Xenia Hotels & Resorts, Inc. · NYSE:XHR

Xenia Hotels & Resorts — Investor Presentation (February 2016)

33 slides from Xenia Hotels & Resorts's investor presentation, Feb 23, 2016

  1. Slide 1: Investor Presentation February 2016

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 1 Investor Presentation February 2016 Update layout Hotel Commonwealth KIM Canary Santa Barbara KIM RiverPlace KIM Palomar Philadelphia

  2. Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 2 Forward-Looking Statements; Non-GAAP Financial Measures This presentation has been prepared by Xenia Hotels & Resorts, Inc. (the “Company” or “Xenia”) solely for informational purposes. This presentation contains, and our respons

  3. Slide 3: Overview of Xenia

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 3 Overview of Xenia Note: All data as of 2/23/2016 (48 wholly owned, 2 majority owned), unless otherwise noted (1) As defined by STR (2) Includes Hotel Commonwealth, which is classified as Independent by STR (3) Full year 2015, as

  4. Slide 4: Seasoned Management Team

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 4 Seasoned Management Team Marcel Verbaas President & CEO  Xenia CEO since 2007  Most recently CIO of CNL Hotels & Resorts  Previously with CNL Retirement Corporation, Stormont Trice Development Corp., GE Capital and Ocwen Finan

  5. Slide 5: Strong Independent Board

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 5 Strong Independent Board Marcel Verbaas President & CEO  Xenia CEO since 2007 Jeffrey H. Donahue Non-Executive Chairman  Audit  Chairman of Welltower (NYSE: HCN) since April 2014; director since 1997  Former President and CEO

  6. Slide 6: Timeline of Xenia Formation and Portfolio Evolution

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 6 Timeline of Xenia Formation and Portfolio Evolution Source: InvenTrust 10-K (2007-2014) (1) Includes the sale of 52 select service assets to Northstar / Chatham which closed in November 2014 (2) InvenTrust acquired two hotel port

  7. Slide 7: Accomplishments Since February 2015 Listing on NYSE

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 7 Accomplishments Since February 2015 Listing on NYSE Since listing in February 2015, Xenia has strengthened its balance sheet and improved its portfolio through strategic acquisitions and dispositions February 2015  Completed sep

  8. Slide 8: Portfolio Overview

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 8 Portfolio Overview As of 2/23/2016 HI FL NM DE MD TX OK KS NE SD ND MT WY CO UT ID AZ NV WA CA OR KY ME NY PA VT NH RI CT WV IN IL NC TN SC AL MS AR LA MO IA MN WI NJ GA DC VA OH MI MA 50 Hotels, comprising 12,548 rooms with a na

  9. Slide 9: Recent Acquisitions In-Line with Investment Strategy

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 9 (1) Grand Bohemian Hotel Charleston and Grand Bohemian Hotel Mountain Brook were development projects in which the Company is a 75% owner (2) Kimpton Portfolio includes Canary Hotel in Santa Barbara, RiverPlace Hotel in Portland,

  10. Slide 10: Portfolio Diversification

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 10 Chain Scale1 Geography2 Brand Family3 Property Managers 24% 15% 8% 5% 5% 4% 4% 4% 4% 4% 23% Marriott 32% Sage 11% Portfolio Diversification Note: As of 2/23/2016. Categories by number of total rooms. Totals may not equal 100% du

  11. Slide 11: Strong Same-Property Growth

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 11 As of 12/31/2015; includes Hilton University of Florida Gainesville (sold 2/11/2016); excludes Hotel Commonwealth, Grand Bohemian Hotel Charleston, and Grand Bohemian Hotel Mountain Brook Note: For only those hotels operated by

  12. Slide 12: U.S. Supply and Demand Trends

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 12 Source: STR; PKF HR|CBRE Hotels December 2015 to February 2016 Edition Long-term supply average: 1.6% Long-term demand average: 1.9% Recession: Mar 2001-Nov 2001 (September 11) Recession: Dec 2007-Jun 2009 (Global Financial Cris

  13. Slide 13: Asset Management Platform with Uniquely Integrated Capabilities

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 13 Asset Management Platform with Uniquely Integrated Capabilities 1 3 4 5 6 Integrated Platform  Revenue enhancement  Cost containment  Frequent interaction with management companies  Integrated with asset management team to i

  14. Slide 14: Driving Improvements – The Process

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 14 Driving Improvements – The Process Thorough review of all properties’ cost structures and revenue opportunities during due diligence and immediately following purchase. • At the Andaz San Diego, Xenia determined a need for revam

  15. Slide 15: Driving Improvements – The Results

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 15 Driving Improvements – The Results (1) Excludes hotels subsequently sold and the Andaz Napa, due to earthquake disruption in the first year after acquisition $ million s 34.2% 35.6% 37.2% 38.6% 32.0% 33.0% 34.0% 35.0% 36.0% 37.0

