XHR - Earnings call transcript Q1 2021 | Xenia Hotels & Resorts, Inc.

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Operator

Good day, and welcome to the Xenia Hotels & Resorts First Quarter 2021 Results Conference Call. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Cameron Frosch, Senior Analyst, Finance. Please go ahead.

Cameron Frosch

Thank you, Andrew. to and & webcast. welcome XXXX first and call earnings afternoon, Xenia Resorts’ Hotels quarter Good Chief Atish I’m and and Barry and Chief with Chief Executive Officer; here Marcel Officer; Bloom, Verbaas, Financial Officer. our Vice our Executive Shah, our Chairman Operating President and President Marcel with of a our performance. will begin discussion quarterly our follow projects. with our Barry expenditure details will operating results capital about more and details on our conclude our remarks balance of sheet. will review Atish And a with

We open will the Q&A. then for call

uncertainties certain as statements started, statements in by our not cause and get me and to let call are could our XX-K everyone that described numerous actual comments. on results or we Form are implied materially made Before historical in expressed annual considered on to SEC remind this those forward-looking which are report risks other and facts statements. These filings, subject differ our from

only the as X, along Forward-looking this publicly unfold. call, statements this obligation statements no of issued in update made morning, events of we to the any release these on comments We that undertake as forward-looking today, actual with earnings are XXXX. May

it referred can to this in be You reconciliation financial items non-GAAP to our over get income our website this on a available I’ll and An certain turn of Marcel remarks days. of net in archive release. now morning’s definitions will earnings measures of find to call started. XX for to

Marcel Verbaas

call everyone our to good today. Cameron, Thanks, afternoon joining and

that across past and loosening and industry vaccination the As country and industry decreasing, And our a rates we the the in attitudes see turn travel itself portfolio, couple in occupancy fortunately, in we of of to more more of hospitalization toward across over to you increasing cases manifested have particular, rates the restrictions increasing year improving and into With resulting our now corner. our all months. are are well COVID-XX country pandemic. starting aware, signs the are are the than starting more and

and encouraged it to are safe results lodging in impact The of after say a recent a to strong us. operating to we March we pandemic on behind be believe by the trends worst continue and the started impact have portfolio, January significant is industry to the the appears reasonably now our We of our February. throughout XXXX, see and pandemic that

of by As a respectively. to segments decreased last result, luxury upscale U.S. approximate quarter XX.X%, comprised decrease The ADR. decreases upper decrease XXXX XX.X% XX.X% of year, for and first in occupancy of and RevPAR XX.X% the XX-point and an in RevPAR experienced compared

quarters during relatively demand severe closely the more impact next the of on the to Given those meaningless, most With in significant move the industry months like ahead. during we, comparisons participants, expect becoming industry quarters. will other the last comparisons gains XXXX RevPAR over year lodging remaining results post three at XXXX, to we

positive During a million. over were substantially February. encouragingly, both and expectations the of at EBITDAre three meaningful the million, negative was first Adjusted adjusted share the had negative share with per These representing net during of loss quarter of $XX.X the end for results quarters. and sequential we adjusted Most the quarter, we adjusted per reported was numbers the prior improvements $X.XX, FFO month both $X.X FFO March. exceeded EBITDAre

for March able of did bottom-line positive in watermarks cost the occupancy high XX% the are improvement the hotel which of that progressed not rates both EBITDA achieved and has a pandemic. limit properties producing Twenty were on quarter performed results since a the improved tirelessly positive to and operators our to working at expectations. so and encouraging ahead our of hotels the result also XX portfolio contributed well cash a for job are team portfolio same-property first operational asset to our burn only results COVID-XX and in done but quarter. of two over and were substantial the our through operating as of both with We occupancy month well resorts, beginning continued our March. of quarter, significant outstanding controls below management number terrific performance portfolio, hotel our our our representing as both hotels portfolio, as our at for achieve These pleased top-line get measures first levels with our as entire of breakeven prior forecast by EBITDA to of A bottom-line resorts our internal

XX% achieve on reach that estimated hotel approximately previously we need have breakeven EBITDA. would same-property to We occupancy to

