Xenia Hotels & Resorts, Inc. · NYSE:XHR
Xenia Hotels & Resorts — Investor Presentation (February 2018)
27 slides from Xenia Hotels & Resorts's investor presentation, Feb 28, 2018
Slide 1: Investor Presentation February 2018
Investor Presentation February 2018
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: Company Overview
54% 23% 10% 5% 3% 3% Independent 2% Company Overview (Excludes Aston Waikiki Beach Hotel) Primarily Located in Top 25 U.S. Lodging Markets and Key Leisure Destinations Focused on Premium Full Service and Lifestyle Hotels ~95% Luxury and Upper Upscale Hotels Primarily Branded Hotels 38 HOTELS 10,852
Slide 4: Diversified Geographic Exposure
Santa Clara, CA: 6% Diversified Geographic Exposure Note: Orange indicates top 10 market as a percentage of 2017 Pro Forma Portfolio Hotel EBITDA. 1. Percentage of 2017 Pro Forma Portfolio Hotel EBITDA, as defined on page 22. 3 FL NM DE MD TX OK KS NE SD ND MT WY CO UT ID AZ NV WA CA OR KY ME NY PA
Slide 5: Strong Financial Profile
Strong Financial Profile 1. Share price as of 2/23/2018. 2. As defined in Section 1.01 of the Company’s senior unsecured revolving credit facility; as of 12/31/2017 pro forma for subsequent events including the sale of Aston Waikiki Beach Hotel. 3. As of 12/31/2017 pro forma for subsequent events, i
Slide 6: Strategic Capital Allocation
Strategic Capital Allocation 5 1. Results prior to Company’s spin from its former parent company and subsequent listing on the NYSE. 2. As defined in Section 1.01 of the Company’s senior unsecured revolving credit facility; as of year end pro forma for subsequent events. 3. Pro forma for subsequent
Slide 7: 2017 In Review
2017 In Review Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch – Scottsdale, AZ
Slide 8: 2017 Highlights
2017 Highlights 7 $16.00 $17.00 $18.00 $19.00 $20.00 $21.00 $22.00 $23.00 $24.00 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Q1 Earnings Release Announced sale of Courtyard Birmingham Downtown for $30M Announced $115M mortgage on Marriott San Francisco
Slide 9: 2017 Operating Results
2017 Operating Results 1. As defined on page 22. Same-Property Portfolio1 Pro Forma Portfolio1 Occupancy Change 100 bps 130 bps ADR Change 0.1% 0.2% RevPAR Change 1.4% 1.9% Hotel EBITDA Margin Growth 52 bps 69 bps Company Results Adjusted EBITDA ($ millions) $270.3 Adjusted FFO per diluted share $2.
Slide 10: Continued Focus on Cost Controls and Margin Retention
Continued Focus on Cost Controls and Margin Retention • Despite moderate growth in RevPAR of 1.4%1 in 2017 and disruption from natural disasters and renovations, Xenia was able to grow Hotel EBITDA margin 52 basis points1 • These results were achieved as a result of strong F&B margins and effective
Slide 11: Asset Management Platform Drives Performance
Asset Management Platform Drives Performance 10 33.5% 35.0% 36.9% 38.5% 30% 31% 32% 33% 34% 35% 36% 37% 38% 39% $0 $100 $200 $300 $400 $500 $600 $700 Year Prior to Acquisition Acquisition Year Acquisition Year +1 Acquisition Year +2 M illion s Properties Acquired Between 2010-20151 Room Revenue Othe
Slide 12: 2017 Property Optimization Process Initiatives
2017 Property Optimization Process Initiatives 11 Note: Dollar amounts represent recommendations that may be realized over time. Total Hotel • Scheduling to demand and appropriate productivity levels in multiple departments. • Re-organization of departments to create more effective operating environ
Slide 13: 2017 Transaction Activity
2017 Transaction Activity 12 1. For acquisitions, calculated using 2017 Hotel EBITDA. For dispositions, TTM at time of disposition excluding required capital investment. 2. 2016 Year-End Portfolio as defined in fourth quarter and full year earnings released dated 2/28/2017 2017 compared to Same-Prop
