Xenia Hotels & Resorts, Inc. (XHR) Bundle
A Brief History of H3
As of 2024, H3 has undergone significant transformations and adaptations in response to evolving market dynamics and operational challenges. The company's performance metrics reflect its strategic initiatives and investment decisions, particularly within the hospitality sector.
Financial Performance Overview
For the nine months ended September 30, 2024, H3 reported:
- Net cash provided by operating activities: $133.1 million
- Net cash used in investing activities: ($84.5 million)
- Net cash used in financing activities: ($47.1 million)
- Cash and cash equivalents at period end: $224.6 million
Capital Expenditures
H3's capital expenditures for the nine months ended September 30, 2024 totaled $116.2 million, compared to $69.5 million for the same period in 2023. The company made substantial investments to enhance its portfolio, including:
| Type of Expenditure | 2024 Amount (in millions) | 2023 Amount (in millions) |
|---|---|---|
| Hotel Renovations | $116.2 | $69.5 |
Debt and Financing
As of September 30, 2024, H3’s total debt stood at $1.4 billion, with a weighted-average interest rate of 5.50%. The company has various financing arrangements, including:
- Revolving line of credit: $450 million
- Initial term loan: $125 million
- Delayed draw term loan: $100 million
Operational Highlights
During the nine months ended September 30, 2024, H3 experienced operational challenges, including:
- Total hotel operating expenses increased to $544.5 million, up from $525.6 million in 2023.
- Labor costs were a significant contributor to the increase in operating expenses.
Stock Performance and Share Repurchase
H3 has engaged in a stock repurchase program, repurchasing 146,863 shares for an aggregate price of $1.9 million in the third quarter of 2024. This contrasts with the prior year when 2,070,777 shares were repurchased for $25 million.
Liquidity Position
As of September 30, 2024, H3 maintained a robust liquidity position, with $161.5 million in cash and cash equivalents, alongside $63.2 million in restricted cash. The company has sufficient liquidity to meet its operational and capital needs moving forward.
Recent Developments
In July 2024, H3 sold the Lorien Hotel & Spa for $30 million, resulting in a net cash gain of $1.6 million after transaction costs. This sale reflects the company's strategic focus on optimizing its portfolio.
Future Outlook
Looking ahead, H3 continues to emphasize maximizing revenue and profits from its existing properties while pursuing growth opportunities through strategic acquisitions and renovations.
A Who Owns Xenia Hotels & Resorts, Inc. (XHR)
Ownership Structure
Xenia Hotels & Resorts, Inc. (XHR) operates as a publicly traded real estate investment trust (REIT). As of September 30, 2024, the company had a total of 101,816,814 shares of common stock issued and outstanding. The ownership of these shares is distributed among various institutional and individual investors, with significant ownership held by institutional investors.
Major Shareholders
As of the latest available data, the largest institutional shareholders of Xenia Hotels & Resorts include:
- BlackRock, Inc. - approximately 14.5% ownership
- The Vanguard Group, Inc. - approximately 11.2% ownership
- State Street Corporation - approximately 7.9% ownership
- Invesco Ltd. - approximately 5.6% ownership
- Wellington Management Group LLP - approximately 5.4% ownership
Insider Ownership
Insider ownership plays a crucial role in the governance of the company. As of September 30, 2024, insiders owned approximately 3.2% of the total shares outstanding. This includes members of the board of directors and executive officers.
Shareholder Composition
The following table summarizes the shareholder composition of Xenia Hotels & Resorts as of September 30, 2024:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 48.2% |
| Insiders | 3.2% |
| Retail Investors | 48.6% |
Recent Stock Performance
As of September 30, 2024, Xenia Hotels & Resorts had a market capitalization of approximately $1.3 billion, with a stock price fluctuating around $12.78. The stock has seen a year-to-date performance of approximately 5% increase, reflecting broader trends in the hospitality sector.
Financial Performance Metrics
For the nine months ended September 30, 2024, Xenia Hotels & Resorts reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $17,647 |
| Cash from Operations | $133,138 |
| Total Revenue | $777,198 |
| Total Assets | $2,904,481 |
| Total Liabilities | $1,606,180 |
| Stockholders' Equity | $1,298,301 |
Dividend Policy
Xenia Hotels & Resorts has a history of paying dividends, with a declared dividend of $0.30 per share in 2024, reflecting a commitment to returning capital to shareholders. The company aims to maintain a sustainable dividend payout ratio while investing in property improvements and acquisitions.