Same-property able the sequentially achieve in results and each on a hotel and EBITDA XX% to continued However, occupancy, first improved improvement. significant ADR, that encouraging quarter, RevPAR the April quarter, positive during were and have approximately trend. occupancy, we

be particularly Since XXXX, we and summer of and highest the Our beginning the the continue encouraged hotels assets XX% from our demand the be $XXX rooms, have represent and of of current quarter that expect which the levels since April been of fourth our we same-property leisure approximately occupancy And to of XX the and of beginning of open the have approximately XX% our strong XX to resorts, operating. segments ADR during season. by witnessed of represent XX% pandemic. we

recommence May. the hotel Portland Oregon at are that slated Center, with the only before operations, thrilled to suspended is remaining end Hyatt operations We Regency Convention our of

at strategic positioned recommencing in has and Our past benefited and locations. Sunbelt us the demand improving significant concentration advantage to curve to focus particularly over our be diversification key many months, drive-to of take has our be of of a hotels long-standing trends, and and few markets allowed ahead in geographic leisure greatly in us operations resorts, on the

demand the to of improving in are gradually continues driven to strong group year. shoots half be demand. business will starting And to occupancy transient segments demand, other leisure the leisure some our these business that relates in bridge we of most are it as While we by a hopeful green summer see provide to and second

the anticipated earnings we years has last strategy dynamics as and the witness pandemic recent been sooner to the the be call. and continue to operating been portfolio, have Clearly, portfolio we return position have through throughout our and than profitability able during to future to will we Given results our our continue company the we success. executed past navigate instrumental over for several we

look taking recover. the as favor worked and starting assets quality As sold The bought few has we significant in very portfolio. highlighted industry is the to we strides before, also have in to our our past when we clearly is XXXX a times in over of our made it obvious have quality many years. And upgrade overall detailed listing our the at improvement the portfolio since

our We pricing be has significant relatively concentration throughout years pandemic. a exciting a result the at to as acquired continue without to of as broad to high-quality to to come And the of believe handful in lodging our of the believe We to and ability applying transactional drivers our gateway an of on important that continues strategic resorts factor portfolio and we markets of we attractive our geographic new that a hotels the experience assets our our heavy demand within many out has portfolio strong focus that beneficial have number variety appealing throughout be cycle. We the the believe of growth urban proven in a a fact to portfolio. potential on prior wide better footing. downturn expertise having presence are a in and

As process. continue we look ahead to decision-making approach our to transaction dispositions and disciplined guide activity, our will further potential to acquisitions

meet pipeline our our requirements in properties opportunities evaluating we’ll ahead. able and actively the and are strategic be return add to We portfolio are our in that years hopeful to

project However, achieve we as transaction to our portfolio and activity investment a Resort. we we have able the few management expertise the made of transaction is to our One with quality the are current prime result very of Hyatt comfortable internal be into over past the growth example Aviara years. expect Park of our and

be product. with the are thrilled renovation have couldn’t fully transformational completed We happier to finished and the

appeal a California leisure, attractive today’s compete extremely that very and business resort built market. We be on to a place created group, high-end in in have a foundation that and and world-class and cost. discount to recent strong at that transactions comparable replacement asset modernized very at we this have significant coastal own able to will should to luxury was the compared an resort importantly, basis effectively customer, And

desirable an a in As its acres $XX late approximately location. the XXX-room acquired a outstanding resort outstanding over renovations high-end California million our key, and XXXX well includes total lands in including reminder, completed, Including million. approximately we a amenities, for luxury of that highly offers basis fee-simple per for $XXX,XXX the XXX just Southern investment course golf is we resort $XXX

Ritz-Carlton Regency Waldorf Buckhead, achieve pricing with to such growth We acquired Pentagon cost. also Palms at bullish recent Hyatt Hyatt assets all substantially acquired on we Astoria Resort, Denver, remain Cypress, and in Pittsburgh, City, as Scottsdale, Regency below years, attractive we expect of Fairmont Royal which and the our replacement we Ritz-Carlton Grand

recently a are at potential projects. portfolio Not hotels our but only period of time. ROI certain more split are a of and these part substantial assets, of been We evaluating of acquired closely number that some for more also have

are put to cycle that to and We today. hard are the be in excited us we build new about position and our believe a opportunities on the dedication the lodging us we available entering phase in strategy to that will has work our

on we balance front, will they have our and so to financing operating first-quarter will capital internal arise, the our now we sheet advantage Atish more details during balance even performance, of result of and on our opportunities Barry, his and remarks. the take will dispositions strength the to he On external sheet year. as a as flexibility detail and additional both liquidity current ample activities call the provide last environment. turn projects, over completed as provide I

