Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's Xenia Hotels & Resorts Inc. Q4 2022 Earnings Conference Call. My name is Tamia, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunities for questions and answers at the end. Instructions]. [Operator

my Bryant, the proceed. VP now your over to Amanda host, of pleasure is conference pass to It Finance. Please

Amanda Bryant

you, Officer. Bloom, Earnings Shah, President and Resorts afternoon, our and Chairman here Tamia. Atish Xenia Executive Verbaas, and Thank & Officer; and Chief Chief Hotels Officer; Barry with welcome Marcel Vice Fourth President and Chief our Call to XXXX Executive and Financial Webcast. our I'm Quarter Good Operating

our on operating performance recent will expenditure begin sheet discussion Marcel for with our on a Barry and activity. details projects. conclude XXXX. follow balance trends and will on will with investment capital our remarks outlook And more Atish and

then open call will the Q&A. We for

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

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

certain of items a website. is find and in reconciliation Relations on which financial section definitions release non-GAAP in referred morning's to of available measures income our of supplemental can earnings You earnings net this to and our Investor remarks

for This Oregon Center will days. An of same-property on about speaking Portland and W website be available and basis XX call the we'll is Convention information portfolio property-level Regency quarter this made for our hotels. XX Hyatt fourth on a Nashville. be archive excludes The today

now to started. turn it Marcel will over get to I

Marcel Verbaas

all joining of good Thanks, our to you call. Amanda, and afternoon

portfolio's and segments, as performance all slow start virus variant impacted progressed. significantly fundamentals Omicron a industry the Following year as our demand improved to XXXX meaningfully

by and recovery third Leisure business second and the followed strategy a steady significantly this was quarters. the strengthened demand in during group in and fourth quarter and demand

expectations finish Our the year results to adjusted the share. we the we high near had XXXX guidance adjusted quarter year, exceeded third of income allowed the substantially and our after and of per out EBITDAre us fourth provided for quarter the results beginning the FFO the net at end

double-digit occupancy course Same-property portfolio full RevPAR XXXX RevPAR increase growth average of XXXX, the declined for rate Notably, gaps daily improved year, relative a over driven the and strong. as X.X% narrowed XXXX year to the ADR growth. by in in remained

levels. of points the positive XXXX. In roughly basis, hotel were On higher X% XXXX was same-property basis EBITDA below hotels same-property XXXX as compared XXXX Margins EBITDA. million over hotel achieved to $XXX.X authority XX

of of resorts considerable our across XX have only of excess However, in generated a levels, hotels recovery potential supporting EBITDA that XXXX our our belief and still portfolio. majority we

in Westerns This Clara, two Francisco is six Houston hotels, Dallas larger Regency and Santa evident San markets. focused corporate Marriott namely Galleria two and the hotels particularly our Airport, our of group in Hyatt our

in $XX As hotels XXXX. to terms million were collectively compared EBITDA behind over as XXXX, hotel these in of

and income quarter to million, per net EBITDAre fourth Now We adjusted $X.XX. was $XX.X of reported of $XX.X our adjusted turning share million results. FFO

second XXXX increased as of the since relative quarter X.X% XXXX, same-property onset of quarter compared RevPAR the fourth to to positive the for the Our growth representing pandemic.

particularly about utilities. of in Margins remained despite compared a labor lower strong growth which continued fourth increase basis XX compared to occupancy. the inflationary points and offset rate nine XXXX, points to with very XXXX Average improved XX% quarter pressures,

corporate long-term and of improved Through anticipated growth activity, overall quality the to execute in portfolio. profile transaction successfully XXXX. our continue our We strategy we

hotels three for quarter. year the we fourth Monaco million sold in sale the of including in early Bohemian price Nashville W Hotel Celebration, aggregate acquired Denver Hotel $XXX And and for We an roughly $XXX.X million.

that extremely price reflected On the despite transaction EBITDA. in multiple the dispositions multiples, blended the a XXXX aggregate our attractive a XX.X XXXX a Collectively, dispositions valuation for second prepare basis, weighted three hotel of half sale challenging times market average of the year. in

generated alternative our we price valuations month fourth sale trailing multiple the XX. sold capital. These ending light the The for quarter, a hotel XX were times attractive two on in combined period uses properties represented in for September XX.X of the EBITDA particularly during

of the transient the business, continue seasonality beverage optimization We up to of of positioning. Marriott and great his in including and Nashville important full ramp Nashville operations. year, mix over market, strategy, food optimal first year W several learnings the the and and had group and

nine first are our our our during remain results profitability expected the benefit expectations, of forward, months below and the ownership going will confident years ahead. we that us were these the Although stabilized learnings hotel achieve optimistic will in we

at XXXX portal our at Center Oregon of Meanwhile, Hyatt its year recent we full by calendar in the Regency achieved during acquisition, most results are week the operations. first Convention encouraged we

market its of an slow difficult full matched its held by by operations, our an highest first EBITDA operating environment to in year initial reopen, was Despite managing that extremely excellent a costs. job underwriting for

few will next in in We're increases an encouraging optimistic improved the calendar pace steady that events and years. result group EBITDA

for and significant our drivers expect will growth. portfolio high that W ratings Nashville EBITDA in be We both future Portland

reinstating balanced to range per we share capital of dividends. through and Over repurchases, quarterly shareholders year, capital allocation priorities, the a returning share $X.XX the including

during we for now several ROI shortly. years growth further several projects upcoming on important the completed until and properties, key expect in the we internal greater earnings generate ahead. have our to work we planning sheet discuss invested maturities that sheet, Atish Additionally, projects no debt XXXX. and will balance also detail meaningful balance our year, in fortified in And activities

details years. provide two are highlight Barry I exciting expecting large over remarks, the on to in these While and would project like various complete projects his one will next we to

