Earnings call transcript Q1 2023

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Operator

Good morning. Thank you for attending today’s Xenia Hotels & Resorts First Quarter 2023 Earnings Conference Call. My name is Megan, and I’ll be your moderator for today’s call. [Operator Instructions]

I would now like to pass the conference over to Amanda Bryant, VP of Finance. ahead. go please Amanda,

Amanda Bryant

Officer; and Good Quarter welcome Webcast. XXXX Verbaas, Atish Chief with Megan. Chief President & Officer; Operating I’m Xenia Resorts’ Marcel and Executive and Chair First Earnings our our Bloom, morning, you, our to and Executive and Shah, Hotels here Barry Thank Call and performance, today’s trends Financial with more follow on Chief and begin and President sheet for will expenditure Marcel will and conclude with XXXX. on Barry operating Atish a our balance Vice Officer. discussion remarks capital projects on will our outlook details

open call then will We the Q&A. for

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

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

available of is You on referred definition of the to to Relations can certain find non-GAAP which net Investor reconciliations of items earnings the in measures financial income website. our release, and our section remarks

XX speaking for available we information be of be all website call archive portfolio about An same-property our is hotels. this level property on will XXXX quarter for XX on today First a basis days. will

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

Marcel Verbaas

call morning to Thanks, Amanda, today. good joining everyone our and

with the quarter strong start pleased a year. reflect results, are which first to our We

in and significant year. experienced variant as first growth of February, beginning particularly portfolio we January in quarter of as our the the the Omicron lap compared the impact last to XXXX, negative expected, in As RevPAR

normalized traditionally more demand to and that, variant dependent hotels corporate year. and transition the have and the corporate early particularly impacted that were mix transient group in transient by been our on Omicron trend resorts Overall more demand. our a the continued last of in reflected quarter in part in cases, significantly This of more demand during many business leisure, performance and the group aided

growth For first we share RevPAR XX the per of net XXXX. $X.X which $XXX.XX, reported of in the of million quarter compared significant increased of of RevPAR reflecting of to from quarter first adjusted and to average XX.X% all quarter majority daily compared year. rates XXXX, last was these came quarter, with EBITDAre of increased Same-property FFO over income occupancy, while X.X%. an as the The increase measures roughly $X.XX, of points increases as $XX.X the adjusted million,

we quarter of down the hotels was XX to for As RevPAR first own compared for X.X% just that at XXXX. currently were open quarter. the time that the

was which For XX these up Hyatt occupancy while hotels, XXXX, was Portland ADR and XX Nashville, roughly points W XX.X%. Regency below excludes

basis XXX growth million of inflationary improved quarter XXXX continued $XX.X the of of reflected in despite first XX.X% particularly the XXXX. compared and points of quarter EBITDAre over Margins labor to utilities. Adjusted first pressures,

experienced Santa RevPAR EBITDA our the RevPAR of more first San than markets, to by to Importantly, of compared our XX% of grew Atlanta than more RevPAR XX% X in Outside XX%, for double measured the Houston, quarter, and Mateo Francisco/San Clara more top increased In Portland Dallas and of increases as while XX%, largest contribution respectively. than hotels XX and hotels. increases recovery markets, our the XX the RevPAR as broaden. demand first digit XXXX quarter continues XXXX. reported

continue to well in quarters recovery hotels with and performing they present ahead. below transient Therefore, and these business and growth for continue that are group on relatively all are the believe a with we dependence earnings markets potential still These markets demand, the larger XXXX to higher greatest levels.

markets XX in quarter did in Key performance Omicron top declined these not XXXX meaningfully X markets. as of the strong impact with the the Napa, RevPAR Conversely, in quarter, first lapped West particularly demand and

substantial Additionally, also on the unusually leisure demand bad rainy the the quarter, in California. demand for weather of the had Napa weather negative a impact with conditions in impacting remainder

have Despite the uncertainty of any slowing. in signs of observed lots we economy, not demand broad-based yet

estimate is that RevPAR The April XXXX. approximately would start down against be April year same-property comparison. growth a a to good second is our $XXX, X% compared off quarter which challenging ago to preliminary roughly as We

to shift we nearly of down the the April is portfolio. in witnessing approximately Preliminary flat is X%, occupancy reflecting are XXXX ADR preliminary and mix XX.X% demand

