

outstanding as of September 30, 2023 and December 31, 2022, respectively

$                           1,061

$                        1,126

Additional paid in capital

1,980,706

2,063,273

Accumulated other comprehensive income

5,779

—

Accumulated distributions in excess of net earnings

(644,287)

(623,216)

Total Company stockholders’ equity

$                   1,343,259

$                 1,441,183

Non-controlling interests

27,688

18,825

Total equity

$                   1,370,947

$                 1,460,008

Total liabilities and equity

$                   2,962,716

$                 3,080,055

Xenia Hotels & Resorts, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three and Nine Months Ended September 30, 2023 and 2022

(Unaudited)

 ($ amounts in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2023

2022

2023

2022

Revenues:

Rooms revenues

$          138,668

$       142,604

$         450,255

$         431,382

Food and beverage revenues

71,815

76,153

259,972

240,669

Other revenues

21,541

21,911

61,836

62,415

Total revenues

$          232,024

$       240,668

$         772,063

$         734,466

Expenses:

Rooms expenses

35,510

36,163

108,866

101,803

Food and beverage expenses

53,769

55,888

174,445

161,796

Other direct expenses

5,835

6,155

17,547

17,815

Other indirect expenses

65,142

64,590

197,896

181,509

Management and franchise fees

7,403

9,083

26,818

27,758

Total hotel operating expenses

$          167,659

$       171,879

$         525,572

$         490,681

Depreciation and amortization

33,094

34,311

100,325

99,127

Real estate taxes, personal property taxes and insurance

12,918

11,228

38,196

33,452

Ground lease expense

751

685

2,245

2,035

General and administrative expenses

9,625

9,059

28,380

25,603

Gain on business interruption insurance

(218)

(2,487)

(218)

(2,487)

Other operating expenses (credit)

206

(87)

816

238

Impairment and other losses

—

—

—

1,278

Total expenses

$          224,035

$       224,588

$         695,316

$         649,927

Operating income

$              7,989

$         16,080

$           76,747

$           84,539

Other income

2,031

1,767

6,212

2,671

Interest expense

(20,524)

(20,583)

(64,308)

(61,474)

Loss on extinguishment of debt

(20)

—

(1,189)

(294)

Net income (loss) before income taxes

$          (10,524)

$          (2,736)

$           17,462

$           25,442

Income tax (expense) benefit

1,639

1,029

(5,382)

(4,148)

Net income (loss)

$            (8,885)

$          (1,707)

$           12,080

$           21,294

Net (income) loss attributable to non-controlling interests

356

44

(537)

(633)

Net income (loss) attributable to common stockholders

$            (8,529)

$          (1,663)

$           11,543

$           20,661

Xenia Hotels & Resorts, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) – Continued

For the Three and Nine Months Ended September 30, 2023 and 2022

(Unaudited)

 ($ amounts in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2023

2022

2023

2022

Basic and diluted income (loss) per share:

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

$                (0.08)

$            (0.01)

$              0.10

$               0.18

Weighted-average number of common shares (basic)

107,006,690

114,322,269

109,345,761

114,334,110

Weighted-average number of common shares (diluted)

107,006,690

114,322,269

109,568,449

114,719,309

Comprehensive income (loss):

Net income (loss)

$              (8,885)

$          (1,707)

$          12,080

$          21,294

Other comprehensive income (loss):

Unrealized gain on interest rate derivative instruments

1,676

36

7,582

2,932

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

(1,083)

(147)

(1,543)

1,697

$              (8,292)

$          (1,818)

$          18,119

$          25,923

Comprehensive (income) loss attributable to non-controlling interests

325

47

(797)

(1,079)

Comprehensive income (loss) attributable to the Company

$              (7,967)

$          (1,771)

$          17,322

$          24,844

Non-GAAP Financial Measures

The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDAre, Same-Property Hotel EBITDA, Same-Property Hotel EBITDA Margin, FFO, Adjusted FFO, and Adjusted FFO per diluted share. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss, operating profit, cash from operations, or any other operating performance measure as prescribed per GAAP.

