Company Performance - Xenia Hotels & Resorts reported quarterly funds from operations (FFO) of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and up from $0.44 per share a year ago [1][2] - The quarterly report indicates an FFO surprise of 21.43%, with the company surpassing consensus FFO estimates three times over the last four quarters [2] - The company posted revenues of $288.93 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.66%, compared to $267.49 million in the same quarter last year [3] Market Context - Xenia Hotels & Resorts shares have declined approximately 27.1% since the beginning of the year, while the S&P 500 has decreased by 4.7% [4] - The current consensus FFO estimate for the upcoming quarter is $0.49 on revenues of $279.69 million, and for the current fiscal year, it is $1.56 on revenues of $1.06 billion [8] Industry Outlook - The REIT and Equity Trust - Other industry, to which Xenia Hotels & Resorts belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which could impact the company's performance [6]

[First Quarter 2025 Results & Highlights](index=1&type=section&id=XENIA%20HOTELS%20%26%20RESORTS%20REPORTS%20FIRST%20QUARTER%202025%20RESULTS) Xenia Hotels & Resorts reported strong Q1 2025 results, exceeding expectations with double-digit growth in Adjusted EBITDAre and FFO per share, driven by RevPAR gains, but adopted a cautious full-year outlook due to macroeconomic uncertainty [Q1 2025 Performance Summary](index=1&type=section&id=First%20Quarter%202025%20Highlights) The company's first quarter exceeded expectations, with Adjusted EBITDAre growing by **11.8%** and Adjusted FFO per share increasing by **15.9%**, complemented by strategic capital allocation - CEO Marcel Verbaas highlighted that portfolio performance exceeded expectations, leading to nearly **12% growth in Adjusted EBITDAre** and nearly **16% growth in Adjusted FFO per share**; however, due to heightened macroeconomic uncertainty, the company has slightly reduced its full-year revenue and earnings growth expectations[4](index=4&type=chunk) First Quarter 2025 Key Metrics vs. Q1 2024 | Metric | Q1 2025 Value | Change vs. Q1 2024 | | :--- | :--- | :--- | | Net Income | $15.6 million | - | | Adjusted EBITDAre | $72.9 million | +11.8% | | Adjusted FFO per Diluted Share | $0.51 | +15.9% | | Same-Property Occupancy | 69.3% | +180 bps | | Same-Property ADR | $272.41 | +3.6% | | Same-Property RevPAR | $188.73 | +6.3% | | Same-Property Hotel EBITDA | $79.3 million | +10.5% | | Same-Property Hotel EBITDA Margin | 27.4% | +42 bps | - Key strategic activities included acquiring the land under Hyatt Regency Santa Clara for **$25 million**, drawing on a **$100 million** term loan, increasing the quarterly dividend by **17% to $0.14 per share**, and repurchasing **2.73 million shares** for approximately **$35.8 million**[5](index=5&type=chunk)[6](index=6&type=chunk) [Operating and Financial Performance](index=3&type=section&id=Operating%20and%20Financial%20Performance) The company demonstrated robust financial health in Q1 2025, with significant year-over-year growth in net income and key operational metrics, maintaining a strong balance sheet with substantial liquidity and a structured debt profile [Operating Results](index=3&type=section&id=Operating%20Results) In the first quarter of 2025, Xenia achieved substantial growth compared to the same period in 2024, with net income attributable to common stockholders surging by **82.6%** to **$15.6 million**, and Same-Property RevPAR increasing by **6.3%** to **$188.73** Q1 2025 vs. Q1 2024 Operating Results | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net income attributable to common stockholders | $15.6 million | $8.5 million | 82.6% | | Net income per diluted share | $0.15 | $0.08 | 87.5% | | Same-Property RevPAR | $188.73 | $177.50 | 6.3% | | Same-Property Hotel EBITDA | $79.3 million | $71.7 million | 10.5% | | Adjusted EBITDAre | $72.9 million | $65.3 million | 11.8% | | Adjusted FFO per diluted share | $0.51 | $0.44 | 15.9% | [Liquidity