April For in be for was open would to approximately increase April as XXXX. XXXX, the a were XX $XXX, which hotels X.X% of RevPAR preliminary compared that

optimistic provide ago expected reiterating line coming of our within based for updated and details midpoint growth quarter beyond we outlook and X as results remarks. the adjusted These first encouraging given in on trends the we our XXXX performance strength seasonal during and of April our of portfolio, in continue our for our are in performance top results RevPAR preliminary expectations, cautiously very remain in balance on month April We to preliminary are With the guidance including EBITDAre. his historical April Atish months additional we the also last year. full leisure-driven matching see the of business. strong will year

X me our optimism. factors key Let highlight supporting long-term

our for of of revenue mix portfolio high XX X/X hotels more of for on that levels the -- First, revenue to group XXXX the pace group. in Historically, that business. continued at group a have returning only And is XXXX about mentioned, open mix time. were is current traditional was with momentum our for as X% about our room books I the XXXX, booking group

both the the nights XX% group recent in Nashville, is on for increases room levels, Including Convention rate. revenue Oregon XXXX driven our by at ahead Hyatt XXXX and currently acquisitions, Portland Center room Regency books and W about of

quarter continued continued first the the meaningfully in Midweek by of We as quarter, transient first momentum improve mid-teen nights to also Tuesday XXXX. and increasing both points seeing on are compared in percentage occupancies business. corporate to Wednesday

drivers embedded we in we support and have growth numerous will this Second, existing portfolio year believe that beyond. our growth

compared As mentioned potential hotels, more on have urban, Francisco and in Marriott transient hotels. XXXX. Clara, reported our first growth in our X Hyatt These as the San group recovery focused Santa Dallas Regency RevPAR and Airport, previously, mainly Houston average X quarter leisure, business hotels our we than to XX% X hotels

X of first still was of approximately However, the in below EBITDA of these quarter XXXX. quarter hotels the first XXXX XX%

be we expect renovated EBITDA Hotel undergoing that drivers. to amongst properties recently Hyatt Grand several and soon meaningful These and Astoria internal renovations Bohemian Orlando, Park be own we Waldorf Also, properties Atlanta to Grand Hyatt growth Buckhead Aviara, others. Regency that include are completed Cypress,

meaningful ahead, Nashville expected Hyatt growth. group the Hyatt a our at Convention to transformation be Resort are at resort further to And to Regency upcoming both properties. Regency Oregon our & luxury Scottsdale as Grand Gainey continuing future ramp to is Looking builds Hyatt business Center Spa and of at W a contributor Ranch of the the Portland base

over growth drivers will serve few that as to next properties of EBITDA future significant the believe continue both these years. stabilize as We

was recent quarterly share dividend. repurchases in form per continued further which balancing activities, flexible to our share while also as shareholders in portfolio investment and $X.XX of our of strengthened supports our returns balance Third, a sheet, result our the

And resorts reduction new continue to be for is supply levels expected years the Lodging development diminishing a benefit data the room submarkets fourth, competitive from XXXX. in growth in in of Based on remains X% X% few and as hotels will just a about our new meaningful growth and annually supply ago. high-quality weighted represents from Econometrics, to XXXX in Xenia’s X.X% just This environment from portfolio hotel recent challenging. of most

As the positioned well to as believe very future we opportunistic transaction environment, for essential remain acquisitions. to it are relates we

including meet top look destinations. at key markets continue XX leisure that We opportunities and to criteria, our

willing patient However, as as the value. environment be overall evolve continues we avenues drive to and to whole we shareholder to evaluate are

with over turn call will to the that, Barry. I And

Barry Bloom

you, morning, Thank and good Marcel, everyone.

included indicated hotels of in our property of Dallas, in Clara, the D.C., recovery quarter RevPAR San Francisco, in Washington grew over and Philadelphia, that RevPAR the Houston, suggesting in the broad-based. As years, prepared Marcel growth excess terms more Atlanta his past hotels Portland. in lagged Santa X is leaders same the remarks, XX% that many in of now

