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Xenia Hotels & Resorts: Fourth Quarter and Full Year 2024 Results Overview

Xenia Hotels & Resorts, Inc. (NYSE: XHR) has announced its financial performance for the fourth quarter and the entirety of 2024, showcasing key achievements and metrics affecting investors and stakeholders alike.

Fourth Quarter Highlights

In the last quarter of 2024, Xenia reported a net loss attributable to common stockholders of $0.6 million, translating to a loss of $0.01 per share. Despite these challenges, the company recorded an adjusted EBITDA of $59.2 million, marking a slight decrease of 0.5% when compared to the same quarter of 2023.

Occupancy rates for same-property hotels saw an increase to 64.4%, up 250 basis points year-over-year. The adjusted funds from operations (FFO) dropped to $0.39 per diluted share, a 4.9% decline from the previous year’s figure. Notably, the average daily rate (ADR) for same-property hotels rose by 1% to $257.52, while revenue per available room (RevPAR) increased by 5.1% to $165.92. This growth was partly attributed to the completion of substantial renovations at the Grand Hyatt Scottsdale Resort.

In the realm of financing, Xenia successfully upsized and extended its corporate credit facility to $825 million, which includes $500 million in revolving credit and $325 million in term loans, maturing in November 2028. Furthermore, the company engaged in capital management activities, repurchasing approximately 515,876 shares at an average price of $14.83.

Full Year Financial Performance

For the entire year of 2024, Xenia reported a net income of $16.1 million or $0.15 per share, though reflecting a decrease compared to 2023. The adjusted EBITDA for the full year was noted at $237.1 million, down 5.8% from the previous year.

The same-property occupancy rate enhanced to 67.4%, which signifies a growth of 230 basis points compared to 2023, even though the same-property ADR dipped slightly by 1.9%. The RevPAR saw a modest increase of 1.6% to $172.47, demonstrating a steady demand recovery from business transient and group segments.

Strategic Renovations and Future Outlook

Marcel Verbaas, the company’s Chair and CEO, expressed optimism despite the challenging economic landscape and declared that the transformative renovations at the Grand Hyatt Scottsdale Resort have concluded. With an enhanced Arizona Ballroom now operational, Xenia is set to harness the potential revenue from the upscale facility in 2025. Verbaas highlighted that the growth in RevPAR within diverse markets indicates a comeback in demand for hotel services, especially from regions like Phoenix and Nashville.

For 2025, guidance reflects expectations of modest growth, with projected same-property RevPAR increases between 3.5% to 6.5%. Operations are poised to benefit from continued renovations and strategic management transitions across several high-performing properties.

Xenia’s financial position remains robust with $668 million in liquidity as of December 31, 2024, positioning the firm well for upcoming strategic possibilities. The company aims to maintain its path towards resilience, keeping stakeholders informed through its ongoing capital markets endeavors both in terms of debt management and shareholder returns.

In conclusion, while the financials and market conditions bring forth challenges, Xenia Hotels & Resorts appears resolute, pushing forward with careful planning and strategic positioning to drive future growth and improve shareholder value.