and Balance Sheet](index=4&type=section&id=Liquidity%20and%20Balance%20Sheet) As of March 31, 2025, the company maintained a strong liquidity position with approximately **$613 million**, comprising **$113 million** in cash and full availability on its **$500 million** revolving credit facility, with total outstanding debt at approximately **$1.4 billion** - As of March 31, 2025, the company had total liquidity of approximately **$613 million**[10](index=10&type=chunk) Balance Sheet Summary (as of March 31, 2025) | Item | Amount | | :--- | :--- | | Total Outstanding Debt | ~$1.4 billion | | Weighted-Average Interest Rate | 5.67% | | Cash and Cash Equivalents | ~$113 million | | Revolving Line of Credit Availability | Full ($500 million) | - In January, the company exercised the **$100 million** delayed draw feature on its term loan, leaving the **$500 million** revolving line of credit fully undrawn[11](index=11&type=chunk) [Portfolio and Capital Strategy](index=4&type=section&id=Portfolio%20and%20Capital%20Strategy) Xenia executed a multi-faceted capital strategy in Q1 2025 focused on enhancing shareholder value and portfolio quality, including significant share repurchases, a strategic land acquisition, and the divestiture of a non-core asset, while prudently managing capital expenditures [Capital Markets](index=4&type=section&id=Capital%20Markets) During the first quarter, the company actively returned capital to shareholders by repurchasing **2,733,149 shares** of common stock for a total of **$35.8 million**, leaving **$82.1 million** available under its current repurchase authorization - The company repurchased **2,733,149 shares** of common stock at a weighted-average price of **$13.09 per share**, for a total of approximately **$35.8 million**[12](index=12&type=chunk) - The company has **$82.1 million** in capacity remaining under its share repurchase authorization as of the end of the quarter[12](index=12&type=chunk) [Transactions](index=4&type=section&id=Transactions) The company completed two significant transactions to improve portfolio quality and financial flexibility, acquiring the land under the Hyatt Regency Santa Clara for **$25 million** and subsequently selling the Fairmont Dallas for **$111 million** - In March, acquired the fee simple interest in the land underlying Hyatt Regency Santa Clara for **$25 million**, eliminating a ground lease set to expire in 2035[13](index=13&type=chunk) - Subsequent to quarter end, sold the 545-room Fairmont Dallas for **$111.0 million**, or approximately **$203,670 per key**[14](index=14&type=chunk) - The Fairmont Dallas sale price represented an **8.6x multiple on Hotel EBITDA** and a **10.0% capitalization rate on NOI**, excluding an estimated **$80 million** of near-term capital expenditures[14](index=14&type=chunk) [Capital Expenditures](index=4&type=section&id=Capital%20Expenditures) In Q1 2025, Xenia invested **$32.4 million** in portfolio improvements, primarily for the transformative renovation of the Grand Hyatt Scottsdale Resort, while deferring some planned renovations due to potential tariff impacts and macroeconomic conditions - Invested **$32.4 million** in portfolio improvements during Q1 2025, largely related to the Grand Hyatt Scottsdale Resort renovation[15](index=15&type=chunk) - The company has deferred guest room renovations at Andaz Napa and The Ritz-Carlton, Denver, which were planned for Q4 2025, due to potential cost impacts from tariffs[18](index=18&type=chunk) - Select upgrades will continue at several properties, including Fairmont Pittsburgh, Marriott San Francisco Airport Waterfront, and Hyatt Centric Key West[19](index=19&type=chunk) [Full Year 2025 Outlook](index=6&type=section&id=Current%20Full%20Year%202025%20Outlook%20and%20Guidance) Reflecting increased macroeconomic uncertainty, Xenia has updated its full-year 2025 guidance, anticipating lower Net Income, Adjusted EBITDAre, and Adjusted FFO, with a revised Same-Property RevPAR growth forecast of **2.50% to 6.50%** for a 30-hotel