EBITDA, EBITDAre and Adjusted EBITDAre

EBITDA is a commonly used measure of performance in many industries and is defined as net income or loss (calculated in accordance with GAAP) excluding interest expense, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization. The Company considers EBITDA useful to investors in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our 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, is used by management in the annual budget process for compensation programs.

We calculate EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines EBITDAre as EBITDA plus or minus losses and gains on the disposition of depreciated property, including gains or losses on change of control, plus impairments of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates.

We further adjust EBITDAre to exclude the impact of non-controlling interests in consolidated entities other than our Operating Partnership Units because our Operating Partnership Units may be redeemed for common stock. We also adjust EBITDAre for certain additional items such as depreciation and amortization related to corporate assets, terminated transaction and pre-opening expenses, amortization of share-based compensation, non-cash ground rent and straight-line rent expense, the cumulative effect of changes in accounting principles, and other costs we believe do not represent recurring operations and are not indicative of the performance of our underlying hotel property entities. We believe it is meaningful for investors to understand Adjusted EBITDAre attributable to all common stock and unit holders. We believe Adjusted EBITDAre attributable to common stock and unit holders provides investors with another useful 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 investors 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 hotel(s) during the acquisition due diligence process and have not been audited or reviewed by our independent auditors. We further adjust the Same-Property hotel data to remove dispositions during the respective reporting periods, and, in certain cases, hotels that are not fully open due to significant renovation, re-positioning, or disruption or whose room counts have materially changed during either the current or prior year as these historical operating results are not indicative of or expected to be comparable to the operating performance of our hotel portfolio on a prospective basis.

Same-Property Hotel EBITDA represents net income or loss excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate-level costs and expenses, (5) terminated transaction and pre-opening expenses, 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 expense), our asset base (primarily depreciation and amortization), income taxes, and our corporate-level expenses (corporate expenses and terminated transaction costs). We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and the effectiveness of our third-party management companies that operate our business on a property-level basis. Same-Property Hotel EBITDA Margin is calculated by dividing Same-Property Hotel EBITDA by Same-Property Total Revenues.

As a result of these adjustments the Same-Property hotel data we present does not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our consolidated statements of operations and comprehensive income include such amounts, all of which should be considered by investors when evaluating our performance.

We include Same-Property hotel data as supplemental information for investors. Management believes that providing Same-Property hotel data is useful to investors because it represents comparable operations for our portfolio as it exists at the end of the respective reporting periods presented, which allows investors and management to evaluate the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at Same-Property hotels or from other factors, such as the effect of acquisitions or dispositions.

FFO and Adjusted FFO

The Company calculates FFO in accordance with standards established by Nareit, as amended in the December 2018 restatement white paper, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, amortization and impairments, gains or losses from sales of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and consolidated variable interest entities, 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 or 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 investors to understand FFO attributable to common stock and unit holders.

We further adjust FFO for certain additional items that are not in Nareit’s definition of FFO such as terminated transaction and pre-opening expenses, amortization of debt origination costs and share-based compensation, non-cash ground rent and straight-line rent expense, and other items we believe do not represent recurring operations. We believe that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors’ complete understanding of our operating performance.

Adjusted FFO per diluted share

The diluted weighted-average common share count used for the calculation of Adjusted FFO per diluted share differs from diluted weighted-average common share count used to derive net income or loss per share available to common stockholders. The Company calculates Adjusted FFO per diluted share by dividing the Adjusted FFO by the diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA

For the Three Months Ended September 30, 2023 and 2022

(Unaudited)

($ amounts in thousands)

Three Months Ended September 30,

2023

2022

Net loss

$                     (8,885)

$                  (1,707)

Adjustments:

Interest expense

20,524

20,583

Income tax benefit

(1,639)

(1,029)

Depreciation and amortization

33,094

34,311

EBITDA and EBITDAre

$                     43,094

$                 52,158

Reconciliation to Adjusted EBITDAre

Depreciation and amortization related to corporate assets

$                           (94)

$                     (105)

Gain on insurance recoveries(1)

—

(1,037)

Loss on extinguishment of debt

20

—

Amortization of share-based compensation expense

3,302

2,813

Non-cash ground rent and straight-line rent expense

8

3

Other non-recurring expenses

—

4

Adjusted EBITDAre attributable to common stock and unit holders

$                     46,330

$                 53,836

Corporate-level costs and expenses

4,662

3,490

Pro forma hotel adjustments, net(2)

229

(1,719)

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

$                     51,221

$                 55,607

1.