Regency $XXX Spa and Ranch. in at approximately million XXX of invest to a Scottsdale complete plans room, Resort expansion and Gainey announced we February, early transformation In Hyatt the

intended a group capture in business its the premium The and investment effectively market of leader most asset of transient a market. is high important by other Scottsdale Phoenix resorts maximize ability and with value luxury rate strategically to performing to a compete optimizing and

Upon XXXX, be in exciting events the to property completion, recur Grand and which beverage currently food and as late the full five and rebound Resort substantial a a will we complex upgraded additional room substantially keys, a rebranded in new enhanced expect an meeting and Hyatt base, product. offerings, significantly with increase

generated allow strong record transcend EBITDA of resort its to believe ability to leader its extremely demands, a of domestic result long-term and mix property drive and the and post-COVID While maintain optimize that we XXXX in demands, group investment will rates. the as improve premium this

XX% competitive and has capital higher experienced from a we expect near set, the recent pre-pandemic hotel levels, also closing effectively with EBITDA stabilization, to of meaningful the investment doubling which Upon gap generate properties the stabilized years. RevPAR property in performance

While for believe value short-term lead well asset project our this cash and performing growth we company. attractive this is an in an to a portfolio, transformative from ROI both will renovation profit long-term cause important appreciation market appropriate as in strongly drive to as our times flow disruption high perspective,

Hyatt, Park Cypress. attractive Hyatt adjusted with Regency Xenia which recent had generate successful in and Grand risk relationship returns This our ability investments Aviara Hyatt long Scottsdale. and two successful to confidence underscores at a in includes our ROI

share, our resorts achieved investment these acquiring and have in significant XXXX earnings properties improvement respectively. XXXX Both following capital after market in and outstanding

and properties acquisition XXXX, more EBITDA in resulted of than Hyatt RevPAR late million the the a $XX Park in capital doubling Following Aviara index. in meaningful additional approximately our investment has increase

the despite reached of in we particularly impact While see COVID, our business, for years. coming already we projected EBITDA XXXX group opportunities lingering further gains stabilized on substantial of range the

business allow further particularly us optimize in that to improved we demand group the been years has will the and drive growth but Great ahead. names believe impressive, occupancy

$XX in investment post Hyatt well targeted including the and Cypress, capital renovation of all as Regency expansion approximately meeting our acquisition space, the renovation guestrooms. million, as And Grand of of

its performed gain continuing and property XXXX well XXXX between share. through pandemic XX% by The approximately increasing EBITDA and extremely to market the

business comes very full reaping expanded upgraded to much optimizing it's group the However, innings early of when and in expensive. mean the the it and still benefits

ballroom as expect ahead, and allow XX,XXX business for to property very the market share. market attractive well-positioned in a group unlock growth the foot significant is a addition, square remains take years will to Orlando We us

Similarly very a to at the basis two attractive Scottsdale Regency resorts highlighted, XXXX. we I acquired Hyatt in just

Our our key. projected raise per bases approximately capital investments will in resort $XXX,XXX the to

transactions We believe luxury compared the that and attractive current assets resort for comparable Scottsdale this for especially basis in replacement markets, recent cost. to remains when extremely

industry. performance To navigated extremely over through are years. period conclude for proud lodging and past a the challenging very strategic that remarks, my of We several taken we we've the our actions

by supported quality Yet portfolio we better and a conservative liquidity. structure expected profile emerge ample a and capital higher growth with

the cloudy looking outlook despite We XXXX year. half economy, as and to look beyond, continued for general the ahead toward of second especially the are optimistic a we

believe during We earnings and other and drivers in well the ROI of the that us the opportunistic acquisitions could positioned be our as potential ahead. recovery has acquisitions, remain phases relates efforts growth additional potential to early years to it pandemic opportunities in of the

urban acquisitions, And will potential meaningful opportunities the of term drivers. for further and EBITDA hotels, properties of business the transient our growth we our recovery group be recent the stabilization service recently our and in renovated expect of that growth and

quarter Barry who will our call additional With capital projects. on and that, I fourth the will performance to provide turn our over details expenditure

Barry Bloom

good Thank and everyone. Marcel, you, afternoon

was occupancy rate the at For XX same-property full portfolio average based XXXX, of on of $XXX.XX $XXX.XX. XX.X% year our daily RevPAR

in nearly as lower as was points RevPAR XX.X% increase reflected noted his This occupancy, year partially XXXX. full Marcel XX to to remarks, rate X.X% advocated decreased in portfolio by XXXX. offset compared As decrease same-property compared which

