Xenia Hotels & Resorts Inc XHR

Three Months Ended September 30,

2023

2022

Change

($ amounts in thousands, except hotel statistics and per share amounts)

Net income (loss) attributable to common stockholders

$               (8,529)

$               (1,663)

(412.9) %

Net income (loss) per share available to common stockholders - basic and diluted

$                 (0.08)

$                 (0.01)

(700.0) %

Same-Property Number of Hotels⁽¹⁾

32

32

—

Same-Property Number of Rooms⁽¹⁾⁽⁵⁾

9,511

9,508

3

Same-Property Occupancy⁽¹⁾

63.8 %

63.1 %

                     70  bps

Same-Property Average Daily Rate⁽¹⁾

$               248.58

$               250.16

(0.6) %

Same-Property RevPAR⁽¹⁾

$               158.48

$               157.91

0.4 %

Same-Property Hotel Net Income⁽¹⁾

$               16,055

$               18,822

(14.7) %

Same-Property Hotel EBITDA⁽¹⁾⁽²⁾

$               51,221

$               55,607

(7.9) %

Same-Property Hotel EBITDA Margin⁽¹⁾⁽²⁾

22.1 %

23.8 %

                 (169) bps

Total Portfolio Number of Hotels⁽³⁾

32

34

(2)

Total Portfolio Number of Rooms⁽³⁾⁽⁵⁾

9,511

9,812

(301)

Total Portfolio RevPAR⁽⁴⁾

$               158.48

$               157.91

0.4 %

Adjusted EBITDAre⁽²⁾

$               46,330

$               53,836

(13.9) %

Adjusted FFO⁽²⁾

$               28,708

$               35,590

(19.3) %

Adjusted FFO per diluted share⁽²⁾

$                   0.26

$                   0.31

(16.1) %

1.

"Same-Property" includes all hotels owned as of September 30, 2023 and also includes renovation disruption for multiple capital projects during the periods presented.

2.

EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. See definitions and tables later in this press release for how we define these non-GAAP financial measures and for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, Same-Property Hotel EBITDA and Hotel EBITDA Margin.

3.

As of end of periods presented.

4.

Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company.

5.

Three rooms were added at The Ritz-Carlton, Denver in April 2023.

Nine Months Ended September 30,

2023

2022

Change

($ amounts in thousands, except hotel statistics and per share amounts)

Net income (loss) attributable to common stockholders

$               11,543

$               20,661

(44.1) %

Net income (loss) per share available to common stockholders - basic and diluted

$                    0.10

$                    0.18

(44.4) %

Same-Property Number of Hotels⁽¹⁾

32

32

—

Same-Property Number of Rooms⁽¹⁾⁽⁵⁾

9,511

9,508

3

Same-Property Occupancy⁽¹⁾

66.1 %

62.7 %

                   340  bps

Same-Property Average Daily Rate⁽¹⁾

$               262.24

$               260.13

0.8 %

Same-Property RevPAR⁽¹⁾

$               173.43

$               163.04

6.4 %

Same-Property Hotel Net Income⁽¹⁾

$             100,443

$               97,690

2.8 %

Same-Property Hotel EBITDA⁽¹⁾⁽²⁾

$             207,808

$             206,080

0.8 %

Same-Property Hotel EBITDA Margin⁽¹⁾⁽²⁾

26.9 %

28.5 %

                 (154) bps

Total Portfolio Number of Hotels⁽³⁾

32

34

(2)

Total Portfolio Number of Rooms⁽³⁾⁽⁵⁾

9,511

9,812

(301)

Total Portfolio RevPAR⁽⁴⁾

$               173.43

$               162.69

6.6 %

Adjusted EBITDAre⁽²⁾

$             192,298

$             192,405

(0.1) %

Adjusted FFO⁽²⁾

$             126,166

$             130,708

(3.5) %

Adjusted FFO per diluted share⁽²⁾

$                    1.13

$                    1.13

— %

1.

"Same-Property" includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented. "Same-Property" also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

2.

EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. See definitions and tables later in this press release for how we define these non-GAAP financial measures and for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, Same-Property Hotel EBITDA and Hotel EBITDA Margin.

3.

As of end of periods presented.

4.

Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company.

5.

Three rooms were added at The Ritz-Carlton, Denver in April 2023.

