ORLANDO, Fla., Feb. 23, 2016 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced results for the fourth quarter and year ended December 31, 2015. The Company's results include the following:
Three Months Ended December 31, |
Year Ended |
||||||||||||||||||||
2015 |
2014 |
Change |
2015 |
2014 |
Change |
||||||||||||||||
($ amounts in thousands, except hotel statistics and per share amounts) |
|||||||||||||||||||||
Same-Property Number of Hotels |
48 |
48 |
48 |
48 |
|||||||||||||||||
Same-Property Number of Rooms |
12,398 |
12,394 |
12,398 |
12,394 |
|||||||||||||||||
Same-Property Occupancy |
72.1 |
% |
71.1 |
% |
1.4 |
% |
76.3 |
% |
76.4 |
% |
(0.1) |
% |
|||||||||
Same-Property Average Daily Rate(1) |
$ |
191.39 |
$ |
184.19 |
3.9 |
% |
$ |
190.03 |
$ |
181.14 |
4.9 |
% |
|||||||||
Same-Property RevPAR(1) |
$ |
137.96 |
$ |
130.97 |
5.3 |
% |
$ |
144.92 |
$ |
138.46 |
4.7 |
% |
|||||||||
Same-Property Hotel EBITDA(2) |
$ |
75,939 |
$ |
67,661 |
12.2 |
% |
$ |
310,336 |
$ |
287,720 |
7.9 |
% |
|||||||||
Same-Property Hotel EBITDA Margin(2) |
31.7 |
% |
29.7 |
% |
196 bps |
32.3 |
% |
31.3 |
% |
107 bps |
|||||||||||
Adjusted EBITDA(2) |
$ |
72,743 |
$ |
52,770 |
37.8 |
% |
$ |
292,537 |
$ |
241,348 |
21.2 |
% |
|||||||||
Adjusted FFO(2) |
$ |
63,068 |
$ |
39,853 |
58.3 |
% |
$ |
241,162 |
$ |
182,732 |
32.0 |
% |
|||||||||
Adjusted FFO per diluted share(2) |
$ |
0.56 |
$ |
0.35 |
60.0 |
% |
$ |
2.15 |
$ |
1.61 |
33.5 |
% |
|||||||||
Net income attributable to common stockholders(3) |
$ |
61,781 |
$ |
75,101 |
(17.7) |
% |
$ |
88,746 |
$ |
109,799 |
(19.2) |
% |
|||||||||
Net income attributable to common stockholders per diluted share(3) |
$ |
0.55 |
$ |
0.67 |
(17.9) |
% |
$ |
0.79 |
$ |
0.97 |
(18.6) |
% |
(1) |
Average Daily Rate ("ADR") and Revenue Per Available Room ("RevPAR") for the year ended December 31, 2014 are presented after adjusting for the adoption of the Eleventh Revised Edition of the Uniform System of Accounts for the Lodging Industry ("USALI") as provided by our operators. |
(2) |
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") and Adjusted FFO. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, Adjusted FFO per diluted share, Hotel EBITDA, and Hotel EBITDA Margin are non-GAAP financial measures. |
(3) |
Includes $26.9 million of one-time separation and other start-up related expenses for the year ended December 31, 2015. See accompanying notes to the combined consolidated financial statements in the Company's Form 10-K to be filed with the SEC for more detail. |
"Same-Property" results include the results for all hotels owned as of December 31, 2015, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, include periods prior to the Company's ownership of the Aston Waikiki Beach Hotel, Canary Hotel, RiverPlace Hotel and Hotel Palomar Philadelphia, and exclude the results of operations of the Crowne Plaza Charleston Airport - Convention Center, DoubleTree Suites Atlanta Galleria, and Holiday Inn Secaucus Meadowlands, all of which were sold in 2014, and the Hyatt Regency Orange County which was sold in October 2015. "Same-Property" results also exclude the NOI guaranty payment at the Andaz San Diego. Results include renovation and remediation disruption for multiple capital projects during the periods presented and for the impact of the Napa earthquake that occurred in August 2014.
The Company's combined consolidated financial statements prior to February 3, 2015 have been "carved out" of InvenTrust Properties Corp.'s ("InvenTrust") financial statements and reflect significant assumptions and allocations from those financial statements, such as allocations of corporate debt, shared services functions, employee-related costs and other corporate overhead. Based on these presentation matters, these combined consolidated financial statements may not be comparable to prior periods.
Fourth Quarter 2015 Highlights
Full Year 2015 Highlights
"We are pleased with our portfolio performance in the fourth quarter as our 48 same-property hotel portfolio experienced an increase of 5.3% in RevPAR, a 12.2% increase in Hotel EBITDA and significant Hotel EBITDA margin improvement of 196 basis points," said Marcel Verbaas, President and Chief Executive Officer of Xenia. "Our fourth quarter performance was aided by an easier comparison due to the significant impact of the Napa earthquake at our Andaz during the fourth quarter of 2014. When excluding the hotel, our portfolio RevPAR increased 3.5%."
"Our full-year 2015 RevPAR increase of 4.7% coupled with a 107 basis point increase in Hotel EBITDA margin demonstrates the strength of our overall portfolio performance," noted Mr. Verbaas. "This is particularly evident when considering the significant impact of our renovations at the Marriott San Francisco Airport Waterfront and the Hyatt Regency Santa Clara during the early part of the year, as well as the impact of energy market challenges on Houston. When excluding our Houston assets, our same-property portfolio RevPAR increased 6.1% in 2015. As a result of our fourth quarter performance, our full-year 2015 Adjusted EBITDA was $292.5 million and our 2015 Adjusted FFO was $241.2 million which were near and above the high end, respectively, of our most recent guidance."
Disposition Activity
In the fourth quarter, the Company sold the 656-room Hyatt Regency Orange County in Garden Grove, California for a sale price of $137 million. The sale price represented an 11.8x multiple on the hotel's 2015 forecast EBITDA. In addition, the Company retained the approximately $5.9 million balance in the hotel's capital expenditure reserve account. Excess proceeds from the disposition after repayment of the $62 million mortgage loan collateralized by the hotel were utilized to pay off the $73 million mortgage loan collateralized by the Company's Marriott Woodlands Waterway Hotel & Convention Center.
Financing Activity
In October, the Company closed on two new senior unsecured term loans, a $175 million unsecured term loan maturing in February 2021 and a $125 million unsecured term loan maturing in October 2022. The $175 million term loan bears an interest rate based on a pricing grid with a range of 145 to 225 basis points plus LIBOR, determined by the Company's pro forma leverage ratio. Based on the Company's pro forma leverage ratio, the current effective interest rate is LIBOR plus 150 basis points. In conjunction with the term loan, the Company executed interest rate swaps to fix LIBOR over the period of the loan at 1.29%. As a result the current annual interest rate on the term loan is 2.79%. Proceeds from this term loan were used to pay off the $53 million mortgage collateralized by the Marriott San Francisco Airport Waterfront and to pay down the outstanding balance on the Company's unsecured line of credit.
