Xenia Hotels Results

Xenia Hotels & Resorts Fourth Quarter and Full Year 2016 Net Income Declines

Xenia Hotels & Resorts Reports Fourth Quarter and Full Year 2016 Results

Xenia Hotels

Xenia Hotels & Resorts, Inc. (NYSE:  XHR) today announced results for the fourth quarter and full year ended December 31, 2016.  

Fourth Quarter 2016 Highlights

  • Net Income: Net income attributable to common stockholders was $48.8 million and net income per diluted share was $0.44, decreases of 21.1% and 20.0%, respectively, compared to the fourth quarter of 2015, partially due to a difference in the gain on sale of investment properties of $13.6 million. 
  • Same-Property RevPAR: Same-Property RevPAR decreased 4.2% compared to the fourth quarter of 2015 to $138.37, as occupancy declined 194 basis points and ADR decreased 1.5%. Excluding the Company's Houston-area hotels, Same-Property RevPAR decreased 1.9%, as occupancy declined 105 basis points and ADR decreased 0.5%. 
  • Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 30.9%, a decrease of 116 basis points compared to the fourth quarter of 2015. Excluding the Company's Houston-area hotels, Same-Property Hotel EBITDA Margin decreased 71 basis points. 
  • Total Portfolio RevPAR: Total Portfolio RevPAR was 0.9% higher than in the fourth quarter of 2015, reflecting improvements in portfolio composition. 
  • Adjusted EBITDA: Adjusted EBITDA declined $9.1 million to $64.1 million, a decrease of 12.4% partially due to net asset dispositions since the fourth quarter of 2015. 
  • Adjusted FFO per Diluted Share: Adjusted FFO per diluted share decreased 1.8% to $0.55 per diluted share compared to the fourth quarter of 2015. 
  • Financing Activity: The Company paid off three mortgage loans totaling $130 million and modified two loans resulting in $41 million of incremental proceeds. 
  • Disposition Activity: The Company sold four hotels for total consideration of approximately $119 million. 
  • Dividends: The Company declared its fourth quarter dividend of $0.275 per share to common stockholders of record on December 30, 2016.

Full Year 2016 Highlights

  • Net Income: Net income attributable to common stockholders was $85.9 million, a 3.3% decrease compared to the prior year. 
  • Same-Property RevPAR: Same-Property RevPAR decreased 0.3% to $150.12, as occupancy declined 103 basis points while ADR increased 1.1%. Excluding the Company's Houston-area hotels, Same-Property RevPAR increased 1.9%, as occupancy remained flat and ADR increased 2.0%. 
  • Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 32.6%, an increase of 6 basis points compared to the full year 2015. Excluding the Company's Houston-area hotels, Same-Property Hotel EBITDA Margin grew 40 basis points during the year ended December 31, 2016. 
  • Total Portfolio RevPAR: Total Portfolio RevPAR increased 4.7%, reflecting improvements in portfolio composition. 
  • Adjusted EBITDA: Adjusted EBITDA was $287.3 million, a decrease of 1.9% over 2015. 
  • Adjusted FFO per Diluted Share: The Company generated Adjusted FFO per diluted share of $2.20, a 2.3% increase over 2015. 
  • Investment Activity: The Company made several improvements in portfolio composition. In January, the Company completed the acquisition of the 245-room Hotel Commonwealth in Boston, Massachusetts for a purchase price of $136 million. The Company sold nine hotels comprising 1,887 rooms for total consideration of $290 million. 
  • Financing Activity: The Company paid off $277 million of mortgage loans, refinanced or modified three loans resulting in $52 million of incremental proceeds, and fixed LIBOR on $139 million of variable rate debt. In addition, the $125 million term loan that was entered into in late 2015 was funded and the Company obtained a new $60 million mortgage loan collateralized by the Hotel Palomar Philadelphia. 
  • Share Repurchase Activity: The Company repurchased approximately 5.0 million shares of its common stock at a weighted average purchase price of $14.89 per share, or $74 million in total. 
  • Dividends: The Company declared $1.10 of dividends per share to common stockholders during 2016, which represented a 7.2% yield relative to the Company's stock price on December 31, 2015.

"Our portfolio performed in-line with our expectations during the fourth quarter, as Same-Property RevPAR came in toward the higher end of our implied guidance range and Adjusted FFO exceeded the top end of the range," commented Marcel Verbaas, President and Chief Executive Officer of Xenia.  "Our quarterly results were negatively impacted by the continued weakness in the Houston market, disruption due to renovations, and weak food and beverage revenues at several of our larger, group-oriented hotels.  Several non-recurring events in the fourth quarter of 2015 also impacted the year-over-year comparison. Despite a slight decline in Same-Property RevPAR for 2016, our dedicated asset management team remained focused on cost containment allowing us to maintain margins for the year.  Throughout the past year we have continued to solidify the foundation of our company as exemplified by the enhancements to portfolio quality and the fortitude of our balance sheet.  We have ample liquidity with over $215 million of cash on our balance sheet, full availability on our line of credit, and more than 55% of our hotels unencumbered by debt, all of which provide us flexibility to take advantage of opportunities as they arise."

Operating Results

The Company's results include the following:

 

Three Months Ended 

December 31,

Year Ended

 December 31,

2016

2015

Change

2016

2015

Change

($ amounts in thousands, except hotel statistics and per share amounts)

Net income attributable to common 

stockholders

$

48,760

$

61,781

(21.1)

%

$

85,855

$

88,746

(3.3)

%

Net income per share available to 

common stockholders

$

0.44

$

0.55

(20.0)

%

$

0.79

0.79

%

Same-Property Number of Hotels

39

39

39

39

Same-Property Number of Rooms

10,516

10,511

5

10,516

10,511

5

Same-Property Occupancy

70.8

%

72.8

%

(194 bps)

75.4

%

76.5

%

(103 bps)

Same-Property Average Daily Rate

$

195.39

$

198.44

(1.5)

%

$

199.01

$

196.87

1.1

%

Same-Property RevPAR

$

138.37

$

144.39

(4.2)

%

$

150.12

$

150.52

(0.3)

%

Same-Property Hotel EBITDA(1)

$

62,334

$

69,558

(10.4)

%

$

276,581

$

280,586

(1.4)

%

Same-Property Hotel EBITDA Margin(1)

30.9

%

32.1

%

(116 bps)

32.6

%

32.5

%

6 bps

Total Portfolio Number of Hotels(2)

42

50

(8)

42

50

(8)

Total Portfolio Number of Rooms(2)

10,911

12,548

(1,637)

10,911

12,548

(1,637)

Total Portfolio RevPAR(3)

$

139.30

$

138.07

0.9

%

$

149.32

$

142.59

4.7

%

Adjusted EBITDA(1)

$

64,126

$

73,187

(12.4)

%

$

287,328

$

293,010

(1.9)

%

Adjusted FFO(1)

$

59,396

$

63,508

(6.5)

%

$

238,252

$

241,632

(1.4)

%

Adjusted FFO per diluted share(1)

$

0.55

$

0.56

(1.8)

%

$

2.20

$

2.15

2.3

%

 

"Same-Property" includes all hotels owned as of December 31, 2016, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the Hotel Commonwealth, which underwent a significant expansion project in late 2015.  "Same-Property" includes periods prior to the Company's ownership of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia, and excludes the NOI guaranty payment at the Andaz San Diego.  "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented.