During the three months ended September 30, 2022, the Company recorded $1.0 million of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. This gain on insurance recovery is included in other income on the condensed consolidated statement of operations and comprehensive loss for the period then ended.

2.

Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented.

3.

See the reconciliation of Total Revenues and Total Hotel Operating Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the three months ended September 30, 2023 and 2022 on page 18.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA

For the Nine Months Ended September 30, 2023 and 2022

(Unaudited)

($ amounts in thousands)

Nine Months Ended September 30,

2023

2022

Net income

$                12,080

$                21,294

Adjustments:

Interest expense

64,308

61,474

Income tax expense

5,382

4,148

Depreciation and amortization

100,325

99,127

EBITDA and EBITDAre

$              182,095

$              186,043

Reconciliation to Adjusted EBITDAre

Depreciation and amortization related to corporate assets

$                   (270)

$                   (311)

Gain on insurance recoveries(1)

(535)

(3,550)

Loss on extinguishment of debt

1,189

294

Amortization of share-based compensation expense

9,861

8,598

Non-cash ground rent and straight-line rent expense

(42)

35

Other non-recurring expenses(2)

—

1,296

Adjusted EBITDAre attributable to common stock and unit holders

$              192,298

$              192,405

Corporate-level costs and expenses

15,496

18,123

Pro forma hotel level adjustments, net(3)

14

(4,448)

Same-Property Hotel EBITDA attributable to common stock and unit holders(4)

$              207,808

$              206,080

1.

During the nine months ended September 30, 2023 and 2022, the Company recorded $0.5 million and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. These gains on insurance recovery are included in other income on the condensed consolidated statements of operations and comprehensive income for the periods then ended.

2.

During the nine months ended September 30, 2022, the Company recorded hurricane-related repair and cleanup costs of $1.3 million which is included in impairment and other losses on the condensed consolidated statement of operations and comprehensive income for the period then ended.

3.

Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. Includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

4.

See the reconciliation of Total Revenues and Total Hotel Operating Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the nine months ended September 30, 2023 and 2022 on page 18.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

For the Three Months Ended September 30, 2023 and 2022

(Unaudited)

(amounts in thousands)

Three Months Ended September 30,

2023

2022

Net loss

$              (8,885)

$                    (1,707)

Adjustments:

Depreciation and amortization related to investment properties

33,000

34,206

FFO attributable to common stock and unit holders

$              24,115

$                   32,499

Reconciliation to Adjusted FFO

Gain on insurance recoveries(1)

—

(1,037)

Loss on extinguishment of debt

20

—

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

1,263

1,308

Amortization of share-based compensation expense

3,302

2,813

Non-cash ground rent and straight-line rent expense

8

3

Other non-recurring expenses

—

4

Adjusted FFO attributable to common stock and unit holders

$              28,708

$                   35,590

Weighted-average shares outstanding – Diluted(3)

108,867

115,421

Adjusted FFO per diluted share

$                  0.26

$                        0.31

1.

During the three months ended September 30, 2022, the Company recorded $1.0 million of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. This gain on insurance recovery is included in other income on the condensed consolidated statement of operations and comprehensive loss for the period then ended.

2.

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

3.

Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units for the respective periods presented in thousands.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

For the Nine Months Ended September 30, 2023 and 2022

(Unaudited)

($ amounts in thousands)

Nine Months Ended September 30,

2023

2022

Net income

$                12,080

$                21,294

Adjustments:

Depreciation and amortization related to investment properties

100,055

98,816

FFO attributable to common stock and unit holders

$              112,135

$              120,110

Reconciliation to Adjusted FFO

Gain on insurance recoveries(1)

(535)

(3,550)

Loss on extinguishment of debt

1,189

294

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

3,558

3,925

Amortization of share-based compensation expense

9,861

8,598

Non-cash ground rent and straight-line rent expense

(42)

35

Other non-recurring expenses(3)

—

1,296

Adjusted FFO attributable to common stock and unit holders

$              126,166

$              130,708

Weighted-average shares outstanding – Diluted(4)

111,380

115,781

Adjusted FFO per diluted share

$                     1.13

$                     1.13

1.