Key benefited compared throughout RevPAR achieving and of the Aviara, year. robust Bohemian to property included Hyatt from Our Centric growth Savannah, Park all is which strong XXXX Palms, Royal leisure as West, demand

business experience compared Francisco will Santa declines Conversely, RevPAR Palomar which transient to XXXX Hotel Philadelphia, Airport, more are Clara on Regency group demand. the Hyatt and San dependent and Marriott

occupancy increased in average Same-property $XXX.XX compared daily XXXX. to and quarter fourth as XX of same-property an X.X% the RevPAR in $XXX.XX. the on same rate of RevPAR portfolio quarter XX.X%, For was period the our based portfolio

hotels that well the QX. QX the leaders for quarter, In each the XXXX, for in suggesting full the growth over lighter that know same laggards the underway. For significant XXXX, achieve as fourth is of recovery of We same-property year. and

vary and timing mixtures. the to the seasonal compared months to December X.X% October in and holidays fourth RevPAR November given declined quarter respectively results compared Same-property As of usual RevPAR across XXXX and X.X% while expected, the as increased the XXXX. X.X%

business the from demand. our of over has in quarter, fourth the leisure leisure, business traditional transition more and few quarters. past demand been group what mix in To reflecting transient the Overall primarily corporate

driven was weeks and in above improve, an seasonal occupancy, to business of in This return particularly in expected continue occupancy marked in increase October patterns in occupancies trends with transit October, with a Midweek similar XX%. office coincided travel. generally to patterns group several by consistent of follows business September. increase mid-week and

was a XX. October rate of quarter, occupancy our at post Overall COVID average Rate in to portfolio occupancy record than compared XX% XX.X% robust growth same-property to daily remained less XXXX, XXXX. down the relative with as of

hotels, fourth in the Wednesday Francisco, quarter rates, significant number our of Tuesday in opportunities. XXXX. five particularly Clara, compression rate average fourth markets, we achieved regarding rate and than optimistic same-property on San of Of XX only providing and a and occupancies did higher including Dallas Houston achieve our in mid-week We're as the quarter Santa group XXXX of urban higher corporate daily they nights

in improvements increase Our percentage business corporate further digit in rates managers transient expect this anticipate high the year. single range the corporate negotiated fundamentals

to than to average to Diego. with compared West, markets XXXX rates and continued drive in for daily Napa quarter saw San more and Arizona, rate XX% our our resorts prior we than quarters properties our leisure Similar are strengthen the Key

quarters For business fourth of bookings digit levels our in benefited built growth, rate quarter the a resulting the from group, solid group in rooms and by quarter double XXXX each were in exceeding group revenue X%. that over

reflected in our and particularly Orlando, Diego. group Bohemian healthy in larger Hotel Scottsdale demand San performance groups from corporate Our

Our full ended lower revenue X% up year than XXXX groupings XXXX.

XX% XXXX high digit group rate the reflect is XXXX for to rates ahead the of currently XXXX Looking over XXXX. and about group revenue increase single

X.X% XX Now, profit. compared and quarter points on revenue of of increase of increase turning XXXX, improvement. Fourth X.X% resulting was EBITDA to the same-property a in quarter, fourth hotel $XX.X basis of to total expenses margin million, an

quarter costs. margins XXXX, EBITDA margins EBITDA higher in impacted basis, outside is quarter and a increased by basis growth to the utility continuation increase hotel modest full second primarily XX for year reflects of achieved This the a of XXXX. primarily the we points labor On in relative hotel

in pandemic the general, strong hotels discussed and necessary. staffing where hotels between XX% labor, In demand for and levels our offering of as quarter, an to With and recovered and opportunity still levels, fully pre third fully established the between levels our fully respect meet to substantial are we where operator successfully for XX% XX% XX% pre-pandemic. staffing our recovery while and recovery

Now turning CapEx. to

over million in year, $XX.X full projects During the initial number invested in million to the of as compares respectively. total a This into portfolio million year, improvements spending for quarter of delayed XXXX. spend and fourth the $XX and approximately their capital $XX.X had portions expectation our

lobby, During projects meeting Kimpton in Canary of we of a renovation Barbara, public space, portfolio XXXX, bar, including at the renovation completed some the significant Santa included spaces, rooftop. comprehensive our and restaurant,

quarter the guestroom comprehensive XXXX. renovation the began is fourth in second also in to We quarter, which expected completed be of a

a meeting public comprehensive to lobby, we restaurant, of the we starbucks, and rooftop A in renovation space, of bar conducted Grand of be a expect bar, first Hotel quarter the including Bohemian spaces, XXXX. completed Orlando, creation

the bunkers, and comprehensive irrigation nearly will heads all conversions replacement old will course paths result XX in cart significant including The substantial year use. controls, water renovation turfgrass, we including reduction golf in which Aviara, quarter. of curbing, Park and the commence refurbished Hyatt in guestrooms, At tub-to-shower second

upon a and They're branded also and the quarter, wellness Life in combined system, lower late which costs. our of Spa power the substantially Balance of utility the upgrades on we implementation we a spa quarter of which well the with completion second XXXX. work a significant fourth resorts began should underway and amenities, as In Miraval heat

the the And Atlanta Waldorf soft all bar. Early completed of in renovation, restaurant restaurant Buckhead. including a and we a and lobby year Astoria including guestroom goods renovation, reconstituting