The $125 million term loan bears an interest rate based on a pricing grid with a range of 170 to 255 basis points plus LIBOR, determined by the Company's pro forma leverage ratio. Based on the Company's pro forma leverage ratio, the current effective interest rate is LIBOR plus 180 basis points. Prior to funding, in December 2015 the Company executed forward interest rate swaps to fix LIBOR over the period of the loan at 1.83%. As a result, the current annual interest rate on the term loan is 3.63%. Funding of the term loan was completed in January 2016 in connection with the closing of the Hotel Commonwealth acquisition.
Additionally in October, the Company completed a refinancing of the $30 million, 5.50% fixed rate mortgage on the Residence Inn Cambridge with the existing lender. The new $63 million mortgage has a ten-year term at a fixed annual interest rate of 4.48%. Excess proceeds from this loan were used to pay off the $19 million mortgage collateralized by the Hilton Garden Inn Evanston and the $13 million mortgage collateralized by the Hampton Inn & Suites Denver Downtown.
In December, the Company amended the $110 million loan collateralized by the Westin Galleria Houston & Westin Oaks Houston at The Galleria with the existing lender. The modification lowered the interest rate by 65 basis points, to LIBOR plus 250 basis points.
Capital Investments
During the fourth quarter, the Company commenced a renovation at the 275-room Marriott Napa Valley Hotel & Spa, consisting of a guest room and bathroom renovation, including 82 tub-to-shower conversions, and a pool and outdoor space transformation, which will be completed in early 2016. The Company anticipates spending approximately $12.0 million on guest rooms, bathrooms, corridors, meeting space and the new outdoor experience.
Balance Sheet
As of December 31, 2015, the Company had total outstanding debt of $1.1 billion with a weighted average interest rate of 3.51%. Total net debt to trailing 12 month pro forma Corporate EBITDA (as defined in the Company's senior unsecured credit facility) was 3.5x as of December 31, 2015. The Company had $122 million of cash and cash equivalents and full availability on its $400 million senior unsecured credit facility.
"Overall, 2015 was a very successful first year for Xenia as a stand-alone publicly listed company. We completed our separation from InvenTrust and were able to quickly terminate the various support services under our Transition Services Agreement. We also continued our process of portfolio improvement through the completion of significant capital projects at two of our largest hotels, the acquisition of three high-quality lifestyle hotels in desirable locations, the announced acquisition of the Hotel Commonwealth which closed subsequent to year-end, the completion of our two development projects, and the sale of the Hyatt Regency Orange County at an attractive valuation," continued Mr. Verbaas. "Meanwhile, we strengthened the balance sheet by closing on a $400 million unsecured line of credit, $300 million in unsecured term loans and $170 million in mortgage refinancings, and paying off an additional $158 million in mortgage loans. As a result, we were able to extend our maturity profile, unencumber six additional assets and lower our weighted average interest rate by nearly 50 basis points. We believe that our high-quality portfolio is well-positioned for continued growth as a result of these efforts and our commitment to our strategy of investing in a diversified portfolio primarily focused on top 25 markets and key leisure destinations."
Subsequent Events
Portfolio Updates
In January 2016, the Company completed the previously announced acquisition of the 245-room Hotel Commonwealth in Boston, Massachusetts for a purchase price of $136 million, funded with proceeds from the Company's $125 million, seven-year term loan and cash on hand.
Also in January 2016, the Company completed the addition of three guest rooms at the Hyatt Regency Santa Clara. These rooms were added to the available hotel inventory on January 25, 2016.
In February 2016, the Company sold the 248-room Hilton University of Florida Conference Center Gainesville in Gainesville, Florida for a sale price of $36 million. In addition, the Company retained the approximately $2 million balance in the hotel's capital expenditure reserve account. Upon completion of the disposition, the Company paid off the $27.8 million mortgage loan collateralized by the hotel.
Capital Markets
In January 2016, the Company obtained a new $60 million, seven-year mortgage on the Hotel Palomar Philadelphia at a rate of LIBOR plus 260 basis points. Concurrent with the closing of the loan, the Company executed a swap to fix LIBOR over the period of the loan at a rate of 1.54%. As a result, the interest rate on the loan is 4.14%.
Also in January 2016, the Company began repurchasing shares under its $100 million share repurchase authorization. As of February 16, 2016, the Company has purchased a total of 2,365,292 shares at a weighted average purchase price of $14.11 for total consideration of $33.4 million.
"The completion of the Hotel Commonwealth acquisition after its well-executed expansion project has added a magnificent hotel in an excellent location to our portfolio. With Sage Hospitality now operating seven of our hotels, we look forward to a continued strong relationship with one of the premier operators in the lodging space," said Mr. Verbaas. "We are also pleased to have completed the sale of one of the assets on the lower end of our portfolio, the Hilton University of Florida Conference Center Gainesville, continuing to execute on our plan of selling assets that are in locations not consistent with our long-term strategy and that require significant near-term capital expenditures. In addition to selling the hotel for a price that represented a 9.0x multiple on 2015 EBITDA, we also retained the $2 million balance in the hotel's capital expenditure reserve. The buyer plans to spend approximately $13.5 million on capital expenditures required by the PIP or otherwise, resulting in a total investment amounting to 12.3x 2015 EBITDA."
"As previously disclosed, our Board of Directors approved a $100 million share repurchase program in December," Mr. Verbaas continued. "We believe this to be an attractive use of our capital and are pleased with our activity to date."
2016 Outlook and Guidance
The Company's outlook for 2016 is based on the current economic environment, incorporates all expected renovation disruption, and assumes no further acquisitions, dispositions, or share repurchases. Same-property RevPAR growth excludes the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, as both properties commenced operations in the second half of 2015, the Hotel Commonwealth, as the property underwent a significant expansion project in late 2015, and the Hilton University of Florida Conference Center Gainesville, which was sold in February 2016.
2016 Guidance |
||||
Low End |
High End |
|||
($ amounts in millions, except per share data) |
||||
Same-Property RevPAR Growth(1) |
2.0% |
4.0% |
||
Adjusted EBITDA |
$303 |
$317 |
||
Adjusted FFO |
$247 |
$261 |
||
Adjusted FFO per Diluted Share |
$2.25 |
$2.38 |
||
Capital Expenditures(2) |
$62 |
$72 |
(1) |
Primarily due to the impact of continued weakness in the energy market, the Company's outlook anticipates average RevPAR declines of 9% to 13% at its Houston area hotels. Excluding Houston, the Company projects same-property RevPAR growth of 3.5% to 5.5%. |
(2) |
The Company's capital expenditure guidance includes the completion of the renovation at the Marriott Napa Valley Hotel & Spa, as well as a ballroom and meeting room renovation at the Renaissance Atlanta Waverly and a guest room and bathroom renovation at the Westin Galleria Houston, which is anticipated to begin in the fourth quarter. Other notable projects scheduled for 2016 include guest room renovations at the Hyatt Key West and Andaz San Diego, which are scheduled to commence in the third and fourth quarter, respectively. |
Fourth Quarter 2015 Earnings Call
The Company will conduct its quarterly conference call on Tuesday, February 23, 2016 at 1:00 PM eastern time. To participate in the conference call, please dial (855) 656-0921. Additionally, a live webcast of the conference call will be available through the Company's website, www.xeniareit.com. A replay of the conference call will be archived and available online through the Investor Relations section of the Company's website for 90 days.
