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ORLANDO, Fla., Oct. 30, 2020 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced results for the quarter ended September 30, 2020.
Company Highlights
- 36 of the Company's 37 hotels and resorts are open and operating, representing approximately 95% of the Company's total room count, as of October 30, 2020.
- Currently the Company has approximately $600 million of liquidity, including cash and cash equivalents and availability under its revolving credit facility. The Company's estimate of average monthly recurring net cash expenses has been reduced to approximately $14.5 million, including debt service and excluding capital expenditures, assuming no changes in current levels of demand. Additionally, the Company has no debt maturities until 2023.
- In October the Company completed the sale of Residence Inn Boston Cambridge for $107.5 million and Marriott Napa Valley Hotel & Spa for $100.1 million. Additionally, the Company entered into two separate agreements to sell Renaissance Austin Hotel and Hotel Commonwealth for $70 million and $113 million, respectively.
- The waiver period for the testing of the financial covenants under the Company's revolving credit facility and remaining term loans has been extended through year-end 2021, with relaxed financial covenants through the first quarter of 2023.
- As of October 28, 2020, preliminary operational results have continued to improve at the 36 open and operating hotels with occupancy of approximately 33% and an ADR of approximately $189, resulting in RevPAR of approximately $63.
Third Quarter and Year to Date 2020 Highlights
- Hotel Status: The Company had 31 hotels open and operating for the entire third quarter. At the end of the third quarter, 37 of the Company's 39 hotels were open and operating. One additional hotel recommenced operations and two hotels were sold in October 2020. Currently, Hyatt Regency Portland at the Oregon Convention Center is the Company's only hotel with suspended operations.
- Net Loss: Net loss attributable to common stockholders for the three months ended September 30, 2020 was $52.3 million, or $0.46 per share. Net loss attributable to common stockholders for the nine months ended September 30, 2020 was $187.6 million, or $1.66 per share.
- Adjusted EBITDAre: Adjusted EBITDAre for the three and nine months ended September 30, 2020 was $(21.1) million and $(41.6) million, respectively.
- Adjusted FFO per Diluted Share: Adjusted FFO per diluted share was $(0.27) and $(0.58) for the three and nine months ended September 30, 2020, respectively.
- Financing Activity: In the third quarter, the Company issued $300 million of senior secured notes maturing in August 2025 and utilized the net proceeds to repay a portion of the Company's revolving credit facility and a portion of its two term loans maturing in 2022. Concurrently with the notes offering, the Company effectuated amendments to each of its corporate credit agreements. Subsequent to quarter end, the Company completed a $200 million add-on notes offering at a slight premium to par.
"Our decisive actions since the beginning of the pandemic have allowed us to significantly strengthen our balance sheet and bolster our liquidity as we continue to operate in a very challenging environment," commented Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "As a result of our strategic actions over the past several years, we came into this crisis with several key advantages that continue to serve us well. Our geographic diversification with an emphasis on Sunbelt locations and a focus on key leisure destinations has resulted in us now having 36 of our 37 hotels and resorts open and operating, with 12 of these properties achieving positive Hotel EBITDA in the third quarter. Our flexible balance sheet and proven financial track record helped provide us with the opportunity to issue $500 million of senior secured notes, eliminating all near-term debt maturities. Our outstanding relationships with our lender group resulted in collaborative negotiations as we obtained covenant waivers through 2021, relaxed covenants through first quarter 2023, and obtained a 2-year extension of our revolving credit facility. Our recent capital investments allowed us to significantly reduce our planned capital expenditures without altering the growth outlook for our portfolio. And, our collection of high-quality desirable assets has proven to be an efficient source of liquidity, as we have been able to negotiate various dispositions at attractive pricing while not negatively impacting the long-term strategic plan for the Company."
"We continue to appreciate the dedication and efforts of all of our operators' associates at our hotels and resorts during these difficult times in our industry. Our operators continue to do an outstanding job minimizing expenses while accessing all potential sources of demand. While the recovery is likely to continue to be gradual and choppy before the wide availability of effective COVID-19 vaccines and therapeutics, we are encouraged by recent demand trends as our occupancy has continued to improve at our open hotels through the month of October despite an increase in COVID-19 cases in many parts of the country," continued Mr. Verbaas. "We continue to believe that our efforts before and during this pandemic to shape our portfolio and balance sheet have positioned us well to deal with these short-term challenges, and we are optimistic about the opportunities that we believe will exist to drive internal and external growth during the inevitable recovery."