Current Full Year 2023 Guidance

Variance to Prior Guidance

Low End

High End

Low End

High End

($ in millions, except stats and per share data)

Net Income

$10

$18

$5

$(7)

Same-Property (32 Hotel) RevPAR Change (vs. 2022)

4.0 %

5.0 %

— %

(1.0) %

Adjusted EBITDAre

$246

$254

$2

$(10)

Adjusted FFO

$163

$171

$5

$(7)

Adjusted FFO per Diluted Share

$1.48

$1.55

$0.06

$(0.05)

Capital Expenditures

$120

$130

$—

$(10)

Xenia Hotels & Resorts, Inc.

Condensed Consolidated Balance Sheets

As of September 30, 2023 and December 31, 2022

($ amounts in thousands, except per share data)

September 30, 2023

December 31, 2022

Assets

(Unaudited)

(Audited)

Investment properties:

Land

$                      460,327

$                    460,536

Buildings and other improvements

3,157,652

3,086,785

Total

$                   3,617,979

$                 3,547,321

Less: accumulated depreciation

(1,045,656)

(945,786)

Net investment properties

$                   2,572,323

$                 2,601,535

Cash and cash equivalents

219,165

305,103

Restricted cash and escrows

56,940

60,807

Accounts and rents receivable, net of allowance for doubtful accounts

39,195

37,562

Intangible assets, net of accumulated amortization

4,939

5,060

Other assets

70,154

69,988

Total assets

$                   2,962,716

$                 3,080,055

Liabilities

Debt, net of loan premiums, discounts and unamortized deferred financing costs

$                   1,394,684

$                 1,429,105

Accounts payable and accrued expenses

107,363

107,097

Distributions payable

10,870

11,455

Other liabilities

78,852

72,390

Total liabilities

$                   1,591,769

$                 1,620,047

Commitments and Contingencies

Stockholders' equity

Common stock, $0.01 par value, 500,000,000 shares authorized, 106,050,821 and 112,519,672 shares issued and

outstanding as of September 30, 2023 and December 31, 2022, respectively

$                           1,061

$                        1,126

Additional paid in capital

1,980,706

2,063,273

Accumulated other comprehensive income

5,779

—

Accumulated distributions in excess of net earnings

(644,287)

(623,216)

Total Company stockholders' equity

$                   1,343,259

$                 1,441,183

Non-controlling interests

27,688

18,825

Total equity

$                   1,370,947

$                 1,460,008

Total liabilities and equity

$                   2,962,716

$                 3,080,055

Xenia Hotels & Resorts, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three and Nine Months Ended September 30, 2023 and 2022

(Unaudited)

 ($ amounts in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2023

2022

2023

2022

Revenues:

Rooms revenues

$          138,668

$       142,604

$         450,255

$         431,382

Food and beverage revenues

71,815

76,153

259,972

240,669

Other revenues

21,541

21,911

61,836

62,415

Total revenues

$          232,024

$       240,668

$         772,063

$         734,466

Expenses:

Rooms expenses

35,510

36,163

108,866

101,803

Food and beverage expenses

53,769

55,888

174,445

161,796

Other direct expenses

5,835

6,155

17,547

17,815

Other indirect expenses

65,142

64,590

197,896

181,509

Management and franchise fees

7,403

9,083

26,818

27,758

Total hotel operating expenses

$          167,659

$       171,879

$         525,572

$         490,681

Depreciation and amortization

33,094

34,311

100,325

99,127

Real estate taxes, personal property taxes and insurance

12,918

11,228

38,196

33,452

Ground lease expense

751

685

2,245

2,035

General and administrative expenses

9,625

9,059

28,380

25,603

Gain on business interruption insurance

(218)

(2,487)

(218)

(2,487)

Other operating expenses (credit)

206

(87)

816

238

Impairment and other losses

—

—

—

1,278

Total expenses

$          224,035

$       224,588

$         695,316

$         649,927

Operating income

$              7,989

$         16,080

$           76,747

$           84,539

Other income

2,031

1,767

6,212

2,671

Interest expense

(20,524)

(20,583)

(64,308)

(61,474)

Loss on extinguishment of debt

(20)

—

(1,189)

(294)

Net income (loss) before income taxes

$          (10,524)

$          (2,736)

$           17,462

$           25,442

Income tax (expense) benefit

1,639

1,029

(5,382)

(4,148)

Net income (loss)

