XHR - Earnings call 4 2023 | Xenia Hotels & Resorts, Inc.

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Operator

Hello, everyone, and welcome to the Xenia Hotels & Resorts Q4 2023 Earnings Conference Call. My name is Emily, and I'll be facilitating your call today. [Operator Instructions] I will now turn the call over to our host, Amanda Bryant, Vice President of Finance. Please go ahead, Amanda.

Amanda Bryant

Thank you, Emily, and welcome to Xenia Hotels & Resorts Fourth Quarter 2023 Earnings Call and Webcast. and Verbaas, President and and and our Vice Marcel Barry Executive Atish with Executive our Officer. Bloom, Chief President here our Chief Chair Officer; Shah, I'm Financial Chief Operating Officer; will on with details expenditure our and follow projects, balance with Barry and will Atish operating more discussion our sheet on of Marcel performance, begin conclude will and trends our capital a today's outlook. remarks

call the will Q&A. open We for then

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

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

referred can this in on reconciliation about started. on over find financial days. I on otherwise. will same-property a Marcel items turn non-GAAP to is our income Relations basis section which Investor our You to speaking now XX XX be the The today and and of certain of remarks An archive specified it to we'll website. of hotels net this all website get in be earnings unless information call that release for property-level morning's definitions will for available earnings measures supplemental, a to is our of available

Marcel Verbaas

afternoon, and Amanda, everyone. good Thanks,

in and on line investing to on our we environment. high-quality expenses portfolio diversified We a our our and XXXX further our focused against and operating working growth achievements are drive as pleased while in top long-term challenging strategy with by operating partners to in report control executed remaining successfully results

quarters of of our we projects to us over to XXXX, the enable income We in-house $XXX in portfolio, capital recent invested was all million by which team. the our years significant in and the growth come. revenue that will management During supported believe capital expenditures across capture project

portfolio performance XXXX that portfolio expected. December year with economic FFO when and end quarter backdrop. a share XXXX low a results. Same-property upper increased per was finish full for guidance recent our full broadly Our expectations near to XXXX, financial net despite the and bit softer the line year our shy our were just allowed in income, RevPAR quarter adjusted provided our And X.X% us of year EBITDAre we compared end challenging November adjusted ranges third RevPAR to results as the we reported for most of guidance than our of fourth

X.X% RevPAR Atlanta. Francisco, XXXX. San as Portland, compared of in the increased portfolio XXXX our X RevPAR & well in the we by XX percentages portfolio transformational average was as including XXXX. In by remainder daily the markets, healthy increased Resort of same-property of San Dallas, rate out Gainey the increase Scottsdale hotels flat. If for point underway, as Houston, a RevPAR of gain essentially compared our solid XXXX, the renovation and RevPAR Hyatt Our Regency driven occupancy growth where Jose, exclude same-property to is XXX was achieved -- double-digit Ranch, to a XX Spa XX Nashville basis

compared margins as growth lower XXXX same-property to points well. On in We were XXXX continue to as basis, $XXX.X million a XXXX basis X.X% expect hotel of below strong of most XXXX. and experience EBITDA these was markets to XXX levels,

XXXX Hyatt and increased margins basis in just XXXX. decreased X.X%, as points EBITDA same-property hotel XX Regency in Scottsville Excluding compared both years, to

given on result and this the with industry overall during pressures inflationary our the We economy are year. particularly the pleased

$X.X quarter early adjusted $XX.X well quarter, fourth of from to net renovation was a reported turning year. FFO per fourth the throughout in income morning, quarter our Scottsville our quarter of quarter year. Now $X.XX substantial disruption repurchase of significant from $X.XX. Orlando adjusted lower and in share due renovation was the our period the resulting This Grand Hyatt to million the EBITDAre results. prior Regency as during to share from and count as per flat compared activity disruption share the of This we our share million, same Despite the specifically adjusted the FFO Bohemian partially

for decreased RevPAR X.X% XXXX. same-property to compared as quarter the Our fourth

However, X.X%. X.X% EBITDA below increased points. hotel was of Scottsdale, basis, XXXX excluding EBITDA million same-property a quarter margin quarter Regency Hyatt and basis On XXX $XX.X decreased RevPAR fourth levels for hotel the

Excluding is fourth X.X%, reverting across The prepandemic points. trends quarter just towards mix demand Hyatt increased EBITDA continue hotel margin Regency hotel indicate to EBITDA Scottsdale, our that same-property basis XX segmentation and decreased portfolio our and X% XX%, transient and same-property recover fourth demand and leisure compared Regency group XXXX. and to year, revenues, increased as demand quarter Scottsdale, as room the full Hyatt levels business excluding respectively, the group normalizes. In

was saw business leisure-dependent given evidenced the performance year This a over demand our continued domestic demand quarter. fourth lagging the out in by was of incredible strength a of finally, markets and big in midweek leisure strength demand healthy surprise the of retracement coming in to pandemic. normalize, more assets some in as continued the We transient the leisure evident not occupancy. And in which recovery also