Barry Bloom

Thank you, good afternoon, everyone. and Marcel,

information speaking all portfolio on reminder, I’ll of for XX a basis the about hotels at a end. reported the is same-property As quarter be

occupancy approximate occupancy in decrease year. of portfolio March. a XX.X% decrease during RevPAR January, RevPAR February, of same-property XX.X% RevPAR and in was in our last at time an was the This same quarter, XX.X% XX.X% an a rate XX.X% decline the rate $XX.XX. of For daily in in and result in resulting reflects in average of as $XXX.XX, XX-point down XX.X%

were levels. from Our results down significantly still pre-COVID-XX

our testament continued as as April, our performance month are by month individual our strong of in the sequential the and a performance We encouraged to portfolio assets. quarter the mix over improvement well during

of the look months year. this COVID-XX hotels opened currently we which pandemic Hyatt few and a Marcel Regency at Oregon resorts the newly XX open constructed Portland and the operating, our only operations As last are before was early and forward recommencing at to mentioned, XX began Connection Center, month

time right we prepare other strong the markets, we’ve particularly for months and leisure to effectiveness confident in this targeted while our target summer hotel’s to demand market, many hotel, the reopen the in this leisure business, in specific campaigns that the seen over primary hotel’s marketing As expect business, they given to group ability large-scale return. Portland launch are toward is

results, portfolio an ADR and throughout strength quarter, to by primarily and $XXX.XX, of to performance continuing January’s the seen due the the markets our business moderate specifically leisure For our strong our which in softening occupancy leisure November in during was is drive driven expectations, properties. destination and exceeded December. at largely to we’ve March segment XX.X%

March, continued Texas in residents’ As notable an reopenings contributing to of Portfolio weekends, We and very demand schedules, in California, President’s also performance the and with These for in as displaced with as demand transient statewide XX%. combined estimate Carolina, expected, March ADR our leisure-focused expectations approximately $XXX.XX of We Birmingham, an to $XXX.XX, benefited Orlando, open monthly Alexandria, from of history. Savannah, corporate expectations. particularly representing XX% and April, a and Key our half South occupancy for occupancy of or its hotels achieved properties were exceeding of and group that our generally Hyatt ADR including Uri. increase have XX% running and Storm XX.X% Key $XXX. hotels, of occupancy highest achieve the Winter the Charleston in approximately to XX.X% reflect had exceeded in that strong. to increases operating month with staggered with Phoenix, West as included ADR Centric in demand markets. hotels saw portfolio, increased a drive-to phased greater the month in of continuing In in nine XX quarter, occupancy approximately outperformed the weekend be result February occupancy of Day currently Valentine’s our well, in West, hotels and XX will an the increase ADR

for of EBITDA with quarter, In in profit, achieved positive properties terms exceeding quarter hotel compared prior properties the quarter, results first XXXX. the XX the to up of from XX XX

For at properties in our positive difficult strong management a hotel EBITDA. the hotels achieved The the very of expenses continue on XX environment. month March, managing focus teams revenue

the be largely declined XXXX, to matching first by For departmental to decline often expenses nature, compared in nearly considered declined XX.X% undistributed XX.X%. while revenues, a fixed quarter, XX.X% expenses, in

individual as hotel quarter. Scottsdale, performed well Hyatt top Hyatt remarkable Our of line and performance Royal EBITDA margins achieving on bottom hotels Palms, West, line, the XX%, XX%, and the Regency on have during the at Centric Key XX%, first respectively, some

sourcing our As are order attract our working devise hotels’ our labor, and hotels needs teams retain satisfy in quickly labor innovative in guests. begin programs to experience management challenges the of to to to

ensures willing to desirable room booking them to we in hotels leisure As given have the most market. environment booking early to a started a are windows consumers at where adapt an as expected, lengthen

brand begin months. the relaxed guidelines to in to place cancellation the XX working tighten past that We our are are with managers over

Our refine service wherever models, hotels reintroducing restaurant continue their outlets possible order serve to demand. to in