Francisco While property recovering life Airport related Francisco it in much accounts. of demand, may the travel San negative seem air business from international transient corporate given group the science San This from strength demand, XXX-room press, improving our hotel, surprising very and that call we well. is benefiting the particularly out in is improving Marriott recovering

as January of in increased we the across expected, results the months early in Same-property RevPAR XXXX. robust in in despite the very quarter of renovations first the a properties. in lap RevPAR varied from variant impact our and Omicron impact several compared of the XXXX impacted a moderated XX.X% quarter as As XX.X% severe to and increase several California to weather that March

first Rate XXXX. growth to on in increase as portfolio a moderated X.X% mid-teens the last same-property to several our quarters at in a quarter bit percentage compared the up

group as Santa hotels of markets, occupancies our in these number optimistic in are on are opportunities. We achieve larger Tuesday urban Dallas, Wednesday rate a occupancies particularly providing rates, regarding and Clara, corporate where and Francisco, including compression particularly Houston meaningful higher San and nights we mid-week higher

the to high beginning continues expect since fundamentals negotiated in percentage the single-digit March range accounts improvement Business portfolio further the this strongest to the pandemic. anticipate in to with corporate recovery and rates from managers Our improve, the largest business increase our across corporate corporate of representing year. to XXXX continue transient

QX in compared at above We of other rates Key properties Arizona. but through hotels XXXX yet with growth declines rate the did rates the the Savannah, Orlando, Charleston our our and West XXXX XX% pandemic, in quarter first historic of still average, below our On same-property nearly as rate positive in increase first Napa highs at was levels. reached of levels XXXX leisure-oriented in saw above portfolio, off and well and quarter to that leisure-oriented

and Now profit. to expenses turning

EBITDA compared an and increase XXXX, catering significantly XXX of benefiting of manage basis improvement our ability was resulting result than of from a high-quality total areas the revenue improvement. XX.X% XXXX, in of First food to to revenue business, contributed in revenues such to first XX% XXXX up significant the the compared for beverage margin for of hotel also better The levels quarter banquet operator’s XX.X% increase million, in EBITDA of $XX.X points up a and reflects both as quarter on beverage, significant the food quarter over and same-property margin more group as hotel which to profit. XX% of while expenses

XXXX. of expansion to XX% the Group occupancy by as Most a first broader over costs also increases Group operating up somewhat which payroll departments compared such XX%. in improved rooms fixed up margins contributed control to in utilities, were offset EBITDA the the expenses quarter were roughly base. was margin spread approximately as areas expense operating

overall, up staffing better labor and our been necessary In recovery staffed fully meet to at levels. FTE hotels XX% able between to positions. hotels open are strong where respect levels still and year last operating for are the FTE and staffing successfully With substantial of operating recovered our prepandemic levels to is at opportunity demand levels, at general, prepandemic have operators where XX% fill there recovery of XX% while approximately

CapEx. turning to Now

of bar. weeks. quarter, of bar, commence rooftop Bohemian including Orlando, completed lobby, Starbucks At comprehensive space, A meeting guest several addition first next portfolio comprehensive Grand restaurant, in and invested the During million the renovation the the in the we a renovation rooms $XX.X spaces, will improvements. of new the public we

Ritz-Carlton Hotel a Canary of as keys benefits we comprehensive resulted completed recently have looking of fully renovated the are the renovation in just completed additional in X premium to the added renovation guestroom X. Denver, forward Barbara, hotel. At and now of reconfiguration the April At the Santa and suites

the the of completion At Aviara, branded spa which wellness amenities, late resort we and work in continue in Spa as second the Park Balance quarter. on we Hyatt to Life significant upon Miraval the upgrade

also is in on Hotel renovation a work City and of to rooms. the meeting bar at the comprehensive space, We also Salt Monaco Lake expected continued guest restaurant, second quarter. commence It planning

a the renovation XXX-room And of Scottsdale the and expected Gainey of & completion Spa to X-acre complex an of of by comprehensive completion end up-branding expected Ranch Regency off is renovation early project of with in with the the end this kick by will The with $XXX-million phases Resort at finally, the all June date the expected XXXX. begin pool June year. formally complete Hyatt in