portfolio and a **$25 million** reduction in capital expenditure plans [Updated Full Year 2025 Guidance](index=6&type=section&id=Current%20Full%20Year%202025%20Guidance) The company has lowered its full-year 2025 guidance, with Adjusted EBITDAre now projected to be between **$235 million** and **$261 million**, and Adjusted FFO per share expected in the range of **$1.50 to $1.75**, accounting for the Fairmont Dallas sale, reduced G&A expenses, and a lower share count Current Full Year 2025 Guidance | Metric | Low End | High End | Variance to Prior (Midpoint) | | :--- | :--- | :--- | :--- | | Net Income | $43 million | $69 million | $(37) million | | Same-Property (30 Hotel) RevPAR Change | 2.50% | 6.50% | (0.50)% (vs. 31 Hotel) | | Adjusted EBITDAre | $235 million | $261 million | $(6) million | | Adjusted FFO per Diluted Share | $1.50 | $1.75 | $(0.02) | | Capital Expenditures | $75 million | $85 million | $(25) million | - Key guidance assumptions include a net decrease of approximately **$4 million** to Adjusted EBITDAre from recent transactions, general and administrative expense of approximately **$23 million** (a **$1 million** decrease from prior guidance), and weighted-average diluted shares of **101.6 million** (a decrease of **2.2 million shares**)[22](index=22&type=chunk)[23](index=23&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) This section presents the company's core financial statements as of and for the period ended March 31, 2025, including the Condensed Consolidated Balance Sheets, Statements of Operations, and a detailed summary of the company's debt structure, providing a comprehensive overview of Xenia's financial position and performance [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Xenia's total assets stood at **$2.89 billion**, up from **$2.83 billion** at the end of 2024, primarily driven by an increase in cash and cash equivalents, while total liabilities rose to **$1.64 billion** from **$1.55 billion**, leading to a decrease in total equity to **$1.25 billion** Balance Sheet Summary ($ in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net investment properties | $2,538,429 | $2,590,821 | | Cash and cash equivalents | $112,564 | $78,201 | | **Total assets** | **$2,889,541** | **$2,831,616** | | Debt, net | $1,424,037 | $1,334,703 | | **Total liabilities** | **$1,641,246** | **$1,551,283** | | **Total equity** | **$1,248,295** | **$1,280,333** | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the first quarter ended March 31, 2025, total revenues increased to **$288.9 million** from **$267.5 million** in the prior-year period, contributing to a significant rise in operating income to **$35.9 million** from **$27.6 million**, with net income attributable to common stockholders nearly doubling to **$15.6 million** Statement of Operations Summary - Q1 ($ in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $288,927 | $267,488 | | Total hotel operating expenses | $195,547 | $183,026 | | Operating income | $35,864 | $27,626 | | **Net income attributable to common stockholders** | **$15,585** | **$8,534** | [Debt Summary](index=18&type=section&id=Debt%20Summary%20as%20of%20March%2031%2C%202025) As of March 31, 2025, the company's total debt principal outstanding was approximately **$1.44 billion**, diversified across fixed-rate mortgage loans, variable-rate corporate credit facilities, and fixed-rate senior notes, with an overall weighted-average interest rate of **5.67%** and a fully undrawn **$500 million** revolving credit facility Debt Composition as of March 31, 2025 ($ in thousands) | Debt Type | Outstanding Balance | Rate Type | | :--- | :--- | :--- | | Mortgage Loans | $213,248 | Fixed | | Corporate Credit Facility Term Loan | $325,000 | Variable | | 2029 Senior Notes | $500,000 | Fixed | | 2030 Senior Notes | $400,000 | Fixed | | **Total Debt (before net costs)** | **$1,438,248** | - | [Non-GAAP Financial Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures) This section details the non-GAAP financial measures Xenia