Xenia Hotels & Resorts (XHR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $15.3 million, up 11.2%–11.8% year-over-year, driven by an income tax benefit, lower depreciation, and reduced interest expense, partially offset by lower hotel operating income and higher G&A costs.

• Adjusted EBITDAre for Q2 2024 was $68.4 million, down 8.4% year-over-year; Adjusted FFO per share was $0.52, up 10.6%.

• Same-property RevPAR for Q2 2024 increased 1.8% to $185.69; excluding Hyatt Regency Scottsdale, RevPAR rose 5.0%.

• Renovated and group-oriented hotels led RevPAR growth, while leisure demand softened as the quarter progressed.

• The sale of Lorien Hotel & Spa for $30 million post-Q2 generated an estimated gain of $1.8 million.

Financial highlights

• Q2 2024 revenues were $272.9 million, up 0.7% year-over-year; same-property hotel EBITDA was $73.4 million, down 7.5% with a margin decrease of 238 bps.

• Q2 2024 occupancy was 71.0% (up 240 bps); ADR was $261.53 (down 1.7%).

• Interest expense decreased 6.5% year-over-year to $20.2 million; cash and cash equivalents at June 30, 2024 were $143.6–$144 million.

• Adjusted EBITDAre margin for Q2 2024 was 25.1%, down from 27.5% in Q2 2023.

• Year-to-date same-property hotel EBITDA was $144.1 million, down 8.0%; margin was 26.7%.

Outlook and guidance

• Full-year 2024 net income guidance: $18–$30 million; Adjusted EBITDAre: $243–$255 million; Adjusted FFO per share: $1.62–$1.74.

• Full-year same-property RevPAR expected to increase 2.0–4.0% (2.75–4.75% excluding Hyatt Regency Scottsdale).

• Adjusted EBITDAre guidance reduced by $5 million to $249 million, reflecting asset sale, renovation disruption, and lower RevPAR.

• Margins expected to improve in H2, especially as Scottsdale ramps up post-renovation.

• Guidance reflects macroeconomic uncertainty, expense pressures, and recent demand trends.