Barbara, such Canary Hyatt at Salt as Lake capital to creation the in at our in projects other Miraval capital Hotel $XXX Grand major and addition allocation included Life million a Santa Aviara. our expenditures of in in and Bohemian portfolio Orlando Spa Monaco City for As Hotel our renovations in were Kimpton Balance strategy, Kimpton XXXX Park

also in of As up-branding year. Scottsdale of you aware, Regency well commenced the last renovation we transformative are Hyatt all June and

is on We that budget are excited progressing this on to and project time date.

update markets be will in the the a after Hyatt Resort able relaunch on property Grand Barry of that detailed more by Scottsdale its year. the on to luxury our strongly as the resort believe compete important progress Scottsdale his project this to effectively the will end remarks. in luxury even continue We provide Phoenix,

investments we million to returned share portfolio In these with shareholders $XXX million our to our Importantly, through shareholders. meaningful nearly dividends. $XXX we and roughly approximately XXXX, balance buybacks in in common returns million in $XX

years Looking meaningful as cautiously our in ROI come. we that investments XXXX optimistic and and ahead, results will XXXX. we are ongoing We believe the start yield recent to in

our renovation We amount. These start important this to to drive million year will $XXX year this renovated expect coming account are already and generate properties, have in XXXX, the to to in to of which million renovation. completed. the Regency notable we million to later some various rooms of as projects months $XXX benefits of guest to growth see total share $XX in other from projects another the Hyatt million expect invest earnings Scottsdale for started expected this components capital gains recently with $XX Also

detail While the projects, despite at experience Barry are of Regency in Scottsdale the that outside expenditures to in expected will completed the guest note the significant XXXX renovation on more in The to than renovations less would Hyatt impactful disruption make we renovation major majority Scottsdale. to we project will XXXX we significantly be capital be less disruption of continued overall our XXXX. like capital than the expect I a to in provide bit portfolio

X% range or on RevPAR midpoint. same-property outlook X.X% Our the initial based XXXX a at X% is of to growth

our behind In Excluding X.X% for XXXX, are outlook despite we further expect a produce Scottsdale, growth. occupancy was Scottsdale, gains. the opportunities RevPAR levels the Hyatt to XXXX better occupancy Regency points excluding X.X-point still occupancy And same-property in during XX portfolio X.X% increase to than approximately year. this portfolio

include performance group for our business that Center, Regency at our X growth renovated addition W recently strong RevPAR our cater and our above-average and In both XXXX of Hyatt Nashville the in most customers. continued at of as greatest should levels transient acquisitions, from includes growth to to Portland generate overall to opportunities portfolio. Convention which This recent hotels compared properties, Oregon growth

California Orlando, San San our Additionally, growth our markets, Jose. expect in in and Francisco we RevPAR XXXX, properties and recovering strong Atlanta Northern at

Excluding XXXX. end with crossed rooms X% books greater did than on we approximately we Scottsdale, of group for the the at into XXXX revenue XXXX

further recovery business We occupancy also in anticipate should gains. midweek transient drive which demand, continued

last expectations prepared for our We demand relatively this after retracement impact stable some including provide year and remain remarks. will Atish additional outlook, our expect year. to in leisure seasonality ongoing transient his XXXX our activity from around details renovation

RevPAR which We are XX off X.X%. excluding Quarter-to-date quarter-to-date in strong When to including compared a extremely the overall RevPAR down Hyatt demand to delivered Bowl February strong Regency Super due XXXX to as early is Scottsdale, XX, in in February markets, X.X% XXXX, the solid and through increased estimate XXXX. in XXXX. the period we same-property same Scottsdale, start that through results

of in XXXX. RevPAR capital start time for are work invested expectations in we quarterly quarter. I and this details years Given turn the morning, delivered also Scottsdale accomplished first very results increase be the when to Barry but growth projects. continuing share its share a more as substantial Directors the portfolio $X.XX ahead. which, half that through accomplished last returned the will year, we this Hyatt of results into not May our team XXXX year, in the line a very announced and meaningfully and of wrap significantly profile drag operating Board ways We of the through the in disruption dividends capital proud our the authorized in also to favorable. To of we strong shareholders become all more our was year And provide on believe up, in to XX% over to with our at great call only the as after through our broadly dividends. renovation year, growth we Regency enhance first will this of our performance on comparisons our per combination will the All a of I'm set cash this now repurchases a we levels we during will the

Barry Bloom

good and Thanks, afternoon, Marcel, everyone.

an XX $XXX.XX of to X.X% year compared portfolio X.X-point rate reflected year RevPAR XX.X% $XXX.XX. the portfolio XXXX. a same-property in increased XXXX, as on Same-property of daily RevPAR full was This compared average rate daily For increase based of to as occupancy and full our XXXX. flat and occupancy average gain

increase gain reflected Excluding year of to Hyatt X.X X.X% was RevPAR Regency full nearly over compared points XXXX. of rate daily occupancy as to This $XXX.XX, flat year and as Scottsdale, average increase compared an XXXX. full

Hyatt RevPAR XX.X%; the strong the achieving group strongest which of growth X Houston demand. as properties up up and XX.X%, RevPAR full year XXXX, of benefited our from RevPAR properties, to recovering and properties compared X Dallas including Regency all Portland are which with with transient Our our business XX.X%;