$            (8,885)

$          (1,707)

$           12,080

$           21,294

Net (income) loss attributable to non-controlling interests

356

44

(537)

(633)

Net income (loss) attributable to common stockholders

$            (8,529)

$          (1,663)

$           11,543

$           20,661

Xenia Hotels & Resorts, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - Continued

For the Three and Nine Months Ended September 30, 2023 and 2022

(Unaudited)

 ($ amounts in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2023

2022

2023

2022

Basic and diluted income (loss) per share:

Net income (loss) per share available to common stockholders - basic and diluted

$                (0.08)

$            (0.01)

$              0.10

$               0.18

Weighted-average number of common shares (basic)

107,006,690

114,322,269

109,345,761

114,334,110

Weighted-average number of common shares (diluted)

107,006,690

114,322,269

109,568,449

114,719,309

Comprehensive income (loss):

Net income (loss)

$              (8,885)

$          (1,707)

$          12,080

$          21,294

Other comprehensive income (loss):

Unrealized gain on interest rate derivative instruments

1,676

36

7,582

2,932

Reclassification adjustment for amounts recognized in net income (loss) (interest expense)

(1,083)

(147)

(1,543)

1,697

$              (8,292)

$          (1,818)

$          18,119

$          25,923

Comprehensive (income) loss attributable to non-controlling interests

325

47

(797)

(1,079)

Comprehensive income (loss) attributable to the Company

$              (7,967)

$          (1,771)

$          17,322

$          24,844

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA

For the Three Months Ended September 30, 2023 and 2022

(Unaudited)

($ amounts in thousands)

Three Months Ended September 30,

2023

2022

Net loss

$                     (8,885)

$                  (1,707)

Adjustments:

Interest expense

20,524

20,583

Income tax benefit

(1,639)

(1,029)

Depreciation and amortization

33,094

34,311

EBITDA and EBITDAre

$                     43,094

$                 52,158

Reconciliation to Adjusted EBITDAre

Depreciation and amortization related to corporate assets

$                           (94)

$                     (105)

Gain on insurance recoveries⁽¹⁾

—

(1,037)

Loss on extinguishment of debt

20

—

Amortization of share-based compensation expense

3,302

2,813

Non-cash ground rent and straight-line rent expense

8

3

Other non-recurring expenses

—

4

Adjusted EBITDAre attributable to common stock and unit holders

$                     46,330

$                 53,836

Corporate-level costs and expenses

4,662

3,490

Pro forma hotel adjustments, net⁽²⁾

229

(1,719)

Same-Property Hotel EBITDA attributable to common stock and unit holders⁽³⁾

$                     51,221

$                 55,607

1.

During the three months ended September 30, 2022, the Company recorded $1.0 million of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. This gain on insurance recovery is included in other income on the condensed consolidated statement of operations and comprehensive loss for the period then ended.

2.

Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented.

3.

See the reconciliation of Total Revenues and Total Hotel Operating Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the three months ended September 30, 2023 and 2022 on page 18.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA

For the Nine Months Ended September 30, 2023 and 2022

(Unaudited)

($ amounts in thousands)

Nine Months Ended September 30,

2023

2022

Net income

$                12,080

$                21,294

Adjustments:

Interest expense

64,308

61,474

Income tax expense

5,382

4,148

Depreciation and amortization

100,325

99,127

EBITDA and EBITDAre

$              182,095

$              186,043

Reconciliation to Adjusted EBITDAre

Depreciation and amortization related to corporate assets

$                   (270)

$                   (311)

Gain on insurance recoveries⁽¹⁾

(535)

(3,550)

Loss on extinguishment of debt

1,189

294

Amortization of share-based compensation expense

9,861

8,598

Non-cash ground rent and straight-line rent expense

(42)

35

Other non-recurring expenses⁽²⁾

—

1,296

Adjusted EBITDAre attributable to common stock and unit holders

$              192,298

$              192,405

Corporate-level costs and expenses

15,496

18,123

Pro forma hotel level adjustments, net⁽³⁾

14

(4,448)

Same-Property Hotel EBITDA attributable to common stock and unit holders⁽⁴⁾

$              207,808

$              206,080

1.

During the nine months ended September 30, 2023 and 2022, the Company recorded $0.5 million and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. These gains on insurance recovery are included in other income on the condensed consolidated statements of operations and comprehensive income for the periods then ended.

