Xenia Hotels & Resorts(US:XHR)2025-10-31 20:22Company Overview - As of September 30, 2025, Xenia owned 30 hotels and resorts, comprising 8,868 rooms across 14 states[131]. - The number of properties decreased from 31 to 30, and the number of rooms decreased from 9,408 to 8,868, representing a reduction of 540 rooms[143]. - The company owned 30 lodging properties as of September 30, 2025, compared to 31 properties in the same period of 2024[32]. Financial Performance - Total revenues for the nine months ended September 30, 2025, increased by $35.7 million, or 4.6%, to $812.9 million compared to $777.2 million for the same period in 2024[145]. - Total revenues for the three months ended September 30, 2025, were $236.4 million, a slight decrease of 0.2% compared to $236.8 million in the same period of 2024[14]. - Net income increased 243.1% for the nine months ended September 30, 2025, attributed to a $38.3 million increase in gain on sale of investment properties[141]. - Net income for the nine months ended September 30, 2025, was $60,540,000, compared to $17,647,000 for the same period in 2024, representing a significant increase of 242%[25]. - Comprehensive income attributable to the Company for the nine months ended September 30, 2025, was $56.3 million, compared to $15.0 million in the same period of 2024[17]. Revenue Breakdown - Rooms revenues for the nine months ended September 30, 2025, decreased by $0.9 million, or 0.2%, to $452.6 million, primarily due to the sale of Lorien Hotel & Spa and Fairmont Dallas[147]. - Food and beverage revenues for the nine months ended September 30, 2025, increased by $28.0 million, or 10.9%, to $284.7 million, driven by increased occupancy and strong group business demand[150]. - Other revenues for the nine months ended September 30, 2025, increased by $8.6 million, or 12.9%, to $75.7 million, attributed to increases in occupancy and ancillary fees[152]. Operating Expenses - Total hotel operating expenses for the nine months ended September 30, 2025, increased by $19.1 million, or 3.5%, to $563.6 million, largely due to increases in occupancy and renovation disruptions[156]. - Total hotel operating expenses for the three months ended September 30, 2025, increased by $1.4 million, or 0.8%, to $177.1 million, influenced by renovation disruptions[155]. - General and administrative expenses increased by $1.0 million, or 12.5%, to $8.8 million for the three months ended September 30, 2025, from $7.8 million for the same period in 2024[162]. Debt and Liquidity - Total debt as of September 30, 2025, was $1.4 billion with a weighted-average interest rate of 5.63%[180]. - As of September 30, 2025, the company had $188.2 million of consolidated cash and cash equivalents and $80.7 million of restricted cash and escrows[175]. - The Company had $200 million available for sale under the ATM Agreement as of September 30, 2025[176]. - 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, maturing in November 2028[182]. Shareholder Activity - The Company repurchased 974,645 shares for $12.3 million during the three months ended September 30, 2025, and 6,656,706 shares for $83.8 million during the nine months ended September 30, 2025[191]. - The Company declared dividends of $0.14 per share for the quarters ended March 31, June 30, and September 30, 2025[88]. - The Company had approximately $134.1 million remaining under its share repurchase authorization[87]. Market Conditions - Demand for hotel rooms decreased 0.6% during the three months ended September 30, 2025, while new hotel supply increased 0.9%[138]. - The U.S. lodging industry experienced a decrease in occupancy of 1.5% for the three months ended September 30, 2025, leading to a 1.4% decrease in industry RevPAR[138]. - The unemployment rate rose to 4.3% in August 2025, compared to 4.1% in June 2025[137]. Tax and Interest Expenses - Income tax expense increased by $5.6 million, or 138.9%, to $1.6 million for the nine months ended September 30, 2025, from an income tax benefit of $4.0 million for the same period in 2024[172]. - Interest expense increased by $1.7 million, or 8.3%, to $21.8 million for the three months ended September 30, 2025, from $20.1 million for the same period in 2024[171]. Capital Expenditures - The Company made total capital expenditures of $19.9 million and $70.7 million for the three and nine months ended September 30, 2025, respectively[193]. - Capital expenditures for the nine months ended September 30, 2025, were $70,703,000, down from $116,152,000 in 2024, indicating a decrease of 39.2%[25]. Cash Flow - Cash provided by operating activities increased to $155.1 million for the nine months ended September 30, 2025, compared to $133.1 million for the same period in 2024[197]. - The net increase in cash and cash equivalents at the end of the period was $125.4 million for the nine months ended September 30, 2025, compared to $1.6 million in 2024[196]. - Cash used in investing activities was $8.7 million for the nine months ended September 30, 2025, a significant improvement from $(84.5) million in 2024[198].