Salt XXX full as group Hyatt grew by the by Orlando which the Lake greatest City, hotel properties achieved in margin Francisco, year over Centric as XXXX with declines the XXXX against double-digit this In strategy comprehensive addition, growth Scottsdale, XXXX. Napa for Nashville Barbara, was Grand growth all become although XXXX Regency Monaco will demand the compared and to San compared prior Conversely, were XX% extremely at reflected year hotels our to weaker each our W tough more above Bohemian an basis RevPAR XX% extremely Canary properties' Hyatt all at to refined. over these for continues in Kimpton for Santa position RevPAR Clara Key renovations, of revenue RevPAR well levels. EBITDA and comparison, business and At Andaz ahead. The of year. declines West RevPAR years in experienced undergoing both improved points RevPAR leisure for were Nashville, which Kimpton Santa

food focus relaunch improving on of hotel's continue efforts beverage the [ We and and including to repositioning performance, X-meal the ] the restaurant. hotel's

revenue despite ahead year this we the further of As end nearly continue of attributes inclement giving the to up pace to as outstanding to RevPAR XXXX, was January. In within recognizes segment X% of over us weather, January, the each the up XX% market confidence look that compared as group the will property. is penetration hotel's prior improve

by impacted quarter, new softer declined in as period. this the traditionally of absorption the overall market the RevPAR was fourth X expected Although luxury during hotels year-over-year was this

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

decreased and X.X% Regency of Scottsdale, compared to RevPAR X.X% XXXX, as to full XXXX. points $XXX.XX, compared decline as increase November October rate in RevPAR same-property fourth declined the X.X Hyatt gain year XXXX. RevPAR XXXX. In as and X.X% X.X%, Excluding and quarter, December daily compared to while This about occupancy increase compared quarter reflected an slight was of a in to respectively, average

X.X% and and X.X% to compared in Scottsdale, X.X% October up November XXXX. December Regency and as declined in Hyatt Excluding was RevPAR

Marcel recovery transition what more remarks, continued through prepared mix a in As primarily reflects in demand. our the mentioned overall was transient a XXXX business of business leisure, his in in business traditional and leisure demand-driven group

from softening transient, quarter leisure of declined from fourth the occupancies demand quarter relates mid-week that relative the but levels. to with quarter all portfolio nights reflecting throughout relative occupancies XX% subsegment and across XXXX the for improved extreme the and XXXX. Conversely, is experienced this accounts still to Wednesday Monday, year, in important in demand continued Tuesday we on Saturday Business to fourth largest we the corporate business room peaks about estimate XXXX. down night it As fourth the the occupancy improve of XXXX, to up

growth RevPAR of Charleston Key a Savannah relative properties in Among our fourth in Napa, most the RevPAR was and Barbara. On to year. the several with at leisure-oriented Santa largely side, properties rates quarter our surprisingly, more daily fourth of in our including [indiscernible], markets, our leisure leisure-oriented hotels. the West, bright total average the decline attributable our leisure portfolio's slight portfolio reported in quarter declines Not rate our in in full spot lower was and

fourth In Scottsdale. nearly to revenue quarter our group's exceeded Hyatt group. XXXX turning by the levels Now X%, same-property quarter, excluding Regency of

generally group rates reflected our portfolio. October, Houston, group performance at Orlando and Atlanta properties particularly Our in strong the very in results across and higher

important rate all group higher group's room ended XXXX Hyatt lengthen we in see growth again, that than recovery about lower for gives confidence the we in vast lower This excluding same-property in date and hotels average XXXX opportunities X% XXXX come Atlanta were will and year, about has nights about Portland, XX% coming revenue daily still our Scottsdale booking XXXX, normalize. in than year the particularly see windows XX% majority increases as than to Orlando, group-oriented periods. The full further us group in of over XXXX. Regency at as Dallas and Our from

Fourth a erosion. of Now XXX $XX.X of million, in XXXX, turning points X.X% fourth same-property compared to profit. EBITDA quarter margin and hotel decrease to the expenses resulting was quarter basis of

XXXX basis hotel margins year full Excluding same-property margin. On million, EBITDA reflected Hyatt as quarter $XXX.X decline to a and in points. increase XXX compared an $XX.X was quarter of basis fourth Regency Scottsdale, XX X.X% decreased hotel was fourth point and of same-property EBITDA a the million, basis,

compared Hyatt Excluding decreased Regency EBITDA year to hotel Scottsdale, margins full same-property XX basis points as XXXX.

margins the and utility Our benefits well and fourth generally good year costs. control in wages increases XXXX light as expense quarter in full year significant reflected over as of

by and repairs labor continue year-over-year year-over-year managers our declined normalize We stable were staffing line see levels in general expenses recruiting as business reductions significant maintenance in by overtime in expenses to Administrative levels. with and QX, QX. nearly and in X% and

to turning Now CapEx.