completed the by be the the to expected end size second XX,XXX be other to and completed all and largest early ballroom to to XXXX. of existing quarter the along existing XXXX. would the is expected in Doubling the of begin space Guestroom in square expected spaces begin July renovation and renovation of meeting the feet with of quarter in of renovations is are meeting fourth

space have very Upon the property X renovation of including to renovation spaces is end Grand been beverage We guest be is all other a of of history. well XXXX, the public-facing the expected Finally, rebranded this have will property’s nearly and building all XXXX. venues completion, in the rooms and and XXX be Resort. note Hyatt begin maintained food to or that completed over quarter of will keys comprehensive additional all systems as the the the by lobby as the transformation second

will $XX million Scottsdale. is $XXX Including we million the early aforementioned expenditure of guidance spent to at provided projects, million Regency our Hyatt in approximately to Of approximately consistent spend in $XXX capital March. with This projects. initial XXXX, amount, be this expect

about We have completed excited has stages in-house project in even the work planning and we and the of XXXX. our projects more are team management various are underway excited about in

With that, turn will the call to Atish. over I

Atish Shah

Barry. guidance. Okay. update an will discuss sheet balance I and on provide our our Thanks,

continues sheet, company. to strength balance our to of it a the As be

new our we As on actions a credit, balance refinanced property of we improved of These profile. into recast line loan. and mortgage sheet our completed in discussed, term have January, the loans entered previously bank

and half interest we debt debt have present, our until At XX% of no fixed the of maturities second XXXX rates. has about

and undrawn position. line We credit a to have continue a liquidity strong fully of

front. be the share to We buyback active continue on

its repurchased outstanding value approximately to be we implied our our thus per the of per which last price share. addition quality. to our for shares $XXX,XXX key nearly current about at we repurchased an far X% given shares have XXXX, year, we of believe average is stock the At attractive in price, In portfolio, high $XX.XX

authorization. remaining $XXX approximately our have million repurchase on We share

yield we projected FAD share our basis that on also on annualized reflects our FFO a stock. ratio It in reflects midpoint below guidance. $X.XX above to dividend, of paid the of of first per a As an on XX% dividend quarter payout a based our X% the

up quarters room X% XXXX to continues strengthen room last pace the outlook. ahead to for X% second last pace revenue Group year. X of for revenue This fourth the about up about year our night pace about group Moving reflects to the and rates with up quarter through X.X%.

as followed for interest levels year the of strong is quarter, lower EBITDAre year full slightly for share income by impact quarters of year per in and increased guidance guidance expectations from unchanged Overall, buybacks, on expenses to evolving very midpoint the through and guidance early G&A share midpoint expense unchanged. March. for The expected, with given The X were growth a FFO adjusted due first expense, tax our X, our and tougher ago renovations. comparisons our is of

about the range. percentage our weighting adjusted our low second as to in estimated XX%; for earnings, is quarter, third follows: quarter, about quarter fourth of seasonality and the of the quarter for by XX%; XX% for EBITDAre year As expected full the

wrap Xenia and a for like reiterating with managed is I’d to by supply on industry-wide located have With lower horizon, that desirable collection leading by expect markets. positioned well of curated high-quality new a in up growth. addition runway long operators the we to properties

our expect drive several balance years. growth has embedded portfolio the utilize, additional next over few drivers sheet to utilize and expect we that to we Our to

deliver done downs continue historically cyclic strong our and have to and various profile ups focused We the team nimble well expect highly results. and this business in through managing to

we Megan will the session. our to turn call that, with for And over back Q&A

Operator

comes David Jefferies. the from Our Katz with first line Instructions] question of [Operator

now is line open. Your

David Katz

leverage, like thinking be? just little you a And give talk to about like Hi, you’re where morning How everybody. can perspective please. tolerance? there, you’d Where about to leverage be? you’d Atish, just us

Atish Shah

Yes. Sure, David.

be believe we’ve of So overall. as that low level for with the we us been you the -- and familiar, to be leverage of pre-COVID Xx range the Xx appropriate running EBITDA, company in net-debt-to low may leverage to

on that little now, We’re above XX-month running debt to Xx basis. a just a to closer right trailing EBITDA

due of years we’ll to range. back some we that the continues so of that opportunities expect that talked rise get couple earnings as embedded those about growth over And we next to into

as of our business. So that’s appropriate leverage sort view for level we the what of

we also any will remind or I press other that And have capital. don’t senior

balance that simply that’s sheet our capturing describing I’m relatively straightforward here, So profile. debt I’ve -- been our