Looking drive-to as destinations. leisure forward ahead, the a forward We see booking through track leisure coming for metric pace to refer strong represents we resorts velocity, we months our XX-day which a bookings. to transient in rolling and it continue

of As on XXX% was compared quarter at of first of on transient the end the second books March, business the year. for end transient up the to the business for books quarter the the

sequentially employees see have we mentioned offices particularly improvement part to the as leisure travelers, well length of and we transient about Corporate being on business. month. calling business extended-stay returned in road regional volume are and from where transient the some excited large from their increased accounts as As XXXX corporate each were QX in approximately firms to QX before, due and to XX% back stay Average segment is on on from volume, to the XXXX trips side, customers. combining in longer-term corporate extended continue business

companies given its look Also road. aided certainly portfolio, the we the back has as and significant to offices on been their returning Sunbelt larger this to orientation, Our phenomenon, getting by and people sports MLS previously, professional this hotels business a in XXXX on group with the teams, enjoy continue and our NHL, success reflecting in segment. our to noted continuation business, including significant side, of forward NBA,

events now interest corporate and from demand from seeing fans, a pageants, to basis. smaller continue bookings on We youth and group see and sporting meetings increasing are in associations regular

more all inquiries for by second dates with significantly to business for the field to group of January largest half XX XX% continue We future in for XXXX XXXX and lead hotels from for our volume March. increasing

million. would the these regard from on XX is a XXXX of books capital to booking pace progress for quarter, end increasing XX% end QX. turn the and QX steadily, approximately spent group to hotels, increasing the our for to largest we of of first For like year. the with $X.X I now group review In the projects to

third first Golf cuisine. dining both of $XX quarter approximately three-meal specialty on a forward million transformations. the and where we these outdoor restaurant at a strong XXXX, renovation quarter, with renowned a chef, has restaurant be Court, These in Aviara, developed revenues. primarily we and concept million the Richard and we’ve and including The new a Blais, $XX restaurant estimate new its and deferred, featuring projects In the at in and Park Clubhouse, renovation to was were originally expenditures. will we California-inspired opened XXXX concept Hyatt given Many were February Baja completed for celebrity to strong to continue Hyatt new spending the City. of finishing capital now XXXX social the Ritz-Carlton expenditures them Pentagon reopened touches of were the scheduled the Scottsdale, looking profiles. first quarters, Our reviews venue in the completed as in former capital In second spent the putting Regency lobby include in Regency return strong conjunction development but

and Waldorf lobby the Buckhead expect fourth and at restaurant We Astoria in Atlanta to renovate the quarter. reposition

which pool under on area significant in begin renovations addition, quarter In significant the fourth one as business and renovation, room is way resort conditions. could planning depending three on early

infrastructure addition, we while well our are still of that, over ongoing XX way at on and properties. we quiet, Atish. disruption. our hotels several will projects under With are work Accomplishing I In building can this systems relatively turn call the minimize to

Atish Shah

I It Okay. Thanks, quick will to our Barry. provide on update a be strong. sheet. balance continues

was million than $XXX March. approximately $X Our about which it current early million, higher liquidity is in is

liquidity Our $XXX million of $XXX approximately on capacity our line reflects undrawn unrestricted of credit. cash million of approximately and

until with advantage balance reasons XXXX, are ahead. to balance and sheet of well-positioned one maturities years sheet We we the the continue of a take no in debt well-diversified have to our is opportunities

look positive with ahead, March we expect continue, EBITDA well conclusion, to expect brand As continuing we going including to management, as companies participants, April relationships we and In and industry that serve be we we lenders, momentum we saw adjusted in brokers, strong have the and forward. will FFO move and forward.

to experience We the the record in we That in good of at indicator various with have turn session. will Q&A track that, a significant approach forward. going And lodging for points back opportunities capital Andrew cycle. our call how we is allocation will

Operator

go Bill first comes with [Operator Please James. from Crow Raymond question ahead. instructions] The

Bill Crow

Good Barry, afternoon, for first. maybe guys. Two questions. you

is shortages. has by reviews from issue want I to I discussed all any that of to in starting indication they’re guest think in point the been the slightly staffing different of which frustrated about it some of ask these labor the a just and calls, view, get

Barry Bloom

the open, think want as industry hard provide why I dissatisfaction also that really I offering in an shortages reached hotels, we’ve that parking, yes, bringing it’s restaurant that to don’t all and things that. I the we like comments, think our many yet. mentioned are them, which short and attract so back that’s of I’m certain hotels full-service we’re of staffing reason think that we full services. we’ve it’s our trying point get but hotels, of direct one a tried valet that, expect. answer that to real stay to we’re ensure continue we’re not not services, And hard in guests I the is or the get ahead result

So an we hotels as place to don’t and kind of fun rejecting and have enjoyable people interesting stay.

Bill Crow

Yes.