(1)

See tables later in this press release for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted EBITDA, Funds From Operations ("FFO"), Adjusted FFO, and Same-Property Hotel EBITDA.  EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Adjusted FFO per diluted share, Same-Property Hotel EBITDA, and Same-Property Hotel EBITDA Margin are non-GAAP financial measures. 

(2)

As of end of periods presented.

(3)

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.

Disposition Activity

As previously disclosed, in December the Company sold the 162-room Homewood Suites by Hilton Houston near the Galleria, the 148-room Hampton Inn & Suites Denver Downtown, the 178-room Hilton Garden Inn Chicago North Shore/Evanston and the 195-room Hilton St. Louis Downtown for an aggregate sale price of approximately $119 million.

During 2016, the Company sold nine hotels for approximately $290 million.  The dispositions allowed the Company to exit several non-core, low-growth markets including Gainesville, Florida and St. Louis, Missouri, as well as reduce exposure in Houston, Denver, and Chicago.  On average, the disposition hotels generated EBITDA per key 40% below the remaining portfolio.  The disposition hotels had an average RevPAR of approximately $110 for the trailing twelve months prior to sale, which is significantly below the $152.46 RevPAR for full year 2016 for hotels in the portfolio at year-end.

Financings and Balance Sheet

In the fourth quarter, the Company paid off three mortgage loans totaling $130 million, including the $13 million loan collateralized by the Courtyard Birmingham Downtown at UAB, the $83 million loan collateralized by the Renaissance Austin Hotel, and the $34 millionloan collateralized by the Marriott Griffin Gate Resort & Spa.   Additionally in the fourth quarter, the Company modified the loans collateralized by the Marriott Dallas City Center and the Hyatt Regency Santa Clara.  The amendments resulted in $11 million and $30 million of incremental proceeds, respectively, and extended the maturity dates to January 2022.

During 2016, the Company originated a new $60 million loan collateralized by Hotel Palomar Philadelphia, paid off six mortgage loans totaling $277 million, drew down its $125 million seven-year term loan in connection with the Hotel Commonwealth acquisition, refinanced or modified three loans resulting in $52 million in incremental proceeds, and fixed LIBOR on $139 million of variable rate debt.

Subsequent to year-end, the Company executed swaps to fix the interest rates on the loans collateralized by the Marriott Dallas City Center and the Hyatt Regency Santa Clara at 4.05% and 3.81%, respectively, effective on March 1, 2017 through the maturity date of the loans in January 2022.  As a result, the Company's ratio of variable rate to total debt is expected to be reduced from 52% at year-end 2015 to 34% on March 1, 2017.

As of December 31, 2016, the Company had total outstanding debt of $1.1 billion with a weighted average interest rate of 3.24%.  In addition, the Company had $216 million of cash and cash equivalents and full availability on its $400 million senior unsecured credit facility.  Total net debt to trailing twelve month Corporate EBITDA (as defined in Section 1.01 of the Company's senior unsecured credit facility) was 3.3x.

"We are pleased with our financing activities in 2016.  We strengthened our balance sheet by addressing all debt maturities through early 2018, reducing exposure to interest rate risk, lowering our weighted average interest rate, and extending the average duration of our debt.   Our debt profile continues to be strong, highlighted by a conservative leverage ratio and low cost of debt.  As we look forward, we expect our balance sheet strength to enable us to create long-term value," commented Atish Shah, Chief Financial Officer for Xenia.

Capital Expenditures

During the fourth quarter, the Company invested $21 million in its portfolio.   For the full year 2016, the Company invested $57 million in its portfolio, including the following projects:

  • The extensive renovation of the Marriott Napa Valley Hotel & Spa, which transformed the guestrooms, meeting and pre-function space, and pool and outdoor function space. 
  • The renovation of its Hyatt in Key West, including upgrades to the property's guestrooms, Blue Mojito Pool Bar & Grill, and Jala Spa. These renovations resulted in the addition of two guestrooms at the hotel and upon completion of the renovation the hotel was rebranded as the Hyatt Centric Key West Resort & Spa. 
  • The completion of the meeting room and ballroom renovation at the Renaissance Atlanta Waverly Hotel. 
  • The renovation of the concierge-level guestrooms at the Fairmont Dallas. 
  • The commencement of the guestroom renovation at the Westin Galleria Houston, which will continue through the first half of 2017. 
  • The commencement of the guestroom renovation at the Andaz San Diego, which is expected to be complete in the second quarter of 2017. 
  • The commencement of guestroom renovations at the Bohemian Hotel Celebration and Bohemian Hotel Savannah Riverfront, and a meeting room renovation at the Marriott San Francisco Airport Waterfront.

Share Repurchases

During the fourth quarter, the Company purchased 500,715 shares under its share repurchase authorization for an aggregate purchase price of $7.7 million.  During the year ended December 31, 2016, the Company repurchased 4,966,763 shares of its common stock at a weighted average purchase price of $14.89 per share, or $74 million in total. 

In November 2016, the Company's Board of Directors authorized the repurchase of up to an additional $75 million of the Company's outstanding common shares.  Repurchases may be made in open market and privately-negotiated transactions, or by other means, including Rule 10b5-1 trading plans.  The repurchase program may be suspended or discontinued at any time, and does not obligate the Company to acquire any particular amount of shares.  Inclusive of this additional authorization, the Company had approximately $101 million of capacity under its repurchase authorization as of February 24, 2017.

2017 Outlook and Guidance

The Company's outlook for 2017 is based on the current economic environment, incorporates all expected renovation disruption, and assumes no acquisitions, dispositions, equity offerings, or share repurchases.  RevPAR change includes all 42 hotels owned as of February 28, 2017.

 

2017 Guidance

Low End

High End

($ amounts in millions, except per share data)

Net Income

$34

$48

RevPAR Change

(2.0)%

—%

Adjusted EBITDA

$241

$255

Adjusted FFO

$195

$209

Adjusted FFO per Diluted Share

$1.82

$1.95

Capital Expenditures

$85

$95

Additional guidance details:

  • Average RevPAR declines of 8% to 12% at the Company's Houston-area hotels, due to the impact of continued weakness in corporate demand, the addition of new supply, and disruption due to renovations at the Westin Galleria and Westin Oaks. The Company's Houston-area hotels are expected to negatively impact portfolio RevPAR change by approximately 100 basis points. 
  • Disruption due to renovations is expected to negatively impact portfolio RevPAR change by approximately 50 basis points. 
  • In 2016, the nine hotels that were sold during the year contributed approximately $17 million to Adjusted EBITDA. 
  • General and administrative expense of $22 million to $24 million, excluding non-cash share-based compensation. 
  • Interest expense of $41 million to $43 million, excluding non-cash loan related costs. The expected reduction in interest expense relative to 2016 is a result of changes in debt outstanding, offset by changes in the mix of fixed and variable rate debt, and an expected change in the LIBOR curve. 
  • Income tax expense of $5 million to $6 million.

"We anticipate operating fundamentals to remain challenging in 2017, as citywide convention pace remains weak in several of our markets and new supply continues to weigh on the industry.  As such, cost controls and margin retention remain a focus as we look to find additional efficiencies throughout the portfolio," continued Mr. Verbaas.  "We are accelerating several value-add renovation projects throughout the portfolio, as we believe these projects will generate strong returns and better position our assets for the years ahead. We continue to believe in the strength and quality of our portfolio over the long-term, which when combined with our capital allocation strategy and balance sheet flexibility, will lead us to perform well in the coming years."

About Xenia Hotels & Resorts, Inc.

Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service, lifestyle and urban upscale hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 42 hotels, including 40 wholly owned hotels, comprising 10,911 rooms, across 20 states and the District of Columbia. Xenia's hotels are operated and/or licensed by industry leaders such as Marriott®, Kimpton®, Hyatt®, Aston®, Fairmont®, Hilton®, and Loews®, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, Davidson Hotels & Resorts and Concord Hospitality.

Xenia Hotels & Resorts, Inc.

Consolidated Balance Sheets

As of December 31, 2016 and 2015

(Unaudited) 

($ amounts in thousands, except per share data) 

December 31, 2016

December 31, 2015

Assets

Investment properties:

Land

$

331,502

$

331,502

Building and other improvements

2,732,062

2,559,892

Construction in progress

169

Total

$

3,063,564

$

2,891,563

Less: accumulated depreciation

(619,975)

(476,764)

Net investment properties

$

2,443,589

$

2,414,799

Cash and cash equivalents

216,054

122,154

Restricted cash and escrows

70,973

72,771

Accounts and rents receivable, net of allowance

22,998

22,978

Intangible assets, net of accumulated amortization of $4,323 and $16,660, respectively

76,912

58,059

Deferred tax assets

1,562

2,304

Other assets

28,257

40,094

Assets held for sale

272,785

Total assets (including $74,440 and $77,140, respectively, related to consolidated variable interest entities)

$

2,860,345

$

3,005,944

Liabilities

Debt, net of loan discounts, premiums and unamortized deferred financing costs

$

1,077,132

$

1,094,536

Accounts payable and accrued expenses

71,955

78,440

Distributions payable

29,881

25,684

Other liabilities

29,810

27,250

Liabilities associated with assets held for sale

36,676

Total liabilities (including $47,828 and $48,582, respectively, related to consolidated variable interest entities)

$

1,208,778

$

1,262,586

Commitments and contingencies

Stockholders' equity

Common stock, $0.01 par value, 500,000,000 shares authorized, 106,794,788 and 111,671,372 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively

1,068

1,117

Additional paid in capital

1,925,554

1,993,760

Accumulated other comprehensive income

5,009

1,543

Accumulated distributions in excess of net earnings

(302,034)

(268,991)

Total Company stockholders' equity

$

1,629,597

$

1,727,429

Non-controlling interests

21,970

15,929

Total equity

$

1,651,567

$

1,743,358

Total liabilities and equity

$

2,860,345

$

3,005,944

 

Xenia Hotels & Resorts, Inc.

Combined Consolidated Statements of Operations and Comprehensive Income

For the Three Months and Year Ended December 31, 2016 and 2015

(Unaudited)

($ amounts in thousands, except per share data)

Three Months Ended 

December 31,

Year Ended

 December 31,

2016

2015

2016

2015

Revenues:

Rooms revenues

$

146,583

$

161,469

$

653,944

$

663,224

Food and beverage revenues

60,994

73,330

246,479

259,036

Other revenues

12,224

13,795

49,737

53,884

Total revenues

$

219,801

$

248,594

$

950,160

$

976,144

Expenses:

Rooms expenses

34,239

37,117

146,050

148,492

Food and beverage expenses

39,224

45,034

161,699

167,840

Other direct expenses

3,276

4,728

12,848

17,984

Other indirect expenses

53,178

58,350

224,135

226,108

Management and franchise fees

10,119

12,144

47,605

49,818

Total hotel operating expenses

$

140,036

$

157,373

$

592,337

$

610,242

Depreciation and amortization

37,353

37,914

152,418

148,009

Real estate taxes, personal property taxes and insurance

11,373

12,733

46,248

49,717

Ground lease expense

1,336

1,336

5,447

5,204

General and administrative expenses

6,509

6,113

32,018

25,556

Acquisition transaction costs

6

(349)

154

5,046

Pre-opening expenses

585

1,411

Provision for asset impairment

29

10,035

Separation and other start-up related expenses

26,887

Total expenses

$

196,642

$

215,705

$

838,657

$

872,072

Operating income

$

23,159

$

32,889

$

111,503

$

104,072

Gain on sale of investment properties

29,403

43,015

30,195

43,015

Other income

2,461

1,528

3,377

4,916

Interest expense

(10,100)

(12,090)

(48,113)

(50,816)

Loss on extinguishment of debt

(132)

(5,478)

(5,155)

(5,761)

Net income before income taxes

$

44,791

$

59,864

$

91,807

$

95,426

Income tax expense

4,536

2,049

(5,077)

(6,295)

Net income from continuing operations

$

49,327

$

61,913

$

86,730

$

89,131

Net loss from discontinued operations

(489)

Net income

$

49,327

$

61,913

$

86,730

$

88,642

Non-controlling interests in consolidated real estate entities

63

312

268

567

Non-controlling interests of common units in Operating Partnership

(630)

(444)

(1,143)

(451)

Net (income) loss attributable to non-controlling interests

$

(567)

$

(132)

$

(875)

$

116

Net income attributable to the Company

$

48,760

$

61,781

$

85,855

$

88,758

Distributions to preferred stockholders

(12)

Net income attributable to common stockholders

$

48,760

$

61,781

$

85,855

$

88,746

 

Xenia Hotels & Resorts, Inc.

Combined Consolidated Statements of Operations and Comprehensive Income - Continued

For the Three Months and Year Ended December 31, 2016 and 2015 

(Unaudited)

($ amounts in thousands, except per share data)

Three Months Ended 

December 31,

Year Ended

 December 31,

2016

2015

2016

2015

Basic and diluted earnings per share

Income from continuing operations available to common stockholders

$

0.44

$

0.55

$

0.79

$

0.79

Income from discontinued operations available to common stockholders

Net income per share available to common stockholders

$

0.44

$

0.55

$

0.79

$

0.79

Weighted average number of common shares (basic)

106,905,988

111,671,372

108,012,708

111,989,686

Weighted average number of common shares (diluted)

107,071,562

111,791,828

108,142,998

112,138,223

Comprehensive Income:

Net income

$

49,327

$

61,913

$

86,730

$

88,642

Other comprehensive income:

Unrealized gain (loss) on interest rate derivative instruments

13,961

1,543

(322)

1,543

Reclassification adjustment for amounts recognized in net income (interest expense)

963

3,833

$

64,251

$

63,456

$

90,241

$

90,185

Comprehensive income attributable to non-controlling interests:

Non-controlling interests in consolidated real estate entities

63

312

268

567

Non-controlling interests of common units in Operating Partnership

(825)

(444)

(1,188)

(451)

Comprehensive income attributable to non-controlling interests

$

(762)

$

(132)

$

(920)

$

116

Comprehensive income attributable to the Company

$

63,489

$

63,324

$

89,321

$

90,301

Non-GAAP Financial Measures

The Company considers the following useful non-GAAP financial measures to investors as key supplemental measures of operating performance: EBITDA, Adjusted EBITDA, Same Property Hotel EBITDA, Same-Property Hotel EBITDA Margin, FFO, Adjusted FFO, and Adjusted FFO per diluted share.  These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss, operating profit, cash from operations, or any other operating performance measure as prescribed per GAAP.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in many industries and is defined as net income or loss (calculated in accordance with GAAP) excluding interest expense, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization.  The Company considers EBITDA useful to an investor regarding results of operations, in evaluating and facilitating comparisons of operating performance between periods and between REITs by removing the impact of capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from operating results, even though EBITDA does not represent an amount that accrues directly to common stockholders.  In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions and along with FFO and Adjusted FFO, it is used by management in the annual budget process for compensation programs. The Company presents EBITDA attributable to common stock and unit holders, which includes its Operating Partnership units because its Operating Partnership units may be redeemed for common stock.  The Company believes it is meaningful for the investor to understand EBITDA attributable to all common stock and Operating Partnership units.

