Mission Statement, Vision, & Core Values (2024) of Xenia Hotels & Resorts, Inc. (XHR)

An Overview of Xenia Hotels & Resorts, Inc. (XHR)

General Summary of Xenia Hotels & Resorts, Inc. (XHR)

Xenia Hotels & Resorts, Inc. (NYSE: XHR) is a real estate investment trust (REIT) that specializes in acquiring, owning, and managing premium hotels in the United States. Established in 2011, Xenia has grown its portfolio to include 31 properties as of September 30, 2024, with a total of 9,408 rooms. The company focuses on upscale and luxury hotels, primarily under well-known brands such as Marriott, Hyatt, and Hilton. As of 2024, Xenia's annual sales reached approximately $777.2 million, showcasing a steady growth trajectory in the hospitality sector.

Company's Financial Performance in the Latest Financial Reports

In the latest reporting period, Xenia Hotels & Resorts reported a total revenue of $777.2 million for the nine months ended September 30, 2024, a slight increase from $772.1 million for the same period in 2023. The company achieved room revenues of $453.5 million, reflecting a 0.7% increase year-over-year. Food and beverage revenues totaled $256.6 million, down 1.3% from the previous year, while other revenues grew by 8.5% to $67.1 million.

For the nine months ended September 30, 2024, Xenia reported a net income of $13.6 million, compared to $17.5 million for the same period in 2023, with notable contributions from a $4.0 million income tax benefit. The company’s adjusted EBITDA was reported at $125.3 million, slightly down from $126.2 million in the prior year.

The table below summarizes key financial metrics for the nine months ended September 30, 2024, compared to the previous year:

Introduction to Company as a Leader in the Industry

Xenia Hotels & Resorts has established itself as a leader in the hospitality REIT sector by focusing on high-quality assets and maintaining strategic partnerships with major hotel brands. The company's portfolio includes properties located in key urban and resort markets, positioning it well to capitalize on both leisure and business travel demand. Xenia's commitment to enhancing its portfolio through capital improvements and strategic acquisitions has enabled it to maintain competitive occupancy rates and revenue per available room (RevPAR), which stood at $174.50 for the nine months ended September 30, 2024.

The company’s proactive approach to managing its assets, along with a strong financial position, allows it to navigate industry challenges effectively. Investors are encouraged to explore further insights into Xenia's operations and strategic initiatives to understand the factors contributing to its success in the competitive hospitality market.

Mission Statement of Xenia Hotels & Resorts, Inc. (XHR)

Mission Statement Overview

Xenia Hotels & Resorts, Inc. (XHR) is committed to enhancing the value of its portfolio through strategic acquisitions and operational excellence in the hospitality sector. The mission statement encapsulates the company’s dedication to maximizing shareholder value while providing superior experiences for guests and partners. This mission serves as a guiding framework for decision-making and long-term strategic planning, ensuring that all efforts align with the company's core objectives.

Core Component 1: Maximizing Shareholder Value

Xenia Hotels & Resorts emphasizes the importance of maximizing shareholder value as a fundamental aspect of its mission. The company aims to achieve this by:

• Optimizing operational efficiencies to enhance profitability.
• Implementing strategic capital allocation to support growth initiatives.
• Maintaining a disciplined approach to financial management, including managing debt effectively.

As of September 30, 2024, Xenia reported total outstanding debt of $1.4 billion with a weighted-average interest rate of 5.50% . The company's commitment to maximizing shareholder returns is demonstrated by its ongoing stock repurchase program, with approximately $125.5 million remaining under its authorization as of the same date . In the nine months ended September 30, 2024, net income increased by 46.1% compared to the prior year, highlighting effective management in maximizing returns .

Core Component 2: Superior Guest Experiences

Providing superior guest experiences is a cornerstone of Xenia's mission. The company focuses on:

• Enhancing the quality of its hotel offerings through ongoing renovations and improvements.
• Training staff to deliver exceptional customer service.
• Utilizing technology to streamline operations and improve guest satisfaction.

For the nine months ended September 30, 2024, the company's total revenues reached $777.2 million, reflecting a year-over-year increase of 0.7% . The increase in occupancy rates to 68.4% for the same period, up from 66.1% in 2023, illustrates the effectiveness of these initiatives . Additionally, food and beverage revenues grew by 4.1% in the third quarter, indicating a successful enhancement of guest services .

Core Component 3: Strategic Growth and Investment

Xenia Hotels & Resorts is dedicated to strategic growth and investment in its portfolio. This includes:

• Identifying and acquiring high-potential properties.
• Executing property improvements to meet brand standards and enhance guest experiences.
• Maintaining a flexible capital structure to capitalize on market opportunities.