uses to supplement its GAAP results, including EBITDAre, Adjusted EBITDAre, FFO, and Adjusted FFO, providing definitions and rationale for their use, along with detailed reconciliation tables to Net Income for historical periods and full-year 2025 guidance [Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%2C%20EBITDAre%2C%20Adjusted%20EBITDAre%20and%20Same-Property%20Hotel%20EBITDA) For the first quarter of 2025, the company reconciled a Net Income of **$16.5 million** to an Adjusted EBITDAre of **$72.9 million**, representing an **11.8%** increase from the **$65.3 million** reported in Q1 2024, with key adjustments from Net Income including interest expense, depreciation, and amortization Reconciliation of Net Income to Adjusted EBITDAre - Q1 ($ in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $16,507 | $8,967 | | Adjustments (Interest, D&A, etc.) | $55,113 | $53,050 | | EBITDA and EBITDAre | $71,620 | $62,017 | | Further Adjustments | $1,322 | $3,234 | | **Adjusted EBITDAre** | **$72,942** | **$65,251** | [Reconciliation of Net Income to FFO and Adjusted FFO](index=16&type=section&id=Reconciliation%20of%20Net%20Income%20to%20FFO%20and%20Adjusted%20FFO) In Q1 2025, Net Income of **$16.5 million** was reconciled to Funds from Operations (FFO) of **$49.6 million** and Adjusted FFO of **$52.1 million**, resulting in an Adjusted FFO per diluted share of **$0.51**, a **15.9%** increase from **$0.44** in the prior-year quarter Reconciliation of Net Income to Adjusted FFO - Q1 ($ in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $16,507 | $8,967 | | Depreciation and amortization | $33,109 | $31,884 | | FFO attributable to common stock and unit holders | $49,616 | $40,851 | | Further Adjustments | $2,444 | $4,647 | | **Adjusted FFO** | **$52,060** | **$45,498** | [Reconciliation for Full Year 2025 Guidance](index=17&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDAre%20for%20Current%20Full%20Year%202025%20Guidance) The company provides reconciliations for its full-year 2025 guidance midpoint, with a projected Net Income of **$56 million** reconciled to a guided Adjusted EBITDAre of **$248 million** and a guided Adjusted FFO of **$165 million**, with key reconciling items including depreciation and amortization (**$131 million**) and interest expense (**$85 million**) FY 2025 Guidance Midpoint Reconciliation ($ in millions) | Metric | Amount | | :--- | :--- | | Net income | $56 | | Depreciation and amortization | $131 | | Gain on sale of investment property | $(39) | | **FFO** | **$148** | | Amortization of share-based compensation expense | $14 | | Other | $3 | | **Adjusted FFO** | **$165** | FY 2025 Guidance Midpoint Reconciliation to Adj. EBITDAre ($ in millions) | Metric | Amount | | :--- | :--- | | Net income | $56 | | Interest expense | $85 | | Income tax expense | $2 | | Depreciation and amortization | $131 | | **EBITDA** | **$274** | | Gain on sale of investment property | $(39) | | **EBITDAre** | **$235** | | Amortization of share-based compensation expense | $14 | | Other | $(1) | | **Adjusted EBITDAre** | **$248** | [Portfolio Data](index=19&type=section&id=Portfolio%20Data) This section provides a detailed breakdown of the company's portfolio performance, including operating statistics for the Same-Property portfolio as of March 31, 2025 (31 hotels) and the current portfolio as of May 2, 2025 (30 hotels), along with performance data by market, highlighting regional strengths and weaknesses and geographic diversification of earnings [Same-Property Operating Data (31 Hotels as of March 31, 2025)](index=19&type=section&id=Same-Property%20Hotel%20EBITDA%20and%20Hotel%20EBITDA%20Margin) For the 31-hotel portfolio owned as of March 31, 2025, Same-Property RevPAR increased **6.3%** year-over-year to **$188.73** in Q1, driven by strong food and beverage revenue growth, leading to a **10.5%** increase in Same-Property Hotel EBITDA to **$79.3 million** and a **42 basis point** margin expansion Same-Property (31 Hotels) Performance - Q1 2025 