The Company further adjusts EBITDA for certain additional items such as hotel property acquisitions and pursuit costs, amortization of share-based compensation, equity investment adjustments, the cumulative effect of changes in accounting principles, impairment of real estate assets, operating results from properties sold and other costs it believes do not represent recurring operations and are not indicative of the performance of its underlying hotel property entities.  The Company believes Adjusted EBITDA provides investors with another financial measure in evaluating and facilitating comparison of operating performance between periods and between REITs that report similar measures.

Hotel EBITDA and Hotel EBITDA Margin

The Company calculates Hotel EBITDA in accordance with the current edition of USALI, which is defined as net income or loss (calculated in accordance with GAAP) after adding back replacement reserves.  Hotel EBITDA Margin is calculated by dividing Hotel EBITDA by Total Revenues.

FFO and Adjusted FFO

The Company calculates FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, amortization and impairments, gains (losses) from sales of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and joint ventures, and items classified by GAAP as extraordinary. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. The Company believes that the presentation of FFO provides useful supplemental information to investors regarding operating performance by excluding the effect of real estate depreciation and amortization, gains (losses) from sales for real estate, impairments of real estate assets, extraordinary items and the portion of these items related to unconsolidated entities, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance.  The Company believes that the presentation of FFO can facilitate comparisons of operating performance between periods and between REITs, even though FFO does not represent an amount that accrues directly to common stockholders.  The calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO per diluted share in accordance with NAREIT guidance.  Additionally, FFO may not be helpful when comparing Xenia to non-REITs.  The Company presents FFO attributable to common stock and unit holders, which includes its Operating Partnership units because its Operating Partnership units may be redeemed for common stock.  The Company believes it is meaningful for the investor to understand FFO attributable to all common stock and Operating Partnership units.

The Company further adjusts FFO for certain additional items that are not in NAREIT's definition of FFO such as hotel property acquisition and pursuit costs, amortization of debt origination costs and share-based compensation, operating results from properties that are sold and other expenses it believes do not represent recurring operations.  The Company believes that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors' complete understanding of operating performance.

Adjusted FFO per diluted share

The Company calculates Adjusted FFO per diluted share by dividing the Adjusted FFO for the respective period by the diluted weighted average number of common stock shares for the corresponding period.  The Company's diluted weighted average number of common shares outstanding is calculated by taking the weighted average of the common stock outstanding for the respective period plus the effect of any dilutive securities.  Any anti-dilutive securities are excluded from the diluted earnings per-share calculation.

 

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Same-Property Hotel EBITDA

For the Three Months and Year Ended December 31, 2016 and 2015

(Unaudited)

($ amounts in thousands)

Three Months Ended 

December 31,

Year Ended

 December 31,

2016

2015

2016

2015

Net income

$

49,327

$

61,913

$

86,730

$

88,642

Adjustments:

Interest expense

10,100

12,090

48,113

50,816

Income tax expense

(4,536)

(2,049)

5,077

6,295

Depreciation and amortization related to investment properties

37,281

37,914

152,274

148,009

Non-controlling interests in consolidated real estate entities

63

312

268

567

Adjustments related to non-controlling interests in consolidated 

real estate entities

(318)

(232)

(1,259)

(270)

EBITDA attributable to common stock and unit holders

$

91,917

$

109,948

$

291,203

$

294,059

Reconciliation to Adjusted EBITDA and Hotel EBITDA

Impairment of investment properties

29

10,035

Gain on sale of investment property

(29,403)

(43,015)

(30,195)

(43,015)

Loss on extinguishment of debt

132

5,478

5,155

5,761

Acquisition transaction costs

6

(349)

154

5,046

Amortization of share-based compensation expense

1,919

1,328

8,968

6,102

Amortization of above and below market ground leases and 

straight-line rent expense

464

95

955

380

Pre-opening expenses(1)

585

1,411

Adjustments related to non-controlling interests pre-opening expense(1)

(146)

(353)

Management termination fees net of guaranty income(2)

212

Business interruption insurance recoveries, net(3)

(737)

(3,884)

EBITDA adjustment for hotels sold prior to spin-off(4)

(938)

(938)

404

Management transition and severance expenses

1,991

Other non-recurring expenses(5)

26,887

Adjusted EBITDA attributable to common stock and unit holders

$

64,126

$

73,187

$

287,328

$

293,010

Corporate expenses

4,733

3,545

21,915

19,218

Income from sold properties

(2,022)

(7,956)

(16,696)

(39,541)

Pro forma hotel level adjustments, net(6)

(3,167)

782

(14,082)

9,675

Other reimbursements

(1,336)

(1,884)

(1,776)

Same-Property Hotel EBITDA attributable to common stock and unit holders

$

62,334

$

69,558

$

276,581

$

280,586

 

 

(1)

For the year ended December 31, 2015, the pre-opening expenses related to the Grand Bohemian Hotel Charleston and Grand Bohemian Hotel Mountain Brook, which opened in August and October 2015, respectively.

(2)

For the year ended December 31, 2015, we terminated management agreements for four properties and entered into new management contracts with a new third-party hotel operator.  In connection with the terminations, we paid termination fees of $0.7 million, which was offset by $0.5 million in income from the write off of deferred guaranty payments that were previously received from certain of the managers and were being recognized over the term of the old management contracts.

(3)

The business interruption insurance recovery for 2014 received during the year ended December 31, 2015 was $3.9 million, which is net of $1.8 million of hotel related expenses attributable to those hotels impacted by the August 2014 Napa Earthquake.

(4)

The adjustment excludes the results of hotels disposed of in 2014 prior to the Company's separation from its former parent, which includes the Suburban Select Service Portfolio, the Crowne Plaza Charleston Airport - Convention Center, the DoubleTree Suites Atlanta Galleria, and the Holiday Inn Secaucus Meadowlands. During the year ended December 31, 2016, the Company received property tax refunds for the Holiday Inn Secaucus Meadowlands that resulted from appeals that had been in process at the time of our spin-off.

(5)

For the year ended December 31, 2015, other non-recurring expenses include one-time costs related to the listing of our common stock on the NYSE, such as legal and other professional fees, costs related to the Company's tender offer, and other start-up costs incurred while transitioning to a stand-alone, publicly-traded company. The year ended December 31, 2014 included costs related to our separation from InvenTrust and costs related to the preparation of the listing of our common stock on the NYSE.

(6)

Pro forma to include the results of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia for periods prior to Company ownership, and to exclude the results of operations of the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the  Hotel Commonwealth, which underwent a significant expansion project in late 2015, for the three and twelve months ended December 31, 2016 and 2015.