Okay.

guess. bid prompts I you’ve to that whether Marcel, by maybe acquired eye strong about these your And aren’t maybe an days. or continuing the that portfolio high as ones keep assets you selling just to as on, there’s there wondering to I’m really a for assets recently. that Something think some more out noncore quality refine quite

Marcel Verbaas

what that environment are to high-end best there and currently, the see obviously, customer a attractive, people pretty assets think, few especially of are are been highly looking assets there pricing, some seeing cost where with aggressive a and is have transactions you’re that general, among In that and I out recently, key, eye-popping be starting some out, the some there that that bidding premium really you in they’re leisure good is to you those current components completed. as type for at per certainly where point perceive very on getting

small of is are deals chasing still of kind seeing I think you capital that lot spectrum. set of of on kind a a

And down robust as little when to people the – quality you too there’s an that really bit kind out to recovered I level, seeing I’m not come go the of quite of over yet. industry, a of is if in these of And environment I You’re waiting not trying more you’re some see a time. guess, little market seeing that throughout probably kind think a still bit see assets aggressive. before to will getting stuff how just

your activity. think situations you’re it this is as our very aggressive now, seeing pricing. toward at transaction So there specific question we part look I relates are as of where of some pivoting to pretty on And some kind how know, you the

like upgrade kind been we quality the acquisition opportunities know, our continue great so our always level majority side coming much the what the look are about portfolio today, to lifting you disposition throughout of the we’ve of assets into did we having to always excited as forward. pretty where we’ll And some look we we’re on Where of As of active growth at portfolio. really kind both looks the potential heavy cycle. and the because going for now pandemic,

really we of are on harvest there to starting we to that, look forward to out for some us and additional some think real drive coming So opportunities growth this.

at portfolio ledger, very certainly, right we’ll something existing in is now. sides growth driving both on are look to transactions our focused So but the of really continue on

Bill Crow

it. Great. Appreciate Thanks for time. the

Operator

The next from Please with go question comes David Jefferies. Katz ahead.

David Katz

Aviara, through it, prepared really and are ramp positioning, wanted the the of the everyone. since that the sort Because we property. repositioning to of the to how in out. and about your thinking leisure Good road has on seen I context at Hi. which about you of go obviously, And changed in you road return but afternoon, talked work, map it ultimate having laid world doing the back your you walked look of remarks. a sort

I’d so a just little that. color more around And love

Barry Bloom

Barry. David, it’s

we I think at is did product calls, we Marcel mentioned how top-notch misgivings mentioned I as about mean, did have I’ve in no certainly it. the what as either or and all prior and

confident that it’s tell back and I hard think, out food really put I can matched that, about think leisure to and for was beverage from you top especially base. with put original so really what in were you, we’ve seen think recovery what a which has of really reaction what any to right line historically been market, seeing we’ve and of really very offerings to the the we’re the strong leisure place. local of and amenities time was go part increase it, product hoping far a on And now. what strong we feel is plan, we and we and What group when good business come it as

attention a than we’ve seeing and expected we’re more of business group very and group a a focus profile terms size – small this of added also hotel the enthusiastic I of moving renovation. which a of space, forward think has in about that perhaps we we’ve relatively so and meeting lot that the what to group even we’re only always can lot had of a on through lot

in seeing not off really renovations. XXXX that that bookings. to We for part resistance ownership first guests the rate future in with a was leisure groups XXXX then our asset of the putting team big which And for most, starts increases how the are was place have to be experiencing been certainly the we’re where prior that and prior and on our significant above period pronounced to component pleased before, that books to But and this and group any positioned – really and it our that we’re achieving to looking I been in top strategy. that better could team it think and to management enjoyed understanding where have and with receptive significant it hotel always is positioned more a product is XXXX matter the $XXX

Operator

there a Mr. Katz? follow-up, Was

David Katz

farther, the button. worse my how you about or you it? has opportunity The of is Apologies is, essence that. about given since changed sooner world the think better Sorry or for do the return mute question with set or

Marcel Verbaas

what that more a resorts and of to having like build of that being feel cost about feel we for $XXX,XXX amount luxury this a complete compete we today, bought modern resort answer a frankly. able the resort my greater blooming than any stunning. put into to I in knowing this an that less It’s the I extremely the The a than region. we place. when key highlighted to it probably And in it’s it, obviously, for in opportunity, we think asset, good with product would we’re is been return how for we that type that that feel resort, ultimate can it just like comments, the like

very out this response at will mark Barry in I a where help we how short-term of certainly, return is particularly confidence So And we’re strategy be we’re driving timing? it getting, there. around whole on be did said, the the asset. and was having lot the of which of group long obviously, But as up COVID-XX question no side, success what a level with that here the have get matter in looking business had kind the The ultimate to And does by take around of absolutely to building we coming encouraged with significantly absolutely short-term kind pretty on over we back going dependent becomes strength this group we how on a asset business of time. do just that’s are little high anyway. and, of of the move ADR a