David Katz

Perfect. yourself those of would you my of as seller a on ledger you likely helpful. the And And and a either any just would or at follow-up, more question, would perspectives looking sides maybe be this a consider M&A more is of landscape, Marcel the buyer? --

Marcel Verbaas

that. done of the take portfolio. I’ll obviously we’ve lot our of Dave. From Sure, fine-tuning perspective a

So exists like in. portfolio. the we’ve the talked own. we the hotels in about bit -- we growth We We think embedded markets the like that think where a we we’re quite that obviously

So active this point. at side I don’t on envision extremely us being the disposition

We’ve we at going upside really we of us it’s maybe we’ve do it relates all renovations a narrowed also of portfolio market I coming due and lot portfolio our believe where expect a a mean and renovation the I we amount if to we don’t right point from might It But down type do those. perspective from is things. of additional dispositions. good a the really returns, sell is time it some to appropriate we curated that anything. perspective has of the give as timing think this a is that some of us because a in comes think kind doesn’t to what those don’t undertaken of activities mean highly won’t of to

the with to can my potential balancing really value, as levers acquisition pull On the remarks. drive shareholder it’s allude of to that matter I side, a we

value lot portfolio. in think existing that there clearly, So is our we of a

on lot And portfolio. be active seeing pretty in that’s values we our remarks, there Atish value that that why share you’re buyback So clearly, the a us think in these outlined of front. is his

and those some keep we now the more get think deeper people we’ve perfect refinancing get there of the about And that We an aggressive as to into there. We out and eye that do our where and over opportunities that acquisitions. might we’ll on on with right talked don’t that might last things the be the plentiful timing dealing couple better acquisition types of quarters, issues landscape. is year think be

David Katz

understood. Okay, Thank you.

Operator

Thank you. B. the Bryan line The question comes next of with Riley. Maher from

now line open. Your is

Bryan Maher

Thanks.

couple questions. Just of quick a

and a food that than What’s the sustainable spend that you On driving front, were beverage do thinking. higher was is, how seemingly bit that? we think And Barry.

Barry Bloom

really It’s QX to that business we directly in the driven, of enjoyed compared obviously, XXXX. by QX group

We’re from and softening continue groups. significant the spend spend banquet not to hearing anything seeing terms levels. about of at catering or in of robustness They

to get beverage the -- But bit contract. what their that particular, and in well, spend they overall in note I’d relatively food still committing are to contributions often on to and as beverage on to celebratory be continues closer the of arrive of property, where seem beverage as food part minimal as they and our surprise from terms banquets, operators a has as groups they actually programs, food spend want to groups. and

Bryan Maher

these not you but a of bit. some are moderating are finding the like business, we other on to of Okay. ADR increases be leisure with it to category? days pricing consumer, side you, the How And sensitive that companies the in maybe cover leisure then your consumer the resort product kind of just those that with seems

Barry Bloom

consumer West particular they’re very much our much it’s of demand what QX characteristics outlier. little think less in significantly I it there bit an in weather-related. Napa. the submarkets. weather-related, about Napa discern we to is challenges It’s spend a they hard to how were Key Obviously, highlighted and as the of but and were about is willing the

Key a more West is interesting example.

pricing, to willing for than the top guests moderation pay within spend that the premium We’re in the not there’s dollar not necessarily seeing so has to experience. price more business lot a consumer a for unwillingness more competition market, that to led and a the

Bryan Maher

from And trends. it’s thought -- I clarify business the Is I then impacting And replaced marketplace commented going heard just price ADR? corporate Okay. April travel Maybe what I insensitive Marcel, the that exiting and by think as you want kind really XXXX, rational just just there. a of transient? is upon I on to lastly, revenge it’s more think and to maybe you being degree what’s it

Marcel Verbaas

it. certainly back you look April, of When last at little a bit you of were Omicron. the year, coming That’s out