During the nine months ended September 30, 2023 and 2022, the Company recorded $0.5 million and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. These gains on insurance recovery are included in other income on the condensed consolidated statements of operations and comprehensive income (loss) for the periods then ended.

2.

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

3.

During the nine months ended September 30, 2022, the Company recorded hurricane-related repair and cleanup costs of $1.3 million which is included in impairment and other losses on the condensed consolidated statement of operations and comprehensive income for the period then ended.

4.

Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership units for the respective periods presented in thousands.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to Adjusted EBITDAre

for Current Full Year 2023 Guidance

($ amounts in millions)

Guidance Midpoint

Net income

$                14

Adjustments:

Interest expense(1)

86

Income tax expense

2

Depreciation and amortization

135

EBITDA and EBITDAre

$             237

Amortization of share-based compensation expense

12

Other(2)

1

Adjusted EBITDAre

$             250

Reconciliation of Net Income to Adjusted FFO

for Current Full Year 2023 Guidance

($ amounts in millions)

Guidance Midpoint

Net income

$                14

Adjustments:

Depreciation and amortization related to investment properties

135

FFO

$             149

Amortization of share-based compensation expense

12

Other(3)

6

Adjusted FFO

$             167

1.

Includes non-cash loan related costs.

2.

Includes loss on extinguishment of debt and depreciation of corporate assets.

3.

Includes loan cost amortization and loss on extinguishment of debt.

Xenia Hotels & Resorts, Inc.

Debt Summary as of September 30, 2023

(Unaudited)

($ amounts in thousands)

Rate Type

Rate(1)

Maturity Date

 

Outstanding as

of September 30, 2023

Mortgage Loans

Grand Bohemian Hotel Orlando, Autograph Collection

Fixed

4.53 %

March 2026

$                 54,818

Marriott San Francisco Airport Waterfront

Fixed

4.63 %

May 2027

108,630

Andaz Napa(2)

    Fixed(2)

5.72 %

January 2028

55,000

Total Mortgage Loans

4.88 %

(3)

$               218,448

Corporate Credit Facilities

Corporate Credit Facility Term Loan(4)

   Fixed(5)

5.45 %

March 2026

$               125,000

Corporate Credit Facility Term Loan(4)

   Fixed(5)

5.45 %

March 2026

100,000

Revolving Line of Credit(6)

Variable

7.02 %

January 2027

—

Total Corporate Credit Facilities

$               225,000

2020 Senior Notes

Fixed

6.38 %

August 2025

464,747

2021 Senior Notes

Fixed

4.88 %

June 2029

500,000

Loan premiums, discounts and unamortized deferred financing costs, net(7)

(13,511)

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

5.46 %

(3)

$            1,394,684

1.

Represents annual interest rates.

2.

A variable interest loan for which SOFR has been fixed through January 1, 2027, after which the rate reverts to variable.

3.

Weighted-average interest rate.

4.

A variable interest loan for which the credit spread may vary, as it is determined by the Company’s leverage ratio.

5.

A variable interest loan for which SOFR has been fixed through mid-February 2025, after which the rate reverts to variable.

6.

The Revolving Line of Credit had undrawn capacity of $450 million. The spread to SOFR may vary, as it is determined by the Company’s leverage ratio.

7.

Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization.

Xenia Hotels & Resorts, Inc.

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

For the Three and Nine Months Ended September 30, 2023 and 2022

($ amounts in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

Change

2023

2022

Change

Same-Property Occupancy(1)

63.8 %

63.1 %

               70   bps

66.1 %

62.7 %

            340   bps

Same-Property Average Daily Rate(1)

$       248.58

$       250.16

(0.6) %

$       262.24

$       260.13

0.8 %

Same-Property RevPAR(1)

$       158.48

$       157.91

0.4 %

$       173.43

$       163.04

6.4 %

Same-Property Revenues(1):