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 50 hotels, including 48 wholly owned hotels, comprising 12,548 rooms, across 21 states and the District of Columbia. Xenia's hotels are primarily operated by industry leaders such as Marriott®, Hilton®, Kimpton®, Hyatt®, Starwood®, Aston®, Fairmont® and Loews®, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, Davidson Hotels & Resorts and Concord Hospitality. For more information on Xenia's business, refer to the Company website at www.xeniareit.com.
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements are generally identifiable by use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," references to "outlook," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include, among others, statements about our plans, strategies, the outlook for RevPAR growth, Adjusted EBITDA, Adjusted FFO, Adjusted FFO per share, capital expenditures and derivations thereof, financial performance, prospects or future events. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) the Company's dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly, (ii) risks associated with the hotel industry, including competition, increases in wages, energy costs and other operating costs, actual or threatened terrorist attacks, downturns in general and local economic conditions and cancellation of or delays in the completion of anticipated demand generators, (iii) the availability and terms of financing and capital and the general volatility of securities markets, (iv) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws, (v) interest rate increases, (vi) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs, (vii) the possibility of uninsured losses, (viii) risks associated with redevelopment and repositioning projects, including delays and cost overruns, (ix) levels of spending in business and leisure segments as well as consumer confidence (x) declines in occupancy and average daily rate, (xi) the seasonal and cyclical nature of the real estate and hospitality businesses, (xii) changes in distribution arrangements, such as through Internet travel intermediaries, (xiii) relationships with labor unions and changes in labor laws, and (xiv) the risk factors discussed in the Company's Annual Report on Form 10-K as updated in its Quarterly Reports. Accordingly, there is no assurance that the Company's expectations will be realized. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company's website at www.xeniareit.com.
All information in this press release is as of the date of its release. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations.
For additional information or to receive press releases via email, please visit our website at www.xeniareit.com.
Xenia Hotels & Resorts, Inc. |
|||||||
December 31, 2015 |
December 31, 2014 |
||||||
Assets |
|||||||
Investment properties: |
|||||||
Land |
$ |
374,698 |
319,624 |
||||
Building and other improvements |
2,847,122 |
2,532,782 |
|||||
Construction in progress |
169 |
39,736 |
|||||
Total |
$ |
3,221,989 |
2,892,142 |
||||
Less: accumulated depreciation |
(580,285) |
(442,882) |
|||||
Net investment properties |
$ |
2,641,704 |
2,449,260 |
||||
Cash and cash equivalents |
122,154 |
163,053 |
|||||
Restricted cash and escrows |
77,292 |
86,991 |
|||||
Accounts and rents receivable, net of allowance of $243 and $251, respectively |
24,368 |
24,022 |
|||||
Intangible assets, net of accumulated amortization |
60,515 |
64,541 |
|||||
Deferred tax asset |
2,304 |
2,393 |
|||||
Other assets |
42,156 |
21,205 |
|||||
Assets held for sale |
35,452 |
137,611 |
|||||
Total assets (including $77,140 and $41,054, respectively, related to consolidated variable interest entities) |
$ |
3,005,945 |
$ |
2,949,076 |
|||
Liabilities |
|||||||
Debt |
$ |
1,094,536 |
1,197,563 |
||||
Accounts payable and accrued expenses |
85,846 |
90,115 |
|||||
Distributions payable |
25,684 |
— |
|||||
Other liabilities |
27,858 |
43,404 |
|||||
Liabilities associated with assets held for sale |
28,663 |
97,073 |
|||||
Total liabilities (including $48,582 and $27,679, respectively, related to consolidated variable interest entities) |
1,262,587 |
1,428,155 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity |
|||||||
Preferred stock, $0.01 par value (liquidation preference of $1,000), 50,000,000 shares authorized and 0 issued or outstanding as of December 31, 2015 and 0 shares authorized, issued and outstanding as of December 31, 2014 |
$ |
— |
— |
||||
Common stock, $0.01 par value, 500,000,000 shares authorized, 111,671,372 issued and outstanding as of December 31, 2015 and 100,000 shares authorized, 1,000 issued and outstanding as of December 31, 2014 |
1,117 |
— |
|||||
Additional paid in capital |
1,993,760 |
1,781,427 |
|||||
Accumulated other comprehensive income |
1,543 |
— |
|||||
Distributions in excess of retained earnings |
(268,991) |
(264,161) |
|||||
Total Company stockholders' equity |
$ |
1,727,429 |
$ |
1,517,266 |
|||
Non-controlling interests |
15,929 |
3,655 |
|||||
Total equity |
$ |
1,743,358 |
$ |
1,520,921 |
|||
Total liabilities and equity |
$ |
3,005,945 |
$ |
2,949,076 |
Xenia Hotels & Resorts, Inc. |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Revenues: |
|||||||||||||||
Rooms revenues |
$ |
161,469 |
$ |
150,900 |
$ |
663,224 |
$ |
631,901 |
|||||||
Food and beverage revenues |
73,330 |
63,687 |
259,036 |
235,066 |
|||||||||||
Other revenues |
13,795 |
15,350 |
53,884 |
59,699 |
|||||||||||
Total revenues |
$ |
248,594 |
$ |
229,937 |
$ |
976,144 |
$ |
926,666 |
|||||||
Expenses: |
|||||||||||||||
Rooms expenses |
37,117 |
34,351 |
148,492 |
140,128 |
