Xenia Hotels & Resorts(XHR) - 2025 Q1 - Quarterly Report

Financial Performance - Total portfolio RevPAR increased 6.7% to $188.73 for the three months ended March 31, 2025, compared to$176.86 for the same period in 2024[139]. - Net income increased 84.1% for the three months ended March 31, 2025, primarily due to an $8.5 million increase in hotel operating income for 31 comparable hotels[140]. - Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders increased 11.8$272.41 for the three months ended March 31, 2025, compared to $262.39 in 2024[142]. - Total revenues increased by$21.4 million, or 8.0%, to $288.9 million for the three months ended March 31, 2025, compared to$267.5 million for the same period in 2024[143]. - Rooms revenues rose by $6.7 million, or 4.4$159.9 million, driven by increased occupancy and average daily rates, despite a 1.2 million reduction from the sale of Lorien Hotel & Spa[144]. - Food and beverage revenues increased by 11.9 million, or 12.9%, to $104.7 million, primarily due to higher occupancy levels[145]. - Other revenues grew by$2.8 million, or 12.8%, to $24.4 million, attributed to increased occupancy[147]. - Net income for the three months ended March 31, 2025, was$16.5 million, a 83.5% increase from $9.0 million in the same period of 2024[197]. - FFO attributable to common stock and unit holders for Q1 2025 was$49.6 million, up 21.5% from $40.9 million in Q1 2024[199]. - Adjusted FFO for Q1 2025 reached$52.1 million, representing a 14.1% increase compared to $45.5 million in Q1 2024[199]. - Adjusted EBITDAre attributable to common stock and unit holders was$72.9 million for Q1 2025, a 11.5% increase from $65.3 million in Q1 2024[197]. Operational Metrics - Demand for hotel rooms increased by 1.0$12.5 million, or 6.8%, to $195.5 million, largely due to increased occupancy and renovations, net of a$2.0 million reduction from the sale of Lorien Hotel & Spa[150]. - Corporate and other expenses increased by $0.7 million, or 1.2$57.5 million, with depreciation and amortization expenses rising by $1.2 million, or 3.8$0.7 million, or 3.4%, to $21.1 million, primarily due to higher average outstanding term loan debt and rising interest rates[159]. - Total outstanding debt was$1.4 billion with a weighted-average interest rate of 5.67% as of March 31, 2025[168]. - Total debt as of March 31, 2025, was $1.44 billion, with a weighted-average interest rate of 5.74$1.06 billion of total debt, while variable rate debt was $378.1 million[214]. - 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[212]. Cash Flow and Investments - Cash provided by operating activities was$54.8 million for the three months ended March 31, 2025, compared to $24.7 million for the same period in 2024, reflecting a significant increase[186]. - Cash used in investing activities was$56.2 million for the three months ended March 31, 2025, primarily due to $32.4 million in capital improvements and$25.4 million for land purchase[187]. - Cash provided by financing activities was $39.9 million for the three months ended March 31, 2025, driven by proceeds from the 2024 Delayed Draw Term Loan of$100 million[189]. Shareholder Returns and Compliance - During the three months ended March 31, 2025, the Company repurchased 2,733,149 shares at a weighted-average price of $13.09 per share, totaling$35.8 million[179]. - As of March 31, 2025, the Company was in compliance with all debt covenants except for one mortgage loan, which was cured by depositing $5.0 million in an escrow account[175]. - The Company had$200 million available for sale under its ATM program as of March 31, 2025, with no shares sold during the three months ended March 31, 2025[177]. Future Outlook and Strategic Initiatives - The company continues to monitor challenges associated with inflationary pressures and changing interest rates that could impact operating results[137]. - The company aims to maximize revenue and profits from existing properties while enhancing portfolio value and generating sustainable cash flow for shareholders[166]. - The Operating Partnership entered into a new $825 million senior unsecured credit facility, which includes a$500 million revolving line of credit and a $225 million term loan[170]. - The remaining commitments under renovation contracts as of March 31, 2025, totaled$24.2 million[183]. - The company recognized a net gain of $1.1 million from the purchase of land associated with a ground lease in Q1 2025[198]. - The sale of the Fairmont Dallas for$111.0 million in February 2025 resulted in an estimated gain of approximately $39.3 million, net of transaction costs[207]. - If market interest rates on variable rate debt increase or decrease by 1$3.3 million per annum[210]. Non-GAAP Financial Measures - The Company considers non-GAAP financial measures such as EBITDA and FFO useful for evaluating operating performance[190]. - As of March 31, 2025, the Company had 61.7 million in FF&E reserves, an increase from 58.9 million as of December 31, 2024[182].