Rooms revenues

$    138,668

$    138,184

0.4 %

$    450,255

$    423,293

6.4 %

Food and beverage revenues

71,815

74,260

(3.3) %

259,991

239,282

8.7 %

Other revenues

21,541

21,524

0.1 %

61,836

61,699

0.2 %

Total Same-Property revenues

$    232,024

$    233,968

(0.8) %

$    772,082

$    724,274

6.6 %

Same-Property Expenses(1):

Rooms expenses

$       35,510

$       35,164

1.0 %

$    108,831

$    100,128

8.7 %

Food and beverage expenses

53,769

54,416

(1.2) %

174,403

161,061

8.3 %

Other direct expenses

5,835

6,030

(3.2) %

17,577

17,551

0.1 %

Other indirect expenses

64,605

62,359

3.6 %

196,152

177,723

10.4 %

Management and franchise fees

7,403

8,791

(15.8) %

26,819

27,108

(1.1) %

Real estate taxes, personal property taxes and insurance

12,918

10,902

18.5 %

38,208

32,548

17.4 %

Ground lease expense

763

699

9.2 %

2,284

2,075

10.1 %

Total Same-Property hotel operating expenses

$    180,803

$    178,361

1.4 %

$    564,274

$    518,194

8.9 %

Same-Property Hotel EBITDA(1)

$       51,221

$       55,607

(7.9) %

$    207,808

$    206,080

0.8 %

Same-Property Hotel EBITDA Margin(1)

22.1 %

23.8 %

          (169)   bps

26.9 %

28.5 %

          (154)   bps

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and includes disruption from the COVID-19 pandemic in the nine months ended September 30, 2022 and renovation disruption for multiple capital projects during the periods presented. “Same-Property” also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022. The following is a reconciliation of Total Revenues and Total Hotel Operating Expenses consolidated on a GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

2023

2022

Total Revenues – GAAP

$                        232,024

$                     240,668

$                     772,063

$                      734,466

Pro forma hotel level adjustments(a)

—

(6,700)

19

(10,192)

Total Same-Property Revenues

$                        232,024

$                     233,968

$                     772,082

$                      724,274

Total Hotel Operating Expenses – GAAP

$                        167,659

$                     171,879

$                     525,572

$                      490,681

Real estate taxes, personal property taxes and insurance

12,918

11,228

38,196

33,452

Ground lease expense, net(b)

765

699

2,284

2,075

Other income

(148)

(74)

(223)

(195)

Corporate-level costs and expenses

(370)

(407)

(1,350)

(1,271)

Pro forma hotel level adjustments, net(a)

(21)

(4,964)

(205)

(6,548)

Total Same-Property Hotel Operating Expenses

$                        180,803

$                     178,361

$                     564,274

$                      518,194

a.

Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. Includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

b.

Excludes non-cash ground rent expense.

Xenia Hotels & Resorts, Inc.

Same-Property(1) Historical Operating Data and Reconciliation to Hotel Net Income (Loss)

($ amounts in thousands, except ADR and RevPAR)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2023

2023

2023

2023

2023

Occupancy

66.1 %

68.6 %

63.8 %

ADR

$       271.79

$          265.98

$          248.58

RevPAR

$       179.55

$          182.49

$          158.48

Hotel Revenues

$     268,992

$       271,066

$       232,024

Hotel Net Income (Loss) – GAAP

$       40,797

$          43,591

$          16,055

Interest Expense

3,255

2,945

2,726

Depreciation & Amortization

33,150

32,849

32,440

Hotel EBITDA

$      77,202

$        79,385

$        51,221

Hotel EBITDA Margin

28.7 %

29.3 %

22.1 %

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2022

2022

2022

2022

2022

Occupancy

56.1 %

68.7 %

63.1 %

62.4 %

62.6 %

ADR

$       258.36

$          270.81

$          250.16

$          261.70

$          260.52

RevPAR

$       144.92

$          186.16

$          157.91

$          163.32

$          163.11

Hotel Revenues

$     213,726

$       276,580

$       233,968

$       259,804

$       984,078

Hotel Net Income (Loss) – GAAP

$       22,055

$          56,813

$          18,822

$          32,557

$       130,247

Interest Expense

3,155

3,171

3,936

4,098

14,360

Depreciation & Amortization

32,565

32,715

32,849

32,878

131,007

Hotel EBITDA

$      57,775

$        92,699

$        55,607

$        69,533

$      275,614

Hotel EBITDA Margin

27.0 %

33.5 %

23.8 %

26.8 %

28.0 %

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented. “Same-Property” also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the three months ended March 31, 2022 and the year ended December 31, 2022.