 

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to FFO and Adjusted FFO

For the Three Months and Year Ended December 31, 2016 and 2015

(Unaudited)

($ amounts in thousands)

Three Months Ended 

December 31,

Year Ended

 December 31,

2016

2015

2016

2015

Net income

$

49,327

$

61,913

$

86,730

$

88,642

Adjustments:

Depreciation and amortization related to investment properties

37,281

37,914

152,274

148,009

Impairment of investment property

29

10,035

Gain on sale of investment property

(29,403)

(43,015)

(30,195)

(43,015)

Non-controlling interests in consolidated real estate entities

63

312

268

567

Adjustments related to non-controlling interests in 

consolidated real estate entities

(225)

(170)

(897)

(197)

FFO attributable to the Company

$

57,072

$

56,954

$

218,215

$

194,006

Distribution to preferred shareholders

(12)

FFO attributable to common stock and unit holders

$

57,072

$

56,954

$

218,215

$

193,994

Reconciliation to Adjusted FFO

Loss on extinguishment of debt

132

5,478

5,155

5,761

Acquisition transaction costs

6

(349)

154

5,046

Loan related costs(1)

745

902

3,767

3,775

Adjustment related to non-controlling interests loan related costs

(4)

(4)

(15)

(3)

Amortization of share-based compensation expense

1,919

1,328

8,968

6,102

Amortization of above and below market ground leases and 

straight-line rent expense

464

95

955

380

Pre-opening expenses

585

1,411

Adjustments related to non-controlling interests pre-opening expense(2)

(146)

(353)

Management termination fees net of guaranty income(3)

212

Income tax related to restructuring(4)

1,900

Business interruption proceeds net of hotel related expenses(5)

(1,335)

(3,884)

FFO adjustment for hotels sold prior to spin-off(6)

(938)

(938)

404

Management transition and severance expenses

1,991

Other non-recurring expenses (7)

26,887

Adjusted FFO attributable to common stock and unit holders

$

59,396

$

63,508

$

238,252

$

241,632

 

 

(1)

Loan related costs included amortization of debt discounts, premiums and deferred loan origination costs.

(2)

For the year ended December 31, 2015, the pre-opening expenses related to the Grand Bohemian Hotel Charleston and Grand Bohemian Hotel Mountain Brook, which opened in August and October 2015, respectively.

(3)

For the year ended December 31, 2015, we terminated management agreements for four properties and entered into new management contracts with a new third-party hotel operator.  In connection with the terminations, we paid termination fees of $0.7 million, which was offset by $0.5 million in income from the write off of deferred guaranty payments that were previously received from certain of the managers and were being recognized over the term of the old management contracts.

(4)

For the year ended December 31, 2015, the Company recognized income tax expense of $6.3 million, of which $1.9 million related to a gain on the transfer of a hotel between legal entities resulting in a more optimal structure in connection with the Company's intention to elect to be taxed as a REIT. 

(5)

The business interruption insurance recovery for 2014 received during the year ended December 31, 2015 was $3.9 million, which is net of $1.8 million of hotel related expenses attributable to those hotels impacted by the August 2014 Napa Earthquake.

(6)

The adjustment excludes the results of hotels disposed of in 2014 prior to the Company's separation from its former parent, which includes the Suburban Select Service Portfolio, the Crowne Plaza Charleston Airport - Convention Center, the DoubleTree Suites Atlanta Galleria, and the Holiday Inn Secaucus Meadowlands. During the year ended December 31, 2016, the Company received property tax refunds for the Holiday Inn Secaucus Meadowlands that resulted from appeals that had been in process at the time of our spin-off.

(7)

For the year ended December 31, 2015, other non-recurring expenses include one-time costs related to the listing of our common stock on the NYSE, such as legal and other professional fees, costs related to the  Company's tender offer, and other start-up costs incurred while transitioning to a stand-alone, publicly-traded company.  The year ended December 31, 2014 included costs related to our separation from InvenTrust and costs related to the preparation of the listing of our common stock on the NYSE.

 

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to Adjusted EBITDA

for Current Full Year 2017 Guidance

($ amounts in millions)

Guidance 

Midpoint

Net income

$40

Adjustments:

Depreciation and amortization related to investment properties

148

Interest expense

45

Income tax expense

6

Adjustments related to non-controlling interests

(2)

EBITDA attributable to common stock and unit holders

$237

Amortization of share-based compensation expense

10

Other(1)

1

Adjusted EBITDA attributable to common stock and unit holders

$248

(1) Includes amortization of above and below market ground leases.

 

 

Reconciliation of Net Income to Adjusted FFO

for Current Full Year 2017 Guidance

($ amounts in millions)

Guidance 

Midpoint

Net income

$40

Adjustments:

Depreciation and amortization related to investment properties

148

Adjustments related to non-controlling interests

(2)

FFO attributable to common stock and unit holders

$186

Amortization of share-based compensation expense

10

Other(2)

6

Adjusted FFO attributable to common stock and unit holders

$202

(2) Includes amortization of above and below market ground leases and loan related costs.

 

Xenia Hotels & Resorts, Inc.

Debt Summary

($ amounts in thousands)

Rate Type

Rate(1)

Fully Extended 

Maturity Date(2)

Outstanding as of

December 31, 2016

Residence Inn Denver City Center

 Variable

3.00%

April 2018

45,210

Bohemian Hotel Savannah Riverfront

 Variable

3.10%

December 2018

27,480

Fairmont Dallas

 Variable

2.66%

April 2019

55,498

Andaz Savannah

 Variable

2.62%

January 2020

21,500

Hotel Monaco Denver

Fixed(3)

2.98%

January 2020

41,000

Andaz Napa

Fixed(3)

2.99%

March 2020

38,000

Marriott Charleston Town Center

 Fixed

3.85%

July 2020

16,403

Grand Bohemian Hotel Charleston (VIE)

 Variable

3.16%

November 2020

19,628

Loews New Orleans Hotel

 Variable

2.98%

November 2020

37,500

Grand Bohemian Hotel Mountain Brook (VIE)

 Variable

3.26%

December 2020

25,899

Hotel Monaco Chicago

 Variable

2.95%

January 2021

21,644

Westin Galleria Houston & Westin Oaks Houston at The Galleria

 Variable

3.12%

May 2021

110,000

Marriott Dallas City Center(4)

 Variable

3.01%

January 2022

51,000

Hyatt Regency Santa Clara(5)

 Variable

2.76%

January 2022

90,000

Hotel Palomar Philadelphia

Fixed(3)

4.14%

January 2023

60,000

Residence Inn Boston Cambridge

 Fixed

4.48%

November 2025

63,000

Grand Bohemian Hotel Orlando

 Fixed

4.53%

March 2026

60,000

Total Mortgage Loans

3.31%

(6)

$

783,762

Mortgage Loan Premium / (Discounts), net(7)

(319)

Unamortized Deferred Financing Costs, net

(6,311)

Senior Unsecured Credit Facility

 Variable

2.31%

February 2020

Term Loan $175M

Fixed(8)

2.74%

February 2021

175,000

Term Loan $125M

Fixed(8)

3.53%

October 2022

125,000

Total Debt, net of mortgage loan discounts and unamortized deferred financing costs

3.24%

(6)

$

1,077,132

 

 

(1)

Variable index is one month LIBOR. 

(2)

Loan extension is at the discretion of Xenia. The majority of loans require minimum Debt Service Coverage Ratio and/or Loan to Value maximums and payment of an extension fee. 

(3)

A variable interest loan for which the interest rate has been fixed for the entire term.

(4)

Subsequent to year-end, the interest rate on the loan was fixed effective March 1, 2017 through maturity. The effective interest rate will be 4.05% beginning March 1, 2017.

(5)

Subsequent to year-end, the interest rate on the loan was fixed effective March 1, 2017 through maturity. The effective interest rate will be 3.81% beginning March 1, 2017.

(6)

Weighted average interest rate as of December 31, 2016. 

(7)

Loan discounts upon issuance of new mortgage loan or modification.

(8)

A variable interest loan for which LIBOR has been fixed for the entire term.  The spread to LIBOR may vary, as it is determined by the Company's leverage ratio.