  16. Slide 16: Driving Improvements – Property Optimization Process

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 16 Driving Improvements – Property Optimization Process • The Property Optimization Process (POP) includes an intensive five to seven day site-visit by Xenia team members, followed by a period of analysis and additional research. B

  17. Slide 17: 2015 Results & Subsequent Events

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 17 2015 Results & Subsequent Events Same-Property RevPAR  Same-Property RevPAR increased 4.7% from 2014 to $144.92, driven by a 4.9% ADR increase as occupancy decreased slightly  Excluding Houston, the portfolio RevPAR increased

  18. Slide 18: Recent Capital Markets Activity

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 18 Recent Capital Markets Activity Successfully completed over $900 million in financings since listing, lowering the weighted average interest rate by nearly 50 bps to 3.49% and extending the average maturity of its loans by nearl

  19. Slide 19: Staggered Debt Maturity Profile

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 19 Staggered Debt Maturity Profile Note: Data as of 2/23/2016; assumes all extension options exercised (1) As of 12/31/2015 as defined in the line of credit agreement (2) Includes three floating rate loans for which LIBOR has been

  20. Slide 20: 2016 Guidance

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 20 2016 Guidance1 Low High Same Property RevPAR Growth 2.0% 4.0% Adjusted EBITDA $303 million $317 million Adjusted FFO $247 million $261 million Adjusted FFO per Diluted Share $2.25 $2.38 Capital Expenditures $62 million $72 milli

  21. Slide 21: Houston Update

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 21 Houston Update • While low oil prices and supply increases continue to add pressure to the Houston lodging market, Xenia has a geographically diversified hotel portfolio with Houston accounting for only 11% of Company total room

  22. Slide 22: Airbnb Impact Muted in Xenia Markets

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 22 Airbnb Impact Muted in Xenia Markets Airbnb Risk Rank Market1 Market Supply Airbnb Risk Index2 Xenia Market 1 New York 19.5% 81.4 2 San Francisco3 12.5% 50.4 3 Miami 10.1% 48.4 4 Oakland 12.0% 48.0 5 Oahu 6.8% 46.1 6 Los Angeles

  23. Slide 23: Peer Valuation Summary

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 23 Peer Valuation Summary Sources: SNL Financial and Company financials Note: Based on share prices as of 2/19/2016 (1) SNL consensus estimates (2) Assumes midpoint of 2016 guidance provided on 2/23/2016 2 2 2 12.5x 12.4x 11.9x 11.

  24. Slide 24: Key Takeaways

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 24 Key Takeaways National platform of high quality assets primarily located in Top 25 markets and key leisure destinations consisting of premium full-service, lifestyle and urban upscale hotels Experienced management team aligned w

  25. Slide 25: Appendix A: 2015 Full Year Hotel Operating Performance by Hotel

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 25 Appendix A: 2015 Full Year Hotel Operating Performance by Hotel

  26. Slide 26: Same-Property Operating Performance

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 26 Same-Property1 Operating Performance Year Ended December 31, 2015 Year Ended December 31, 2014 Property EBITDA ($M) EBITDA/ Key RevPAR EBITDA ($M) EBITDA / Key RevPAR Andaz Napa $5,431 $38,518 $223.09 $2,261 $16,035 $137.99 Anda

  27. Slide 27: Same-Property Operating Performance (cont’d)

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 27 Same-Property1 Operating Performance (cont’d) (1) EBITDA excludes the amortization of above / below market ground lease intangibles. As such, year ended 12/31/2014 Hotel EBITDA will differ from figures previously provided (2) “S

  28. Slide 28: Appendix B: Asset Management Case Studies

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 28 Appendix B: Asset Management Case Studies

  29. Slide 29: Driving Improvements – Hotel Case Examples: Hyatt Key West Resort & Spa

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 29 Driving Improvements – Hotel Case Examples Hyatt Key West Resort & Spa • Hyatt Key West Resort & Spa was acquired in mid- November 2013 for $76 million, or $644,100 per key. • Immediately upon acquisition, Xenia implemented a mo

  30. Slide 30: Driving Improvements – Hotel Case Examples: Hyatt Regency Santa Clara

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 30 Driving Improvements – Hotel Case Examples Hyatt Regency Santa Clara • Hyatt Regency Santa Clara was acquired in mid- September 2013 for $99 million, or $197,000 per key. • Upon acquisition, Xenia immediately implemented a more

  31. Slide 31: Driving Improvements – Hotel Case Examples: Andaz San Diego

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 31 Driving Improvements – Hotel Case Examples Andaz San Diego • Andaz San Diego was acquired in early 2013 for $53 million, or $333,300 per key. • Close analysis of the hotel’s operating structure and expense levels indicated signi

  32. Slide 32: Driving Improvements – Hotel Case Examples: Prior Acquisitions

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 32 Driving Improvements – Hotel Case Examples Prior Acquisitions 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

  33. Slide 33: Non-GAAP Financial Measures

    240 100 50 92 104 112 147 175 198 198 210 217 216 211 181 188 190 19 33 Non-GAAP Financial Measures 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,

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