vs Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | RevPAR | $188.73 | $177.50 | 6.3% | | Total Same-Property revenues | $288.9 million | $265.4 million | 8.9% | | Total Same-Property hotel operating expenses | $209.7 million | $193.7 million | 8.2% | | Same-Property Hotel EBITDA | $79.3 million | $71.7 million | 10.5% | | Same-Property Hotel EBITDA Margin | 27.4% | 27.0% | 42 bps | [Current Same-Property Operating Data (30 Hotels as of May 2, 2025)](index=21&type=section&id=Current%20Same-Property%20Historical%20Operating%20Data%20Excluding%20Fairmont%20Dallas) The current 30-hotel portfolio, excluding the recently sold Fairmont Dallas and forming the basis for updated 2025 guidance, demonstrated strong Q1 performance with RevPAR of **$191.80**, a **6.7%** increase over the prior year, and Hotel EBITDA of **$74.5 million** with a margin of **27.0%** Current Same-Property (30 Hotels) Performance - Q1 2025 vs Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Occupancy | 69.6% | 67.5% | 210 bps | | ADR | $275.47 | $266.14 | 3.5% | | RevPAR | $191.80 | $179.70 | 6.7% | | Hotel EBITDA | $74.5 million | $67.1 million | 10.9% | | Hotel EBITDA Margin | 27.0% | 26.6% | 40 bps | [Portfolio Data by Market](index=22&type=section&id=Same-Property%20Portfolio%20Data%20by%20Market) In Q1 2025, portfolio performance varied significantly across markets, with Phoenix, Washington D.C., and California Central Coast showing strong RevPAR increases, while Portland and Savannah experienced declines, and Houston and Orlando remained the largest contributors to earnings - The Houston and Orlando markets are the largest contributors to earnings, each representing **16%** of the 2024 Same-Property Hotel EBITDA[76](index=76&type=chunk) Q1 2025 RevPAR % Change by Market (Top & Bottom Performers) | Market | RevPAR % Change | | :--- | :--- | | **Top Performers** | | | Phoenix, AZ | 33.5% | | Washington, DC-MD-VA | 22.6% | | California Central Coast, CA | 20.4% | | **Bottom Performers** | | | Portland, OR | (15.2)% | | Savannah, GA | (10.4)% | | Houston, TX | (2.1)% |

Core Viewpoint - Xenia Hotels & Resorts, Inc. reported strong first-quarter performance with nearly 12% growth in Adjusted EBITDAre and nearly 16% growth in Adjusted FFO per share compared to the same period in 2024, but has tempered its outlook for the remainder of the year due to macroeconomic uncertainty [3][4][16]. Financial Performance - Net income attributable to common stockholders for Q1 2025 was $15.6 million, an increase of 82.6% from $8.5 million in Q1 2024 [4][29]. - Adjusted EBITDAre for Q1 2025 was $72.9 million, up 11.8% from $65.3 million in Q1 2024 [4][46]. - Adjusted FFO for Q1 2025 was $52.1 million, a 14.4% increase from $45.5 million in Q1 2024 [4][46]. - Same-Property RevPAR increased by 6.3% to $188.73 in Q1 2025 compared to $177.50 in Q1 2024 [4][5]. Portfolio and Transactions - The company completed two significant transactions: acquired land at Hyatt Regency Santa Clara for $25 million and sold Fairmont Dallas for $111 million [3][10][11]. - The acquisition of the land improves flexibility and reduces potential future rent escalations, while the sale of Fairmont Dallas avoided costly renovations [3][10][11]. Capital Expenditures and Dividends - Capital expenditures for Q1 2025 totaled $32.4 million, primarily for renovations at Grand Hyatt Scottsdale Resort [12][15]. - The company increased its quarterly dividend by 17% to $0.14 per share for Q1 2025 [5][9]. Liquidity and Balance Sheet - As of March 31, 2025, total outstanding debt was approximately $1.4 billion with a weighted-average interest rate of 5.67% [7][8]. - The company had total liquidity of approximately $613 million, including $113 million in cash and cash equivalents [7][8]. Full Year 2025 Outlook - The company updated its full-year 2025 guidance, projecting net income between $43 million and $69 million and Adjusted FFO per diluted share between $1.50 and $1.75 [16][17]. - Same-Property RevPAR change is expected to be between 2.5% and 6.5% compared to 2024 [16][17].