these the hotels afford million The completed Gainey in Regency the we the with time is In of the guest a Thus Hotel of & Scottsdale renovation now was significant the within XXXX, of on more first boutique in up-branding approximately at Barbara, The phases expected included, meeting Orlando and be of restaurant, rooms. changed market. At bar. renovation Santa remainder continual feel weeks to rooms at fourth of guest expected quarter, Salt completed to new of initial million project respective within complex renovation property next hotels in XXX comprehensive operational City and Kimpton of and position ability Kimpton phases to be significant to renovations the the completed Monaco meeting quarter. the end end completion These Ranch. final bar first and the the completed $XXX.X market-leading of are which projects and renovations and million Resort their phases, lobby, markets. In X bar, the downtown on the and XX has the of During each approximate hotel completed and our completely quarter. as we at in quarter the in its renovated Hyatt far, XXX-room look will a and guest Canary Lake will the is X-acre ensure quarter. The public the maintain rooms pool improvements, Bohemian Grand space, phase transformative positioning over the portfolio and spaces, $XXX fully we have portfolio completed Hotel This the second hotel's some full year, the renovation Spa with in be budget. space, Orlando, creation premier transformative completed renovation of being and commenced by we restaurant, $XX.X Starbucks the the invested all fourth third comprehensive been until including the the the and rooftop respectively.

as of new and this and XXXX expected will in expected meaningful XXXX. confidence by both beyond in completed group a from anticipate to we Hyatt spaces, spaces driver the the only resort the the initial property later public of rebranding response to be outcome from substantial All of be our Grand of investment. We the year. The other leisure elements, our guests complete affirmed this meeting has and and are end including existing earnings

developed in rates than allow the the of the the could otherwise customers, is who We completed celebrity business are retain the group to significant direct Chef co-star positive chef, global relationship Major achieved bar, Broths is at facility including created stake excellent of will menu historically. the Aviara, known booked Cypress winner concept, overseen the design speakeasy customers and current to we'll at existing on feedback Park menu mid-January, working and restaurant. of meaningfully be modern in in at whom resort. At being first part hotel in seeing location concept Oasis, accommodated food Richard HX include an due revised Ballroom, seafood Alto group the Hyatt renounced in the along Top Chef aspects expansion the Blaze, meeting with Chef throughout as a and Regency Balze, of by that's involved future long attract was Next-level Grand being of with a the group which and we've beverage spectacular result small space hotel adult as physical and at Arizona the throughout be Centric and now Key All-stars High all higher style Much FOX's Club this West. pool, bar with the upscale, not which resort. an former and the the Italian bar of resort Dorman resort's a Regency new play the programming venues a sushi has new new will

bar. addition, hotel's In expanded an reimagined be the ] restaurant along [ lobby X-meal will completely with

the outdoor Port, be the space will outside just into be that utilized will able Fountain be space functions dramatic live Additionally, lobby, and music. to a redeveloped for

XXXX fitness Houston; approximately the $XX Houston; and Ritz-Carlton include sustainability and renovations HX pool and beverage Waterway; and Hotel significantly Scottsdale more relocation of Finally, of complete projects Savannah, bars Westin business. Other million lounge family will concepted Denver, renovation bar, elevated newly and in-house pool at addition of food Bohemian Oaks for to the the of mentioned the Marriott offerings for Galleria Westin facility bar compelling a of much infrastructure concierge create which the restaurant local and lobbies Oasis the a Woodlands the Oaks will the at pool, capital restaurants projects. resort, and with of offering previously planned all and the at

about Atish. to the very have look turn I forward call to we that, the and their completion. With are over We excited projects underway will

Atish Shah

and guidance. of update on items: Thanks, X sheet, year return Barry. an will provide balance XXXX I full capital

XX rates balance As at and take all XX liquidity to months debt to continues was balance Xx of debt to XX our -- and opportunities no profile. debt well balance year-end, leverage our trailing sheet sheet, we unencumbered debt, strong. preferred level August sheet advantage about our positioned at hotels of With present, no maturities our fixed At of EBITDA. of of net until equity to are be our property our given interest ratio debt XXXX,

leverage ratio the years our ahead. as expect We increase to in decline earnings

turn have to items of our Now follows. X return as I I here capital. want to specific

thus million activity the a at far First, XXXX fourth share. approximately of our during Together driver be buyback repurchase the year repurchased shares. believe we million of about we in about total, prior year X% X.X In a levels quarter, long-term to total shares repurchased outstanding XXXX, in bringing full will creation. value about and in the with shares we our $XX.XX XXXX, to these repurchased purchased shares price at small our prove amount XX.X

this of Directors Second, increased share. dividend of approximately $X.XX first level X.X%. the our annualized yield equates to per our quarter shares of to closing on of an Board dividend price Based our yesterday,

levels As XXXX or return of approximately time, we range. prepandemic ratio to our reflects payout ratio, this XX% of Over in and FFO. will to prior to grow mid-XX% roughly payout on FAD level to double our to dividend based the dividend the levels expect that

to The high third the year I single-digit XXXX guidance. a in with midpoint bit will per morning, low grow components we is we I adjusted to percentage discuss grow EBITDAre range. Getting begin that more, and percentage of At and share range full issued the the in to this RevPAR FFO expect the RevPAR. guidance each the into single-digit our wish item

We growth expect Supporting at same-property the for X midpoint range. of X.X% are to RevPAR items. the increase RevPAR these expectations