 

Xenia Hotels & Resorts, Inc.

Same-Property(1) Hotel EBITDA and Hotel EBITDA Margin

For the Three Months and Year Ended December 31, 2016 and 2015

($ amounts in thousands)

Three Months Ended 

December 31,

Year Ended 

December 31,

2016

2015

Change

2016

2015

Change

Revenues:

Room revenues

$

133,865

$

139,623

(4.1)

%

$

577,731

$

577,418

0.1

%

Food and beverage revenues

56,776

64,691

(12.2)

%

225,606

235,681

(4.3)

%

Other revenues

11,033

12,574

(12.3)

%

45,043

49,147

(8.4)

%

Total revenues

$

201,674

$

216,888

(7.0)

%

$

848,380

$

862,246

(1.6)

%

Expenses:

Room expenses

$

30,885

$

32,080

(3.7)

%

$

127,957

$

129,206

(1.0)

%

Food and beverage expenses

36,436

39,395

(7.5)

%

147,342

150,858

(2.3)

%

Other direct expenses

2,957

4,091

(27.7)

%

11,505

16,117

(28.6)

%

Other indirect expenses

48,364

49,517

(2.3)

%

197,274

195,579

0.9

%

Management and franchise fees

9,518

10,358

(8.1)

%

42,737

42,738

%

Real estate taxes, personal property taxes and insurance

10,000

10,667

(6.3)

%

40,201

42,411

(5.2)

%

Ground lease expense

1,180

1,222

(3.4)

%

4,783

4,751

0.7

%

Total hotel operating expenses

$

139,340

$

147,330

(5.4)

%

$

571,799

$

581,660

(1.7)

%

Hotel EBITDA

$

62,334

$

69,558

(10.4)

%

$

276,581

$

280,586

(1.4)

%

Hotel EBITDA Margin

30.9%

32.1%

(116 bps)

32.6%

32.5

%

6 bps

 

 

(1)

"Same-Property" includes all hotels owned as of December 31, 2016, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the Hotel Commonwealth, which underwent a significant expansion project in late 2015.  "Same-Property" includes periods prior to the Company's ownership of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia, and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented.

 

Xenia Hotels & Resorts, Inc.

Year-End Portfolio(1) Data by Market

As of December 31, 2016

As of December 31, 2016

Market(2)

% of Hotel 

EBITDA(3)

Number of 

Hotels

Number of 

Rooms

Houston, TX

10%

3

1,236

San Francisco/San Mateo, CA

8%

1

688

Dallas, TX

7%

2

961

Boston, MA

6%

2

466

Oahu Island, HI

6%

1

645

San Jose/Santa Cruz, CA

6%

1

505

Denver, CO

5%

2

417

California North

5%

2

416

Atlanta, GA

5%

1

522

Washington, DC-MD-VA

4%

2

407

Other

38%

25

4,648

Total

100%

42

10,911

 

(1)

"Year-End Portfolio" results include "Same-Property" results, as defined on page 3, as well as operating results of the Grand Bohemian Hotel Charleston, the Grand Bohemian Hotel Mountain Brook, and the Hotel Commonwealth, including periods prior to the Company's ownership of the Hotel Commonwealth.

(2)

As defined by STR, Inc.

(3)

Percentage of "Year-End Portfolio" 2016 Hotel EBITDA.

 

Xenia Hotels & Resorts, Inc.

Same-Property(1) Statistical Data by Market

For the Three Months and Year Ended December 31, 2016 and 2015

Three Months Ended

December 31, 2016

Three Months Ended

December 31, 2015

% Change

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Market(2)

Houston, TX

62.1%

$

168.82

$

104.88

70.8%

$

190.78

$

135.12

(22.4)%

San Francisco/San Mateo, CA

80.0%

217.10

173.68

80.1%

219.58

175.91

(1.3)%

Dallas, TX

58.6%

191.29

112.07

60.9%

194.92

118.77

(5.6)%

Boston, MA(3)

67.6%

260.55

176.16

76.8%

241.13

185.07

(4.8)%

Oahu Island, HI

86.8%

170.33

147.86

88.6%

178.42

158.14

(6.5)%

San Jose/Santa Cruz, CA

74.1%

249.16

184.71

73.9%

238.83

176.45

4.7%

Denver, CO

70.5%

185.89

131.14

73.1%

189.55

138.62

(5.4)%

California North

72.6%

275.95

200.44

74.7%

247.97

185.32

8.2%

Atlanta, GA

72.8%

141.26

102.78

68.8%

141.05

97.05

5.9%

Washington, DC-MD-VA

81.5%

224.26

182.82

79.9%

215.25

172.05

6.3%

Other(4)

70.6%

190.45

134.40

71.7%

194.96

139.77

(3.8)%

Total

70.8%

$

195.39

$

138.37

72.8%

$

198.44

$

144.39

(4.2)%

Year Ended

Year Ended

December 31, 2016

December 31, 2015

% Change

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Market(2)

Houston, TX

66.6%

$

181.07

$

120.68

75.2%

$

194.05

$

145.89

(17.3)%

San Francisco/San Mateo, CA

85.0%

230.39

195.93

77.0%

217.05

167.10

17.3%

Dallas, TX

63.9%

191.74

122.60

64.9%

187.48

121.72

0.7%

Boston, MA(3)

78.3%

258.42

202.29

83.9%

242.01

203.08

(0.4)%

Oahu Island, HI

88.5%

168.30

148.99

88.3%

169.46

149.60

(0.4)%

San Jose/Santa Cruz, CA

79.9%

245.47

196.17

80.2%

232.96

186.82

5.0%

Denver, CO

80.8%

194.36

156.99

82.2%

194.42

159.75

(1.7)%

California North

70.7%

276.89

195.74

76.7%

249.13

190.97

2.5%

Atlanta, GA

77.6%

146.34

113.49

76.6%

140.30

107.54

5.5%

Washington, DC-MD-VA

86.4%

226.50

195.67

85.7%

223.91

191.84

2.0%

Other(4)

75.0%

193.00

144.78

75.3%

193.29

145.56

(0.5)%

Total

75.4%

$

199.01

$

150.12

76.5%

$

196.87

$

150.52

(0.3)%

 

(1)

"Same-Property" includes all hotels owned as of December 31, 2016, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the Hotel Commonwealth, which underwent a significant expansion project in late 2015.  "Same-Property" includes periods prior to the Company's ownership of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented.

(2)

As defined by STR, Inc. Market rank based on "Current Portfolio" as presented on prior page.

(3)

Hotel Commonwealth results not included, as hotel is not part of "Same-Property" portfolio.

(4)

Grand Bohemian Hotel Charleston and Grand Bohemian Hotel Mountain Brook results not included, as hotels are not part of "Same-Property" portfolio.

 

Xenia Hotels & Resorts, Inc.