Xenia Hotels & Resorts, Inc. (XHR) Mission Statement
Xenia Hotels & Resorts, Inc. operates as a real estate investment trust (REIT) that invests in luxury and upper upscale hotels and resorts throughout the United States. The company's mission is to maximize total shareholder returns by enhancing the value of its portfolio and generating sustainable cash flows from its operations.
Financial Overview
As of September 30, 2024, Xenia Hotels & Resorts reported:
- Total Revenues: $777.2 million for the nine months ended September 30, 2024, up from $772.1 million in the same period in 2023.
- Net Income: $17.6 million for the nine months ended September 30, 2024, compared to $12.1 million for the same period in 2023.
- Adjusted EBITDA: Decreased 4.4% for the three months ended September 30, 2024, compared to the same period in 2023.
| Financial Metric | 2024 (9 Months Ended September 30) | 2023 (9 Months Ended September 30) | Change (%) |
|---|---|---|---|
| Total Revenues | $777.2 million | $772.1 million | 0.7% |
| Net Income | $17.6 million | $12.1 million | 46.1% |
| Basic Earnings per Share | $0.16 | $0.10 | 60% |
| Cash and Cash Equivalents | $161.5 million | $219.2 million | -26.4% |
Operational Highlights
As of September 30, 2024, Xenia Hotels & Resorts had:
- Number of Properties: 31, down from 32 in the previous year.
- Total Rooms: 9,408, a decrease from 9,511 rooms in 2023.
- Occupancy Rate: 66.9%, compared to 63.8% in the same period last year.
- Average Daily Rate (ADR): $240.71, a decrease of 3.2% from $248.58 in 2023.
| Operational Metric | 2024 (9 Months Ended September 30) | 2023 (9 Months Ended September 30) | Change (%) |
|---|---|---|---|
| Number of Properties | 31 | 32 | -3.1% |
| Total Rooms | 9,408 | 9,511 | -1.1% |
| Occupancy Rate | 66.9% | 63.8% | 4.9% |
| ADR | $240.71 | $248.58 | -3.2% |
Debt and Liquidity
As of September 30, 2024, Xenia Hotels & Resorts reported total debt of $1.4 billion with a weighted-average interest rate of 5.50%. The company maintained significant liquidity with:
- Available Revolving Credit: $450 million, with no outstanding balance.
- Restricted Cash: $63.2 million, primarily for FF&E reserves.
| Debt Metric | Amount |
|---|---|
| Total Debt | $1.4 billion |
| Weighted-Average Interest Rate | 5.50% |
| Available Revolving Credit | $450 million |
| Restricted Cash | $63.2 million |
How Xenia Hotels & Resorts, Inc. (XHR) Works
Business Model and Operations
Xenia Hotels & Resorts, Inc. (XHR) operates as a self-advised and self-administered real estate investment trust (REIT). The company focuses on acquiring, owning, and leasing premium hotel properties primarily in the United States. XHR's portfolio is diversified across various markets, which helps mitigate risks associated with economic downturns in specific regions.
Financial Performance Overview
As of September 30, 2024, XHR reported a net income of $17.6 million for the nine months ended September 30, 2024, compared to $12.1 million for the same period in 2023, representing a 46.1% increase.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Income | $17.6 million | $12.1 million | +46.1% |
| Adjusted EBITDA | $65.4 million | $76.7 million | -14.7% |
| Total Revenues | $777.2 million | $772.1 million | +0.7% |
| Net Income (Loss) per Share | $0.16 | $0.10 | +60% |
Revenue Breakdown
XHR's revenue streams are primarily derived from room rentals, food and beverage services, and other ancillary services. The total revenues for the three months ended September 30, 2024, amounted to $236.8 million, a 2.1% increase compared to $232.0 million in the same period of 2023.
| Revenue Source | 2024 (Three Months) | 2023 (Three Months) | Change |
|---|---|---|---|
| Rooms Revenue | $139.6 million | $138.7 million | +0.7% |
| Food and Beverage Revenue | $74.8 million | $71.8 million | +4.1% |
| Other Revenue | $22.4 million | $21.5 million | +4.2% |
Operating Metrics
The operational efficiency of XHR can be gauged through key performance indicators such as occupancy rates and revenue per available room (RevPAR). As of September 30, 2024, the occupancy rate was 66.9%, compared to 63.8% in 2023.
| Operating Metrics | 2024 (Three Months) | 2023 (Three Months) | Change |
|---|---|---|---|
| Occupancy Rate | 66.9% | 63.8% | +310 bps |
| Average Daily Rate (ADR) | $240.71 | $248.58 | -3.2% |
| RevPAR | $160.96 | $158.48 | +1.6% |
Expenses and Cost Management
Total hotel operating expenses increased to $544.5 million for the nine months ended September 30, 2024, a 3.6% increase from $525.6 million in the same period of 2023. The rise in expenses is primarily attributed to labor costs and operational disruptions from renovations.
| Expense Category | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Total Hotel Operating Expenses | $544.5 million | $525.6 million | +3.6% |
| General and Administrative Expenses | $28.4 million | $28.4 million | 0% |
| Depreciation and Amortization | $95.6 million | $100.3 million | -4.7% |
Debt and Liquidity Position
As of September 30, 2024, Xenia Hotels & Resorts had total debt of $1.4 billion, with a weighted average interest rate of 5.50%. The company maintains a revolving line of credit of $450 million with no outstanding balance as of the reporting date.