Woodlands Downtown, meeting Pittsburgh, rooms. completed Pittsburgh Vermont Dallas a Houston, guest the and we XX% including Royal prefunction full Marriott renovated Marriott Starbucks showers licensed of in and the conversion in guestrooms, At space, a [ph] bathroom tubs, we renovation of At Fairmont, outlet. and Palms in all

keys Ritz-Carlton Denver, result we City, is and the the the work Kimpton will Lake renovation Monaco to planning on continue which we're completion on second space, quarter. Salt a renovation this of restaurant, of guestrooms upon continuing comprehensive additional XXXX. expected of three work At commence suites, bar, the in meeting reconfiguration quarter At Hotel in and

which to transformation Regency most the expect million Including to the on spend Scottsdale as ongoing projects earlier expenditure is XXXX in approximately the I and Hyatt by $XXX discussed million capital just we mentioned, projects, $XXX upgrade significant of Marcel.

this commenced project Hyatt upgraded The on with year late said will is be Grand property expected in the second completion to the of year quarter next expected brand.

We about underway have the project completed we're years over has and excited at a work excited about in-house management of more even several the planning. team project various we are that stages past

Atish. will turn I call over that to With the

Atish Shah

Barry. Thanks afternoon. Good

Our balance sheet and guidance.

balance First now January And our our strengthened XXXX. the further second in we on half sheet. maturities. debt it have We debt by until maturities no of extending

for continued partners standing long support. their our bank thank We

assets In level which not of an out XX capital. additional debt, our do addition, have our source grown has of property base hotels of XX reflects unencumbered

is strong At approximately five end, $XXX target our liquidity revolver leverage. leverage million Our and undrawn XX cash. times year $XXX was months net which ratio trailing our an sub term of million debt-to-EBITDA X.X times is approximately inside long of with of

shares of at we've an about to fall, per of Turning of share. $XX.XX capital. return price outstanding about X.X% repurchased our last Since average

remaining authorization. current board $XXX over of our million We have capacity repurchase under

$XX our We that capital NAV estimate, a discount view which still tool, at average is we external share XX% share. repurchases continue to favorable allocation about per trade a about to given

share declared the a dividend quarter. in fourth $X.XX In per addition, we

current share price. about Our effective is X.XX% based on yield our annual

second in my we to provided year this release. turning or topic morning's full guidance, Now

are As the transient encouraged group and by recovery continues, business strengthening we demand.

$XXX We RevPAR full renovations. increase XXX at revenue about due expect that to basis year the X% of of points is XX approximately hotel room midpoint inclusive to displacement to

first occupancy the XX% As by a growth the quarterly gains. driven RevPAR range mid in we cadence, expect in quarter

flattish comps to as year last second of as During relative the impact progresses, RevPAR the year we due as to expect tougher renovations. half well the

EBITDAre year, ramping hotels. hotels, about and our growth top to be of we adjusted to in W group full new expect Regency while as from Hyatt they flat up, well other as anticipate last For Nashville year, continue our line solid as growth and we Portland, many urban the

expected that comparing are year, last to we be to These gains three headwind million items the renovations. EBITDA two, three to last when These offset dispositions items nearly number by relative and $XX attrition are lower last three number year. number The one, year. items represent and three made fees, cancellation

for EBITDAre As to an expected this year. adjusted seasonality,

about earn the about XX% and half in the expect half. to in second We first XX%

adjusted higher to to the is for at earn $X.XX both That head last due X% expect and year, FFO tax the to we higher full expense behind share interest income midpoint. Turning year, approximately per expense.

continued to be the as to to the while continues continues long-term The built decline. hotels number in recovery. improve, outlook In U.S. conclusion, of being we've is optimistic new demand the promising about

rate to in to that We lows. continue strong growth pricing should expect the supply of and historic hit power for new hotel With demand result growth fall owners.

to continues quality, well with well-positioned base for located growth. multiple a Xenia asset and be levers high

allow we've in discussed are and And us likely We years a sheet expect our advantage favorable is to to to take balance the lead ahead. years expenditure come. opportunities setup today projects to for to strong, the capital unfold of that which flexible that will

Q&A concludes to call back With turn prepared our Tamia over remarks. for session. the That our that we'll

Operator

you. Thank

comes first and Bill answer James. Raymond Crow will now session. begin the We with Our question from Instructions] [Operator question

You proceed. may

Bill Crow

is in September because because Or answer par that of say, concerns? you Good you a afternoon. unfair get or do think out. where the it on question this of This last is the seasonality a question. the be good to macro hard Marcel, an with might morning, gut this your of was that to been really But demand transient think tough or there's be tell of bit business demand today erosion June you do the that of underlying year? might little

