Xenia Hotels & Resorts, Inc. · NYSE:XHR
Xenia Hotels & Resorts — Q3 2024 Earnings Presentation
40 slides from Xenia Hotels & Resorts's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 meaning
Slide 3: Investment Highlights
INVESTMENT INVESTMENT Diverse & High-Quality Portfolio HIGHLIGHTS HIGHLIGHTS 31 luxury and upper-upscale hotels and resorts primarily in Top 25 markets and key leisure destinations Multiple Growth Drivers Strong long-term growth prospects based on numerous embedded growth opportunities and accretive
Slide 4: Portfolio Overview
Portfolio Overview Park Hyatt Aviara 3 Hyatt Regency Grand Resort, CypressGolf Club & Spa – Orlando, FL – Carlsbad, CA
Slide 5: Portfolio Composition
Portfolio Composition Portfolio Characteristics Diversified Branding 1 Key Portfolio Statistics 2 • Focused on Uniquely Positioned Luxury and Upper Upscale Hotels 3% & Resorts 1% 31 • Primarily located in Top 25 U.S. 7% Hotels Lodging Markets and Key Leisure 8% 9,408 Destinations • 100% Luxury and U
Slide 6: Geographic Diversification
Geographic Diversification • The Sunbelt No single market contributed Hotels and resorts located across 22 • Key leisure destinations more than 15% of 2023 EBITDA1 unique lodging markets including: • Select gateway markets • Markets with limited near-term supply growth Portland, OR: 4% Nashville, TN
Slide 7: Demand Segment Diversification
Demand Segment Diversification Well-positioned portfolio, greater than 70% driven by business transient and group SIGNIFICANT CONTRIBUTIONS FROM BUSINESS TRANSIENT AND/OR GROUP ESTIMATED HISTORICAL DEMAND MIX1 • Fairmont Dallas • Fairmont Pittsburgh SIGNIFICANT CONTRIBUTIONS FROM LEISURE • Grand Boh
Slide 8: Aligned with High Quality Brands
Aligned with High Quality Brands 100% of rooms are brand affiliated Aligned with best-in-class hotel brands that provide a relevant “Brand Promise” to consumers • Advantages of branded hotels: • Superior revenue channels • Proven guest loyalty programs • Strength of marketing and advertising platfor
Slide 9: Portfolio Evolution Towards Higher Quality
Portfolio Evolution Towards Higher Quality Strategic capital allocation over past nine years delivers superior portfolio Since 20141 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Listing2 3 Hotels3 1 Hotel 4 Hotels 4 Hotels4 1 Hotel 1 Hotel 14 Hotels Acquisitions - - - - $245M $136M $615M $354M
Slide 10: Top Markets by Same-Property Hotel EBITDA
Top Markets by Same-Property1 Hotel EBITDA Significant growth potential in several markets as corporate and group demand return FY 2023 Hotel Market 2 State EBITDA Growth Opportunities (%) Orlando FL 15% Markets such as San Francisco / San Mateo and San Jose / Santa Cruz have been slower to recover
Slide 11: Strong Portfolio Attributes vs. Lodging REIT Peers
Strong Portfolio Attributes vs. Lodging REIT Peers Diverse collection of properties, driven primarily by group and business transient • Demand mix: 2/3 Transient (majority business), 1/3 group • Revenue mix: 60% rooms, 40% F&B and other Marriott Woodlands Waterway Hotel & Convention Center Superior
Slide 12: Multiple Growth Drivers
Multiple Growth Drivers 11 Hyatt Centric Key West Resort & Spa – Key West, FL
Slide 13: Multiple Embedded Growth Drivers
Multiple Embedded Growth Drivers HYATT REGENCY SCOTTSDALE Transformative renovation and upbranding to Grand Hyatt RETURN ON RECENT CAPEX Incremental EBITDA contributions from multiple recently completed capital projects NORTHERN CALIFORNIA ASSET RECOVERY Expected recovery to prior peak from Marriott
Slide 14: Driving Internal Growth Through Targeted CapEx
Driving Internal Growth Through Targeted CapEx Transformative Renovation of Hyatt Regency Scottsdale and upbranding to Grand Hyatt Investment Thesis Maximize Investment Through Creation of Grand Hyatt Luxury Resort Transformative renovation and upbranding to Grand Hyatt will maximize value of a stra