Slide 14: 2017 Capital Markets Activity
2017 Capital Markets Activity Grand Bohemian Hotel Charleston Hotel Palomar Philadelphia Andaz San Diego 13 5.2 million shares purchased since inception Wtd average share price of $14.99 approximately 25% below current share price1 Share Repurchases 1. Share price as of 2/23/2018 $215 million of new
Slide 15: 2018 Outlook
2018 Outlook Royal Palms Resort & Spa – Phoenix, AZ
Slide 16: What You Can Continue to Expect from Us
What You Can Continue to Expect from Us 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 15
Slide 17: Active 2018 Off to a Great Start
Active 2018 Off to a Great Start 16 Line of Credit Upsize and Extension • In January 2018, upsized existing revolving credit facility to $500M • Extended maturity by three years to February 2022, with an additional two six-month extension options • Reduced pricing grid to 150 to 225 basis points bas
Slide 18: 2018 Market Outlook
2018 Market Outlook 17 Top Markets By EBITDA1 Market % of Hotel EBITDA1 Additional Commentary Orlando, FL 10% Strong demand outlook and low supply growth Tough year-over-year comparison in Q4 due to post-hurricane demand Houston, TX 10% Tough year-over-year comparison with Super Bowl and post-Hurric
Slide 19: 2018 Guidance
2018 Guidance Additional Details: Note: As of 2/27/2018, not being updated or reconfirmed Low High RevPAR Change (includes 38 hotels) 0.0% 2.0% Adjusted EBITDA $281 $295 Adjusted FFO $222 $236 Adjusted FFO per Diluted Share $2.08 $2.21 Capital Expenditures $115 $135 • Based on the current economic e
Slide 20: Year Over Year Comparison Factors
Year Over Year Comparison Factors 19 ➢ Transactions • Acquisitions • Projected to contribute additional $40 million to midpoint of 2018 Adjusted EBITDA guidance range • Dispositions • 2017 dispositions contributed $9 million to 2017 Adjusted EBITDA • Aston Waikiki Beach Hotel contributed $12 million
Slide 21: 2018 Renovation Projects
2018 Renovation Projects 20 Hotel Project Start Date Westin Oaks Guestrooms Q4 2017 Hilton Garden Inn Washington DC Guestrooms Q4 2017 Residence Inn Denver Guestrooms Q4 2017 Marriott San Francisco Airport Great room, lobby Q4 2017 RiverPlace Hotel Restaurant Q4 2017 Marriott Chicago Medical Distric
Slide 22: Appendix
21 APPENDIX
Slide 23: Definitions
Definitions Same-Property Portfolio: Includes all hotels owned as of December 31, 2017. "Same-Property" includes periods prior to the Company’s ownership of Hyatt Regency Grand Cypress, Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Royal Palms Resort & Spa, and The Ritz-Carlton, Pentagon Ci
Slide 24: Reconciliation of Net Income to EBITDA, Adjusted EBITDA, Hotel EBITDA
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, Same-Property Hotel EBITDA, and Pro Forma Portfolio Hotel EBITDA 23 Year Ended December 31, 2017 2016 Net income 100,816$ 86,730$ Adjustments: Interest expense 46,294 48,113 Income tax expense 7,833 5,077 Depreciation and amortization related
Slide 25: Reconciliation Footnotes
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, Same-Property Hotel EBITDA, and Pro Forma Portfolio Hotel EBITDA Footnotes 24 (1) During the third quarter of 2017, Hurricanes Harvey and Irma impacted several of the Company's hotels. The Company recorded a loss of $950 thousand, which repres
Slide 26: Non-GAAP Financial Measures
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, FFO and Adjusted FFO. These non-GAAP financial measures should be consid
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