The following is a summary of the Xenia Hotels & Resorts, Inc. (XHR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Xenia Hotels & Resorts reported a net income of $8.5 million, adjusted EBITDA of $65.3 million, and adjusted FFO per share of $0.44 for Q1 2024.
The company observed a 10% increase in adjusted FFO per share, attributed primarily to significant share buybacks in 2023.
However, adjusted EBITDA declined from Q1 2023, due to the record performance of Hyatt Regency Scottsdale in the previous year.
The same-property RevPAR for the 32 hotel portfolio decreased by 1.5% over the quarter.
Group room revenues increased 8.1% year-on-year, excluding the Hyatt Regency Scottsdale.
Xenia repurchased $6 million in shares during Q1, continuing last year's buyback trend.
Business Progress:
Xenia is in the process of renovating and upgrading the Hyatt Regency Scottsdale, with an expected expenditure of $120-130 million on property improvements across the portfolio in 2024.
Completion of all components at the Scottsdale property is projected by the end of 2024, some of them are to be finished by Q3 2024.
Anticipated growth from the Scottsdale project and recent market demand trends combined with restrained supply growth in the submarkets are expected to boost future growth.
Xenia maintains its adjusted FFO per diluted share guidance, targeting approximately 9% growth compared to 2023.
The company experienced robust business transient and group demand in Q1 2024 and remains focused on enhancing consumer properties while targeting recovering markets.
Capital allocation will be balanced between share buybacks and capital expenditure, with Scottsdale as a significant investment for this year.
Future investment opportunities are being explored, particularly those that offer double-digit un-levered returns.
More details: Xenia Hotels & Resorts Inc IR
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