Xenia Hotels (XHR) Tops Q4 EPS by $2.46, Revenues Beat

March 1, 2021 6:36 AM EST

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Xenia Hotels (NYSE: XHR) reported Q4 EPS of $0.22, $2.46 better than the analyst estimate of ($2.24). Revenue for the quarter came in at $75.65 million versus the consensus estimate of $71.94 million.

"While 2020 was an incredibly challenging year due to the impact of the COVID-19 pandemic on the hospitality industry and the Company, I am proud of the way our associates and the employees at our hotels and resorts responded to these challenges throughout the year," commented Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "Our team reacted swiftly and decisively across several fronts in order to manage through the unprecedented conditions of 2020 and position the Company for success."

"By the beginning of the fourth quarter, 34 of our current 35 properties were open and operating, representing 94% of our current room count. We improved our balance sheet during the quarter, resulting in year-end liquidity of approximately $750 million, representing several years of runway at current demand levels. By selling four assets during the quarter, we believe the overall quality of our portfolio and its growth outlook is the best it has been since we have been publicly listed. We feel that our portfolio's many attributes, including our significant focus on locations in the Sunbelt and key leisure destinations, to our affiliation with the best brands and our pure-play luxury and upper upscale mix, position us well for future growth. Finally, over the last year, we further strengthened our relationships with key constituents, such as our hotel operators, lenders, and other industry participants, giving us further confidence in our prospects."

"As to the evolution of demand during the second half of 2020, while corporate transient and group demand remained muted, leisure demand continued to improve. Despite the seasonally weaker months of November and December, we saw a sequential improvement in the fourth quarter, as compared to the third quarter. Our fourth quarter Same-Property RevPAR increased approximately 20% compared to the prior quarter. Our fourth quarter Same-Property Hotel EBITDA loss was approximately $3 million, compared to a loss of over $14 million in the prior quarter. Further, 13 of our 35 hotels achieved positive Hotel EBITDA in the fourth quarter. We are encouraged by recent leisure booking strength and are hopeful for continued improvement in corporate transient and group activity in the months ahead, particularly as the pace of vaccinations accelerates."

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

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