Xenia Hotels & Resorts, Inc. · NYSE:XHR
Xenia Hotels & Resorts — Investor Presentation (November 2016)
31 slides from Xenia Hotels & Resorts's investor presentation, Nov 14, 2016
Slide 1: Investor Presentation November 2016
Investor Presentation November 2016
Slide 2: Forward-Looking Statements
Forward‐Looking Statements 1 This presentation has been prepared by Xenia Hotels & Resorts, Inc. (the “Company” or “Xenia”) solely for informational purposes. This presentation contains, and our responses to various questions from investors may include, “forward‐looking statements” within the meanin
Slide 3: Key Investment Highlights
Key Investment Highlights 2 Broad portfolio mix Focus on quality Differentiated portfolio management Strong financial profile Canary Santa BarbaraHyatt Regency Santa Clara Residence Inn Boston Cambridge
Slide 4: Company Overview
3 Enterprise Value $2.7B Net Debt / 2016 EBITDA1 3.5x Dividend Yield 6.9% Note: Share price as of 11/10/2016 (1) SNL consensus EBITDA estimate as of 11/10/2016; net debt as of 9/30/2016 Brand Family 57% 9% 10% 9% 6% 5% 2% Independent 2% Located in Top 25 Markets and Key Leisure Destinations Financia
Slide 5: Disciplined Approach to Capital Allocation
Disciplined Approach to Capital Allocation 4 Note: YTD share repurchases through 11/4/2016 Responsible and strategic capital allocations to increase value and returns Acquisitions and Dispositions Opportunistic acquisitions with disciplined approach. Culled assets from lower end of the portfolio (av
Slide 6: Geographically Diverse Portfolio
Geographically Diverse Portfolio 5 46 Hotels, comprising 11,594 rooms In 31 markets, including 20 states and the District of Columbia HI FL NM DE MD TX OK KS NE SD NDMT WY CO UT ID AZ NV WA CA OR KY ME NY PA VT NH RI CT WV INIL NC TN SC ALMS AR LA MO IA MN WI NJ GA DC VA OH MI MA Hilton Garden Inn W
Slide 7: Portfolio Mix Provides Various Demand and Revenue Sources
6 (1) 10‐K Annual Report 2015 (2) STR Business Mix2 Transient 70% Group 30% Revenue Mix1 Rooms 68% Food and Beverage 27% Other 6% Portfolio Mix Provides Various Demand and Revenue Sources
Slide 8: Leisure as a Driver of Demand
7 Key leisure destination hotels have multiple sources of demand resulting in 7‐day‐a‐week business. • In 2015, our key leisure destination hotels achieved • 84.1% Occupancy • $230.35 ADR • $193.82 RevPAR In addition, several hotels in our portfolio located outside of key leisure destinations drive
Slide 9: Geographic Diversity + Variety of Hotels = Superior Positioning
8 Flexibility to choose the best type of asset in each market Geographic Diversity + Variety of Hotels = Superior Positioning Premium Full Service > 55% of Rooms Lifestyle > 20% of Rooms Urban Upscale > 20% of Rooms • Traditional luxury and upper upscale assets featuring restaurants, meeting space a
Slide 10: Update: Houston Market
Update: Houston Market (~10.5% of FY 16 Hotel EBITDA) 9 2016 Marriott Woodlands Waterway Hotel Westin Galleria & Oaks Houston September YTD YOY Change September YTD YOY Change Occupancy 69.3% (573 bps) 67.7% (955 bps) ADR $222.52 (7.9%) $170.01 (4.3%) RevPAR $154.21 (15.0%) $115.14 (16.1%) Hotel EBI
Slide 11: Focus on Quality
Focus on Quality Hotel Commonwealth – Boston, MA
Slide 12: Focus on Quality Drives Portfolio Transformation
Focus on Quality Drives Portfolio Transformation 11 Acquisitions1 Dispositions Prior Platform2 80 Hotels 0 Hotels 2007‐2009 25 Hotels 0 Hotels 2010 5 Hotels 7 Hotels 2011 3 Hotels 7 Hotels 2012 7 Hotels 15 Hotels 2013 14 Hotels 5 Hotels 2014 1 Hotel 55 Hotels 2015 3 Hotels 1 Hotel 2016 YTD 1 Hotel 5
Slide 13: Portfolio Weighted Towards Premium Hotels
Luxury 13% Upper Upscale 59% Upper Midscale 4% Upscale 24% Portfolio Weighted Towards Premium Hotels 12 Note: Categories by number of total rooms. Totals may not equal 100% due to rounding (1) As defined by STR; Hotel Commonwealth included in Luxury (classified as Independent by STR) Greater than 70
Slide 14: High Quality Portfolio Compares Favorably
High Quality Portfolio Compares Favorably 13 Sources: SNL Financial (1) SNL consensus estimates as of 11/10/16 2016E EBITDA1 / Key ($ in thousands) $33.2 $30.0 $27.7 $27.3 $24.0 $23.7 $20.6 $19.9 $18.6 LHO PEB CHSP DRH XHR SHO FCH HT RLJ Peer Average: $25.5
Slide 15: Grand Bohemian Hotel Charleston
14Grand Bohemian Hotel Charleston – Charleston, SC