Group 1 - The article discusses Xenia Hotels & Resorts (NYSE: XHR) and the author's previous coverage of the company, indicating a gap in recent analysis [1] - The author expresses a focus on building a financial portfolio aimed at achieving financial independence, with a particular interest in dividend stocks for steady income [1] Group 2 - There is no mention of any stock, option, or derivative positions in Xenia Hotels & Resorts or any plans to initiate such positions in the near future [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned [2]

ORLANDO, Fla., April 11, 2025 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced that it has sold the 545-room Fairmont Dallas for $111 million, or approximately $203,670 per key. The transaction price represents an 8.6x multiple and a 10.0% capitalization rate on the property's Hotel EBITDA and Net Operating Income for the twelve months ended February 28, 2025, respectively. These transaction price metrics are exclusive of an estimated $80 million of near-te ...

Xenia Hotels & Resorts (XHR) shares ended the last trading session 14.3% higher at $10.54. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 28.4% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This real estate investment trust that owns hotels is expected to ...

ORLANDO, Fla., March 21, 2025 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") will report financial results for the first quarter 2025 before the market opens on Friday, May 2, 2025. Management will discuss the Company's results during a conference call at 1:00 pm (Eastern Time) that day.To participate in the conference call, please follow the steps listed below:Friday, May 2, 2025, dial (833) 470-1428 approximately ten minutes before the call begins, access code 145868.T ...

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kindly note that our content on Seeking Alpha and other platforms doesn't constitute financial advice ...

Financial Data and Key Metrics Changes - The company reported a net loss of $638,000 for Q4 2024, with adjusted EBITDAre at $59.2 million and adjusted FFO per share at $0.39, slightly exceeding the midpoint of previous guidance [5][7] - For the full year 2024, net income was $16.1 million, adjusted EBITDAre was $237.1 million, and adjusted FFO per share was $1.59 [7][8] - Same property RevPAR increased by 1.6% in 2024, significantly impacted by the Grand Hyatt Scottsdale renovation [8][9] Business Line Data and Key Metrics Changes - Same property hotel EBITDA for Q4 2024 was $62.9 million, a decrease of 0.6% compared to Q4 2023, with a margin erosion of 120 basis points [6][31] - Excluding Grand Hyatt Scottsdale, Q4 same property hotel EBITDA was flat compared to last year, reflecting a 68 basis point decline in margin [6][31] - For the full year, same property hotel EBITDA was $255.4 million, down 5.5% from 2023, with margins decreasing by 189 basis points [9][31] Market Data and Key Metrics Changes - The company experienced double-digit RevPAR growth in several markets during Q4 2024, including Nashville, Santa Barbara, and Pittsburgh [6][8] - The group segment saw a 5% increase in same property group room revenues for the full year, excluding Grand Hyatt Scottsdale [10][30] - Corporate transient demand showed improvement, particularly in mid-week occupancy, although leisure demand moderated [11][12] Company Strategy and Development Direction - The company is focused on improving its portfolio through capital expenditures aimed at driving strong returns on investment and selective property dispositions [19][20] - The completion of the Grand Hyatt Scottsdale renovation is expected to significantly enhance cash flow and competitive positioning [4][37] - The company anticipates a slight increase in capital expenditures for 2025, primarily due to ongoing projects [13][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects for 2025, despite economic uncertainties, citing strong group bookings and the completion of the Scottsdale renovation [16][67] - The company expects same property RevPAR to grow by 5% in 2025, with adjusted EBITDAre increasing by 7% and adjusted FFO per share rising by 3.5% [52][66] - Management highlighted the importance of group demand and