Xenia Hotels (XHR) Misses Q4 EPS by 4c

Xenia Hotels (NYSE: XHR) reported Q4 EPS of $0.14, $0.04 worse than the analyst estimate of $0.18.

Fourth Quarter 2019 Highlights

• Net Income: Net income attributable to common stockholders was $15.6 million and net income per diluted share was $0.14.
• Same-Property RevPAR: Same-Property RevPAR was $160.95, a decrease of 0.4% compared to the fourth quarter of 2018, as a result of a 7 basis point decrease in occupancy and a 0.3% decrease in ADR.
• Same-Property Hotel EBITDA Margin: Same-Property Hotel EBITDA Margin was 27.3%, which was a decline of 39 basis points compared to the fourth quarter of 2018.
• Total Portfolio RevPAR: Total Portfolio RevPAR was $158.25, essentially flat compared to the fourth quarter of 2018.
• Adjusted EBITDAre: Adjusted EBITDAre declined $3.7 million to $72.0 million, a decrease of 4.9% compared to the fourth quarter of 2018.
• Adjusted FFO per Diluted Share: Adjusted FFO per diluted share was $0.58, which was equal to the fourth quarter of 2018.
• Transaction Activity: The Company completed the acquisition of Hyatt Regency Portland at the Oregon Convention Center for a purchase price of $190 million. Additionally during the quarter, the Company completed the sale of Marriott Griffin Gate Resort & Spa and Marriott Chicago at Medical District/UIC for a combined sales price of $61.5 million.
• Financing Activity: The Company drew $160 million on its Senior Unsecured Revolving Credit Facility and paid off one mortgage loan totaling $14.9 million.
• Dividends: The Company declared its fourth quarter dividend of $0.275 per share to common stockholders of record on December 31, 2019.

"We are pleased with our fourth quarter performance, as Same-Property RevPAR came in toward the upper end of our implied guidance range and we generated Adjusted EBITDAre and Adjusted FFO that exceeded the high end of our implied guidance," commented Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "We continue to be encouraged by our ability to control expenses. Despite meaningful increases in management fees and real estate taxes and insurance, our Same-Property operating expenses for the quarter were only up 0.8%, further demonstrating our ability to find efficiencies in this tepid RevPAR growth environment. Additionally, we continued our process of upgrading the portfolio during the quarter through the acquisition of the newly completed Hyatt Regency Portland at the Oregon Convention Center and the sale of two legacy non-core assets."

"As we look back on 2019, we are proud of the performance of our portfolio and the successful completion of our strategic initiatives for the year," continued Mr. Verbaas. "We exceeded the high end of the Adjusted FFO guidance range we provided early in the year and surpassed the midpoints of our initial guidance for both Same-Property RevPAR and Adjusted EBITDAre. In addition to completing three strategic transactions last year, our team completed several large capital projects, including the premier new ballroom at Hyatt Regency Grand Cypress, and we commenced the transformational renovation at Park Hyatt Aviara Resort, Golf Club & Spa. Our continued dedication towards cost containment and increasing efficiencies resulted in Same-Property Hotel EBITDA Margin growth of 23 basis points, which marks the fifth year in a row of Same-Property Hotel EBITDA margin growth despite muted industry and portfolio RevPAR growth. As we look ahead to the remainder of 2020, we will continue to focus our efforts on our asset management initiatives, maintaining a high-quality portfolio, and strategic capital allocation to further enhance our company's growth profile."

For earnings history and earnings-related data on Xenia Hotels (XHR) click here.

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