Marcel Verbaas

afternoon, good Hi Bill.

about. asking I transient particularly, which is business were seeing improving the specifically We've side, good when On that. you been think, on actually

As recent we into we're fourth in we midweek going into seeing And is particularly of the quarter some some started quarter. and seeing on promising. the about, occupancy third that going Franklin talked trends later certainly pretty the

of we're a little bit week look occupancy, So in more little of seeing a certainly we're bit where more you when strengthening actually seeing traditional mix at type the a day midweek.

comparing last you're about the when month some there. we're So you're it actually seeing talking improvement to that I year, decent think

Bill Crow

And on I of seeing I question, pace are guess, concerns clearly, is thank of you. demand. And the second because guess, there the half leisure about front, you're what the that there out

And like keys. the some markets

And side? that for and couple out of just seeing markets some the you're so leisure were in other good highlight of there last the what years kind

Barry Bloom

Bill Barry. is this

seeing in On the even we side, of keys. markets leisure a are demand like definitely strong continuation

are a outperformed. side months seeing some in in the bit We of truly markets, that right softening little seeing we're on

So February. to January, for in historically, softer keys a compared month relatively example, was the

years, seen rate. the January ability couple almost last of we've be Over in of as drive as terms to strong February

because in saw traditionally a So backed softness in bounce that in February. Again, kind levels February, of demand we we there. we high little back saw then were but

Bill Crow

Aviara financial then one the and Scottsdale How the And incentive either Thanks. the any the follow you're real renovation sort or of I'll providing project? leave quick Yes. up on floor.

Marcel Verbaas

talked is specifically. Not some about the in that we're there short-term. we fact the to that about see think happening going there Clearly, what's disruption you when

been the very Now, as can property imagine that well. has you performing

incentive making with management was property. certainly fees, Hyatt good some for the So, example,

their they will base economic that in are for impact hotel will obviously, a forward, at from which management a as fees short-term going will going the bases the clearly from And they see an participating property. well, management our increase fees So, definitely the forward. to incentive set sense standpoint higher

Hyatt we XX the XX, them working We've say, at very impact really So this with the it clearly been want here. with, make to is economic way and really and an of level closely look that's that last one we're forward. plan months investment there the this over to to at to project look up positioned we be here. property going say And think we've very come how is that excited what will about right we

Bill Crow

Appreciate Great. it. all. Thanks

Marcel Verbaas

you. Thank

Operator

Thank with you. The from next Austin question KeyBanc. Wurschmidt comes

You may proceed.

Austin Wurschmidt

was portfolio, as Regency other have successes here post been kind Hyatt any to Great, curious, good everyone. that a COVID back something time. for opportunity had evaluating just thanks, I decision or opportunities and Was on you'd you a comprehensive there renovation other the the Scottsdale this properties guys going of the pursue some across across clearly sort opportunity renovation to branding highlight? afternoon, that renovation. And you more you've of look Are any front. broadly the

Atish Shah

And since frankly, Thanks on owned for That's and great a question. we've long been that Austin. Yes. it's XXXX. we've time, the something a working property

the might run, there, where So, we've we progress, talked optimize Get for property being COVID understand business, increase able meeting opportunity leisure real thought a to a the mix good the about into had and rates on space the to we really group to side. to there. and be time more opportunity higher opportunities to going give the long us a

been sure. So for it something And that COVID, into didn't we that. considering change necessarily overall is COVID going had

strong. domestic is demand has been post What we that obviously, extremely have COVID leisure seen

in a long where hadn't do had was time the a was getting a we disruption longer have renovation. it coming doing the want be a and the this short-term to it tooth, time. property overall, property. cash makes a renovation were in to But a on and from cyclical it a little at comprehensive up room of to sustain property. harder little do this, bit absolutely The this standpoint. to able when Anyway, flows say, we grow So, really renovation clearly think the of look we and that time we product We

quite to a the And this that in the level. really next remarks. was focused felt on this to bring to my absolute we bit do thing right it's obviously So, I something

the when this are and property were we years. Resorts. two those a at number fact, owned for Barry owned of we've a And actually We a set as extremely develop we Hotels of with. hotels I, and during hotel. that this that familiar for good competitive And are it's of market in Xenia luxury But hotels the that one peer time. matter of

market probably in our know almost a it's portfolio. any I would that more So about market we say, than other

about is confident the the we highly thing what asset think do for we're right to it well and this So, future. positioning with very

Austin Wurschmidt

And versus a detail. of to $XXX spend disruption how helpful XXXX. you expect from XXXX think assuming hit this a That's then, much year? or you And there in the less I to expect million, total similar asset more economic next backdrop, would be

Atish Shah

It's relates deposits half and gets obviously, that kind things. its and of And about sense. product on done year, There room of half those and the things. of roughly -- it about spending roughly the and next types you're work is in money those the more to kinds as prongs really

about So the possibly that why exactly at, operations of right And the without look it Certainly, to timeframe between is last how this XX year. wanting obviously as excited to to one is the appropriately, the it talk probably XX it's to stage we over roughly going again, kind for is on hey, this really is as about very what's going we to little months dealing the look get we're over now, we half But this doing project what a and this And doing components various right much. year. too quickly upsetting do we to project the next disruption disruption to the here. of worked month and balance reasons can, about and with that, XX half this early what we're got like, the do next both year we're that here.