Same-Property(1) Historical Operating Data

($ amounts in thousands, except ADR and RevPAR)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2016

2016

2016

2016

2016

Occupancy

72.6

%

79.8

%

78.5

%

70.8

%

75.4

%

ADR

$

197.58

$

205.54

$

197.04

$

195.39

$

199.01

RevPAR

$

143.39

$

164.04

$

154.75

$

138.37

$

150.12

Hotel Revenues

$

205,309

$

229,902

$

211,495

$

201,674

$

848,380

Hotel EBITDA

$

61,727

$

82,996

$

69,524

$

62,334

$

276,581

Hotel EBITDA Margin

30.1

%

36.1

%

32.9

%

30.9

%

32.6

%

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2015

2015

2015

2015

2015

Occupancy

74.1

%

79.9

%

79.1

%

72.8

%

76.5

%

ADR

$

191.32

$

201.33

$

196.04

$

198.44

$

196.87

RevPAR

$

141.70

$

160.78

$

155.13

$

144.39

$

150.52

Hotel Revenues

$

203,077

$

227,457

$

214,824

$

216,888

$

862,246

Hotel EBITDA

$

62,098

$

79,305

$

69,625

$

69,558

$

280,586

Hotel EBITDA Margin

30.6

%

34.9

%

32.4

%

32.1

%

32.5

%

 

 

(1)

"Same-Property" includes all hotels owned as of December 31, 2016, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the Hotel Commonwealth, which underwent a significant expansion project in late 2015.  "Same-Property" includes periods prior to the Company's ownership of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia, and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented.

 

Xenia Hotels & Resorts, Inc.

Year-End Portfolio(1) Historical Operating Data

($ amounts in thousands, except ADR and RevPAR)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2016

2016

2016

2016

2016

Occupancy

72.2

%

80.1

%

78.8

%

71.0

%

75.5

%

ADR

$

198.36

$

209.18

$

201.15

$

197.99

$

201.85

RevPAR

$

143.31

$

167.47

$

158.49

$

140.62

$

152.46

Hotel Revenues

$

213,914

$

243,904

$

225,119

$

213,562

$

896,499

Hotel EBITDA

$

62,478

$

88,140

$

74,184

$

65,264

$

290,066

Hotel EBITDA Margin

29.2

%

36.1

%

33.0

%

30.6

%

32.4

%

 

(1)

"Year-End Portfolio" includes "Same-Property" as defined on page 3, as well as the Grand Bohemian Hotel Charleston, the Grand Bohemian Hotel Mountain Brook, and the Hotel Commonwealth, including periods prior to the Company's ownership of the Hotel Commonwealth.

 

 

Xenia Hotels & Resorts, Inc.

Statistical Data by Property

For the Year Ended December 31, 2016 and 2015

Year Ended December 31, 2016

Year Ended December 31, 2015

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR Change

Andaz Napa

79.8%

$

322.79

$

257.70

76.9%

$

290.00

$

223.09

15.5%

Andaz San Diego

78.7%

233.13

183.44

80.5%

231.56

186.29

(1.5)%

Andaz Savannah

84.9%

204.19

173.39

81.6%

209.60

171.12

1.3%

Aston Waikiki Beach Hotel

88.5%

168.30

148.99

88.3%

169.46

149.60

(0.4)%

Bohemian Hotel Celebration

75.2%

175.74

132.11

73.6%

178.65

131.54

0.4%

Bohemian Hotel Savannah Riverfront

84.8%

280.97

238.38

87.5%

288.59

252.40

(5.6)%

Canary Santa Barbara

81.1%

380.71

308.56

84.4%

356.59

301.02

2.5%

Courtyard Birmingham Downtown at UAB

80.9%

147.66

119.49

80.1%

146.77

117.53

1.7%

Courtyard Fort Worth Downtown/Blackstone

71.6%

149.09

106.71

68.8%

151.90

104.54

2.1%

Courtyard Kansas City Country Club Plaza

73.8%

158.00

116.67

72.2%

159.67

115.32

1.2%

Courtyard Pittsburgh Downtown

70.6%

165.21

116.59

75.0%

165.70

124.20

(6.1)%

Fairmont Dallas

64.8%

186.07

120.63

65.0%

186.17

121.08

(0.4)%

Grand Bohemian Hotel Orlando

77.9%

225.39

175.67

79.4%

218.55

173.46

1.3%

Hampton Inn & Suites Baltimore Inner Harbor

77.7%

155.30

120.63

75.1%

154.73

116.14

3.9%

Hilton Garden Inn Washington DC Downtown

88.4%

236.74

209.24

87.5%

231.61

202.57

3.3%

Hotel Monaco Chicago

78.8%

212.88

167.64

80.1%

219.03

175.39

(4.4)%

Hotel Monaco Denver

81.3%

211.78

172.14

82.6%

213.42

176.30

(2.4)%

Hotel Monaco Salt Lake City

75.2%

171.95

129.30

77.7%

167.81

130.33

(0.8)%

Hotel Palomar Philadelphia

86.5%

240.12

207.63

85.2%

226.02

192.61

7.8%

Hyatt Centric Key West Resort & Spa

90.4%

379.43

342.87

95.9%

379.88

364.32

(5.9)%

Hyatt Regency Santa Clara

79.9%

245.47

196.17

80.2%

232.96

186.82

5.0%

Loews New Orleans Hotel

73.7%

200.60

147.87

75.2%

203.90

153.39

(3.6)%

Lorien Hotel & Spa

80.8%

195.09

157.62

80.7%

200.54

161.78

(2.6)%

Marriott Charleston Town Center

69.8%

122.04

85.22

68.8%

125.06

86.07

(1.0)%

Marriott Chicago at Medical District/UIC

83.5%

196.89

164.45

83.2%

192.87

160.49

2.5%

Marriott Dallas City Center

62.8%

199.42

125.18

64.8%

189.21

122.56

2.1%

Marriott Griffin Gate Resort & Spa

65.1%

148.00

96.34

65.6%

152.81

100.24

(3.9)%

Marriott Napa Valley Hotel & Spa

66.0%

248.43

163.97

76.5%

228.06

174.51

(6.0)%

Marriott San Francisco Airport Waterfront

85.0%

230.39

195.93

77.0%

217.05

167.10

17.3%

Marriott West Des Moines

68.7%

133.31

91.55

69.8%

130.75

91.24

0.3%

Marriott Woodlands Waterway Hotel & Convention Center

67.1%

216.21

144.98

73.4%

241.58

177.21

(18.2)%

Renaissance Atlanta Waverly Hotel & Convention Center

77.6%

146.34

113.49

76.7%

140.30

107.54

5.5%

Renaissance Austin Hotel

69.9%

174.28

121.74

69.0%

175.06

120.70

0.9%

Residence Inn Baltimore Downtown/Inner Harbor

72.1%

168.97

121.80

71.6%

169.34

121.17

0.5%

Residence Inn Boston Cambridge

78.3%

258.42

202.29

83.9%

242.01

203.08

(0.4)%

Residence Inn Denver City Center

80.4%

179.74

144.44

81.8%

178.52

146.03

(1.1)%

RiverPlace Hotel

87.2%

284.24

247.78

88.5%

291.34

257.96

(3.9)%

Westin Galleria Houston & Westin Oaks Houston at The Galleria

66.5%

167.46

111.34

75.9%

176.40

133.86

(16.8)%

Same-Property Portfolio(1)

75.4%

$

199.01

$

150.12

76.5%

$

196.87

$

150.52

(0.3)%

Grand Bohemian Hotel Charleston

79.8%

290.06

231.50

NA

NA

NA

NA

Grand Bohemian Hotel Mountain Brook

74.6%

233.59

174.15

NA

NA

NA

NA

Hotel Commonwealth

79.2%

287.63

227.84

NA

NA

NA

NA

Year-End Portfolio(2)

75.5%

$

201.85

$

152.46

NA

NA

NA

NA

 

 

(1)

"Same-Property" includes all hotels owned as of December 31, 2016, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the Hotel Commonwealth, which underwent a significant expansion project in late 2015.  "Same-Property" includes periods prior to the Company's ownership of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented.

