Q2 2024 Xenia Hotels & Resorts Inc Earnings Call Transcript

Aug 02, 2024 / 03:00PM GMT

Release Date Price: $13.28 (-2.64%)

Transcript 10-Q8-K

Key Points

Positve

Xenia Hotels & Resorts Inc (XHR) reported meaningful RevPAR growth in the second quarter, driven by improvements in corporate transient and group demand.
The transformational renovation of Hyatt Regency Scottsdale is on track, with excitement building for its relaunch as the luxury Grand Hyatt Scottsdale Resort.
The company successfully sold the Lorien Hotel & Spa for $30 million, representing a 21.3 times multiple on hotel EBITDA, reflecting prudent capital allocation.
Group room revenues, excluding Hyatt Regency Scottsdale, increased by 5% compared to the second quarter last year, indicating strong group demand recovery.
Xenia Hotels & Resorts Inc (XHR) maintains a strong balance sheet with significant unencumbered assets and ample liquidity, positioning it well for future opportunities.

Negative

Hotel EBITDA margin in the second quarter was lower than projected, contributing to adjusted EBITDAre being approximately $2 million below internal estimates.
The renovation disruption at Hyatt Regency Scottsdale continues to be a substantial headwind, impacting year-over-year comparisons negatively.
Same-property hotel EBITDA decreased by 7.5% compared to 2023 levels, with a margin decline of 238 basis points.
Leisure demand softened during the quarter, impacting overall portfolio performance.
The company has slightly reduced its estimates for adjusted EBITDAre for 2024 due to recent operating results and greater uncertainty regarding market performance in the second half of the year.

Operator

Hello, all. And welcome to Xenia Hotels & Resorts second-quarter 2024 earnings conference call. My name is Lydia. And I will be your operator today. (Operator Instructions)

I'll now hand you over to Aldo Martinez, Manager of Finance, to begin. Please go ahead.

Aldo Martinez

Xenia Hotels & Resorts Inc - Manager of Finance

Thank you, Lydia. And welcome to Xenia Hotels & Resorts second-quarter 2024 earnings call and webcast. I'm here with Marcel Verbaas, our Chair and Chief Executive Officer; Barry Bloom, our President and Chief Operating Officer; and Atish Shah, our Executive Vice President and Chief Financial Officer. Marcel will begin with a discussion on our performance. Barry will follow with more details on operating trends and capital expenditure projects. And Atish will conclude today's remarks with commentary on our balance sheet and outlook. We will then open the call for Q&A.

Before we get started, let me remind everyone that certain statements made on this call are not historical facts and are considered forward

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