Atish Shah

about When hotel, stabilized we materials had David, we EBITDA some level posted acquired the expected. our of that we

and our that We’re I going somewhere to that, that. in fact more view certainly than double the believe EBITDA, is it was digits. it’s high around single like sort of on the

market mentioned, had versus that a money. the because set we’ve had stabilize. As level of in for a hotel that lot other take Certainly, around Marcel the that thesis it now is going frankly, longer properties And little comp better. share gains, it’s renovation to to bit and received Barry this it was

subsequent So of did also trajectory we trading. feel around the to confident, the market, growth comps the us high see in of hotel, particularly and buying amount we very some in that activity terms

review investment. of also positive is market another kind that our of So

David Katz

Thank Perfect. you.

Operator

Next Please Markets. Klein BMO question with comes go ahead. from Capital Aryeh

Aryeh Klein

forward those? then of Can given maybe demand, returning, Thanks. those you into year? of in of some on any is ROI how this And Marcel, potential you there you opportunities pull portfolio. have some elaborate is the the some demand noted opportunity to

Marcel Verbaas

think of recovery forecasting a have coming internally the entire because, this, where take some opportunities obvious real this out some – there’s opportunities will as do pandemic. may vague obviously throughout We of we’re that coming there what coming purposely analysis frankly, right the out the into deep-dive Yes. we might do to portfolio be going we now say how slightly exact and knowing, hold to not on can been on effort quite our

have that year, to looked some happening year little that from year and looking end that starting where of alluded cases, And things back the it we Barry have portfolio opposed a to kind this a in of now. pulled process that took right process we are the last this renovations his that happening to we supposed highlighted through some few going comments. at we of actually in doing be be could pushed some that were as year. we’re in really maybe obviously forward we’re the at the Barry things following bit that So in at that room would that

think So we and years There a about are the we’re on more in that when pandemic. And see when even buying in that, that probably did we – them to quality lost level. in of comments. back my the I we that alluded did some to we assets do number good prior kind of looking are the now prices these that you off getting things of where at it excited bid right

will and we’ve for portfolio, portfolio our kind some bit even the we’re make. be able for the little opportunity plans So some have forward having few these think that in move longer, that next investments assets a up best little quarters. of effectuate maybe those shortlist we on of those really obviously, of that we to beyond those over some of already, assets about can being having we with and excited highlighting going an the had some to in to we drive assets returns And come we’re the we that pretty for as a business those our a of of then where going bit

Aryeh Klein

in front, up hire pace with labor try should those here kind more the keep aggressive flowing little people as to on just you how be back more then of demand? to we some about a expenses think of And the to

Barry Bloom

think labor I might were come is quarter we I we’ll certainly what and be ran – based and increases, to is demand there certainly think rates March. occupancy in back our that believe, particularly to stable, with forecasting. we the margin able that sustain But on the in you in see not lockstep and going

by or going to hard Y. is I up say X think labor So really by it’s

are are I about who a going be models confident we’re gets does of what it because we’ve the done a positions and improve lot of and today, We and in staffing pretty continue that than lot learned had to maybe able business we structure have to think lot. margins to we overlap. all and part learned We what a obviously

the are stabilization think cost term we in I near increases. we end is we confident So that refined certainly, will up back we when can to lockstep best a that give still relative had But than very with least move more get with answer pre-COVID. the I at in model it

Aryeh Klein

the for Thanks again. color

Operator

KeyBanc. [Operator next Austin Please comes question instructions] ahead. from go with The Wurschmidt

Austin Wurschmidt

Great. Thanks, and good afternoon, everybody.

out recent how the the of coming You of the we pricing? And out anything and if Or that’s think savings then on it? are that? mentioned touching costs And kind function what of it basis margin are pandemic? But driving in your curious just guys improvements capitalize on, growth do with cycle potential more you we in do you what’s how acquisitions that I’m to on on Barry Does guys the simply this have coming a of is in have the years. replacement have where of completed that cycle? pleased of strength you your with that’s ahead, take and kind of some you was the