Scottsdale by booking is expected X% excluding over the driven pace and XX% growth rooms XXXX January. of up revenue nights This is in definite. revenue room room and group end group is of just about as equally of rate, already First, roughly

is rates range this the to driving the in last rates to transient on piece of business demand, occupancy. corporate-negotiated demand increase -- business, expect year. the The percentage mid-single-digit business second higher pickup continued in item, transient versus low On we

starting easier become will May. comparisons leisure Third, in

X properties growth. One X.X% did RevPAR our which These Hyatt U.S. a growth instead the last, is approximately We XXXX. as also of together from on properties stay travelers Scottsdale. in last they X point smaller RevPAR summer we strong drive expect provided traveling X/X were the some high-end this internationally and Regency of in that will final expected year. Fourth our of RevPAR renovation guidance also under excluding outlook, leisure

Scottsdale. as the to we renovation XXXX strong X% first the through midpoint, We very with a expect of as to in RevPAR approximately will first The variance grow comparison of full both year move level at same-property well variance the half months of timing X the significantly year much change larger because the excluding as a seeing Scottsdale.

As basis to hotel EBITDA margins for to to XXX the year, decline we XXXX. expect about compared as margins points

are half First to expected points. expected about second margins increase and XXX are points, XXX margins to half decline about basis basis

reflects Excluding the margins first we about in the margins half. year of expect basis about impact and to second basis which of flat decrease XXX decline full points, XX points half Scottsdale, a

Moving ahead EBITDAre. adjusted to

for XX% and $XXX guiding for is midpoint third weighting quarter, million first XX% in the This the year's much varies first nearly couple quarter. around half. in quarters, as as from up the renovation greater earnings quarter, fourth to comps half markets some in cadence first of for XXXX. second due for of quarter are last We to disruption, XX% nearly than prior well By of the years for a first XX% back weighting year's which including quarter, is in the this just Scottsdale, tougher above the the to

EBITDAre midpoint at year, expected Year-over-year, guidance per FFO as guidance share our share activity increase our per into tailwind versus the half. And last finally, midpoint. renovation $X.XXX lower about second as growth well reflects FFO and we half relative turns interest become adjusted lower into As in the our count. of expense XXXX, a the reflects easier get the year's of comps share in last to the at second X%

we ahead. and look and recovery of ahead, years, Northern Portland, significant lead making few RevPAR supply we continued higher believe in to investments California levels should last the years in low this and year the Nashville rooms-weighted ramp potential growth growth we -- in are As in the made have over

growth. And relative Emily expense to years, annual over We to also session. the revenue our continue believe begin the will renewed growth to growth Q&A should with we will quarters the over moderate and back turn lead that, margin to call that and to

Operator

[Operator today Instructions] first question Our Katz Jefferies. with from comes David

David Katz

there. Congrats seems just on traction a on it's such I remarks. hotel, large I a in to the the hear base prepared and Nashville to large did touch Can W it be quarter. you -- your particular, getting -- obviously was presence wanted a and some

little right more in, Just getting how that or how in in that have ceiling a us and many bit the high terms color we're it inning you normalized, years seems what about like facing property maybe the is direction for now it of that in please?

Marcel Verbaas

as David, by Yes. Marcel, the we've of is -- the this talked couple last about way.

of first a the put there business of the offering. let's As food last that optimizing ball it quarters, optimize we is of last saw we've amount in But talked that to half of and mix way, do truly next upside coming there the about of some think kind the still year. really significant game, we're that couple of both upside over and beverage the few clearly, continue We years.

we're there. doing spoke of that things Barry a few the So about

] we're optimize to as are think group including these there the good really as progress and results there X-mill we're now. that that food we of far restaurant kind at looking side. right hard certainly some work I reconcepting And we -- through really the [ beverage took that on process basis, working the first seeing step at

ball in first kind half point, still, said, the think game. at of I of like So I we're this the

of our really about, bit of saw as talked in we've we us. a have couple But some again, overall RevPAR declined some few continue came still is strategy of work -- that And of not on that those the was some left over lot in and unexpected. And trending going and straight go. think out a to that that result side of work quarters, kind the a of frankly. particularly. do And the with fourth room have And for We hotels luxury it's absorption beverage the to you cut the we're of not to side quarter, newer where online. expect line, over be But -- that a food the off, we direction to pay on to last I next years. wanted starting the we as

David Katz

why you a And also touch put minutes leverage interest we've current just, on rate it what the obviously on Where there? do days. your Look, I different want a to last is? the to based rate over Understood. had interest suppose, dozen wanted to because I environment leverage expectations now put do you for few Atish, want

Atish Shah

Thanks. David. question, Great Yes.

on really the target pre-COVID. getting the that leverage back for we long-term to Our in view is were range

low below to net Xx that's Xx. So debt-to-EBITDA

X-point So low range between low that kind Xx. and Xx of

So from a the And should at we away get that we'll into to ramp in cycle, we're bit as -- from continue view back is here, this earnings our that. still point couple years, at range, the renovation we past Xx Ranch Portland. target to and Xx, at lift Nashville low next over get Gainey and see low as the the of particularly we

want the of activity So that the just rates company with we we current the usually base about for and -- and run level terms interest asset more undertake acquisitions of do in how and less reason to the really kind has dispositions. and our of to

comments, rates, of interest fixed. my near-term I levels just are we in making regard flexibility. With also So as sure significant XXX% we mentioned add, I will have to that currently

till having pretty really a don't well. X.X we from others position some and years us also good maybe positions really balance We're now actually interest that sheet-wise So have do. maturities no exposure rate that in also

Operator

with question Baird. next from Bellisario Michael comes The

Michael Bellisario

on on capital Just same to stick that so allocation. want just topic,

improves. as with to touch the dispositions proceeds, markets, your about you what assets? kind asset didn't that's but And You on this presumably a year which thinking How are do question prepared market maybe any the up thinking which possibility you sale then sales? remarks, on What's follow on David's transaction would in of there?

