NYSE$XHR

Xenia Hotels & Resorts Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Xenia Hotels & Resorts' financial performance decreased due to softer leisure demand, weather impact, and renovation disruptions.

Xenia Hotels & Resorts reported a decrease in net income and adjusted EBITDAre for the second quarter of 2023, impacted by softer leisure demand, weather, and ongoing renovations. However, the portfolio experienced a shift to a more traditional mix of demand segments, with strong RevPAR growth in corporate transient and group-focused hotels.

  • Net income attributable to common stockholders was $13.8 million, or $0.12 per share.
  • Adjusted EBITDAre decreased 15.7% compared to the second quarter of 2022, totaling $74.7 million.
  • Same-Property RevPAR decreased 2.0% to $182.49 compared to the second quarter of 2022.
  • The company repurchased 2,539,888 shares of common stock at a weighted-average price of $12.58 per share for a total consideration of approximately $31.9 million.

Headline financials

Total Revenue

$271M

Previous: $283M-4.4%
EPS (adj)

$0.47

Previous: $0.57-17.5%
Same-Property RevPAR

$182.49

Previous: $186.75-2.3%
Same-Property EBITDA Margin

29.3%

Previous: 33.5%-12.5%
Same-Property Occupancy

68.6%

Previous: 69.8%-1.7%
Same-Property ADR

$265.98

Previous: $267.72-0.6%
Same-Property Hotel EBITDA

$79.4M

Previous: $86.5M-8.2%
Capital Expenditures

-$34M

Previous: -$350M+90.3%
Free Cash Flow

-$20.2M

Previous: -$323M+93.7%
Net Income

$13.8M

Previous: $27.6M-50.1%
Operating Income

$35M

Previous: $50.7M-31.0%
Gross Profit

$92.4M

Previous: $106M-13.0%
Cash & Equivalents

$255M

Previous: $224M+14.1%
Total Assets

$3B

Previous: $3.08B-2.4%
Stock-Based Comp

$3.97M

Previous: $3.58M+10.9%

Revenue & EPS history

Xenia · Revenue · Quarterly

$271M

Q2 2023-4.4%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

The Company has updated its full year outlook. The broad range below reflects the Company's limited visibility in forecasting due to macroeconomic uncertainty and is based on the current economic environment and does not take into account any unanticipated impacts to the business or operations.

Tailwinds

  • Net Income: $5 million to $25 million
  • Same-Property (32 Hotel) RevPAR Change (vs. 2022): 4% to 6%
  • Adjusted EBITDAre: $244 million to $264 million
  • Adjusted FFO: $158 million to $178 million
  • Adjusted FFO per Diluted Share: $1.42 to $1.60

Headwinds

  • Renovation disruption is estimated to result in a negative impact of 250 basis points to Same-Property (32 Hotel) RevPAR Change based on the scope and timing of capital improvement projects - 50 basis points higher than prior guidance.
  • These renovations are estimated to result in a negative impact of approximately $18 million to Adjusted EBITDAre and Adjusted FFO - $3 million higher than prior guidance.
  • General and administrative expense of approximately $25 million, excluding non-cash share-based compensation - no change from prior guidance
  • Interest expense of approximately $83 million, excluding non-cash loan related costs - a decrease of approximately $2 million from prior guidance
  • Income tax expense of approximately $3 million - a decrease of approximately $1 million from prior guidance

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+3.1%

Avg return

30 days after

46%

22 / 48 earnings

Positive

+12.1%

Q4 2023

Best reaction

-19.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+2.9%+6.8%
Q4 2025-1.6%-4.0%-5.1%
Q3 2025-1.1%+0.6%+9.7%
Q1 2025+4.7%+4.2%+12.9%
Q4 2024-6.4%-3.7%-13.2%
Q3 2024+3.2%+6.1%+11.0%
Q2 2024-4.3%-7.6%+2.6%
Q1 2024+7.4%+5.7%+3.9%
Q4 2023+12.1%+18.6%+14.9%
Q3 2023-2.0%+7.0%+5.4%
Q2 2023-4.5%-1.6%-5.7%
Q1 2023+0.9%+1.7%-6.2%
Q4 2022+4.6%+2.6%-6.8%
Q3 2022-17.6%-16.7%-11.0%
Q2 2022+3.4%+3.7%-2.9%
Q1 2022+0.9%-1.6%+1.1%
Q4 2021+1.9%-1.1%+4.0%
Q3 2021+4.1%+9.2%-12.9%
Q2 2021-4.4%+1.2%+0.3%
Q1 2021-0.7%-3.5%+1.2%
Q4 2020-7.1%-6.5%-2.4%
Q3 2020-0.5%+0.6%+68.7%
Q2 2020-7.4%-5.8%+10.6%
Q1 2020-19.5%-18.6%+29.5%
Q4 2019-7.6%-21.9%-38.4%
Q3 2019+4.8%+6.1%+1.4%
Q2 2019-1.5%-5.0%-5.7%
Q1 2019+6.7%+5.0%-3.0%
Q4 2018+0.2%+0.9%+12.9%
Q3 2018-0.4%+2.9%+0.3%
Q2 2018-2.5%-2.6%-1.3%
Q1 2018+8.9%+11.3%+24.7%
Q4 2017-0.7%-0.7%-0.5%
Q3 2017-0.9%-1.6%-2.8%
Q2 2017-2.4%-2.5%-1.0%
Q1 2017+1.3%-0.4%+7.5%
Q4 2016-3.4%-8.5%-8.2%
Q3 2016+0.8%+8.2%+22.3%
Q2 2016+2.1%+1.8%-4.0%
Q1 2016-2.1%
Q4 2013+1.7%
Q4 2015+1.7%
Q3 2014-2.2%
Q3 2015-2.2%
Q2 2014-1.0%
Q2 2015-1.0%
Q4 2014+3.9%
Q1 2015+3.9%
Q1 2014
Q3 2013
Q2 2013
Q1 2013

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