|||||||||||
Food and beverage expenses |
45,034 |
40,993 |
167,840 |
158,243 |
|||||||||||
Other direct expenses |
4,728 |
7,363 |
17,984 |
28,556 |
|||||||||||
Other indirect expenses |
58,350 |
54,222 |
226,108 |
214,272 |
|||||||||||
Management and franchise fees |
12,144 |
12,316 |
49,818 |
52,104 |
|||||||||||
Total hotel operating expenses |
157,373 |
149,245 |
610,242 |
593,303 |
|||||||||||
Depreciation and amortization |
37,914 |
35,576 |
148,009 |
141,807 |
|||||||||||
Real estate taxes, personal property taxes and insurance |
12,733 |
11,960 |
49,717 |
44,625 |
|||||||||||
Ground lease expense |
1,336 |
1,445 |
5,204 |
5,541 |
|||||||||||
General and administrative expenses |
6,113 |
14,623 |
25,556 |
38,895 |
|||||||||||
Business management fees |
— |
— |
— |
1,474 |
|||||||||||
Acquisition transaction costs |
(349) |
44 |
5,046 |
1,192 |
|||||||||||
Pre-opening expenses |
585 |
— |
1,411 |
— |
|||||||||||
Provision for asset impairment |
— |
713 |
— |
5,378 |
|||||||||||
Separation and other start-up related expenses |
— |
— |
26,887 |
— |
|||||||||||
Total expenses |
$ |
215,705 |
$ |
213,606 |
$ |
872,072 |
$ |
832,215 |
|||||||
Operating income |
$ |
32,889 |
$ |
16,331 |
$ |
104,072 |
$ |
94,451 |
|||||||
Gain (loss) on sale of investment properties |
43,015 |
(172) |
43,015 |
693 |
|||||||||||
Other income |
1,528 |
139 |
4,916 |
324 |
|||||||||||
Interest expense |
(12,090) |
(13,894) |
(50,816) |
(57,427) |
|||||||||||
Loss on extinguishment of debt |
(5,478) |
(530) |
(5,761) |
(1,713) |
|||||||||||
Equity in losses and gain on consolidation of unconsolidated entity, net |
— |
— |
— |
4,216 |
|||||||||||
Income before income taxes |
59,864 |
1,874 |
95,426 |
40,544 |
|||||||||||
Income tax benefit (expense) |
$ |
2,049 |
$ |
(80) |
$ |
(6,295) |
$ |
(5,865) |
|||||||
Net income from continuing operations |
61,913 |
1,794 |
89,131 |
34,679 |
|||||||||||
Net income (loss) from discontinued operations |
$ |
— |
$ |
73,307 |
$ |
(489) |
$ |
75,120 |
|||||||
Net income |
61,913 |
75,101 |
88,642 |
109,799 |
|||||||||||
Less: Net (income) loss attributable to non-controlling interests |
$ |
(132) |
$ |
— |
$ |
116 |
$ |
— |
|||||||
Net income attributable to the Company |
61,781 |
75,101 |
88,758 |
109,799 |
|||||||||||
Distributions to preferred stockholders |
$ |
— |
$ |
— |
$ |
(12) |
$ |
— |
|||||||
Net income attributable to common stockholders |
61,781 |
75,101 |
88,746 |
109,799 |
Xenia Hotels & Resorts, Inc. |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Basic and diluted earnings per share |
|||||||||||||||
Income from continuing operations available to common stockholders |
$ |
0.55 |
$ |
0.02 |
$ |
0.79 |
$ |
0.31 |
|||||||
Income from discontinued operations available to common stockholders |
$ |
— |
$ |
0.65 |
$ |
— |
$ |
0.66 |
|||||||
Net income per share available to common stockholders |
$ |
0.55 |
$ |
0.67 |
$ |
0.79 |
$ |
0.97 |
|||||||
Weighted average number of common shares (basic) |
111,671,372 |
113,397,997 |
111,989,686 |
113,397,997 |
|||||||||||
Weighted average number of common shares (diluted) |
111,791,828 |
113,397,997 |
112,138,223 |
113,397,997 |
|||||||||||
Comprehensive Income: |
|||||||||||||||
Net income |
61,913 |
$ |
75,101 |
$ |
88,642 |
$ |
109,799 |
||||||||
Other comprehensive income: |
— |
— |
— |
— |
|||||||||||
Unrealized gain on interest rate derivative instruments |
1,543 |
— |
1,543 |
— |
|||||||||||
63,456 |
$ |
75,101 |
$ |
90,185 |
$ |
109,799 |
|||||||||
Comprehensive income attributable to non-controlling interests: |
— |
— |
— |
— |
|||||||||||
Non-controlling interests in consolidated entities |
(132) |
— |
116 |
— |
|||||||||||
Comprehensive income attributable to non-controlling interests |
(132) |
— |
116 |
— |
|||||||||||
Comprehensive income attributable to the Company |
63,324 |
$ |
75,101 |
$ |
90,301 |
$ |
109,799 |
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, FFO and Adjusted FFO. 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 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 USALI, which defines hotel EBITDA 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 Operating 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 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. |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Net income attributable to the Company |
$ |
61,781 |
$ |
75,101 |
$ |
88,758 |
$ |
109,799 |
|||||||
Adjustments: |
|||||||||||||||
Interest expense |
12,090 |
13,894 |
50,816 |
57,427 |
|||||||||||
Interest expense from unconsolidated entity |
— |
— |
— |
31 |
|||||||||||
Interest expense from discontinued operations(1) |
— |
4,578 |
— |
28,299 |
|||||||||||
Income tax expense |
(2,049) |
80 |
6,295 |
5,865 |
|||||||||||
Income tax expense (benefit) related to discontinued operations(1) |
— |
4,566 |
— |
4,566 |
|||||||||||
Depreciation and amortization related to investment properties |
37,914 |
35,576 |
148,009 |
141,807 |
|||||||||||
Depreciation and amortization related to investment in unconsolidated entity |
— |
— |
— |
100 |
|||||||||||
Depreciation and amortization of discontinued operations(1) |
— |
(860) |
— |
35,864 |
|||||||||||
Adjustments related to non-controlling interests |
(232) |
— |
(270) |
— |
|||||||||||
EBITDA |
$ |
109,504 |
$ |
132,935 |
$ |
293,608 |
$ |
383,758 |
|||||||
Reconciliation to Adjusted EBITDA |
|||||||||||||||
Impairment of investment properties |
— |
713 |
— |
5,378 |
|||||||||||
(Gain) loss on sale of investment property |
(43,015) |
172 |
(43,015) |
(693) |
|||||||||||
Gain on sale of investment property related to discontinued operations(1) |
— |
(135,692) |
(22) |
(135,692) |