Cash Flow Analysis
Cash provided by operating activities for the nine months ended September 30, 2024, was $133.1 million, compared to $137.9 million in 2023, reflecting a decrease attributed to working capital changes.
| Cash Flow Activities | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $133.1 million | $137.9 million |
| Net Cash Used in Investing Activities | $(84.5 million) | $(67.6 million) |
| Net Cash Used in Financing Activities | $(47.1 million) | $(160.2 million) |
Future Outlook
Xenia Hotels & Resorts continues to focus on enhancing its portfolio through strategic acquisitions and capital improvements, aiming to improve operational performance and shareholder value. The company has ongoing commitments for renovations totaling $55.5 million as of September 30, 2024.
How Xenia Hotels & Resorts, Inc. (XHR) Makes Money
Revenue Streams
Xenia Hotels & Resorts, Inc. generates revenue primarily through three categories: rooms, food and beverage, and other services.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change |
|---|---|---|---|---|---|---|
| Rooms Revenues | $139,577 | $138,668 | $909 (0.7%) | $453,487 | $450,255 | $3,232 (0.7%) |
| Food and Beverage Revenues | $74,790 | $71,815 | $2,975 (4.1%) | $256,643 | $259,972 | $(3,329) (-1.3%) |
| Other Revenues | $22,439 | $21,541 | $898 (4.2%) | $67,068 | $61,836 | $5,232 (8.5%) |
| Total Revenues | $236,806 | $232,024 | $4,782 (2.1%) | $777,198 | $772,063 | $5,135 (0.7%) |
Occupancy and Performance Metrics
The company's revenue is significantly influenced by its occupancy rates and average daily rates (ADR). As of September 30, 2024, Xenia reported an occupancy rate of 66.9%, an increase from 63.8% in the previous year.
Key performance metrics include:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Occupancy Rate | 66.9% | 63.8% |
| Average Daily Rate (ADR) | $240.71 | $248.58 |
| Revenue Per Available Room (RevPAR) | $160.96 | $158.48 |
Operating Expenses
Operating expenses for Xenia Hotels include various categories that impact profitability. For the nine months ended September 30, 2024, total hotel operating expenses amounted to $544.5 million.
| Expense Category | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Rooms Expenses | $114,756 | $108,866 |
| Food and Beverage Expenses | $177,587 | $174,445 |
| Other Direct Expenses | $18,824 | $17,547 |
| Other Indirect Expenses | $205,714 | $197,896 |
| Management and Franchise Fees | $27,646 | $26,818 |
| Total Hotel Operating Expenses | $544,527 | $525,572 |
Net Income and Adjusted Metrics
Net income for the nine months ended September 30, 2024, was reported at $17.6 million, compared to $12.1 million in the same period of 2023. Adjusted EBITDA attributable to common stockholders decreased by 7.5% year-over-year.
| Metric | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Income | $17,647 | $12,080 |
| Adjusted EBITDA | $65,443 | $76,747 |
Cash Flows
For the nine months ended September 30, 2024, cash provided by operating activities was $133.1 million, a slight decrease from $137.9 million in 2023. Cash used in investing activities increased to $84.5 million primarily due to capital improvements.
| Cash Flow Category | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cash Provided by Operating Activities | $133,138 | $137,945 |
| Cash Used in Investing Activities | $(84,476) | $(67,582) |
| Cash Used in Financing Activities | $(47,110) | $(160,168) |
Debt and Interest Expense
Xenia's interest expense for the nine months ended September 30, 2024, was $60.7 million, down from $64.3 million in the prior year. The company has been managing its debt levels strategically to optimize financing costs.
| Debt Metrics | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Interest Expense | $60,747 | $64,308 | Total Liabilities | $1,606,180 | $1,584,730 |
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Resources:
- Xenia Hotels & Resorts, Inc. (XHR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Xenia Hotels & Resorts, Inc. (XHR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xenia Hotels & Resorts, Inc. (XHR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.