Slide 15: Transformative Renovation of Hyatt Regency Scottsdale
Transformative Renovation of Hyatt Regency Scottsdale and upbranding to Grand Hyatt Driving growth through targeted CapEx PROJECT UPDATE POOL COMPLEX & AMENITIES • Expected to be relaunched as Grand Hyatt Scottsdale Resort in early October Full renovation of 2-acre pool complex expected to • On trac
Slide 16: Guestroom Renovation
Transformative Renovation of Hyatt Regency Scottsdale and upbranding to Grand Hyatt Guestroom Renovation Palm Suite King Guestroom Palm Suite Palm Suite 15
Slide 17: Pool Complex Renovation
Transformative Renovation of Hyatt Regency Scottsdale and upbranding to Grand Hyatt Pool Complex Renovation Adult Pool Adult Pool Family Pool Family Pool 16
Slide 18: Adult and Family Pool Bar Renovations
Transformative Renovation of Hyatt Regency Scottsdale and upbranding to Grand Hyatt Adult and Family Pool Bar Renovations Sand Bar Sand Bar H2Oasis H2Oasis 17
Slide 19: Transformation Drives RevPAR Growth
Transformative Renovation of Hyatt Regency Scottsdale and upbranding to Grand Hyatt Driving growth through targeted CapEx TRANSFORMATION DRIVES REVPAR GROWTH Upon stabilization, the hotel is expected to achieve RevPAR of approximately $300 » RevPAR Index to climb approximately 10% from 2022 upon sta
Slide 20: Building on a Strong Track Record: Park Hyatt Aviara
Building on a Strong Track Record Recent successful transformative renovations and expansions Park Hyatt Aviara Resort, Golf Club & Spa Renovated Suite TOTAL INVESTMENT: $62M (4Q19-3Q23) PROJECT HIGHLIGHTS: Transformative renovation of all guestrooms, public spaces, meeting space and amenities inclu
Slide 21: Building on a Strong Track Record: Hyatt Regency Grand Cypress
Building on a Strong Track Record Recent successful transformative renovations and expansions Hyatt Regency Grand Cypress New Windsong Ballroom TOTAL INVESTMENT: $45M (3Q18-3Q20) PROJECT HIGHLIGHTS: Added new 25,000 SF ballroom and 32,000 SF of pre-function/support space; renovated guestrooms, resta
Slide 22: Recent Capital Projects
Recent Capital Projects Recently completed and ongoing capital expenditure projects Grand Bohemian Hotel Orlando, Autograph Collection Kimpton Hotel Monaco Salt Lake City Kimpton Hotel Canary Santa Barbara Comprehensive renovation of guestrooms, F&B, lobby, Comprehensive renovation of meeting space,
Slide 23: Northern California Asset Recovery
Northern California Asset Recovery Continued Post-Pandemic Recovery Combined, both hotels offer meaningful recovery potential of approximately $25M of incremental Hotel EBITDA over the next several years.1 MARRIOTT CONSOLIDATED RECOVERY TO PRE-PANDEMIC LEVELS IN FOCUS ($M) SAN FRANCISCO A I R P O R
Slide 24: Marriott San Francisco Airport Waterfront
Northern California Asset Recovery Marriott San Francisco Airport Waterfront The 688 key Marriott San Francisco Airport in Burlingame, CA boasts an ideal location adjacent to the San Francisco International Airport and a diverse set of demand generators including a growing life sciences corridor. GR
Slide 25: Hyatt Regency Santa Clara
Northern California Asset Recovery Hyatt Regency Santa Clara The 505 key Hyatt Regency Santa Clara in the San Jose/Santa Cruz submarket is adjacent to the Santa Clara Convention Center and Levi’s Stadium which hosts a strong roster of sporting and entertainment events. GROWTH OPPORTUNITIES • Continu
Slide 26: Recently Acquired Hotels
Recently Acquired Hotels Ramping up to stabilization Hyatt Regency Portland at the Oregon Convention Center W Nashville OVERVIEW: Newly constructed convention center hotel acquired at an OVERVIEW: Newly constructed luxury lifestyle hotel in rapidly growing attractive basis in a high barrier to e
