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Xenia Hotels & Resorts (XHR) 2 Aug 24 2024 Q2 Earnings call transcript

AInvestSaturday, Aug 3, 2024 2:14 pm ET
1min read

Xenia Hotels & Resorts held its second quarter 2024 earnings call, providing investors and analysts with an in-depth look into the company's performance and future outlook. The call was led by Marcel Verbaas, Chair and Chief Executive Officer, Barry Bloom, President and Chief Operating Officer, and Atish Shah, Executive Vice President and Chief Financial Officer. Here are the key takeaways from the call:

Performance and Financial Results

Xenia Hotels & Resorts reported a net income of $15.3 million for the second quarter of 2024. Adjusted EBITDAre was $68.4 million, with adjusted FFO per share at $0.52. The company's performance was influenced by a combination of factors, including the successful execution of major renovation projects and the recovery of corporate transient and group demand.

Strategic Renovation Projects

The transformational renovation of Hyatt Regency Scottsdale, a luxury project, is on track and is expected to significantly enhance the resort's appeal and earning potential. The renovation, which includes upgrades to guestrooms, public spaces, and outdoor amenities, is expected to be completed by the end of the third quarter of 2024. This project is part of a larger investment strategy to enhance the quality and earnings growth potential of the company's portfolio.

Operational Trends and Challenges

The call highlighted the importance of expense control and strategic renovation projects in driving growth. The company also noted the importance of navigating challenges in the hospitality sector, particularly in the areas of labor and supply chain management. Despite these challenges, Xenia Hotels & Resorts is confident in its ability to maintain a strong financial position and continue to grow its earnings.

Outlook and Future Prospects

Looking ahead, Xenia Hotels & Resorts is optimistic about its future prospects, with a focus on strategic growth initiatives and operational improvements. The company's diversified portfolio and strategic investments in renovations and expansion projects are expected to drive earnings growth and position the company for long-term success.

Conclusion

Xenia Hotels & Resorts' second quarter earnings call provided a comprehensive overview of the company's financial performance and strategic initiatives. The company's focus on operational excellence, strategic investments, and a strong balance sheet position it well for future growth and success in the competitive hospitality sector. As the company continues to execute on its strategic initiatives, investors and analysts will be closely watching its performance and earnings growth in the coming quarters.

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