Xenia Hotels & Resorts Sees Ups and Downs in 2024 Performance
Performance Overview for Fourth Quarter 2024
Xenia Hotels & Resorts, Inc. (NYSE: XHR) recently announced their financial results, highlighting key performance metrics for the fourth quarter and the entire year of 2024. The Company faced challenges over the year but ended on a positive note, particularly in the last quarter.
Fourth Quarter Highlights
The fourth quarter revealed a net loss of $0.6 million for common stockholders, equating to a loss of $0.01 per share. Adjusted EBITDA for the quarter was reported at $59.2 million, which marked a slight decrease of 0.5% compared to the same period in 2023.
Additionally, the company's Adjusted Funds From Operations (FFO) per diluted share were reported at $0.39, showing a decline of 4.9% year-over-year. On a more positive note, Same-Property Occupancy rose to 64.4%, an increase of 250 basis points, while Same-Property Average Daily Rate (ADR) climbed to $257.52, reflecting a 1.0% increase.
Full Year Results
Throughout the year, Xenia Hotels & Resorts achieved a net income of $16.1 million, which converts to $0.15 per diluted share. The full-year Adjusted EBITDA was recorded at $237.1 million, however, down by 5.8% compared to 2023.
Despite these setbacks, the Adjusted FFO per diluted share increased by 3.2% to $1.59, indicating some resilience in the business model.
Operational Improvements and Financing Activity
Xenia's operational achievements included significant improvements resulting from the recently completed renovations, particularly at the Grand Hyatt Scottsdale Resort. This property has now been repositioned and is expected to contribute positively to the company's overall performance moving forward.
In terms of financing, the company successfully extended its corporate credit facility, which now stands at $825 million, comprising a revolving line of credit and term loans. This has substantially improved their liquidity and financial flexibility.
Strategic Goals for 2025 and Outlook
As Xenia rolls into 2025, they remain optimistic about potential growth amidst economic uncertainty. The early indicators suggest an increase in Same-Property RevPAR, which has grown by 7.3% versus the previous year, reflecting a demand rebound across various markets.
Investments and Renovations
The company is planning significant capital expenditures, with around $100 million allocated for various renovations in 2025. Projects include further enhancements at the Grand Hyatt Scottsdale, which is anticipated to generate substantial returns on investment in the coming periods.
Focus on Shareholder Value
Xenia is demonstrating a strong commitment to shareholder value, recently announcing an increase in the quarterly dividend by approximately 17% to $0.14 per share, which is a clear indication of their financial resilience amidst market fluctuations.
Frequently Asked Questions
What are the key financial highlights for Xenia Hotels in 2024?
Xenia Hotels & Resorts reported a net loss of $0.6 million for Q4 2024 and a full-year net income of $16.1 million.
How did the company perform compared to last year?
The company saw a slight decline in Adjusted EBITDA for Q4 and a full-year decrease in overall performance metrics compared to 2023.
What future improvements are planned for Xenia Hotels?
Xenia plans to continue renovations, focusing on enhancing properties like the Grand Hyatt Scottsdale to drive future growth.
How does Xenia plan to return value to its shareholders?
The company has announced a dividend increase of 17% to reinforce its commitment to shareholder value.
What does the market look like for Xenia in 2025?
Early indicators suggest a positive trend with a 7.3% increase in Same-Property RevPAR, which may bode well for Xenia's growth strategy.
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