2.

During the nine months ended September 30, 2022, the Company recorded hurricane-related repair and cleanup costs of $1.3 million which is included in impairment and other losses on the condensed consolidated statement of operations and comprehensive income for the period then ended.

3.

Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. Includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

4.

See the reconciliation of Total Revenues and Total Hotel Operating Expenses on a consolidated GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses and the calculation of Same-Property Hotel EBITDA and Hotel EBITDA Margin for the nine months ended September 30, 2023 and 2022 on page 18.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

For the Three Months Ended September 30, 2023 and 2022

(Unaudited)

(amounts in thousands)

Three Months Ended September 30,

2023

2022

Net loss

$              (8,885)

$                    (1,707)

Adjustments:

Depreciation and amortization related to investment properties

33,000

34,206

FFO attributable to common stock and unit holders

$              24,115

$                   32,499

Reconciliation to Adjusted FFO

Gain on insurance recoveries⁽¹⁾

—

(1,037)

Loss on extinguishment of debt

20

—

Loan related costs, net of adjustment related to non-controlling interests⁽²⁾

1,263

1,308

Amortization of share-based compensation expense

3,302

2,813

Non-cash ground rent and straight-line rent expense

8

3

Other non-recurring expenses

—

4

Adjusted FFO attributable to common stock and unit holders

$              28,708

$                   35,590

Weighted-average shares outstanding - Diluted⁽³⁾

108,867

115,421

Adjusted FFO per diluted share

$                  0.26

$                        0.31

1.

During the three months ended September 30, 2022, the Company recorded $1.0 million of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. This gain on insurance recovery is included in other income on the condensed consolidated statement of operations and comprehensive loss for the period then ended.

2.

Loan related costs include amortization of debt premiums, discounts and deferred loan origination costs.

3.

Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units for the respective periods presented in thousands.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

For the Nine Months Ended September 30, 2023 and 2022

(Unaudited)

($ amounts in thousands)

Nine Months Ended September 30,

2023

2022

Net income

$                12,080

$                21,294

Adjustments:

Depreciation and amortization related to investment properties

100,055

98,816

FFO attributable to common stock and unit holders

$              112,135

$              120,110

Reconciliation to Adjusted FFO

Gain on insurance recoveries⁽¹⁾

(535)

(3,550)

Loss on extinguishment of debt

1,189

294

Loan related costs, net of adjustment related to non-controlling interests⁽²⁾

3,558

3,925

Amortization of share-based compensation expense

9,861

8,598

Non-cash ground rent and straight-line rent expense

(42)

35

Other non-recurring expenses⁽³⁾

—

1,296

Adjusted FFO attributable to common stock and unit holders

$              126,166

$              130,708

Weighted-average shares outstanding - Diluted⁽⁴⁾

111,380

115,781

Adjusted FFO per diluted share

$                     1.13

$                     1.13

1.

During the nine months ended September 30, 2023 and 2022, the Company recorded $0.5 million and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. These gains on insurance recovery are included in other income on the condensed consolidated statements of operations and comprehensive income (loss) for the periods then ended.

2.

Loan related costs included amortization of debt premiums, discounts and deferred loan origination costs.

3.

During the nine months ended September 30, 2022, the Company recorded hurricane-related repair and cleanup costs of $1.3 million which is included in impairment and other losses on the condensed consolidated statement of operations and comprehensive income for the period then ended.

4.

Diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership units for the respective periods presented in thousands.

Xenia Hotels & Resorts, Inc.

Reconciliation of Net Income to Adjusted EBITDAre

for Current Full Year 2023 Guidance

($ amounts in millions)

Guidance Midpoint

Net income

$                14

Adjustments:

Interest expense⁽¹⁾

86

Income tax expense

2

Depreciation and amortization

135

EBITDA and EBITDAre

$             237

Amortization of share-based compensation expense

12

Other⁽²⁾

1

Adjusted EBITDAre

$             250

Reconciliation of Net Income to Adjusted FFO

for Current Full Year 2023 Guidance

($ amounts in millions)

Guidance Midpoint

Net income

$                14

Adjustments:

Depreciation and amortization related to investment properties

135

FFO

$             149

Amortization of share-based compensation expense

12

Other⁽³⁾

6

Adjusted FFO

$             167

1.

Includes non-cash loan related costs.