|||||||||||
Loss on extinguishment of debt |
5,478 |
530 |
5,761 |
1,713 |
|||||||||||
Loss on extinguishment of debt related to discontinued operations(1) |
— |
65,378 |
— |
65,391 |
|||||||||||
Gain on consolidation of investment in unconsolidated entity |
— |
(28) |
— |
(4,509) |
|||||||||||
Acquisition and pursuit costs |
(349) |
44 |
5,046 |
1,192 |
|||||||||||
Amortization of share-based compensation expense |
1,328 |
— |
6,102 |
— |
|||||||||||
Amortization of above and below market ground leases |
95 |
85 |
380 |
265 |
|||||||||||
Pre-opening expenses(2) |
585 |
— |
1,411 |
— |
|||||||||||
Adjustments related to non-controlling interests |
(146) |
— |
(353) |
— |
|||||||||||
Management termination fees net of guaranty income(3) |
— |
— |
212 |
— |
|||||||||||
Business interruption insurance recoveries, net(4) |
(737) |
— |
(3,884) |
— |
|||||||||||
EBITDA adjustment for three hotels sold in 2014(5) |
— |
133 |
(85) |
(1,690) |
|||||||||||
EBITDA adjustment for Suburban Select Service Portfolio(1) |
— |
(11,500) |
489 |
(73,765) |
|||||||||||
Other non-recurring expenses(6) |
— |
— |
26,887 |
— |
|||||||||||
Adjusted EBITDA |
$ |
72,743 |
$ |
52,770 |
$ |
292,537 |
$ |
241,348 |
(1) |
On November 17, 2014, InvenTrust sold the Suburban Select Service Portfolio for an aggregate gross disposition price of $1.1 billion. Prior to the sale transaction, the Company oversaw the Suburban Select Service Portfolio. This sale reflected a strategic shift and had a major impact on our combined consolidated financial statements; therefore the operations of these 52 hotels are reflected as discontinued operations on the combined consolidated statements of operations and comprehensive income for the years ended December 31, 2015 and 2014. |
(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) |
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. |
(5) |
The following three hotels were disposed of in 2014 prior to the Company's separation from its former parent: Crowne Plaza Charleston Airport - Convention Center, DoubleTree Suites Atlanta Galleria, and Holiday Inn Secaucus Meadowlands. |
(6) |
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 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. |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||||||
Net income attributable to the Company |
$ |
61,781 |
$ |
75,101 |
$ |
88,758 |
$ |
109,799 |
|||||||
Adjustments: |
|||||||||||||||
Depreciation and amortization related to investment properties |
37,914 |
35,576 |
148,009 |
141,807 |
|||||||||||
Depreciation and amortization related to investment in unconsolidated entity |
— |
— |
— |
100 |
|||||||||||
Depreciation and amortization of discontinued operations(1) |
— |
(860) |
— |
35,864 |
|||||||||||
Impairment of investment property |
— |
713 |
— |
5,378 |
|||||||||||
(Gain) loss on sale of investment property |
(43,015) |
172 |
(43,015) |
(693) |
|||||||||||
Gain on sale of investment property related to discontinued operations(1) |
— |
(135,692) |
(22) |
(135,692) |
|||||||||||
Gain on consolidation of investment in unconsolidated entity |
— |
(28) |
— |
(4,509) |
|||||||||||
Adjustments related to non-controlling interests |
(170) |
— |
(197) |
— |
|||||||||||
FFO |
$ |
56,510 |
$ |
(25,018) |
$ |
193,533 |
$ |
152,054 |
|||||||
Distribution to preferred shareholders |
— |
— |
(12) |
— |
|||||||||||
FFO available to common share and unit holders |
$ |
56,510 |
$ |
(25,018) |
$ |
193,521 |
$ |
152,054 |
|||||||
Reconciliation to Adjusted FFO |
|||||||||||||||
Loss on extinguishment of debt |
5,478 |
530 |
5,761 |
1,713 |
|||||||||||
Loss on extinguishment of debt related to discontinued operations(1) |
— |
65,378 |
— |
65,391 |
|||||||||||
Acquisition and pursuit costs |
(349) |
44 |
5,046 |
1,192 |
|||||||||||
Loan related costs(2) |
906 |
1,057 |
3,778 |
4,462 |
|||||||||||
Amortization of share-based compensation expense |
1,328 |
— |
6,102 |
— |
|||||||||||
Amortization of above and below market ground leases |
95 |
85 |
380 |
265 |
|||||||||||
Pre-opening expenses |
585 |
— |
1,411 |
— |
|||||||||||
Adjustments related to non-controlling interests |
(150) |
— |
(356) |
— |
|||||||||||
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 three hotels sold in 2014(6) |
— |
133 |
(85) |
(1,442) |
|||||||||||
FFO adjustment for Suburban Select Service Portfolio(1) |
— |
(2,356) |
489 |
(40,903) |
|||||||||||
Other non-recurring expenses (7) |
— |
— |
26,887 |
— |
|||||||||||
Adjusted FFO |
$ |
63,068 |
$ |
39,853 |
$ |
241,162 |
$ |
182,732 |
(1) |
On November 17, 2014, InvenTrust sold the Suburban Select Service Portfolio for an aggregate gross disposition price of $1.1 billion. Prior to the sale transaction, the Company oversaw the Suburban Select Service Portfolio. This sale reflected a strategic shift and had a major impact on our combined consolidated financial statements; therefore the operations of these 52 hotels are reflected as discontinued operations on the combined consolidated statements of operations and comprehensive income for the years ended December 31, 2015 and 2014. |
(2) |
Loan related costs included amortization of debt discounts, premiums and deferred loan origination costs. |
(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 following three hotels were disposed of in 2014 prior to the Company's separation from its former parent: Crowne Plaza Charleston Airport - Convention Center, DoubleTree Suites Atlanta Galleria, and Holiday Inn Secaucus Meadowlands. |
(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 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. |
||||||||
Rate |
Rate |
Fully Extended |
Outstanding as of |
