Xenia Hotels & Resorts Reports $1.04 Billion Revenue with Decreased Net Income for Fiscal Year 2024

Xenia Hotels & Resorts, Inc. reported a total revenue of $1.04 billion for the fiscal year ending December 31, 2024, reflecting a 1.3% increase from $1.03 billion in 2023. The company's net income decreased by 15.1% to $16.9 million, down from $19.9 million in the previous year. This decline was primarily attributed to a reduction in hotel operating income, increased losses on extinguishment of debt, and other operating expenses. The company’s Adjusted EBITDAre and Adjusted FFO also saw decreases of 5.8% and 2.9%, respectively, indicating challenges in maintaining profitability amidst rising operational costs and disruptions from renovations.

In terms of operational metrics, Xenia's portfolio consisted of 31 hotels with a total of 9,408 rooms as of December 31, 2024. The occupancy rate improved to 67.4%, up from 65.1% in 2023, while the average daily rate (ADR) decreased slightly by 1.8% to $255.62. Revenue per available room (RevPAR) increased by 1.7% to $172.36, driven by higher occupancy levels despite the decline in ADR. The company also reported a significant increase in other revenues, which rose by 9.8% to $91.2 million, attributed to improved occupancy across its remaining portfolio.

Strategically, Xenia completed the sale of the Lorien Hotel & Spa for $30 million in July 2024, recognizing a gain of approximately $1.6 million. The company also amended its credit agreement in November 2024, establishing a new $825 million senior unsecured credit facility to replace existing credit facilities. This move is expected to enhance liquidity and financial flexibility. Additionally, Xenia invested approximately $140.6 million in capital improvements across its properties, aiming to drive future performance.

As of December 31, 2024, Xenia had $78.2 million in cash and cash equivalents, with a total debt of $1.3 billion at a weighted-average interest rate of 5.54%. The company’s financing strategy includes maintaining a modest amount of leverage while monitoring debt maturities closely. Looking ahead, Xenia anticipates continued growth through its differentiated acquisition strategy and proactive asset management, although it acknowledges potential challenges from economic conditions and competition in the lodging industry. The company remains committed to maximizing shareholder returns while navigating the complexities of the current market environment.