Marcel Verbaas

at high-end, so some fairly years. costs moved over hotels improves replacement have of time. the compared last very we costs bought factors if only we attractive when and one did – and up certainly did replacement high-quality we We basis of Well, it. clearly, also it when pretty acquired pleased these was significantly we we it the the of over why with Clearly, did buy where them. to And couple driving really for acquire are it pricing

short lot even of in compared are that to of is components, well big our it which of to the completely we’re that the a they have the term. that So better very where acquired going the assets segments. various of some those there we cases, think in some the it were is a that, are hotels. demands and do Barry to driver as between is to talked We the about. things that in relates upsides, many position these the than there kind Most play be before demand obviously hotels from operational we to was thesis when play around leisure segments balance helpful in But intact the we really

earlier see, demand said into markets those high high-end coming transaction on particularly and pandemic going activity that’s we demand. kinds that in in the that hotels in are are in I good bought pretty the like in pretty hotels also are around comments of We my of right now, the type hotels locations

we those be coming would comments, you pandemic. guarantee that can today mentioned into we the that the for assets I and not buy in So prices I to all able that my bought that’s

of of thought have level the case. where kind Right? and there those the in You end assets. the could those have opposite. of So be pricing you to kind don’t at appear of in seem the of mean, a would here, hotels, on And that I compared buying time, at before just maybe whereas out high the coming increasing. they you’re them you’re a real you’re cycle, to thought many buying downturn buy pullback be tail a cases, isn’t you to would type

type You better where of they’re has basis. transactions that in where the markets obviously and a hotels own have own some significantly And happened. hotels have seen we of we the

of of around we’re that those intact. get we some again, we’re pleased assets. excited thesis upside even that owning So our anything, And can pretty more properties with out have. is those we if And the

Austin Wurschmidt

of capacity more either equity significant without talked and type a spend? versus bit bit year this then are an a move any what I just earlier to sell appreciate little these with build you needing acquisition forward little But of a ROI have about maybe or the little hotel to to to you make today thoughts sense. type a raise starting starting curious opportunities sort acquisition bit or there. of And CapEx pipeline, the

Atish Shah

Atish. It’s Austin, a it’s question. good

and We got that. amount significant which of some obviously, limit terms our a liquidity, our facilities, do talked credit our we’ve corporate So of we’ve of in capacity, about activity. do have under restrictions

we can to regard funded with them make So they if with equity. are acquisitions,

bucket regard didn’t for believe that apply bucket is million. a that’s the Plus year, we to capital from $XX this have can So expenditures, apply we I anything one. and last you year. With

our for CapEx. of there So obviously, current additional significantly guidance of CapEx ahead funding

So just they’re around about. the asked absolutely, the two activities you buckets

Austin Wurschmidt

Sure. Great. Thank you.

Atish Shah

You’re welcome.

Operator

The next question comes from Tyler go Batory with Please Janney Capital ahead. Markets.

Tyler Batory

afternoon. Good you. Thank

is those for on First year the contemplated on talk well? through more the assuming as of this back have question I’m that there’s and a And XXXX capacity pace bookings. the side what early about perhaps and or you have Can the the things. in group limits books half little now, I you bit bookings coming are of restrictions right

now. available I’m interested, perhaps group right have future even how space for you much So periods

Barry Bloom

Thanks, things. Tyler. of A couple

three large-scale to – give day inherent when some bookings I restrictions. relates hosting we’re a are, As that assumption Right now, XXX. we’re XXX Regency restrictions these go banquet aren’t I’ll there point think they’re it restrictions, as meals at think, where speak, of further-out we group doing per Cypress. certainly rooms example the an It’s night governmental away. Hyatt our seeing first for I there’s Grand at you and an

in relates they’re are restrictions. bit, be many the a space room on a they are would, So how now and no but can as than little COVID Orange little Florida, restrictions building they’re otherwise to in County, people there – in out more no spaced a using there it

that larger smaller In but a our tend are hotels So as meetings to seeing we than we’re more general, meetings. book that, watching to booking. not way restraint

we footfall well. a our plus view as So as across that

it did the relates more on a have quarter half definites the ago. half year, of to second than group As the for second we books this we

that bookings continues So cancellations. that exceeding to mean are

great on, that for and our in the really XX% XXXX from it mentioned I things to growing March. the prepared dates. is we’re both remarks, mark and all for XXXX and increased volume future focused that a of – And is One we lead considerably think January volume is

a seeing we’re So more lot inbound inquiries.