|||||
Mortgage Loans |
||||||||
Grand Bohemian Hotel Orlando |
Fixed |
5.82% |
October 2016 |
49,360 |
||||
Renaissance Atlanta Waverly Hotel & Convention Center |
Fixed |
5.50% |
December 2016 |
97,000 |
||||
Renaissance Austin Hotel |
Fixed |
5.51% |
December 2016 |
83,000 |
||||
Courtyard Pittsburgh Downtown |
Fixed |
4.00% |
March 2017 |
22,607 |
||||
Marriott Griffin Gate Resort & Spa |
Variable |
2.74% |
March 2017 |
34,374 |
||||
Courtyard Birmingham Downtown at UAB |
Fixed |
5.25% |
April 2017 |
13,353 |
||||
Residence Inn Denver City Center |
Variable |
2.66% |
April 2018 |
45,210 |
||||
Bohemian Hotel Savannah Riverfront |
Variable |
2.76% |
December 2018 |
27,480 |
||||
Fairmont Dallas |
Variable |
2.29% |
April 2019 |
56,217 |
||||
Andaz Savannah |
Variable |
2.24% |
January 2020 |
21,500 |
||||
Hotel Monaco Denver |
Variable |
2.34% |
January 2020 |
41,000 |
||||
Andaz Napa |
Variable |
2.34% |
March 2020 |
38,000 |
||||
Marriott Dallas City Center |
Variable |
2.66% |
May 2020 |
40,090 |
||||
Marriott Charleston Town Center |
Fixed |
3.85% |
July 2020 |
16,877 |
||||
Hyatt Regency Santa Clara |
Variable |
2.41% |
September 2020 |
60,200 |
||||
Grand Bohemian Hotel Charleston (JV) |
Variable |
2.82% |
November 2020 |
19,950 |
||||
Loews New Orleans Hotel |
Variable |
2.62% |
November 2020 |
37,500 |
||||
Grand Bohemian Hotel Mountain Brook (JV) |
Variable |
2.92% |
December 2020 |
25,784 |
||||
Hotel Monaco Chicago |
Variable |
2.59% |
January 2021 |
26,000 |
||||
Westin Galleria & Oaks Houston |
Variable |
2.92% |
May 2021 |
110,000 |
||||
Residence Inn Boston Cambridge |
Fixed |
4.48% |
October 2025 |
63,000 |
||||
Total Mortgage Loans |
3.56% |
(3) |
$ |
928,502 |
||||
Mortgage Loan Premium / (Discounts)(4) |
(661) |
|||||||
Unamortized loan costs(5) |
(8,305) |
|||||||
Senior Unsecured Credit Facility |
Variable |
2.04% |
February 2020 |
— |
||||
Term Loan $175M |
Hedged |
2.79% |
February 2021 |
175,000 |
||||
Term Loan $125M(6) |
Hedged |
3.63% |
October 2022 |
— |
||||
Total Debt(7) |
3.44% |
(3) |
$ |
1,094,536 |
||||
Assets Held For Sale: |
||||||||
Hilton University of Florida Conference Center Gainesville(8) |
Fixed |
6.46% |
February 2018 |
27,775 |
||||
Total Debt Including Assets Held For Sale(7) |
3.51% |
(3) |
$ |
1,122,311 |
(1) |
Floating 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) |
Weighted average interest rate as of December 31, 2015. |
(4) |
Loan premiums/(discounts) on assumed mortgages recorded in purchase accounting. |
(5) |
During the year ended December 31, 2015, the Company early adopted ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which required us to present unamortized deferred loan costs as Debt on our combined consolidated balance sheet that had historically been presented as Other Assets. |
(6) |
The $125 million term loan was funded in January 2016 in connection with the acquisition of the Hotel Commonwealth. The Company executed swap agreements to fix LIBOR over the period of the loan at 1.83%. |
(7) |
Does not include a seven-year, $60 million mortgage loan on the Hotel Palomar Philadelphia that closed in January 2016. The new loan bears interest at LIBOR plus 260, and the Company has entered into a swap to fix LIBOR over the life of the loan at 1.54%. The effective fixed interest rate on the loan is 4.14%. |
(8) |
Hotel was sold in February 2016 and the mortgage loan was paid off in connection with the sale. |
Xenia Hotels & Resorts, Inc. |
||||||||||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||||||||
2015 |
2014 |
Change |
2015 |
2014 |
Change |
|||||||||||||||||
Revenues(2): |
||||||||||||||||||||||
Room revenues |
$ |
157,353 |
$ |
150,598 |
4.5 |
% |
$ |
655,748 |
$ |
631,373 |
3.9 |
% |
||||||||||
Food and beverage revenues |
68,816 |
62,271 |
10.5 |
% |
251,847 |
231,412 |
8.8 |
% |
||||||||||||||
Other revenues |
13,340 |
14,582 |
(8.5) |
% |
52,391 |
57,578 |
(9.0) |
% |
||||||||||||||
Total revenues |
$ |
239,509 |
$ |
227,451 |
5.3 |
% |
$ |
959,986 |
$ |
920,363 |
4.3 |
% |
||||||||||
Expenses(2): |
||||||||||||||||||||||
Room expenses |
$ |
35,828 |
$ |
33,709 |
6.3 |
% |
$ |
144,748 |
$ |
137,804 |
5.0 |
% |
||||||||||
Food and beverage expenses |
42,337 |
40,436 |
4.7 |
% |
162,472 |
155,756 |
4.3 |
% |
||||||||||||||
Other direct expenses |
4,468 |
7,347 |
(39.2) |
% |
17,626 |
28,766 |
(38.7) |
% |
||||||||||||||
Other indirect expenses |
55,919 |
53,473 |
4.6 |
% |
222,244 |
211,414 |
5.1 |
% |
||||||||||||||
Management and franchise fees |
11,812 |
11,982 |
(1.4) |
% |
49,368 |
50,496 |
(2.2) |
% |
||||||||||||||
Real estate taxes, personal property taxes and insurance |
11,965 |
11,712 |
2.2 |
% |
48,367 |
43,792 |
10.4 |
% |
||||||||||||||
Ground lease expense(3) |
1,241 |
1,131 |
9.7 |
% |
4,825 |
4,615 |
4.6 |
% |
||||||||||||||
Total hotel operating expenses |
$ |
163,570 |
$ |
159,790 |
2.4 |
% |
$ |
649,650 |
$ |
632,643 |
2.7 |
% |
||||||||||
Hotel EBITDA |
$ |
75,939 |
$ |
67,661 |
12.2 |
% |
$ |
310,336 |
$ |
287,720 |
7.9 |
% |
||||||||||
Hotel EBITDA Margin |
31.7 |
% |
29.7 |
% |
196 bps |
32.3 |
% |
31.3 |
% |
107 bps |
(1) |
"Same-Property" results include the results for all hotels owned as of December 31, 2015, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, include periods prior to the Company's ownership of the Aston Waikiki Beach Hotel, Canary Hotel, RiverPlace Hotel and Hotel Palomar Philadelphia, and exclude the results of operations of the Crowne Plaza Charleston Airport - Convention Center, DoubleTree Suites Atlanta Galleria, and Holiday Inn Secaucus Meadowlands, all of which were sold in 2014, and the Hyatt Regency Orange County which was sold in October 2015. "Same-Property" results also exclude the NOI guaranty payment at the Andaz San Diego. Results include renovation and remediation disruption for multiple capital projects during the periods presented and for the impact of the Napa earthquake that occurred in August 2014. |