Slide 27: Long-Term Growth Prospects
Long-Term Growth Prospects Bridge to Pro-forma Stabilized EBITDAre and beyond $17 $25 $24 + $25 Organic Growth from other 26 assets $341 + $250 $250 Future $250 Acquisitions 3 FY 2023 PF 1 Hyatt Regency ROI CapEx N. California Asset Hyatt Regency Estimated Stabilized Adjusted EBITDAre Scottsdale2 Re
Slide 28: Strong Balance Sheet & Favorable Outlook
Strong Balance Sheet & Favorable Outlook 27 W Nashville – Nashville, TN
Slide 29: Balance Sheet Overview
Balance Sheet Overview As of June 30, 2024 Liquidity Unrestricted Cash1 Line of Credit Availability2 Total Liquidity ~$144M $450M ~$594M Debt Summary Debt Mix Balance as of Rate Type Rate Maturity 6/30/24 $216M Mortgage Loans Property Grand Bohemian Hotel Orlando Fixed 4.53% 3/1/2026 53.9 Level Debt
Slide 30: Debt Maturity Profile and Leverage
Balance Sheet Overview Debt Maturity Profile as of June 30, 2024 Leverage1 Senior Notes LOC Availability Term Loan ~5.2x Conservative balance sheet leverage with continued strengthening expected Mortgages Leverage Ratio $450 No Interest Rate Exposure $465 $500 $225 100% The Company has no near-term
Slide 31: RevPAR Growth Stronger During Periods of Low Supply Growth
Historically RevPAR Growth is Stronger During Periods of Low Supply Growth U.S. LODGING REVPAR vs SUPPLY CHANGE (2011 – 2015) 2011-2015 RevPAR % Growth CAGR = 6.8% Supply % Growth CAGR= 0.5% 9% 4.0% 8% 3.5% RevPAR Growth Outlook 7% 3.0% During the 2011-2015 period, supply growth was RevPAR % Change
Slide 32: Recent Trends and Near-Term Outlook
Recent Trends and Near-Term Outlook1 • Recent Same-Property2 metrics reflect renovation disruption matched with positive trends • Same-Property 2Q24 RevPAR increased 1.8% vs. 2Q23 with Occupancy up 240 bps and ADR down 1.7%. Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, RevPAR inc
Slide 33: Near-Term Outlook – Guidance
Near-Term Outlook – Guidance1 $ in millions, except per share amounts Current FY 2024 Guidance Variance to Prior Guidance Low High Low High Net Income $18 $30 $1 ($3) Same-Property (31 Hotel) RevPAR Change (vs. 2023) 2.00% 4.00% (0.25)% (0.75%) Excluding Hyatt Regency Scottsdale, Same-Property (30 H
Slide 34: Outlook by Top Market
Outlook by Top Market1 Market Additional Commentary Houston, TX Group and corporate business returning with convention center bookings up versus last year Orlando, FL Growing group business offset by softening leisure demand Phoenix, AZ Continued strength in group and normalizing leisure demand Dall
Slide 35: Experienced Management
Experienced Management 34 The Ritz-Carlton, Pentagon City – Arlington, VA
Slide 36: Experienced Management Team
Experienced Management Team 115+ EXECUTIVE TEAM experience in hotel real estate 155+ ASSET MANAGEMENT Hyatt Regency Grand Cypress – Orlando, FL experience in hospitality 215+ PROJECT MANAGEMENT experience in capital projects 35
Slide 37: Executive Team with Extensive Track Record
Executive Team with Extensive Track Record Senior Executive Team has an average of 30 years of hotel experience and an average tenure of 11 years with Xenia • Senior Executives have decades of experience in the hotel industry and have managed through a number of previous industry downturns • Have be
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of operating performance: EBITDA, EBITDAre, Adjusted EBITDAre, Same- Property Hotel EBITDA, Same-Property Hotel EBITDA Margin, FFO, Adjusted FFO, and Adj
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures FFO and Adjusted FFO The Company calculates FFO in accordance with standards established by Nareit, as amended in the 2018 Restatement White Paper, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, am
Slide 40: Xenia Hotels & Resorts
XENIA HOTELS & RESORTS
Xenia Hotels & Resorts — Q3 2024 Earnings Presentation on 6ix