be to limiting little good complex is the obviously first lot to it's a leisure a obviously start which The half here, as fact early this group of the year. ability will highest the we're year impact working that which meeting really that of books on year, of a it's kind going pool amount going the business put the a just disruption talk there's space, second some to but on So of about to of because next again, going the for a hotel. experience part disruption, in is of

good as during the it's overall taking market, roof the at the the possible when part next way isn't busy year, have we're the appropriate during seasonal right? how the place is disruption occur and season, So thing that So of looking Phoenix renovation stay to to will going more a primarily lower disruption has try clearly market limit much summer as to occupancy.

Austin Wurschmidt

sort And about how that kind of the did range Bay overall just your what's guidance lagged you hotels one again, talked subset I of do that about guess, in growing of pandemic, guidance, within sort of you growth the the That's helpful. full since me. of outline? you context Portland's for within RevPAR the I markets of year the have for onset or think the first last assumed, that of Area, recovery, How operation. guess, about of the we think some

Atish Shah

range. Portland, there. growth good we slowest expect mean made a the And acquisitions mean, outsized question. it's and recently have I I Nashville that to that's two market. that W a we see Regency recover. Hyatt based on bit It Yes. been the varies then, above the quite But more some of to markets definitely that

of by assets. to really, levels offset talked more Santa growth, SFO, leisure or namely, oriented renovation that's growth of in Clara, the that see as some moderate more being well disruption And So about as stronger growth no there. the we we expect

Austin Wurschmidt

everybody. the Great. time, Thanks for

Atish Shah

Thanks.

Operator

Thank from Jefferies. following with question comes you. David The Katz

You proceed. may

David Katz

this having can look your assume comments, made are is half trying guidance? talk Hi, about my I everyone. get we it, know, of could points for like. you some I And sense just year? know year taking I challenge introductory progress question. what that? Thanks revisit any or baking you back a what touched we're you've into the all half Can to I you're just anything for biggest but I this on there go to back just but the as any to mean, back. you wanted into data point

Marcel Verbaas

Sure. of year, are. tough half as flat in is I and RevPAR, we're and mean A, comps for Yes. I back the last line assuming the is B, how reason terms top mentioned, renovations

about that's how half. or I based thinking adjusted look of impact kind of, EBITDA at guess, EBITDA. you the And we're hotel back if of a on So in similar sort level

of So, the year. of that's we're half about kind how thinking back

Barry Bloom

particularly. a part the wider a morning year, also we Historically, there are guidance. talked the the this of obviously, And, the bit really little balance of more and at provided is the of about think about, with clearly reason, with this that we again, our this, I year. second certainly, little for have of range uncertainty Atish guiding have comfortable half Which range is looking bit

David Katz

kind question Yes. case I underlying the economic thrust mean, that base my slowdown? that kind modest flat? of the that hits? RevPAR case base flat where was assuming for of Is is kind the of of some What the is

Barry Bloom

Well, it's of renovations, It's the a the a impact the of year similar not then right than in really have significant which function economy second really the comparison, slowdown. the in where first. do the and level is to sort the a of we've now. modeled really half more

David Katz

Got it.

very you Thank after. was I what much. exactly that's Okay,

Operator

Thank you.

proceed. next Bellisario Our Please comes with Michael question from Robert.

Michael Bellisario

afternoon, Good everyone. Thanks.

dollars, acquisition of tying opportunities the the renovation Just a maybe of seeing maybe to it acquisitions. a is you're trigger disruption, or couple all, the there lack at together your product potential has pull and of more maybe of present? lot obviously indicative Its a on now, decision lot Scottsdale, and

Marcel Verbaas

that amount still the Well, liquidity powder mean, those. we attractive have still clearly dry available, see of on can acquisition I good that doesn't based on roll if side off. we a Atish on we That absolutely execute opportunities outlined. the one

ROI some projects with a significant this really that that's over long was on a really earnings obviously significant was just out, as last were long-term come I for been few about the like of last view. that during I course the calls, a year, working obviously, pointed a very And of Scottsdale dumb it's didn't And we've something came something couple time. and one to months,

lot given capital a doesn't clearly, capital alternative So today's one and we our we really very said, opportunities. seeing uses and attractive necessarily preclude this the certainly of use attractive like acquisition other. I are a I our at of wouldn't environment, again, of look exciting as especially in But

being I've earnings over well. as indicated, changed that couple I side, last like happy patient we're hasn't really So on calls that much. the mean,

great a for potential to might there We're optimistic on opportunities attractive look we those still some that and for get of deep targets seeing be continuing are are the that We year into acquisition as side. obviously more deeper pool us. that

Michael Bellisario

typical been renovation I And but at I incremental base gave the incremental, maybe think doing think it. renovation the cost what of the is for that guess, trying might the to don't you're property, cost it, there? what renovation Got case, about kind cyclical have or that for you