(2) |
2014 revenues and expenses are unadjusted for changes resulting from the adoption of USALI. |
(3) |
Excludes the amortization of above / below market ground lease intangibles. As such, year ended December 31, 2014 Hotel EBITDA will differ from figures previously provided. |
Xenia Hotels & Resorts, Inc. |
|||||
December 31, 2015 |
|||||
Region |
Number of Hotels |
Number of Rooms |
|||
South Atlantic |
|||||
(Florida, Georgia, Maryland, South Carolina, Virginia, West Virginia, Washington, D.C.) |
16 |
3,319 |
|||
West South Central |
|||||
(Louisiana, Texas) |
9 |
3,339 |
|||
Pacific |
|||||
(California, Hawaii, Oregon) |
8 |
2,591 |
|||
Mountain |
|||||
(Arizona, Colorado, Utah) |
5 |
1,016 |
|||
Other |
|||||
(Alabama, Illinois, Iowa, Kentucky, Massachusetts, Missouri, Pennsylvania) |
12 |
2,283 |
|||
Total |
50 |
12,548 |
(1) |
All hotels owned as of December 31, 2015, including Grand Bohemian Charleston and Grand Bohemian Mountain Brook, which are not included in "Same-Property" data. |
Xenia Hotels & Resorts, Inc. |
|||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||
December 31, 2015 |
December 31, 2014 |
% Change |
|||||||||||||||||||||||
Occupancy |
ADR |
RevPAR |
Occupancy |
ADR |
RevPAR |
RevPAR |
|||||||||||||||||||
Region |
|||||||||||||||||||||||||
South Atlantic |
72.5 |
% |
$ |
181.37 |
$ |
131.53 |
71.7 |
% |
$ |
174.80 |
$ |
125.33 |
4.9 |
% |
|||||||||||
West South Central |
66.9 |
% |
$ |
185.93 |
$ |
124.38 |
68.2 |
% |
$ |
188.53 |
$ |
128.59 |
(3.3) |
% |
|||||||||||
Pacific |
80.4 |
% |
$ |
222.17 |
$ |
178.54 |
74.1 |
% |
$ |
203.67 |
$ |
150.91 |
18.3 |
% |
|||||||||||
Mountain |
68.8 |
% |
$ |
175.83 |
$ |
120.91 |
71.3 |
% |
$ |
168.10 |
$ |
119.83 |
0.9 |
% |
|||||||||||
Other |
71.1 |
% |
$ |
180.24 |
$ |
128.10 |
71.0 |
% |
$ |
175.44 |
$ |
124.58 |
2.8 |
% |
|||||||||||
Total |
72.1 |
% |
$ |
191.39 |
$ |
137.96 |
71.1 |
% |
$ |
184.19 |
$ |
130.97 |
5.3 |
% |
|||||||||||
Year Ended |
Year Ended |
||||||||||||||||||||||||
December 31, 2015 |
December 31, 2014 |
% Change |
|||||||||||||||||||||||
Occupancy |
ADR |
RevPAR |
Occupancy |
ADR |
RevPAR |
RevPAR |
|||||||||||||||||||
Region |
|||||||||||||||||||||||||
South Atlantic |
77.6 |
% |
$ |
178.76 |
$ |
138.68 |
77.3 |
% |
$ |
171.57 |
$ |
132.67 |
4.5 |
% |
|||||||||||
West South Central |
71.0 |
% |
$ |
186.79 |
$ |
132.64 |
72.2 |
% |
$ |
184.23 |
$ |
133.02 |
(0.3) |
% |
|||||||||||
Pacific |
81.2 |
% |
$ |
221.01 |
$ |
179.54 |
81.5 |
% |
$ |
202.00 |
$ |
164.70 |
9.0 |
% |
|||||||||||
Mountain |
78.1 |
% |
$ |
177.86 |
$ |
138.84 |
78.7 |
% |
$ |
167.93 |
$ |
132.12 |
5.1 |
% |
|||||||||||
Other |
75.6 |
% |
$ |
178.37 |
$ |
134.81 |
74.5 |
% |
$ |
170.90 |
$ |
127.32 |
5.9 |
% |
|||||||||||
Total |
76.3 |
% |
$ |
190.03 |
$ |
144.92 |
76.4 |
% |
$ |
181.14 |
$ |
138.46 |
4.7 |
% |
(1) |
"Same-Property" results include the results for all hotels owned as of December 31, 2015, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, include periods prior to the Company's ownership of the Aston Waikiki Beach Hotel, Canary Hotel, RiverPlace Hotel and Hotel Palomar Philadelphia, and exclude the results of operations of the Crowne Plaza Charleston Airport - Convention Center, DoubleTree Suites Atlanta Galleria, and Holiday Inn Secaucus Meadowlands, all of which were sold in 2014, and the Hyatt Regency Orange County which was sold in October 2015. "Same-Property" results also exclude the NOI guaranty payment at the Andaz San Diego. Results include renovation and remediation disruption for multiple capital projects during the periods presented and for the impact of the Napa earthquake that occurred in August 2014. |
(2) |
Average Daily Rate ("ADR") and Revenue Per Available Room ("RevPAR") for the year ended months ended December 31, 2014 are presented after adjusting for the adoption of the Eleventh Revised Edition of the Uniform System of Accounts for the Lodging Industry ("USALI") as provided by our operators. |
Xenia Hotels & Resorts, Inc. |
||||||||||||||||||||||||
Same-Property(1) Results for the Year Ended December 31, 2015 and 2014 |
||||||||||||||||||||||||
Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
|||||||||||||||||||||||
EBITDA |
EBITDA / |
RevPAR |
EBITDA |
EBITDA / |
RevPAR |
|||||||||||||||||||
Andaz Napa |
$ |
5,431 |
$ |
38,518 |
$ |
223.09 |
$ |
2,261 |
$ |
16,035 |
$ |
137.99 |
||||||||||||
Andaz San Diego(2) |
4,225 |
26,572 |
186.29 |
3,336 |
20,981 |
168.20 |
||||||||||||||||||
Andaz Savannah |
4,284 |
28,371 |
171.12 |
3,961 |
26,232 |
162.27 |
||||||||||||||||||
Aston Waikiki Beach Hotel(2) |
17,884 |
27,727 |
149.60 |
18,022 |
27,941 |
147.82 |
||||||||||||||||||
Bohemian Hotel Celebration |
2,062 |
17,930 |
131.54 |
1,966 |
17,096 |
121.01 |
||||||||||||||||||
Bohemian Hotel Savannah Riverfront |
4,609 |
61,453 |
252.40 |
4,366 |
58,213 |
243.53 |
||||||||||||||||||
Canary Hotel |
5,421 |
55,887 |
301.02 |
4,572 |
47,134 |
284.43 |
||||||||||||||||||
Courtyard Birmingham Downtown at UAB |
2,658 |
21,787 |
117.53 |
2,345 |
19,221 |
109.22 |
||||||||||||||||||
Courtyard Fort Worth Downtown/Blackstone |
3,514 |
17,310 |
104.54 |
3,385 |
16,675 |
104.71 |
||||||||||||||||||
Courtyard Kansas City Country Club Plaza |
2,502 |
20,341 |
115.32 |
2,437 |
19,813 |
112.39 |
||||||||||||||||||
Courtyard Pittsburgh Downtown |
4,151 |