business transient recovery in driving future revenue growth [53][56] Other Important Information - The company repurchased over 500,000 shares of common stock in Q4 2024, with a total of about 1.1 million shares repurchased throughout the year [49] - A first-quarter dividend of $0.14 per share is expected, up from $0.12 per share in the previous quarter, reflecting a yield of over 4% [50] Q&A Session Summary Question: Can you help unpack the RevPAR guidance? - Management acknowledged strong group pace but noted economic uncertainty affecting other segments, leading to a cautious outlook on RevPAR growth [70][72] Question: What is the expected EBITDA contribution from Scottsdale in 2025? - Management expects Scottsdale to generate low twenties in EBITDA for 2025, with stabilization anticipated in about three years [76][82] Question: Can you expand on the softening group business outside urban areas? - Management identified Orlando and Park Hyatt Aviara as markets experiencing softening group demand but expects a return to normalized business in 2025 [88][90] Question: What is the outlook for the W Nashville EBITDA? - Management indicated that 2024 was a transitional year, with expectations for improved group business and a better mix in 2025 [105][107] Question: What markets are expected to drive above-average RevPAR growth in 2025? - Management highlighted Houston, Orlando, and Nashville as key markets for above-average RevPAR growth, driven by strong group components [111][113]

Interest Rate Risk Management - Xenia Hotels & Resorts, Inc. is subject to market risks associated with changes in interest rates, with a potential impact of approximately $0.1 million on future earnings and cash flows for a 1% change in variable rate debt [431]. - As of December 31, 2023, all variable rate debt was fixed by interest rate swaps, mitigating the impact of interest rate fluctuations until mid-February 2025 [431]. - The company has taken steps to reduce variable rate debt exposure by paying off floating rate mortgage debt and entering into interest rate swap agreements [433]. - The company monitors interest rate risk using various techniques, including cash flow sensitivity analysis and evaluating refinancing opportunities for near-term maturing loans [433]. - Xenia's interest rate risk management objectives include limiting the impact of interest rate changes on earnings and cash flows while lowering overall borrowing costs [431]. Operational Risks - The company relies on third-party hotel management companies for operations, which introduces operational risks [14]. - Economic uncertainties and inflation could adversely affect demand for hotel services and reduce operating profit margins [13]. - The lodging industry is subject to seasonal and cyclical volatility, impacting occupancy and average daily rates (ADR) [13]. - The company faces risks from supply chain disruptions affecting the sourcing of furniture and equipment necessary for hotel operations [13]. Financial Performance and Debt - Future performance projections are inherently uncertain and subject to various risks, including changes in consumer preferences and competitive environment [15]. - As of December 31, 2024, total debt outstanding is $1,349.278 million with a fair value of $1,314.837 million [436]. - Fixed rate debt amounts to $1,061.198 million, with a weighted-average interest rate of 5.49% [436]. - Variable rate debt totals $278.080 million, with a weighted-average interest rate of 5.69% [436]. - The revolving credit facility is $10 million, with a weighted-average interest rate of 6.39% [436]. - The fixed rate debt maturing in 2025 is $4.431 million, while the amount maturing in 2026 is $55.381 million [436]. - The total fixed rate debt maturing in 2029 is $500 million, and thereafter is $400 million [436]. - The weighted-average interest rate on fixed rate debt maturing in 2029 is 4.88% [436]. - The weighted-average interest rate on variable rate debt maturing in 2027 is 5.72% [436]. - The debt maturity excludes net mortgage loan discounts, premiums, and unamortized deferred loan costs of $14.6 million [437]. - All fixed rate debt and variable rate debt swapped to fixed rates are included in the total debt figures [437].