Marcel Verbaas

restaurants, spaces touch that, be number me an hard say, just I of because aspects. can very all just is those right range, exact do on common the it you also type if that mean, and a right? look, to renovation, we're give as thing It's space to opposed for really a to to meeting you such and wide basic going do room

we we I this which meeting additional expansion relates mean, component there's the important is a believe to of think as So, space, costs it the of project. a true clearly overall that, very

clearly over cost additional to as Hyatt currently a is clearly there's there Grant over Hyatt costs standards what it some that to true Regency. the So relates going it is additional

side. thought those wide cost on us at wide we it a across alternatives, really when for looked looked really return of would range, we level at that of and what varying spectrum do the But we

pretty clear that became planning and appropriate to things through going branding the widespread Grant and it and all do, side, to luxury us the we're being doing interesting the able and get path this and to Hyatt, So, and get obvious hired project more product opportunities to get and especially and sell exciting beverage the right returns on much creates food down on.

Michael Bellisario

last for can then just $XX And Atish, sales, the it. quantify buckets, asset Got million year-over-year disruption? each of that renovation three fees gave and you you for headwind one cancellation

Atish Shah

Yes.

to in that attrition release. nine. the $XX So and last typical year, We is closer Cancellation million fees, earned asset be we sales run put rate would million. $X

release And the $X renovation we call balance that's that the So $XX million is about million a then the disruption, as headwind. that well. is which

$XX together to gets million. you that So the

Marcel Verbaas

do helping, Scottsdale, Renovation and Canary we we've is of projects number which renovation bit. Lake. And renovation on Barbara. over But at a at there. obviously quite in a focused renovation have there's obviously we're Orlando, Monaco And Santa Bohemian Kimpton above doing rooms Salt Grand

start rolling there kind of So to are those that projects are the up bigger production.

Michael Bellisario

Got it. Thank you.

Operator

Thank you. Aryeh The with next comes Klein from question BMO.

Your line is open.

Aryeh Klein

million. came what kind Thanks. How your year, at Maybe few belt this here. you expectations I are about you XX that in months a thinking under asset are? Nashville, expectation and just have your on And the adjusted the W guess of more EBITDA

Barry Bloom

the focused. we're historic, and question. is Barry. progress Hey, we that. in looking it's changing month, kind confidence what Aryeh, I team say we it Marriott really more we've year mix a on think the a this April focused weekends. a and lot we're which Obviously, different it's And what seeing hotel, with January would hotel in different the It's is continuing I number. hit and more time to for than that May. a in happy season, position incrementally on hotel the we're looking But the of is Thanks weeknights, each how of at in lot and had the it's than revised are. is so of toward What goals for done, of group more by on a it at hotel, to effort February, spend best

opportunities food beverage on on and time re-energizing really, the and within of how as within what really outlet and where are, kind of worked, by each outlet class the with market. team. overall that. lot done worked, we've does and beverage outlet local spend hasn't focus and focus the its food a really rather focus outlet the We've dig and And the get what's And some positioned than in best on focus

Aryeh Klein

I hesitant a is Got targets. side. long anything always long-term there savings there's this you to saving expense maybe Can you're still Thanks. talk little on then they a about think But it. been some you standpoint thinking about where you've on year? opportunity? how think provide And Thanks. Marcel, term think from margin just the that front

Marcel Verbaas

very really back it's your always was be of that going hesitant was because this going what point, extremely about I'll said what's it before from kind inflationary to what was were at go that, you I change [Indiscernible]. have to We were pressures business mix dealing of Yes about with, unclear to pre-COVID.

The second session obviously with has a do lot it. to

always why And case. you basis look and not I were going at points the we're We proven be hey, to to think say just higher. that's X hesitant. could So did that's it we be statically believe

XX on So in look controlling relatively trophy able hesitant I you can virtually were to you when your up quarters, margin quarter fourth last we But few are see so. increase obviously, the think increases the do we to appropriately right? just no XX. bit, And to were a if basis points back, well mean, at you look that's fairly minor we actually cost over be RevPAR even RevPAR that's growth. little I

which to up. and for rates, the us to drive RevPAR issues, of continue made very having most COVID, obviously, was similar we're into harder mover years And days who margins drive remember it COVID can before leading where to difficult it

about to a increases. expectations little And, And built there run those talked obviously, more our we're we've those. a and labor pressures. the that seeing the how are we've testament about cost bit hotels continue into is to But increases. as able about able through. still how the we're guidance costs be some to So We've think relates we talked Atish to that costs I utility clearly, margin the it We've control talked went fact in efficiently. improvement,

Atish Shah

fees Those as about I Yes. headwind XX specifically, nearly headwinds for basis us then real talked cancellation basis points. XXXX, disruption. those in I that significant are got XXX to the And taxes, pretty well, the are renovation we've And year. more obviously, utilities, mean, point and items, insurance. just three estate relative then last attrition and

do contract in we we year. of in margins included our expect over the So, gave. the full that that's to our course And guidance

Operator

Thank you.

from next Oppenheimer. with comes Our Tyler question Batory

You may proceed.

