The following is a summary of the Xenia Hotels & Resorts, Inc. (XHR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Xenia Hotels & Resorts reported a net loss of $7.1 million for Q3 2024, with Adjusted EBITDARe at $44.3 million and adjusted FFO per share at $0.25.
Same-property RevPAR for the 31-hotel portfolio increased by 1.5% for the quarter, driven by strong results at recently renovated properties like Grand Bohemian Hotel Orlando, Canary Hotel Santa Barbara, and Hotel Monaco Salt Lake City.
Third quarter hotel EBITDA decreased by 6.3% year-over-year on a same-property basis, with a 200 basis point decline in hotel EBITDA margin.
Business Progress:
Xenia successfully completed the upbranding and renovation of the former Hyatt Regency Scottsdale to Grand Hyatt Scottsdale Resort, enhancing guest rooms, spa, meeting space, lobby, and new restaurant offerings in collaboration with celebrity chef Richard Blais.
The company sold the Lorien Hotel & Spa for $30 million, reflecting a strategic portfolio optimization.
Xenia anticipates the continued improvement and growth of the Grand Hyatt Scottsdale, predicting significant contributions to earnings growth in the coming years.
Capital expenditure for 2024 is projected at $130 million to $140 million, focused on property improvements and infrastructure upgrades.
Opportunities:
The reopening and the rebranding of the Grand Hyatt Scottsdale Resort provide significant opportunities for enhanced revenue and market positioning. Expected to contribute to earnings growth over the next few years, this includes catering to high demand for group revenues, especially given the luxury upgrades and expansions such as the new ballroom space.
Risks:
Financial results were impacted by softer leisure demand and hurricanes affecting properties, leading to RevPAR declines in several locations including San Diego, Nashville, and New Orleans. Additionally, unexpected renovation disruptions, particularly in Scottsdale, resulted in greater financial impact than projected.
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