Xenia Hotels & Resorts, Inc.

Same-Property(1) Historical Operating Data and Reconciliation to Hotel Net Income (Loss)

Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch

($ amounts in thousands, except ADR and RevPAR)

Third Quarter

2023

Occupancy

66.8 %

ADR

$          248.57

RevPAR

$          166.14

Hotel Revenues

$       229,889

Hotel Net Income (Loss) – GAAP

$          20,919

Interest Expense

2,726

Depreciation & Amortization

30,244

Hotel EBITDA

$        53,889

Hotel EBITDA Margin

23.4 %

Third Quarter

2022

Occupancy

63.9 %

ADR

$          250.17

RevPAR

$          159.80

Hotel Revenues

$       220,632

Hotel Net Income (Loss) – GAAP

$          18,310

Interest Expense

3,936

Depreciation & Amortization

30,688

Hotel EBITDA

$        52,934

Hotel EBITDA Margin

24.0 %

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented.

Xenia Hotels & Resorts, Inc.

Same-Property(1) Portfolio Data by Market (2022)

 

Market(2)

% of 2022

Hotel Net Income

(Loss) – GAAP

% of 2022

Hotel EBITDA(3)

Number of

Hotels

Number of

Rooms (4)(5)

Phoenix, AZ

21 %

14 %

2

610

Orlando, FL

16 %

14 %

2

1,026

Houston, TX

9 %

11 %

3

1,220

San Diego, CA

8 %

8 %

2

486

Dallas, TX

10 %

7 %

2

961

Atlanta, GA

5 %

6 %

2

649

Florida Keys, FL

9 %

5 %

1

120

Nashville, TN

(2) %

4 %

1

346

San Francisco/San Mateo, CA

2 %

4 %

1

688

California North, CA

4 %

3 %

1

141

Portland, OR

— %

3 %

2

685

Savannah, GA

5 %

3 %

2

226

Washington, DC-MD-VA

(1) %

3 %

2

472

Denver, CO

2 %

2 %

1

205

San Jose/Santa Cruz, CA

2 %

2 %

1

505

Salt Lake City/Ogden, UT

2 %

2 %

1

225

Birmingham, AL

2 %

2 %

1

99

Pittsburgh, PA

2 %

2 %

1

185

Louisiana South, LA

1 %

2 %

1

285

Philadelphia, PA

1 %

1 %

1

230

California Central Coast, CA

1 %

1 %

1

97

Charleston, SC

1 %

1 %

1

50

Same-Property Portfolio(1)

100 %

100 %

32

9,511

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the period presented. “Same-Property” also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the year ended December 31, 2022.

2.

As defined by STR, Inc.

3.

Hotel EBITDA, Same-Property Hotel EBITDA, and Hotel EBITDA Margin are non-GAAP financial measures. See definitions earlier in this press release for how we define these non-GAAP financial measures and the table on page 24 for reconciliations from Hotel Net Income (Loss) to Hotel Earnings Before Interest, Taxes, Depreciation and Amortization (“Hotel EBITDA”) and Same-Property Hotel EBITDA.

4.

As of September 30, 2023.

5.

Two rooms at Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch were removed from inventory in 2022 and three rooms at The Ritz-Carlton, Denver were added in April 2023.

Xenia Hotels & Resorts, Inc.

