Xenia Q2 2023 Earnings Report
Key Takeaways
Xenia Hotels & Resorts reported a decrease in net income and adjusted EBITDAre for the second quarter of 2023, impacted by softer leisure demand, weather, and ongoing renovations. However, the portfolio experienced a shift to a more traditional mix of demand segments, with strong RevPAR growth in corporate transient and group-focused hotels.
Net income attributable to common stockholders was $13.8 million, or $0.12 per share.
Adjusted EBITDAre decreased 15.7% compared to the second quarter of 2022, totaling $74.7 million.
Same-Property RevPAR decreased 2.0% to $182.49 compared to the second quarter of 2022.
The company repurchased 2,539,888 shares of common stock at a weighted-average price of $12.58 per share for a total consideration of approximately $31.9 million.
Xenia
Xenia
Forward Guidance
The Company has updated its full year outlook. The broad 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.
Positive Outlook
- Net Income: $5 million to $25 million
- Same-Property (32 Hotel) RevPAR Change (vs. 2022): 4% to 6%
- Adjusted EBITDAre: $244 million to $264 million
- Adjusted FFO: $158 million to $178 million
- Adjusted FFO per Diluted Share: $1.42 to $1.60
Challenges Ahead
- 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 - 50 basis points higher than prior guidance.
- These renovations are estimated to result in a negative impact of approximately $18 million to Adjusted EBITDAre and Adjusted FFO - $3 million higher than 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 $83 million, excluding non-cash loan related costs - a decrease of approximately $2 million from prior guidance
- Income tax expense of approximately $3 million - a decrease of approximately $1 million from prior guidance