April lot and had really balanced that year a a whereas You and in group, year of little this locations leisure. demand April, time, during you have more frothy travel some that leisure was bit our in place transient resort taking of fueled that segments between corporate last

little So bit in transition you’re a of seeing it’s natural that portfolio. a just the

not us willing on overall. pay different our We’ve transient as And really thing about positive a talked and portfolio. relates not a segments held clearly seeing had concerned our about hotels very we there. good on of focused think an it’s some to a and feel and the business consumers of with seeing little discussions, We’re as And overly bit lot very things. are that we’re to and for types growth we’ve -- operators more we are it that our obviously, occupancy rates group, in bad That’s that, thing. being those that’s still confident we’re a shift of between the but rates,

excited actually we’re so that. And about

in pointed obviously, also given really saw see I And what our year. the we what we the in with strength line April, that results expected we’re to were with that April were out, last expectations

expectations about for And current feel good really and so the we, beyond. quarter second are again, what our

dealing we’re But beginning year. lot of of kind get things as work gets at are into we as this expected we just with. because it deeper progressing of year, point, economic the situations here the So obviously, of overall the at a that the

Bryan Maher

you. Thank Okay.

Operator

you. Thank

Oppenheimer. line Our with of next the from Tyler Batory question comes

Your line is now open.

Tyler Batory

Good you. thank Hey morning.

with in what in know called terms I or West of follow-up a you’re particular. performance in situation? some in just West I QX. on compared Coast question year-over-year regional there But the Coast in mean of -- the April. the seeing March, you out the the of increased in the tech there cancellations Just strong the some banking and trends April portfolio, Interested any layoffs given with in out specifically in noise

Barry Bloom

real in I Santa our obviously, on Hyatt sector is Tyler, the is or tech Clara. good And group seen Regency there the And that and general the in of we’ve note. think, downward any of morning. on reliant transient tech side. corporate most trends Nothing demand, terms on property not significant either side business

fewer to growth are we’re shown the not anything in but and there actually would the concerned translated we see -- that’s on, trend there market, growth obviously, the growth employees Obviously, market, softening but some year-over-year in but has that in that line obviously, has market. about close translated year-over-year and be any we a that in, not eye to us not in demand keeping continue

Tyler Batory

Great. on if just bit, want I I Okay. And to the could. circle a back little buyback

repurchasing like mean depending Or is trading? you your terms the you active be XX thoughts stock? there? of leverage think just to on this I how XX that a little this thinking where in be with I some right of kind mean capital allocation the is in where commentary of compared you’re stock how down level, later deals light the some Just about more the ideally on is to in coming of given fits is of where the about more potential might options the other buyback is year. out just that bit on talk and that now more might

Atish Shah

Yes. Tyler, it’s Atish.

in towards over view sort bit of the we approach really tool we and of I a of Obviously, returns. one as we’ve continue balanced years think how our of from tool longer-dated it. shares set to and view shorter taken it a as a we’ve shareholder in share to tool business, some time it, the it’s but approach investments driving to that little the taken terms dated back have bought do how that’s always to you relative time. a in We buybacks, balanced

we’re in not projects, mean doesn’t other like projects open that acquisitions, growth of that. it So to things terms

It’s the And past. approach certainly so the and the really employed that’s we’ve in had. philosophy we’ve something

about We’re opportunistic it.

we a one key And point per data portfolio on was as I valuation how mentioned, basis. like the

at look well. can of as You external NAV estimates

You by look rate. it could at cap

all them. measures across and those we do evaluate So

is like continue stock We to a feel value. compelling the

And so therefore, we acted on it.

we And got from Board authorization have the the so lead. that’s significant

I as a view approach. think really I continue Beyond it tool a that take would we’ll balanced just -- and that, to

Tyler Batory

me. Great. all Okay. That’s from you. Thank

Operator

you. Thank

from line Our Michael Baird. comes next the Bellisario question of with

Your line is now open.