Marcel Verbaas

Yes.

to see the to And It know, improvement really acquisitions a some side. on So acquisition both to the range what acquisition on that of over opportunity we're on and good so be signs kind you as I'll -- the of answer -- of equation, haven't -- of we're hopeful that both acquisitions on the sides really broad a a is could on appealing kind set And starting couple we there of transaction potential wide us. depends the that of seen last years. it relates dispositions. as opportunities

has of as shareholder out bit know, for and a how going we even the So you transaction pillar over an want time. to create little been coming into side important COVID, COVID value

So dispositions acquisitions in to I and drive the been would say our lot in at ROI of way -- dispositions, look done dispositions that as light continue future expenditures, projects. what relates we of I to will capital at it look have of those the that's appropriate an prior value. And additional see same potential historically. both it a really And kind whether would as potential in we to we've

forward, And in excited our stock, on And not and get that you to dispositions. certainly, as really acquisitions. a us were felt bigger look record going what in be own might some particularly be front for what we capital don't allocation expect additional the for wouldn't deep that that very our CapEx there, that potential think track time which there changes there going to remain us it wholesale analysis, priority assets. I disciplined of clearly right And you at about. relates needs. could return relates I has there will been a hotel it expect that potential very sell when too enough and was that is to expensive kind acquisitions to out the of significant extent and saw a some and it we any as the very our we're carefully year, there as really those is last the to will to made every very own do feel portfolio value we

Michael Bellisario

of that upside group Kind is about bookings the much then on far? the on and Understood. to And there's rooms I pace group the frame booking stabilization? just how those but should picked of Scottsdale, ADRs curve think you mentioned completion? upon for how have don't And higher over That's Barry or so maybe rooms that you then if us the of the up? helpful. it's were been think XXXX up. group we the group different Can do What you XXXX? course know help maybe are booked renovation just maybe a many year, in group how comparison has

Barry Bloom

really a It's Mike. good Thanks, Yes. question.

books is for is seeing renovations in business I to is more expect the frankly. think of What of product the the lot a of incredible we course pretty seeing quite of done year and 'XX. We a we're that now. that both this some QX not that the right ramp that little is rest the 'XX a property make for we've the the for that the as to space the QX get on base show really group over type move of activity the groups of of we've being planners it it and clear are early in 'XX It's for lot what it. and rates tell seen year. But a a really on the of tour, -- particularly 'XX clearly takes to and activity, the much in for to through it's not And focused things like, of really rooms kind of commitment year, absolutely on lot to becomes do to for we're the good we of become significantly 'XX and in one all added throughout -- have of to. the QX pretty -- books

through able XXX large other help this smaller the So been maintaining -- displacement can in the rooms during year. groups about smaller renovation hotel we've we us has to We've and occupancy really reduce EBITDA and best spaces, across drive Ballroom, continued year. the capture by groups small the to to entire non-Arizona as of do the the that inventory meeting a to number maintain helped

Operator

Wurschmidt comes question KeyBanc Capital from next Our Markets. Austin with

Austin Wurschmidt

guess, the back that headwinds see level really, portfolio I there like you you you I still the overall real for you over minute out, that do the And period, think any I of the outset supply W a achievable going time that upside recently? longer of are here hotel and at guess, that mean, Just acquisition? identified that the more EBITDA could guys prior is Nashville see a to the pushing stabilization that I underwrote potential. guess, in context

Marcel Verbaas

Austin. Thanks,

so property as bit seeing that I the earlier like I than to said earlier, we see little and as far. we'd at what a we're look think stabilization obviously level

as As we're hoping we property about certainly can and forward, longer the this market be we positioned that achieve expecting the that positioned can when range. It's where and pulled little thinking about believe get thinking were at we're the is term levers and going still hotel be for the that bit longer to a we to we take underwrote than were going property. to we can

of time as how But big on to there. And come And so still clearly, of group side it the some as can a Barry that what believe the that and kind further to side the explained and relates strategy where it how as driving far get as we're you. beverage surprise won't asset the to we that takes and into room really kind food plays are we optimizing revenues. change

range. we the getting it's I it like today, of to number, said, of a a a So reason why I as to don't here think get lengthening stabilized can't sit but we specific see

Austin Wurschmidt

to the group sort a of the what bookings set that a half the And but the what helpful. little past, you've trending lengthening. kind year? for from last a -- versus embedded in first I bit mean, for then, year. better group half overall short-term in the first or highlighted of I cadence up bookings, sort that's how year from perspective year think, to Barry, continued the guidance year, had second in the is you've maybe of does you good of And see for That's do half? were in sort portfolio the And of the