Operating Results
The Company's results include the following:
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||
($ amounts in thousands, except hotel statistics and per share amounts) | |||||||||||||||||||||
Net income (loss) attributable to | $ | (52,344) | $ | 10,315 | (607.5) | % | $ | (187,608) | $ | 39,791 | (571.5) | % | |||||||||
Net income (loss) per share available | $ | (0.46) | $ | 0.09 | (611.1) | % | $ | (1.66) | $ | 0.35 | (574.3) | % | |||||||||
Same-Property Number of Hotels | 38 | 38 | — | 38 | 38 | — | |||||||||||||||
Same-Property Number of Rooms | 10,645 | 10,645 | — | 10,645 | 10,645 | — | |||||||||||||||
Same-Property Occupancy(2) | 24.7 | % | 76.9 | % | (5,221) | bps | 28.5 | % | 77.7 | % | (4,915) | bps | |||||||||
Same-Property Average Daily Rate(2) | $ | 169.77 | $ | 216.15 | (21.5) | % | $ | 205.21 | $ | 225.12 | (8.8) | % | |||||||||
Same-Property RevPAR(2) | $ | 41.95 | $ | 166.26 | (74.8) | % | $ | 58.49 | $ | 174.82 | (66.5) | % | |||||||||
Same-Property Hotel EBITDA(2)(3) | $ | (15,541) | $ | 65,325 | (123.8) | % | $ | (23,603) | $ | 240,343 | (109.8) | % | |||||||||
Same-Property Hotel EBITDA | (24.4) | % | 25.2 | % | (4,958) | bps | (8.1) | % | 28.6 | % | (3,674) | bps | |||||||||
Total Portfolio Number of Hotels(4) | 39 | 40 | (1) | 39 | 40 | (1) | |||||||||||||||
Total Portfolio Number of Rooms(4) | 11,245 | 11,167 | 78 | 11,245 | 11,167 | 78 | |||||||||||||||
Total Portfolio RevPAR(5) | $ | 39.71 | $ | 164.25 | (75.8) | % | $ | 56.00 | $ | 171.85 | (67.4) | % | |||||||||
Adjusted EBITDAre(3) | $ | (21,121) | $ | 62,579 | (133.8) | % | $ | (41,637) | $ | 230,123 | (118.1) | % | |||||||||
Adjusted FFO(3) | $ | (30,557) | $ | 53,330 | (157.3) | % | $ | (66,184) | $ | 184,848 | (135.8) | % | |||||||||
Adjusted FFO per diluted share | $ | (0.27) | $ | 0.47 | (157.4) | % | $ | (0.58) | $ | 1.62 | (135.8) | % | |||||||||
(1) | Net loss for the three and nine months ended September 30, 2020 reflects the impact of $8.9 million and $29.0 million of non-cash impairment charges, respectively. |
(2) | "Same-Property" includes all hotels owned as of September 30, 2020, except for Hyatt Regency Portland at the Oregon Convention Center, which commenced operations in late December 2019. Includes hotels that had temporarily suspended operations for a portion of the three and nine months ended September 30, 2020, as if all hotels rooms were available for sale. "Same-Property" also includes disruption from the COVID-19 pandemic in 2020 and renovation disruption for multiple capital projects during the periods presented, and excludes the NOI guaranty payment at Andaz San Diego. |
(3) | See tables later in this press release for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, and Same-Property Hotel EBITDA. EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, Same-Property Hotel EBITDA, and Same-Property Hotel EBITDA Margin are non-GAAP financial measures. During the third quarter of 2020, the Company changed the year-to-date presentation of Adjusted EBITDAre and Adjusted FFO to exclude income attributed to deposits recognized from terminated transactions as it was considered non-recurring investment activities, which included $2.0 million of other income that was recognized in the second quarter of 2020. |
(4) | As of end of periods presented. |
(5) | Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company. Includes hotels that had temporarily suspended operations for a portion of the three and nine months ended September 30, 2020, as if all hotels rooms were available for sale. |
Operations Update
As of September 30, 2020, 37 of the Company's 39 hotels and resorts were open and operating.
The following table provides operating information for the Company's portfolio during the third quarter. This information includes only the days the hotels and resorts were open and operating during the periods presented, categorized by timing of recommencement of operations.
July | August | September | Third Quarter | |||||||||
8 Hotels that Never Suspended Operations in 2020(1) | ||||||||||||
Number of Hotels | 8 | 8 | 8 | 8 | ||||||||
Number of Rooms | 1,345 | 1,345 | 1,345 | 1,345 | ||||||||
Occupancy | 30.0 | % | 35.6 | % | 37.9 | % | 34.5 | % | ||||
Average Daily Rate | $ | 157.74 | $ | 165.97 | $ | 170.00 | $ | 165.00 | ||||
RevPAR | $ | 47.39 | $ | 59.07 | $ | 64.40 | $ | 56.87 | ||||
5 Hotels that Recommenced Operations in May | ||||||||||||
Number of Hotels | 5 | 5 | 5 | 5 | ||||||||
Number of Rooms | 495 | 495 | 495 | 495 | ||||||||
Occupancy | 47.7 | % | 48.4 | % | 55.1 | % | 50.4 | % | ||||
Average Daily Rate | $ | 203.52 | $ | 205.16 | $ | 220.86 | $ | 210.24 | ||||
RevPAR | $ | 97.11 | $ | 99.27 | $ | 121.78 | $ | 105.88 | ||||
13 Hotels that Recommenced Operations in June(2) | ||||||||||||
Number of Hotels | 13 | 13 | 13 | 13 | ||||||||
Number of Rooms | 5,049 | 5,049 | 5,049 | 5,049 | ||||||||
Occupancy | 22.5 | % | 27.2 | % | 31.4 | % | 27.0 | % | ||||
Average Daily Rate | $ | 162.03 | $ | 161.38 | $ | 155.69 | $ | 159.40 | ||||
RevPAR | $ | 36.51 | $ | 43.90 | $ | 48.91 | $ | 43.05 | ||||
9 Hotels that Recommenced Operations in July | ||||||||||||
Number of Hotels | 9 | 9 | 9 | 9 | ||||||||
Number of Rooms | 2,455 | 2,455 | 2,455 | 2,455 | ||||||||
Occupancy | 15.9 | % | 28.0 | % | 26.5 | % | 24.3 | % | ||||
Average Daily Rate | $ | 193.49 | $ | 175.57 | $ | 186.54 | $ | 182.92 | ||||
RevPAR | $ | 30.73 | $ | 49.17 | $ | 49.36 | $ | 44.53 | ||||
All Properties Operating during Some or All of the Quarter(1,2,3) | ||||||||||||
Number of Hotels | 35 | 35 | 37 | 37 | ||||||||
Number of Rooms | 9,344 | 9,344 | 10,176 | 10,176 | ||||||||
Occupancy | 23.9 | % | 29.7 | % | 31.6 | % | 28.5 | % | ||||
Average Daily Rate | $ | 170.04 | $ | 169.45 | $ | 169.45 | $ | 169.60 |
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