22,808 |
124.20 |
4,413 |
24,247 |
124.67 |
||||||||||||||||||
DoubleTree by Hilton Hotel Washington DC |
4,143 |
18,832 |
146.20 |
4,121 |
18,732 |
139.38 |
||||||||||||||||||
Embassy Suites Baltimore North/Hunt Valley |
2,382 |
10,682 |
91.76 |
2,399 |
10,758 |
90.19 |
||||||||||||||||||
Fairmont Dallas |
11,454 |
21,017 |
121.08 |
9,166 |
16,818 |
112.09 |
||||||||||||||||||
Grand Bohemian Hotel Orlando |
8,461 |
34,255 |
173.46 |
7,157 |
28,976 |
158.37 |
||||||||||||||||||
Hampton Inn & Suites Baltimore Inner Harbor |
1,690 |
14,569 |
116.14 |
1,871 |
16,129 |
121.49 |
||||||||||||||||||
Hampton Inn & Suites Denver Downtown |
3,949 |
26,682 |
141.74 |
3,611 |
24,399 |
134.17 |
||||||||||||||||||
Hilton Garden Inn Chicago North Shore/Evanston |
3,177 |
17,848 |
120.24 |
2,861 |
16,073 |
113.53 |
||||||||||||||||||
Hilton Garden Inn Washington DC Downtown |
9,637 |
32,123 |
202.57 |
9,052 |
30,173 |
200.51 |
||||||||||||||||||
Hilton Phoenix Suites |
3,534 |
15,637 |
106.81 |
2,838 |
12,558 |
96.61 |
||||||||||||||||||
Hilton St. Louis Downtown at the Arch |
2,329 |
11,944 |
102.38 |
2,207 |
11,318 |
97.85 |
||||||||||||||||||
Hilton University of Florida CC Gainesville |
4,008 |
16,161 |
114.86 |
3,563 |
14,367 |
105.65 |
||||||||||||||||||
Homewood Suites by Hilton Houston Near the Galleria |
3,311 |
20,438 |
131.25 |
4,159 |
25,673 |
146.65 |
||||||||||||||||||
Hotel Monaco Chicago |
3,655 |
19,136 |
175.39 |
4,241 |
22,204 |
167.60 |
||||||||||||||||||
Hotel Monaco Denver |
6,959 |
36,820 |
176.30 |
6,960 |
36,825 |
178.40 |
||||||||||||||||||
Hotel Monaco Salt Lake City |
5,254 |
23,351 |
130.33 |
4,728 |
21,013 |
120.64 |
||||||||||||||||||
Hotel Palomar Philadelphia |
8,340 |
36,261 |
192.61 |
6,592 |
28,661 |
176.15 |
||||||||||||||||||
Hyatt Key West Resort & Spa |
9,065 |
76,822 |
364.32 |
8,028 |
68,034 |
339.47 |
||||||||||||||||||
Hyatt Regency Santa Clara |
16,626 |
33,120 |
186.82 |
12,903 |
25,754 |
168.11 |
||||||||||||||||||
Loews New Orleans Hotel |
5,634 |
19,768 |
153.39 |
5,759 |
20,207 |
151.20 |
||||||||||||||||||
Lorien Hotel & Spa |
2,892 |
27,028 |
161.78 |
2,883 |
26,944 |
157.11 |
||||||||||||||||||
Marriott Atlanta Century Center/Emory Area(2) |
2,917 |
10,164 |
89.71 |
2,841 |
9,899 |
84.75 |
||||||||||||||||||
Marriott Charleston Town Center |
3,115 |
8,849 |
86.07 |
3,184 |
9,045 |
86.09 |
||||||||||||||||||
Marriott Chicago at Medical District/UIC |
2,141 |
18,947 |
160.49 |
2,085 |
18,451 |
153.03 |
Xenia Hotels & Resorts, Inc. |
||||||||||||||||||||||||
Same-Property(1) Results for the Year Ended December 31, 2015 and 2014 - Continued |
||||||||||||||||||||||||
Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
|||||||||||||||||||||||
EBITDA |
EBITDA / |
RevPAR |
EBITDA |
EBITDA / |
RevPAR |
|||||||||||||||||||
Marriott Dallas City Center |
8,418 |
20,236 |
122.56 |
7,793 |
18,733 |
113.19 |
||||||||||||||||||
Marriott Griffin Gate Resort & Spa |
6,467 |
15,812 |
100.24 |
6,524 |
15,951 |
92.46 |
||||||||||||||||||
Marriott Napa Valley Hotel & Spa |
9,187 |
33,407 |
174.51 |
6,806 |
24,749 |
152.58 |
||||||||||||||||||
Marriott San Francisco Airport Waterfront |
16,806 |
24,427 |
167.10 |
16,484 |
24,064 |
161.64 |
||||||||||||||||||
Marriott West Des Moines |
2,789 |
12,735 |
91.24 |
2,550 |
11,644 |
91.04 |
||||||||||||||||||
Marriott Woodlands Waterway Hotel & CC(2) |
18,411 |
53,676 |
177.21 |
18,208 |
53,085 |
171.60 |
||||||||||||||||||
Renaissance Atlanta Waverly Hotel & CC |
12,528 |
24,000 |
107.54 |
10,481 |
20,079 |
98.89 |
||||||||||||||||||
Renaissance Austin Hotel |
11,541 |
23,457 |
120.70 |
10,925 |
22,205 |
118.33 |
||||||||||||||||||
Residence Inn Baltimore Downtown/Inner Harbor(2) |
3,857 |
20,516 |
121.17 |
4,263 |
22,676 |
125.26 |
||||||||||||||||||
Residence Inn Boston Cambridge |
8,223 |
37,208 |
203.08 |
7,320 |
33,122 |
186.63 |
||||||||||||||||||
Residence Inn Denver City Center |
7,645 |
33,531 |
146.03 |
7,596 |
33,316 |
138.97 |
||||||||||||||||||
RiverPlace Hotel |
4,060 |
48,333 |
257.96 |
3,473 |
41,345 |
238.64 |
||||||||||||||||||
Westin Galleria Houston & Westin Oaks Houston at The Galleria |
18,990 |
21,265 |
133.86 |
21,024 |
23,543 |
146.47 |
||||||||||||||||||
Total(2) |
$ |
310,336 |
$ |
25,031 |
$ |
144.92 |
$ |
287,720 |
$ |
23,214 |
$ |
138.46 |
||||||||||||
(1) |
"Same-Property" results include the results for all hotels owned as of December 31, 2015, except for the Grand Bohemian Hotel Charleston and the Grand Bohemian Hotel Mountain Brook, which commenced operations in the second half of 2015, include periods prior to the Company's ownership of the Aston Waikiki Beach Hotel, Canary Hotel, RiverPlace Hotel and Hotel Palomar Philadelphia, and exclude the results of operations of the Crowne Plaza Charleston Airport - Convention Center, DoubleTree Suites Atlanta Galleria, and Holiday Inn Secaucus Meadowlands, all of which were sold in 2014, and the Hyatt Regency Orange County which was sold in October 2015. "Same-Property" results also exclude the NOI guaranty payment at the Andaz San Diego of $0.3 million and $1.4 million for year ended 2015 and 2014, respectively. Results include renovation and remediation disruption for multiple capital projects during the periods presented and for the impact of the Napa earthquake that occurred in August 2014. |
(2) |
EBITDA excludes the amortization of above / below market ground lease intangibles. As such, year ended December 31, 2014 Hotel EBITDA will differ from figures previously provided. |
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SOURCE Xenia Hotels & Resorts, Inc.
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