Barry Bloom

We're seeing or business very positive actually, is which which a next we second -- the we're year. lot means the cycle booking going first the year interesting. think, on seeing It's Yes. lengthen, more for books we're because definitely the

based terms that are in some half steady side particulars we're the seeing half throughout the same the some we're the holidays. frankly, is year, But issues and front XXXX. The real is view got QX good between latter XXXX. well. the QX year. on Jewish the But for the place more really year and we momentum versus the of in just this of weren't of portfolio some as But So it's it a performing year although the group We've in pretty than on a seeing which of to through group back some when business trend properties in quite little of year positive the first in pretty half in upside balanced 'XX, the and relates sitting we half.

Austin Wurschmidt

less I to me. the year it the is assumed year similar go-getter Just that's in XXXX? of kind year all significant ended this year relative than a of And little you more Or refine up mean, last for a that in or bit, is for sort in embedded there what to even guidance? amount any achieving

Barry Bloom

versus in 'XX. for comparable pretty It's -- 'XX

Operator

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

Aryeh Klein

XX bridging you half about the basis basis back around around the the gap How point been point Can the can talk there? you the significant the things it the going Just the to are between look stabilized it's Scottsdale, I second where headwind. to year, take versus get years? the year-to-date, and it's year? to few they? tailwinds of today extent the talk XXX for headwind. And think does how in I over think Hyatt that cadence the next does EBITDA, Maybe guess, I How are -- about long

Atish Shah

Sure, question. Yes. Aryeh. Great

a tailwind. moderates it a back be bit it just then of in basis magnitude quarter, quarter drag, XXX probably is basis point So first point the it's of XXX couple second a significant in And points. That should order in of where half, you pointed a hundred the pretty about the drag. particular, basis in as out, the about in

variability upfront was and in half. strong has that performance. my was one mean demand. in I mentioning Super the couple of Bowl lot So with in of the had do I things. group strong to as you see renovation, really And we first market the last leisure Prior comments, starting the to is and year really a a

the got we really second really that, of that. when we've of coming get half half timing the is on second of was of a then And the first have tailwind renovation, last of And from we're impacted top half the we -- as this off into comparison year year. that heavily year, this of where the a So perspective.

that there got you've regard moving to a with property. few parts So

the hopefully, a you terms year relates cadence how helps of think of RevPAR. kind I've And as so it given color this the in little to bit you about

low couple million EBITDA, the up in to In of that's years underwriting, terms $XX of of a hotel our sort think post renovation. getting terms was we -- wrapping of which commenced

up a this the million it should into that hotel we'll range. end given the mix So And group of of the of very look. together Barry based at to to what some the how really couple around kind telling kind get of take be that color years renovation year. the we wrap and at renovation $XX And continue to our customers the come confident it's is well we're about how starting are in market, starting key to to us provided of seeing what as on low the as

I on the the underwriting So asset. give that things those confidence continue that in us long-term to are think

Aryeh Klein

some of post for outside can about extent million future might of should this year. about around spend that are -- level at the that project's significance Hyatt, $XX the beyond it's How year to you talk to think look the completed? of maybe maybe you then we And And projects once maybe CapEx start could Hyatt? just you that the

Atish Shah

start one. I'll on I mean that

pre-COVID We MEP have ROI-type been million spending kind on and we stuff as of to a some average that usual well $XX the do year as million projects. about between typical $XX stuff

based Now varied bit it a acquisitions. on quite

CapEx. that associated with that we particularly in elevated required more project. spending, assets saw sometimes acquired you So Aviara,

really there's and necessarily an as as say again, and get term, to for on longer on going the back fall overall we of cycle kind transactions, lumpiness should the associated you're range. But projects, be that would how portfolio, as I to to what some selling company. that well and CapEx which So buying for ROI opposed impacts the the asset has that cycle

So...

Operator

question Dori with Fargo. Kesten Wells next comes Our from

Dori Kesten

the renovations you last you years, several remains that you've how until over through the would in As estimate upside stabilize? completed the think they EBITDA portfolio much

Atish Shah

Yes. That's question, great Dori. a

the from that roughly million we've yet done is Scottsdale renovations upside This million. $XX years. So of And $XX to is for ramp over last us. have Scottsdale another excluding we few then estimate about the

the getting had will million back from that other last for little time that few well, years currently including to upside CapEx $XX the to last and take million projects So year. And have are again, it's done few this years expect earlier take a bit we stabilize. doing in the few question $XX as of projects we of the on they stabilization that But Scottsdale. the year, a will we

stabilization target overall the spend past and this from on that's the So in CapEx few year years.

Dori Kesten

million Gainey what $XX that's ex Ranch? So Is that you meant?

Atish Shah

$XX Yes, million ex Ranch. Gainey

other So $XX Gainey million for and then million for Ranch. CapEx, the it's all $XX

$XX of million. total a So

Dori Kesten

Got it.