Same-Property(1) Portfolio Data by Market (2022)

For the Three Months Ended September 30, 2023 and 2022

Three Months Ended

Three Months Ended

September 30, 2023

September 30, 2022

% Change

Market(2)

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Phoenix, AZ

15.6 %

$    291.19

$       45.31

49.1 %

$    267.69

$    131.35

(65.5) %

Orlando, FL

65.1 %

191.34

124.66

71.4 %

187.74

134.13

(7.1) %

Houston, TX

55.9 %

214.40

119.77

46.6 %

205.07

95.64

25.2 %

San Diego, CA

70.7 %

418.47

295.77

64.0 %

444.37

284.36

4.0 %

Dallas, TX

63.7 %

182.17

116.10

58.9 %

172.75

101.70

14.2 %

Atlanta, GA

66.4 %

245.50

163.03

69.1 %

237.54

164.05

(0.6) %

Florida Keys, FL

85.4 %

377.26

322.01

75.6 %

418.72

316.39

1.8 %

Nashville, TN

69.8 %

375.66

262.39

56.2 %

397.92

223.70

17.3 %

San Francisco/San Mateo, CA

82.9 %

209.44

173.67

75.7 %

212.74

161.00

7.9 %

California North, CA

72.4 %

444.51

321.80

79.2 %

485.62

384.73

(16.4) %

Portland, OR

71.8 %

197.77

142.03

59.1 %

201.78

119.21

19.1 %

Savannah, GA

76.1 %

225.47

171.49

81.8 %

245.76

201.04

(14.7) %

Washington, DC-MD-VA

67.4 %

240.76

162.18

67.9 %

233.96

158.79

2.1 %

Denver, CO

75.2 %

387.40

291.15

76.1 %

378.56

288.26

1.0 %

San Jose/Santa Cruz, CA

57.1 %

237.92

135.83

57.2 %

227.18

129.92

4.5 %

Salt Lake City/Ogden, UT

48.2 %

215.04

103.75

66.6 %

217.13

144.59

(28.2) %

Birmingham, AL

78.0 %

330.79

258.04

77.6 %

314.00

243.60

5.9 %

Pittsburgh, PA

78.1 %

291.05

227.18

72.1 %

289.24

208.57

8.9 %

Louisiana South, LA

59.8 %

165.36

98.92

55.3 %

184.82

102.17

(3.2) %

Philadelphia, PA

73.0 %

217.35

158.77

73.2 %

221.33

162.08

(2.0) %

California Central Coast, CA

83.8 %

479.09

401.25

84.3 %

520.78

438.90

(8.6) %

Charleston, SC

82.1 %

360.27

295.89

74.7 %

377.23

281.78

5.0 %

Same-Property(1) Portfolio

63.8 %

$   248.58

$   158.48

63.1 %

$   250.16

$   157.91

0.4 %

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes renovation disruption for multiple capital projects during the periods presented.

2.

As defined by STR, Inc.

Xenia Hotels & Resorts, Inc.

Same-Property(1) Portfolio Data by Market (2022)

For the Nine Months Ended September 30, 2023 and 2022

Nine Months Ended

Nine Months Ended

September 30, 2023

September 30, 2022

% Change

Market(2)

