Xenia Hotels & Resorts, a real estate investment trust (REIT) that focuses on luxury and upper upscale hotels and resorts in the United States, has recently released its 10-Q report. As of June 30, 2024, the company owned 32 hotels and resorts comprising 9,515 rooms across 14 states. The properties are primarily operated and/or licensed by industry leaders such as Marriott, Hyatt, Fairmont, Kimpton, Loews, Hilton, The Kessler Collection, and Davidson.
In the 10-Q report, Xenia Hotels & Resorts discussed various financial and operational aspects. The company's revenue is primarily derived from hotel operations, including rooms revenue, food and beverage revenue, and other revenue such as parking, spa, resort fees, and tenant leases. Its operating costs and expenses consist of the costs to provide hotel services, including rooms expense, food and beverage expense, and other direct and indirect operating expenses.
Key performance indicators mentioned in the report include Revenue Per Available Room (RevPAR), average daily rate (ADR), occupancy rate, earnings before interest, income taxes, depreciation, and amortization for real estate (EBITDAre), Adjusted EBITDAre, and funds from operations (FFO) and Adjusted FFO. The report also highlighted that the U.S. lodging industry historically exhibits a strong correlation to U.S. GDP, which increased at an estimated annual rate of approximately 1.4% and 2.8% during the first and second quarters of 2024.
In the second quarter of 2024, Xenia Hotels & Resorts saw an increase in its total portfolio RevPAR, driven primarily by an increase in occupancy, partially offset by disruption from renovations and normalizing leisure demand. Excluding a property undergoing a transformative renovation, the total portfolio RevPAR also increased significantly.
The company also reported an 11.8% increase in net income for the three months ended June 30, 2024, compared to the same period in 2023, primarily attributed to an income tax benefit.
Following these announcements, the company's shares moved -2.6%, and are now trading at a price of $13.28. For the full picture, make sure to review Xenia Hotels & Resorts's 10-Q report.