Slide 16: Differentiated Portfolio Management
Differentiated Portfolio Management Andaz Napa – Napa, CA
Slide 17: Differentiated Approach Drives Value Creation
Differentiated Approach Drives Value Creation 16 Broad Footprint with Variety of Asset Types Branded Hotels Manager Diversification Portfolio Management Platform Harvests Value Multiple Demand and Revenue Sources
Slide 18: Asset Management Platform Drives Performance
Asset Management Platform Drives Performance 17 Note: For only those hotels operated by Marriott, our historical annual operating results represented here from 2011 to 2013 include a 52‐53 week fiscal calendar used by Marriott at that time. Otherwise presented for the calendar year. USALI 11 adjustm
Slide 19: Property Optimization Process Adds Incremental Value
5% 38% 20% 13% 11% 13% Revenues Expenses Rooms F&B Engineering Misc. Property Optimization Process Adds Incremental Value 18 The Property Optimization Process (“POP”) includes an intensive site visit by industry veteran team members, followed by a period of analysis, research, and implementation • T
Slide 20: Case Study: Marriott Dallas City Center
Case Study: Marriott Dallas City Center 19 (1) Year end 2015 compared to trailing 12‐months at acquisition. Asset Performance1 Revenue $8.6 million or 49.6% GOP $5.9 million or 100.5% EBITDA Margin 2,205 bps Improvement Opportunity • Converted from Westin to Marriott, including full hotel reno
Slide 21: Case Study: Hyatt Regency Santa Clara
Case Study: Hyatt Regency Santa Clara 20 (1) Year end 2015 compared to trailing 12‐months at acquisition. Asset Performance1 Revenue $11.0 million or 26.0% GOP $8.9 million or 61.6% EBITDA Margin 1,023 bps Improvement Opportunity • Focus on ADR growth and optimizing business mix • Public space
Slide 22: Additional Case Studies
Additional Case Studies 21 Based on trailing twelve months prior to acquisition to year end 2015. For hotels operated by Marriott, historical annual operating results represented here, 2013 and prior, include a 52‐53 week fiscal calendar used by Marriott at that time Marriott San Francisco Airport W
Slide 23: Hotel Palomar Philadelphia
22Hotel Palomar Philadelphia ‐ Philadelphia, PA
Slide 24: Strong Financial Profile
Strong Financial Profile Hilton Garden Inn Washington D.C.
Slide 25: Conservative Leverage Profile
Conservative Leverage Profile 24 Sources: SNL Financial (1) SNL consensus EBITDA estimates as of 11/10/2016; net debt as of 9/30/2016 Net Senior Capital / 2016E EBITDA1 6.8x 6.8x 4.9x 4.4x 3.6x 3.5x 3.5x 2.7x 2.5x FCH HT PEB CHSP RLJ LHO XHR DRH SHO Net Debt Preferred Equity
Slide 26: Unencumbered Assets Enhance Flexibility
Unencumbered Assets Enhance Flexibility 25 Unencumbered assets represent: Property Keys Property Keys Marriott San Francisco Airport Waterfront 688 Courtyard Pittsburgh 182 Aston Waikiki Beach Hotel 645 Hilton Garden Inn Chicago North Shore/Evanston 178 Renaissance Atlanta Waverly Hotel & Convention
Slide 27: Debt Maturity Profile
Debt Maturity Profile, inclusive of extensions 26 Note: Assumes all potential extension options are exercised 1. Includes five floating rate loans for which LIBOR has been fixed over the life of the loans 2. Unsecured Line of Credit of $400 million shown at fully extended maturity. $390 million of c
Slide 28: Dividends and Share Repurchases Drive Shareholder Value
Dividends and Share Repurchases Drive Shareholder Value 27 Note: Peers includes APLE, CHSP, DRH, FCH, HT, LHO, PEB, RLJ, and SHO (1) Share price as of 11/10/2016 (2) Calculated using SNL consensus estimates as of 11/10/2016 less 5% FF&E reserve on full year 2015 revenues Approximately $72.5 million
Slide 29: What You Can Continue to Expect from Us
What You Can Continue to Expect from Us 28 Opportunistic investing Transaction‐oriented mindset with focus on quality Aggressive asset management initiatives Healthy balance sheet throughout the cycle Leveraging relationships with brands and managers
Slide 30: Non-GAAP Financial Measures
Non‐GAAP Financial Measures 29 We consider the following non‐GAAP financial measures useful to investors as key supplemental measures of our operating performance: Gross Operating Profit (GOP), GOP margin, EBITDA, Adjusted EBITDA, FFO and Adjusted FFO. These non‐GAAP financial measures should be con
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