Michael Bellisario

Thanks. Good everyone. morning

on Maybe question that disruption in have experience sort full $XX that rough that XQ from year. of year? First then quarter? just of And million first of for of to impact guys did the the what’s the much you the you how XQ renovation for the cadence the remainder that

Atish Shah

experience That’s where up And in it of about it third ties the fourth mean various project kind I lot of and we the didn’t impact. the quarter, picks renovation a Barry described experience in ones. and that Yes. to worth, first quarter. much in we certainly the Scottsdale probably the timing detail to more of going $X are million and of it of then more

on was. that of forward roll how just So the kind

Marcel Verbaas

you Barbara. impact as quarter, first projects the that we’re Canary Santa you we that with at So saw the doing, know, had

Salt second this rooms expenses. kind far bit City, Bohemian into in third get by Grand the from with we coming we get of fourth Monaco of second majority the but the seeing As Lake the second at at renovation and the coming and the quarter, a quarter half of Orlando and renovation the started rooms here we on start little quarter, from bulk really is the impact an

Michael Bellisario

room greatest the side bookings, on what you bit the on for on? And quarter of balance price? of Got the for things customer booking group Is Barry side. they it. are a pickup And gears there, the the you and it are when very That’s broadly? booking to seeing type month Is makeup of then And switching willing secondarily, dates? on the What’s about window? think trade What of in off power in kind the the quarter who’s helpful. kind short-term for month nights just little then or in of group? the especially F&B? that short-term for it Is it committed

Barry Bloom

answer Yes, in I’ll for question, the thanks reverse Mike. them order.

to business, we to business the impressed because large tend coming surprised that be hotels, a of bit kind That just really amount and on smaller the continue the short-term it’s larger still timeline. in to by does the programs be into little particularly side On hard short-term the hotels. of business execute

hotels, in not easy compress seeing rigidity and -- And options because What own are also meeting with were accounts their helpful. of a It’s broader that’s our can hotels. lot and looking in market or in, as they they’re hotels general have lot at when mind opportunity of press really available of shopping kind lot dates which decided dates. decision locked the those we companies have rate an dates, may it in a for whether we take given then is they to opposed if the their a you of can a and of are swath which, to a think, they’re having But around been overall not. has

So that’s one.

was has very Two, bit. the the growth right demand shifted little pretty pent-up now corporate but executed that quickly. we’re a seeing Obviously,

hotels see for of we’re a really starting on putting for longer-term, see, process had slow the association larger a been of committed business the larger in the to particular the to the books years commitments XXXX. So particular, now on starting to, XXXX side start we’re they good which business had corporate and lot in and association programs but on in side some future

Michael Bellisario

then And the it. one there just Got side. group follow-up on

side? the the anything a group the the seeing year think And ‘XX, you I were for also, then group comments for remainder volume books on are few XXXX? what of by Atish on Thanks. on the there just for on rate

Atish Shah

discuss I my did Yes, sure. in for last Yes, the the X volume comments quarters.

it come if those about didn’t through quarter. I And Sorry, X.X%. and through fourth the but are volume about up said clearly, rates second again, both X% for up stats

benefit the taking quarter, last due obviously remainder and the which of to the first year So year, a the out Omicron. to comparison has

Scottsdale we last business point had year the renovation. out pace of it’s up lot the This given Scottsdale. given I also group the is the inclusive hotel significance that in the business, hotel. only not year, The of And would with a the thing business filling at is of obviously, upcoming

exclude pace that that’s is pace, like actually in that, about being you X%, if up the range. revenue XX% So more

pretty our big numbers. on a that’s So drag

to So about when quite keep remainder a that in X%. it’s mind than better portfolio the of think pace we that the something just is actually bit

a And of our little our XXXX, the the little that. in leisure-oriented bit closer it a association-oriented. early we and the to bit big a too talked year corporate is a about year for than bit little looks of given because little lot to I year. know peers about but chunk and that the -- group it’s of then XXXX, business, some have just an as certainly, a nature a talk more books It’s our have to the

of the kind So now talk between not first year you of while we’ve second, of if doesn’t and where And a end you quite number, about bit traditionally even about give we early. all, it. round talked the a it when this it

a premature. So little

I telling Cypress, do feedback XXXX. things ballroom say Aviara good we group at including get investments Grand traction, to But here some the The the the that properties, getting are us, into business that new pretty we’ve we’re operators feel will which of for continues on about made that the the renovation.