(2)

"Year-End Portfolio" includes "Same-Property" as defined in footnote 1, as well as the Grand Bohemian Hotel Charleston, the Grand Bohemian Hotel Mountain Brook, and the Hotel Commonwealth, including periods prior to the Company's ownership of the Hotel Commonwealth.

 

Xenia Hotels & Resorts, Inc.

Financial Data by Property

For the Year Ended December 31, 2016 and 2015

Year Ended December 31, 2016

Year Ended December 31, 2015

Hotel EBITDA ($000s)

EBITDA/Key

Hotel EBITDA Margin

Hotel EBITDA ($000s)

EBITDA/Key

Hotel EBITDA Margin

EBITDA Change

Margin Change

Andaz Napa

$

7,092

$

50,298

42.1

%

$

5,431

$

38,518

37.5

%

30.6

%

462 bps

Andaz San Diego

3,984

25,057

22.6

%

4,225

26,572

22.9

%

(5.7)

%

(28 bps)

Andaz Savannah

4,376

28,980

36.4

%

4,284

28,371

35.5

%

2.1

%

92 bps

Aston Waikiki Beach Hotel

18,002

27,910

41.6

%

17,884

27,727

41.3

%

0.7

%

33 bps

Bohemian Hotel Celebration

1,842

16,017

21.1

%

2,062

17,930

23.5

%

(10.7)

%

(249 bps)

Bohemian Hotel Savannah Riverfront

4,453

59,373

34.3

%

4,609

61,453

33.7

%

(3.4)

%

59 bps

Canary Santa Barbara

5,606

57,794

31.5

%

5,421

55,887

31.2

%

3.4

%

24 bps

Courtyard Birmingham Downtown at UAB

2,672

21,902

45.8

%

2,658

21,787

46.5

%

0.5

%

(71 bps)

Courtyard Fort Worth Downtown/Blackstone

3,473

17,108

40.7

%

3,514

17,310

42.0

%

(1.2)

%

(131 bps)

Courtyard Kansas City Country Club Plaza

2,352

19,122

41.4

%

2,502

20,341

44.3

%

(6.0)

%

(291 bps)

Courtyard Pittsburgh Downtown

3,859

21,203

43.7

%

4,151

22,808

44.3

%

(7.0)

%

(59 bps)

Fairmont Dallas

11,157

20,472

28.5

%

11,454

21,017

28.3

%

(2.6)

%

21 bps

Grand Bohemian Hotel Orlando

8,268

33,474

30.9

%

8,461

34,255

31.0

%

(2.3)

%

(11 bps)

Hampton Inn & Suites Baltimore Inner Harbor

1,781

15,353

33.1

%

1,690

14,569

30.4

%

5.4

%

265 bps

Hilton Garden Inn Washington DC Downtown

10,044

33,480

40.2

%

9,637

32,123

39.2

%

4.2

%

107 bps

Hotel Monaco Chicago

3,671

19,220

22.5

%

3,655

19,136

21.8

%

0.4

%

69 bps

Hotel Monaco Denver

6,963

36,841

33.4

%

6,959

36,820

32.3

%

0.1

%

107 bps

Hotel Monaco Salt Lake City

5,191

23,071

30.7

%

5,254

23,351

31.5

%

(1.2)

%

(79 bps)

Hotel Palomar Philadelphia

9,051

39,352

39.2

%

8,340

36,261

37.5

%

8.5

%

164 bps

Hyatt Centric Key West Resort & Spa

8,283

69,025

42.5

%

9,065

76,822

44.2

%

(8.6)

%

(165 bps)

Hyatt Regency Santa Clara

17,617

34,885

32.5

%

16,626

33,120

31.1

%

6.0

%

136 bps

Loews New Orleans Hotel

4,968

17,432

20.5

%

5,634

19,768

21.8

%

(11.8)

%

(129 bps)

Lorien Hotel & Spa

2,577

24,084

21.3

%

2,892

27,028

22.5

%

(10.9)

%

(114 bps)

Marriott Charleston Town Center

3,122

8,869

19.5

%

3,115

8,849

19.1

%

0.2

%

37 bps

Marriott Chicago at Medical District/UIC

1,719

15,212

20.6

%

2,141

18,947

25.2

%

(19.7)

%

(462 bps)

Marriott Dallas City Center

9,452

22,721

35.7

%

8,418

20,236

32.6

%

12.3

%

308 bps

Marriott Griffin Gate Resort & Spa

6,671

16,311

25.4

%

6,467

15,812

24.7

%

3.2

%

74 bps

Marriott Napa Valley Hotel & Spa

7,456

27,113

30.6

%

9,187

33,407

34.4

%

(18.8)

%

(380 bps)

Marriott San Francisco Airport Waterfront

21,642

31,456

31.9

%

16,806

24,427

28.0

%

28.8

%

385 bps

Marriott West Des Moines

2,645

12,078

26.3

%

2,789

12,735

27.2

%

(5.2)

%

(93 bps)

Marriott Woodlands Waterway Hotel & Convention Center

14,230

41,487

38.0

%

18,411

53,676

41.8

%

(22.7)

%

(384 bps)

Renaissance Atlanta Waverly Hotel & Convention Center

13,300

25,479

32.5

%

12,528

24,000

31.9

%

6.2

%

67 bps

Renaissance Austin Hotel

10,587

21,518

28.5

%

11,541

23,457

31.5

%

(8.3)

%

(297 bps)

Residence Inn Baltimore Downtown/Inner Harbor

3,503

18,633

37.8

%

3,857

20,516

39.8

%

(9.2)

%

(207 bps)

Residence Inn Boston Cambridge

8,195

37,081

48.0

%

8,223

37,208

48.0

%

(0.3)

%

1 bps

Residence Inn Denver City Center

7,954

34,886

57.0

%

7,645

33,531

54.3

%

4.0

%

268 bps

RiverPlace Hotel

3,911

46,560

32.9

%

4,060

48,333

34.2

%

(3.7)

%

(131 bps)

Westin Galleria Houston & Westin Oaks Houston at The Galleria

14,912

16,699

25.1

%

18,990

21,265

26.9

%

(21.5)

%

(180 bps)

Same-Property Portfolio(1)

$

276,581

$

26,301

32.6

%

$

280,586

$

26,695

32.5

%

(1.4)

%

6 bps

Grand Bohemian Hotel Charleston

1,040

20,800

12.7

%

NA

NA

NA

NA

NA

Grand Bohemian Hotel Mountain Brook

2,925

29,250

21.0

%

NA

NA

NA

NA

NA

Hotel Commonwealth

9,520

38,857

36.5

%

NA

NA

NA

NA

NA

Year-End Portfolio(2)

$

290,066

$

26,585

32.4

%

NA

NA

NA

NA

NA

 

(1)

"Same-Property" includes all hotels owned as of December 31, 2016, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, and the Hotel Commonwealth, which underwent a significant expansion project in late 2015.  "Same-Property" includes periods prior to the Company's ownership of the Canary Santa Barbara, RiverPlace Hotel, and Hotel Palomar Philadelphia, and excludes the NOI guaranty payment at the Andaz San Diego. "Same-Property" also includes renovation disruption for multiple capital projects during the periods presented.

(2)

"Year-End Portfolio" includes "Same-Property" as defined in footnote 1, as well as the Grand Bohemian Hotel Charleston, the Grand Bohemian Hotel Mountain Brook, and the Hotel Commonwealth, including periods prior to the Company's ownership of the Hotel Commonwealth.



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