On February 25, 2025, Xenia Hotels & Resorts Inc (XHR, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. Xenia Hotels & Resorts Inc is a real estate investment trust specializing in premium full-service, lifestyle, and urban upscale hotels and resorts across the United States. The company collaborates with renowned brands such as Marriott, Hilton, and Hyatt, among others.
Quarterly and Annual Financial Performance
For the fourth quarter of 2024, Xenia reported a net loss attributable to common stockholders of $0.6 million, or $0.01 per share, which fell short of the analyst estimate of $0.02 per share. However, the company's revenue for the quarter was $261.85 million, slightly below the estimated $263.55 million. The full-year net income was $16.1 million, or $0.15 per share, which also missed the annual EPS estimate of $0.19. The annual revenue was $1.039 billion, matching the estimated $1.039 billion.
Key Metrics and Operational Highlights
Despite the net loss, Xenia's Same-Property RevPAR (Revenue per Available Room) increased by 5.1% in Q4 2024 compared to the same period in 2023, reaching $165.92. Excluding the Grand Hyatt Scottsdale Resort, which underwent significant renovations, RevPAR was $168.34, marking a 3.4% increase. The Same-Property Occupancy rose by 250 basis points to 64.4%, and the Average Daily Rate (ADR) increased by 1.0% to $257.52.
For the full year, Same-Property RevPAR increased by 1.6% to $172.47, with occupancy improving by 230 basis points to 67.4%. However, the ADR decreased by 1.9% to $255.72. The company's Adjusted EBITDAre for the year was $237.1 million, a 5.8% decrease from 2023, while Adjusted FFO per Diluted Share increased by 3.2% to $1.59.
Financial Achievements and Challenges
Xenia's financial activities included upsizing and extending its corporate credit facility to $825 million, comprising a $500 million revolving line of credit and $325 million in term loans, maturing in November 2028. The company also issued $400 million of 6.625% Senior Notes maturing in May 2030, using the proceeds to repay existing notes due in August 2025.
Despite these achievements, Xenia faced challenges with a decrease in Same-Property Hotel EBITDA by 0.6% in Q4 and 5.5% for the full year. The EBITDA margin also declined by 120 basis points in Q4 and 189 basis points for the year, indicating pressure on profitability.
Strategic Developments and Future Outlook
Xenia completed significant renovations at the Grand Hyatt Scottsdale Resort, which is expected to drive future cash flow. The company also repurchased 1,130,846 shares of common stock in 2024, reflecting confidence in its long-term value.
We are pleased to have finished a challenging 2024 with positive momentum in the fourth quarter, both from a portfolio performance perspective and through the completion of the significant capital improvement projects that weighed on our portfolio results during the year," said Marcel Verbaas, Chair and CEO of Xenia.
Looking ahead, Xenia anticipates continued RevPAR growth, driven by the renovated properties and strong group revenue pace. The company remains optimistic about its growth prospects despite economic uncertainties.
Conclusion
Xenia Hotels & Resorts Inc's 2024 performance reflects a mix of strategic achievements and operational challenges. While the company missed EPS estimates, its revenue growth and strategic investments position it for potential future gains. Investors will be keen to see how Xenia leverages its renovated properties and financial strategies to enhance shareholder value in 2025.
Explore the complete 8-K earnings release (here) from Xenia Hotels & Resorts Inc for further details.
