ORLANDO, FL—Xenia Hotels & Resorts, Inc. for the third quarter ended Sept. 30 recorded that RevPAR declined 75.8% year-over-year to $39.71 vs. $164.75 in the same period a year ago. Occupancy was 24.7% vs. 76.9% in Q3 2019.
Q3 and Year-to-Date Highlights
- Xenia had 31 hotels open and operating for the entire third quarter. At the end of Q3, 37 of the company’s 39 hotels were open and operating. One additional hotel recommenced operations and two hotels were sold in October 2020. Currently, Hyatt Regency Portland at the Oregon Convention Center is the only hotel with suspended operations.
- Net loss attributable to common stockholders for the three months ended Sept. 30 was $52.3 million, or 46 cents per share. Net loss attributable to common stockholders for the nine months ended September 30 was $187.6 million, or $1.66 per share.
- Adjusted EBITDAre for the three and nine months ended Sept. 30 was -$21.1 million and -$41.6 million, respectively.
- In Q3, Xenia issued $300 million of senior secured notes maturing in August 2025 and utilized the net proceeds to repay a portion of the company’s revolving credit facility and a portion of its two term loans maturing in 2022. Concurrently with the notes offering, the company effectuated amendments to each of its corporate credit agreements. Subsequent to quarter end, it completed a $200 million add-on notes offering at a slight premium to par.
“Our decisive actions since the beginning of the pandemic have allowed us to significantly strengthen our balance sheet and bolster our liquidity as we continue to operate in a very challenging environment,” commented Marcel Verbaas, chairman/CEO of Xenia. “As a result of our strategic actions over the past several years, we came into this crisis with several key advantages that continue to serve us well. Our geographic diversification with an emphasis on Sunbelt locations and a focus on key leisure destinations has resulted in us now having 36 of our 37 hotels and resorts open and operating, with 12 of these properties achieving positive hotel EBITDA in the third quarter. Our flexible balance sheet and proven financial track record helped provide us with the opportunity to issue $500 million of senior secured notes, eliminating all near-term debt maturities. Our outstanding relationships with our lender group resulted in collaborative negotiations as we obtained covenant waivers through 2021, relaxed covenants through first quarter 2023 and obtained a two-year extension of our revolving credit facility. Our recent capital investments allowed us to significantly reduce our planned capital expenditures without altering the growth outlook for our portfolio. And, our collection of high-quality desirable assets has proven to be an efficient source of liquidity, as we have been able to negotiate various dispositions at attractive pricing while not negatively impacting the long-term strategic plan for the company.
“We continue to appreciate the dedication and efforts of all of our operators’ associates at our hotels and resorts during these difficult times in our industry. Our operators continue to do an outstanding job minimizing expenses while accessing all potential sources of demand. While the recovery is likely to continue to be gradual and choppy before the wide availability of effective COVID-19 vaccines and therapeutics, we are encouraged by recent demand trends as our occupancy has continued to improve at our open hotels through the month of October despite an increase in COVID-19 cases in many parts of the country,” continued Verbaas. “We continue to believe that our efforts before and during this pandemic to shape our portfolio and balance sheet have positioned us well to deal with these short-term challenges, and we are optimistic about the opportunities that we believe will exist to drive internal and external growth during the inevitable recovery.”
- 36 of the company’s 37 hotels and resorts are open and operating, representing approximately 95% of its total room count, as of Oct. 30.
- Currently Xenia has approximately $600 million of liquidity, including cash and cash equivalents and availability under its revolving credit facility. The company’s estimate of average monthly recurring net cash expenses has been reduced to approximately $14.5 million, including debt service and excluding capital expenditures, assuming no changes in current levels of demand. Additionally, it has no debt maturities until 2023.
- In October, the company completed the sale of Residence Inn Boston Cambridge for $107.5 million and Marriott Napa Valley Hotel & Spa for $100.1 million. Additionally, it entered into two separate agreements to sell Renaissance Austin Hotel and Hotel Commonwealth for $70 million and $113 million, respectively.
- The waiver period for the testing of the financial covenants under the company’s revolving credit facility and remaining term loans has been extended through year-end 2021, with relaxed financial covenants through the first quarter of 2023.
- As of Oct. 28, preliminary operational results have continued to improve at the 36 open and operating hotels with occupancy of approximately 33% and an ADR of approximately $189, resulting in RevPAR of approximately $63.