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Phoenix, AZ

47.2 %

$    432.29

$    203.84

61.6 %

$    380.29

$    234.08

(12.9) %

Orlando, FL

74.0 %

230.02

170.18

74.8 %

217.93

163.08

4.4 %

Houston, TX

61.6 %

227.03

139.80

52.4 %

210.61

110.32

26.7 %

San Diego, CA

62.6 %

385.18

240.94

58.9 %

405.38

238.72

0.9 %

Dallas, TX

66.6 %

192.65

128.23

60.1 %

177.19

106.51

20.4 %

Atlanta, GA

68.7 %

236.30

162.41

63.8 %

226.88

144.66

12.3 %

Florida Keys, FL

85.0 %

541.22

459.87

87.5 %

602.63

527.15

(12.8) %

Nashville, TN

66.1 %

381.82

252.49

56.0 %

385.56

215.93

16.9 %

San Francisco/San Mateo, CA

80.6 %

205.13

165.29

73.4 %

195.32

143.31

15.3 %

California North, CA

67.6 %

428.77

289.84

74.5 %

453.66

338.11

(14.3) %

Portland, OR

66.2 %

198.25

131.21

52.2 %

198.49

103.58

26.7 %

Savannah, GA

80.0 %

265.51

212.32

82.5 %

268.50

221.60

(4.2) %

Washington, DC-MD-VA

66.1 %

257.64

170.33

62.3 %

251.90

156.92

8.5 %

Denver, CO

69.9 %

363.14

253.75

66.7 %

371.24

247.51

2.5 %

San Jose/Santa Cruz, CA

54.2 %

239.98

130.06

52.2 %

215.61

112.45

15.7 %

Salt Lake City/Ogden, UT

51.3 %

217.41

111.61

63.8 %

225.61

143.87

(22.4) %

Birmingham, AL

78.5 %

334.77

262.94

79.6 %

318.61

253.59

3.7 %

Pittsburgh, PA

69.0 %

270.14

186.43

63.9 %

274.19

175.11

6.5 %

Louisiana South, LA

60.6 %

205.91

124.81

57.2 %

227.08

129.85

(3.9) %

Philadelphia, PA

71.1 %

221.16

157.17

63.5 %

220.35

139.95

12.3 %

California Central Coast, CA

62.8 %

449.00

281.77

67.6 %

485.84

328.35

(14.2) %

Charleston, SC

81.4 %

406.39

330.97

79.4 %

406.83

323.14

2.4 %

Same-Property(1) Portfolio

66.1 %

$   262.24

$   173.43

62.7 %

$   260.13

$   163.04

6.4 %

1.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic in the nine months ended September 30, 2022 and renovation disruption for multiple capital projects during the periods presented. “Same-Property” also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

2.

As defined by STR, Inc.

Xenia Hotels & Resorts, Inc.

Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA by Market (2022)

For the Year Ended December 31, 2022

For the Year Ended December 31, 2022

Market(1)

Keys(2)

Total

Revenues

($000s)

Hotel Net

Income (Loss)

GAAP

($000s)

Plus:

Interest

Expense

($000s)

Plus: Depr.

& Amort.

($000s)

Equals:

Hotel

EBITDA

($000s)

Phoenix, AZ

610

$      108,750

$            27,262

$                —

$         11,841

$        39,103

Orlando, FL

1,026

121,107

20,357

2,619

15,119

38,095

Houston, TX

1,220

88,764

11,612

—

17,730

29,342

San Diego, CA

486

101,527

10,451

—

12,523

22,974

Dallas, TX

961

63,142

12,530

—

6,024

18,554

Atlanta, GA

649

56,939

6,291

4,048

6,642

16,981

Florida Keys, FL

120

28,481

11,536

—

1,605

13,141

Nashville, TN

346

52,211

(2,194)

—

14,070

11,876

San Francisco/San Mateo, CA

688

48,463

2,909

5,226

3,386

11,521

California North, CA

141

21,246

5,168

2,072

1,546

8,786

Portland, OR

685

39,654

(272)

—

9,035

8,763

Savannah, GA

226

26,113

5,767

229

2,756

8,752

Washington, DC-MD-VA

472

45,217

(829)

166

7,608

6,945

Denver, CO

205

34,124

2,414

—

4,149

6,563

San Jose/Santa Cruz, CA

505

34,268

1,877

—

3,725

5,602

Salt Lake City/Ogden, UT

225

15,531

2,948

—

1,904

4,852

Birmingham, AL

99

16,592

3,191

—

1,280

4,471

Pittsburgh, PA

185

19,945

2,943

—

1,410

4,353

Louisiana South, LA

285

19,056

1,526

—

2,765

4,291

Xenia Hotels & Resorts, Inc.

Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA by Market (2022) – Continued

For the Year Ended December 31, 2022

For the Year Ended December 31, 2022

Market(1)

Keys(2)

Total

Revenues

($000s)

Hotel Net

Income (Loss)

GAAP

($000s)

Plus:

Interest

Expense

($000s)

Plus: Depr.

& Amort.

($000s)

Equals:

Hotel

EBITDA

($000s)

Philadelphia, PA

230

$        16,144

$                 952

$                —

$            3,003

$          3,955

California Central Coast, CA

97

15,540

1,895

—

2,046

3,941

Charleston, SC

50

11,264

1,913

—

840

2,753

Same-Property Portfolio(3)

9,511

$     984,078

$        130,247

$       14,360

$      131,007

$    275,614

1.

As defined by STR, Inc.

2.

As of September 30, 2023.

3.

“Same-Property” includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the period presented. “Same-Property” also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the year ended December 31, 2022.

SOURCE Xenia Hotels & Resorts, Inc.

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