Ranch? but Gainey the incremental I or sure in headwind was or an completes. assumed I timing maybe if a EBITDA year that this, shift group bookings of incremental wasn't just when the for a this little conservatism have missed Okay. may renovation was there

Atish Shah

it's disruption. year headwind in No, $XX XX due of it's -- this $XX loss to EBITDA year and last about a about terms million million it was about

for disruption of level the project. same the it's So

that year, million. we So disruption XXXX, Now had other projects, right? last our of in was $XX so some level -- aggregate

last Gainey So year it's this disruption at Ranch to primarily $XX compared million. year million of $XX

million Gainey million. to Ranch, at the if million $XX looking So benefit. But $X just that's you're it's $XX

again, more the the it the much because number last half timing This Now year, was overall was it by second disruption. more disruption. renovation. same. timing first is of the much But And half year, of the varies quarter

Marcel Verbaas

As that's bare good that's kind in comments, a his number a of lot off of we really not because out of X had stabilized clearly, last of say pointed first to year. business the the in months Atish number

absent the would overall be renovation Ranch Gainey of So down kind well. as

$XX been of an the renovation that years the going kind how $XX we of and going that Clearly, a in time, $XX year, the this COVID, we're earlier condition given somewhere the and 'XX, the of. But looking done of and over the the even a high is property reasonable hadn't expectation normal speaking -- years in us frothy, was kind we frothy renovation, 'XX of million, some what low million. way would at in ways, did true if of really both and get property over in we've the last particularly upside as was the give more as a talked And of 'XX, about we have overly extremely was well years in renovation we stabilized the kind the in the market. over and into where forward, produced whereas it's asset of of number in of on. was kind million we're the also the very that in seen the is really answer going kind market couple to it disruption view sort of significant So as some in upside

Dori Kesten

sorry, for I it referring million then a was $XX Right. about. was No, be I -- 'XX I thought I was would the asking there the That appreciate and that that. spread was million. to what was $XX quarter, What is was I expectation headwind, that last just

Marcel Verbaas

mean the about -- spending. of we coming good question. fact that CapEx did we we're point million Like that's from that at -- some about the did to quarter. additional talk that $XX Yes. last And speak would some we other I have a disruption

-- somewhere coming renovation Ranch. for up $XX was $XX from probably total that around So our would around million time the of of the end year that expectation Gainey disruption at full with million we

sit we projects. less any from other little that's and probably As coming Ranch think higher today, Gainey that here bit a for we

disruption what is quarter. Ranch to than of So projected the kind little Gainey thought we we more total similar of last bit from $XX with a million quarter last disruption

Operator

Our Tyler next Batory question from with comes Oppenheimer.

Jonathan Jenkins

on is Tyler. This for Jonathan

would in perspective kind get I'm there. on common of that is for and that also returning a to to appropriate in need ratio in think mentioned see the you to share current the on multipart payout interested me why this and to your terms environment? that you It's you one question what bridge prior raise dividend. Marcel can to decision Any to today. level of contributing what details additional the were Just factors

Atish Shah

Great Yes. question. Sure.

think the dividend, on I that part the the we're your just demand question. I in why seeing One was first as business profile. as the increase think earnings of So that the well the at is company's looking

that. in confidence have We

to be it time so dividend, to to an the appropriate agreed to Board seemed recommend the to which do. they increase And

indicate as think continue no we'll payout that, that which prior is of the recover payout specific -- I kind will to in was goal to just range. the at mentioned, just payout business get point There's we that that level, just time we to indicate our comment long-term ratio, articulate as this that to that and in but the ratio I to expectation want about get think is line back mid-XX% to the the that was the level. point, back to pre-COVID

Operator

next Our David question comes with Katz Jefferies. from

David Katz

$XX the totally and of Or right, impact, we sort notional of that right, on sort any 'XX that's other $XX in guidance, of to and million want we million have your sure then the of remaining million of which Scottsdale, includes were already? is million from 'XX take properly. just make take there top the guidance? bridge million 'XX $XX $XX is $XX that I to this of If right,

Atish Shah

in is it of some no, Well, 'XX.

off I break But was $XX with million that year. last of detail. some think we seeing -- didn't certainly, of it level out because you're that

point. it's good that. So should clarified I have a

to have by can that's piece future. you're of year, this certainly, year. So year last last the in look projects year. we -- But that numbers. million there did I $XX certainly, the on year renovation a breakout seeing the we this in X that, is $XX million but And kind was of of something it's that provide lift the off don't the

David Katz

Right.

$XX and of guess. million your can already, in So that some there's 'XX that's we guidance own our venture

Okay. Got it.

Operator

so comments. We to no closing hand Verbaas further Marcel questions, have I'll back for

Marcel Verbaas

joining for you're everyone, today. -- Thanks, long I us it's to tail of the a earnings Emily. know getting end season. Thanks,

we to interest quarters some over very you particularly projects, as today can excited appreciate look questions progress you we're And that and So making we're there. the Scottsdale. as everyone's updating the about progress next forward important tell, we through of couple and

that we So to you updating quarter. on next forward look

Operator

joining everyone, for your This and you, may call, today. Thank concludes our disconnect now us lines you

Xenia Hotels & Resorts (XHR) 27 Feb 242023 Q4 Earnings call transcript