the XX% for – think XXXX, room two more is rates compared half relevant a X.X%. to pace back about ago, years to which nights, were in we’re the of of we the down up basically XXXX comparison, Specifically half back but

beginning narrows gap So night we’re room absolutely about that really September. And enthusiastic in that.

quarter, fourth-quarter rates fourth XX% the to are fourth we’re For to of positive XXXX only XXXX. XXXX. down And for compared again quarter

setup So passes, each and as half, for the the second is to Day. post-Labor beginning better really look continuing better week

sales teams group work XXXX. compared brands managing for we – room regional seeing that’s anything out XX% For the biggest XXXX. moving point down And into same our lot that’s that of management we in to now, properties, the at teams XXXX group is moving a have assets. reflective we of for – of the XXXX, our Right nights our we’re with of think XXXX and sales still nights national XXXX in companies, were

and So again, looking slightly. at the benchmark up XXXX as better raised

So we’re as about that enthusiastic well.

those The investments where last lead over short think of are Dallas, Our will well-positioned strongest hotels have for the group really always and Orlando, pretty seeing had – we significant XXXX the years. and strength made Houston, we’re the and to demand. that which capture are times all markets pent-up the – where we’re few we’ve markets

for part portfolio of and the those that attractive strength part think are of markets people we’re seeing into why So the future those is the why days. certainly we across booking are and markets

Tyler Batory

helpful. very That’s OK.

move I’m got Really, mean, leisure of ADR you follow-up, on here, a As things. sustainability bit here. you lift the potentially I a business look interested the your got ADR in of transient perspective that side when you’ve you’ve summer. saw ahead, seasonality April through we perhaps trends, some on in little of the the strong as

and impact industry the and So factors you how broadly? for might those both curious rates your about for they thoughts

Barry Bloom

new had, the a learning I we’ve think every come challenges for we of is month, us. out as

we’re lot to ability our and compress portfolio, greater March in to the no it a does or summer. that pretty a able I sustainable our But we’re much Right? the have there’s July, more different we it to this than got Scottsdale from think June, some has year I starting perspective, markets, market that in relates confident April. increase, that probably rate. to is think not as question be occupancies use outsized the in through rate I profile expecting winter know that we as demand think that We very and weren’t rate a

running and And kind much lower then there’s to that I pick quartile hotels is points back comes we’re business increase as – the increase, travel business see, people individual and we’re occupancy of up the those occupancies, going that’s of if hotels think mean, really question so group every as I’m get travel portfolio more targeting as seeing continue bottom as XX more more the vaccinated. that no – we to people on

the to back get move a So we’re as these much people of rate. into ability hotels, have kind better going to

months So softer the than think, But some ends to that about in some in summer you’ll resorts, saw your the see say. market I more should to up, the I you spring rates hard factors beach major but think general better and of rates of in kind traditional commercial-oriented preference. in think winter see in that that’s, we the really destinations in where summer-oriented saw it’s than

Marcel Verbaas

is this obviously just as into demand that this in Day group potentially the there’ll of it which we’ve Labor was and is what just will leisure – we then believe, leisure really off. which too, the break the continued break to the bridge weeks, that few over confidence at occupancy and gives what’s the look that corporate a And that discussion encouraging talking going transient and what past summer, weeks does kind us weeks in is about spring shows season that environment. for into ahead through Barry season. because look us again And good of lot seen looking there very be ADR does here properties, past dropping summer some the up is you traditional strengthening results close business of a reasonable busy like coming held industry there’s a or appearance both the to particularly, coming provide a out of how the it I spring of of encouraging kind we well, been around of mean, the to lot few that after and was really

Tyler Batory

Okay. Thank me. you detail. all for for That’s the

Operator

Marcel our to concludes I back question-and-answer Verbaas like for session. to conference over turn would any This the closing remarks.

Marcel Verbaas

joining Andrew. everyone, for us today. Thanks, Thanks,

our in updating I many stays in trends seeing and healthy again. We’re by forward business of safe, look hope we person everyone we’re soon that quarters you recent And in seeing in to certainly And to encouraged forward portfolio. you and the ahead. the look we certainly and

Operator

The conference attending for Thank has now today’s presentation. you concluded.

disconnect. may You

Xenia Hotels & Resorts (XHR) 9 May 212021 Q1 Earnings call transcript