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Sep 30, 2020
Xenia Q3 2020 Earnings Report
Xenia's third quarter performance was impacted by the COVID-19 pandemic, with strategic actions taken to strengthen the balance sheet and bolster liquidity.
Key Takeaways
Xenia Hotels & Resorts reported a net loss of $52.3 million for the third quarter of 2020, with significant impacts from the COVID-19 pandemic. The company focused on strengthening its balance sheet through strategic asset sales and financing activities, maintaining liquidity, and reducing operating expenses. Despite the challenging environment, operational results improved through October, with occupancy reaching approximately 33% and ADR at approximately $189.
36 of the Company's 37 hotels and resorts are open and operating as of October 30, 2020.
The company has approximately $600 million in liquidity, including cash and availability under its revolving credit facility.
The company completed the sale of Residence Inn Boston Cambridge and Marriott Napa Valley Hotel & Spa in October.
The waiver period for financial covenants under the company's revolving credit facility has been extended through year-end 2021.
Xenia
Xenia
Forward Guidance
The company does not expect to issue earnings guidance until it has more clarity on industry fundamentals and trends. However, the company is providing guidance on certain corporate expenses.
Positive Outlook
- General and administrative expenses are projected to be approximately $18 million, excluding non-cash share-based compensation and non-recurring restructuring costs.
- Interest expense is projected to be approximately $59 million, excluding non-cash loan related costs.
- Interest expense reflects the recent issuance of $500 million of senior secured notes and all completed loan pay downs.
- Capital expenditures are projected to be approximately $70 million.
- The company completed the majority of its transformational renovation at Park Hyatt Aviara Resort, Golf Club & Spa and reopened the resort on September 30, 2020.
Challenges Ahead
- The recovery is likely to continue to be gradual and choppy before the wide availability of effective COVID-19 vaccines and therapeutics
- Net loss attributable to common stockholders for the three months ended September 30, 2020 was $52.3 million.
- Adjusted EBITDAre for the three months ended September 30, 2020 was $(21.1) million.
- Adjusted FFO per diluted share was $(0.27) for the three months ended September 30, 2020.
- The company recorded a non-cash impairment charge of $8.9 million related to Renaissance Austin Hotel.