Unidentified Analyst

color said, is wanted provide additional improve. follow-up taking there I'm the This of I for Thanks Tyler. Good you optimistic, afternoon. our if curious on But environment you could as Marcel, were transaction on throughout Jonathan house discussion the the it acquisition ourselves. to the would we think view year? sort on you questions. for move I

Marcel Verbaas

the just number But market. an refinancing to absolutely going product, that of with we an terribly that of unprecedented there higher of assets Yes, we be the I year. look sell of the to a the good rate that position be say, will But for view with it obviously like. the expectation What But now. at looking half do we that owners somewhat especially Obviously, view right there. more some consistent of that market to fairly brokerage is that we drivers will as look sure. see attractive a to think they asset seems out potentially it as where as still pipeline situation brokerage overall what's market said, think into that is growth the product driven get and an and to it into And continue a that's have having for that build of strategic we refinance to may the just there, And get continues to out to is interest was finance. be climates. think there there the community pipeline, fact be isn't at significantly be shallow has an to be currently of might where of coming economic time deep opposed the are just look, if deeper what's would most some We a rates to at comes second as that community, might that to environment be more by certainly year like to be communication most fit there I relates us, us.

our us, our really there more we this at up really product that environment and portfolio. coming what's more being be be ability point and confused having what think well, to additive So an out view also to that that's as system should will look an be choice more of will at or attractive there to

Unidentified Analyst

have position at sense then or strong And to there. to exposure more there anything the color Are point? guys this sheet. for or Very strong to locations you your like don't balance you markets get that giving would Thank exposure helpful. you'd any that make and that currently liquidity

Marcel Verbaas

we're some And for we're works what that changing of focus more well, to as far see us. time. a we've over remain, obviously, our had Well, I on to And don't going of clearly, to going as stick locations. those strategy

from that long-term overall perspective. markets a like there some not I think we're markets like the still And in we'd dynamics. We are those market there.

fit because Some our extent. I've at assets opportunistic, portfolio of of be exposure putting really out want look some for without to are markets, specific are that markets box much to any want potential good that market call always to think increase too to specific and where where kind been we But we we're we we really in hesitant a could ourselves still we targeting.

us markets, could at So dynamics. gives this opportunity chance to really a bit so and market where we've where about like be range that this exposure we greater we'll it's geographic set But we and already, some be, history. little a a our like the throughout current --- us And that's, again, a goes diversity hopefully we exposure. confident that kind having back again, market having to there of feeling not few that look say, had markets already allows to hope where that where could is expand market a are that we're wider a always a though. we it Clearly of of have where are have the we're unlikely we lot okay,

Unidentified Analyst

all for all helpful. That's Very Marcel. the I appreciate color me.

Operator

you. Thank

with follow-up Crow We have a from James. Raymond Bill

proceed. may You

Bill Crow

given me amount back you the capital asset. in for net Quick Yes. jump letting Hyatt the that Thanks upgrade, Grand of on question in.

Park protection a Hyatt any from into introduce market? Hyatt have You they not that will that

Marcel Verbaas

some of the you agreements we kind in Bill, as with as don't on to we that too We've get of operators. any No. know, place it to our specific particulars obviously, have relates want

of about think and clearly let think bit relates the resort think we the positioning that going in competitive me an is, branding at, as has also as you by a be If cachet Hyatt itself, veteran a is way, of is your reasons. the what this of to, luxury I and right little we part here, looked is because for Grand that has with set, a there's right appropriate and felt it brand in number different for luxury opportunity question hotel. to little think what of it answer as more for brand right, resort, completely We

I here. from bit brand Aviara, do mean, that smaller. depth appropriate of where rooms more opposed the obviously are this meeting mix more a at too. little than Hyatt Park have assets And There obviously the smaller size space, perspective, the including few portfolio are of of kind Grand little being to bit the have which generally intimate, a of resort, brands urban is wide this as Hyatt range a Park within to Hyatt Hyatt throughout Having size, want it's kind you attract those is more know, we able right asset. this to structure we're the that customers place we in we've with in where having kind looking focus. to a is their that that a that's have -- expense the of of of obviously place assets, for, the a as And there's something brand type

brand resort, about think Hyatt prototypical for Grand that's thinking and resort the it has, If this think both resorts. when Hyatt It's locations right Hyatt and and is Hawaii the is around that you domestically you outstanding asset. more more name that that think the to resort in about for luxury like have internationally, Grand why Grand is the really context, that example, in probably about we the

Bill Crow

like Okay. good that's the Park feels would It's fit. a market be Hyatt were

question. that spurred really So you. what was Thank Terrific. my Alright.

Marcel Verbaas

Thank you.

Operator

to Marcel no you. will time. Thank further closing There remarks. Verbaas back pass it questions this I now at are over for

Marcel Verbaas

appreciate and all Thank next you the you always Tamia. joining Thanks quarter. look questions to updating forward again the call for We today.

Operator

you This concludes for call. your participation. the conference Thank

your disconnect now may You line.

Xenia Hotels & Resorts (XHR) 2 Mar 232022 Q4 Earnings call transcript