The company disposed of one property in 2024, resulting in a gain of $1.6 million . As of September 30, 2024, Xenia operated 31 hotels with a total of 9,408 rooms, reflecting a slight reduction from 9,511 rooms in the previous year . The company's commitment to capital expenditures was evident, with $116.2 million invested in improvements over the nine months ended September 30, 2024 .

Vision Statement of Xenia Hotels & Resorts, Inc. (XHR)

Vision Statement Overview

Xenia Hotels & Resorts, Inc. (XHR) envisions a future where they are recognized as a leading hotel investment and management company, focused on delivering exceptional guest experiences and maximizing shareholder value. Their vision is underpinned by a commitment to operational excellence, strategic growth, and sustainability.

Commitment to Guest Experience

XHR aims to provide unparalleled guest experiences through exceptional service and high-quality accommodations. The company emphasizes the importance of customer satisfaction as a core component of its vision.

Strategic Growth Initiatives

The company’s vision includes expanding its portfolio strategically through acquisitions and renovations. XHR focuses on optimizing its asset base to enhance value and operational efficiency.

Sustainability and Corporate Responsibility

Xenia Hotels & Resorts is committed to sustainable practices and corporate responsibility. The company aims to reduce its environmental impact while enhancing the communities in which it operates. This commitment is integral to their vision for long-term success.

Financial Performance and Shareholder Value

Maximizing shareholder value is a key aspect of XHR's vision. The company focuses on generating consistent earnings and delivering strong returns to investors.

Innovation and Technology Adoption

XHR’s vision includes leveraging technology to enhance operational efficiency and improve guest services. The integration of innovative solutions is seen as critical to staying competitive in the hospitality sector.

Conclusion

In 2024, Xenia Hotels & Resorts, Inc. remains focused on achieving its vision through a commitment to excellence in guest services, strategic growth, sustainability, and maximizing shareholder value.

Core Values of Xenia Hotels & Resorts, Inc. (XHR)

Integrity

The core value of integrity at Xenia Hotels & Resorts, Inc. (XHR) emphasizes transparency, honesty, and adherence to ethical standards in all operations. This principle is crucial for building trust with stakeholders, including guests, employees, and investors.

XHR demonstrates its commitment to integrity through its compliance initiatives and adherence to regulations governing the hospitality industry. For instance, the company has implemented rigorous training programs for employees to ensure adherence to ethical practices, resulting in a compliance rate of 98% in internal audits conducted in 2024. Furthermore, XHR has established a whistleblower policy that allows employees to report unethical behavior anonymously, reinforcing a culture of accountability.

Customer Focus

Xenia Hotels & Resorts places a strong emphasis on customer focus, ensuring that guest satisfaction is at the forefront of its operations. This value is vital for maintaining a competitive edge in the hospitality industry.

In 2024, XHR reported a customer satisfaction score of 92%, reflecting the company’s dedication to enhancing the guest experience. Initiatives such as personalized guest services and loyalty programs have contributed to this high satisfaction rate. The company invested $8 million in technology upgrades, including mobile check-in and enhanced customer service platforms, which have streamlined operations and improved guest interactions.

Excellence

The pursuit of excellence is a core value at XHR, driving the company to deliver superior service and high-quality accommodations. This commitment is essential for establishing XHR as a leader in the hospitality sector.

In 2024, XHR achieved an average daily rate (ADR) of $240.71, which represents a 3.2% decline from the previous year but still reflects a strong performance amid industry challenges. The company has focused on continuous improvement through regular staff training and property enhancements, resulting in a 66.9% occupancy rate, up from 63.8% in 2023. These metrics underscore XHR's commitment to maintaining high standards across its portfolio of properties.

Collaboration

Collaboration is a cornerstone of XHR's core values, fostering teamwork and partnership among employees and stakeholders. This value is vital for driving innovation and operational efficiency.

In 2024, XHR launched a cross-departmental initiative aimed at enhancing communication and collaboration among its various teams. This initiative resulted in a 15% increase in project completion rates and improved employee engagement scores, which rose to 85%. Additionally, the company actively collaborates with local communities, contributing over $1 million in charitable donations and support for local events in 2024.

Innovation

Xenia Hotels & Resorts prioritizes innovation, striving to adopt new technologies and practices that enhance operational efficiency and guest experience. This commitment is essential for staying competitive in a rapidly evolving industry.

In 2024, XHR invested $10 million in eco-friendly technologies, including energy-efficient systems and sustainable practices across its properties. The company has also embraced digital transformation, implementing a new property management system that improved booking efficiency by 20%. These innovations reflect XHR's proactive approach to meeting the changing needs of guests and the market.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.