us. good indicators for really are those So

despite from those new hotels a we’re And good mean, of it’s giving W XXXX, to kind early fact I well about and up. XXXX pretty number ramp the you perspective. not continue to a do how that Nashville, feel do revenue are shaping very we that us So and Portland,

Michael Bellisario

you Fair that. enough. for Thank

Operator

you. Thank

the next Raymond question from line James. with comes Bill Crow of Our

is line open. Your now

William Crow

on for have a that a consumer-oriented really from level, curious to into starting couple heard is they’re you at And some to get at leisure morning. costs. peers kind which of of property cutting question good we’ve whether started your Barry, focus you, mode or Thanks. expenses the of I’m that especially of Very properties. all the prerecession

Barry Bloom

always mean, I good know, working operators on we identifying do Hey as think of always Bill, with one. and the it’s we take Barry. expenses you a job really looking at I’ll opportunities. that

But recovered us. what all whether slows hotels asked not. forward, opportunities kind where periodic deeper for or very business a the of have are have that’s We a of expenses our moving to exercise much look at for and

all about sense during our ask occupancy. had we we the that you is learnings of and decile tell up operating And worked an will we’ve given kind that properties been I had with it’s talked COVID. that before the to conduct easier build exercise how to at of them models every

that. So it’s process a much look quicker those much, been so -- at to

but in I our some a rates we making expenses excess expenses could that work that in where significantly certainly team particularly have to business levels done are business today service, huge on what where management amount confidence have But continue response of be are providing levels in of reality the great always think and where a and line where potential going the think moved were renewed there of do, is in have sure with to, there and they we part, in And forward. were. they is outcomes customer cases focus asset are

William Crow

asked. was my it other That Thanks. me. And were Okay. questions for

Operator

you. Thank

Our the Capital next question BMO Markets. of comes from Klein with line Aryeh

Your now is open. line

Aryeh Klein

QX Can bit Thanks of about renovation think X% last the will of I year. RevPAR a morning. growth but expectations little second guidance the post maybe the and in good bit implies around a year? more disruption rest and year, the down April for talk cadence be half the of the significant from you growth was

would be the on great. year the rest and XQ So some of color

Atish Shah

Aryeh. Sure, Yes.

talked when that So had given kind things back from in then, guidance really we haven’t about of much RevPAR and the we changed March number. had

half being XXXX. sort of slightly the expected, back of the we’ve quarter the being terms in and positive flat second RevPAR in as then On first to really we come quarter,

that continue we Marcel, generally, have don’t say, to here. if I would to I view know add So things anything way.

Marcel Verbaas

the I’ll that, April numbers said, our I just like for add came expectations. in

a little of June So May rest the will last growth that in to out. bit that the of of we necessarily second a get matter expecting quarter and it’s year, the Atish actually expected pointed below that come because little of a not in cadence kind April extrapolating through us to

Aryeh Klein

And the then in QX? relative at for how what’s occupancy year? year-over-year. maybe the your And perform view -- Got that you of view Did XX%. it improved to Nashville, there just perform expectations just your curious did that I’m it. at looking relative number the how rest

Marcel Verbaas

meetings close the be we the think particularly on side the to On side. a relates would still it focus we that to was say interesting F&B us, have our our lot the a expectations. very that to it RevPAR continues of I lot and wood as operator can There be chop, improved. to of things should art We’ve on operations. of there with the more

at we and So expectations haven’t year really it going our changed really look forward. to this relates as it how

upside, So I that tremendous property. very in there is believe really, of amount a this

there with and to April going would to where it on that -- quite really food was side encouraging, performance side. we’re not business. RevPAR particularly we’re say particularly the relates get on And yet of as I to the beverage

far year-to-date, tracking to little a we want want we where So on or where more it go. F&B be, less than to behind

Aryeh Klein

Alright. Thank you.

Operator

questions Thank registered. you. currently no further There are

Chair conference over now pass to CEO. Marcel Verbaas, the and So will I

Marcel Verbaas

to of industry today. Thank look again and next few look seeing various quarter. you, updating the you months Megan. the everyone, to at us you events, for next We many over forward Thanks, joining forward

Xenia Hotels & Resorts (XHR) 3 May 232023 Q1 Earnings call transcript