2.

Includes loss on extinguishment of debt and depreciation of corporate assets.

3.

Includes loan cost amortization and loss on extinguishment of debt.

Xenia Hotels & Resorts, Inc.

Debt Summary as of September 30, 2023

(Unaudited)

($ amounts in thousands)

Rate Type

Rate⁽¹⁾

Maturity Date

Outstanding as

of September 30, 2023

Mortgage Loans

Grand Bohemian Hotel Orlando, Autograph Collection

Fixed

4.53 %

March 2026

$                 54,818

Marriott San Francisco Airport Waterfront

Fixed

4.63 %

May 2027

108,630

Andaz Napa⁽²⁾

    Fixed⁽²⁾

5.72 %

January 2028

55,000

Total Mortgage Loans

4.88 %

⁽³⁾

$               218,448

Corporate Credit Facilities

Corporate Credit Facility Term Loan⁽⁴⁾

   Fixed⁽⁵⁾

5.45 %

March 2026

$               125,000

Corporate Credit Facility Term Loan⁽⁴⁾

   Fixed⁽⁵⁾

5.45 %

March 2026

100,000

Revolving Line of Credit⁽⁶⁾

Variable

7.02 %

January 2027

—

Total Corporate Credit Facilities

$               225,000

2020 Senior Notes

Fixed

6.38 %

August 2025

464,747

2021 Senior Notes

Fixed

4.88 %

June 2029

500,000

Loan premiums, discounts and unamortized deferred financing costs, net⁽⁷⁾

Total Debt, net of loan premiums, discounts and unamortized deferred financing costs

5.46 %

⁽³⁾

$            1,394,684

1.

Represents annual interest rates.

2.

A variable interest loan for which SOFR has been fixed through January 1, 2027, after which the rate reverts to variable.

3.

Weighted-average interest rate.

4.

A variable interest loan for which the credit spread may vary, as it is determined by the Company's leverage ratio.

5.

A variable interest loan for which SOFR has been fixed through mid-February 2025, after which the rate reverts to variable.

6.

The Revolving Line of Credit had undrawn capacity of $450 million. The spread to SOFR may vary, as it is determined by the Company's leverage ratio.

7.

Includes loan premiums, discounts and deferred financing costs, net of accumulated amortization.

Xenia Hotels & Resorts, Inc.

Same-Property⁽¹⁾ Hotel EBITDA and Hotel EBITDA Margin

For the Three and Nine Months Ended September 30, 2023 and 2022

($ amounts in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

Change

2023

2022

Change

Same-Property Occupancy⁽¹⁾

63.8 %

63.1 %

               70   bps

66.1 %

62.7 %

            340   bps

Same-Property Average Daily Rate⁽¹⁾

$       248.58

$       250.16

(0.6) %

$       262.24

$       260.13

0.8 %

Same-Property RevPAR⁽¹⁾

$       158.48

$       157.91

0.4 %

$       173.43

$       163.04

6.4 %

Same-Property Revenues⁽¹⁾:

Rooms revenues

$    138,668

$    138,184

0.4 %

$    450,255

$    423,293

6.4 %

Food and beverage revenues

71,815

74,260

(3.3) %

259,991

239,282

8.7 %

Other revenues

21,541

21,524

0.1 %

61,836

61,699

0.2 %

Total Same-Property revenues

$    232,024

$    233,968

(0.8) %

$    772,082

$    724,274

6.6 %

Same-Property Expenses⁽¹⁾:

Rooms expenses

$       35,510

$       35,164

1.0 %

$    108,831

$    100,128

8.7 %

Food and beverage expenses

53,769

54,416

(1.2) %

174,403

161,061

8.3 %

Other direct expenses

5,835

6,030

(3.2) %

17,577

17,551

0.1 %

Other indirect expenses

64,605

62,359

3.6 %

196,152

177,723

10.4 %

Management and franchise fees

7,403

8,791

(15.8) %

26,819

27,108

(1.1) %

Real estate taxes, personal property taxes and insurance

12,918

10,902

18.5 %

38,208

32,548

17.4 %

Ground lease expense

763

699

9.2 %

2,284

2,075

10.1 %

Total Same-Property hotel operating expenses

$    180,803

$    178,361

1.4 %

$    564,274

$    518,194

8.9 %

Same-Property Hotel EBITDA⁽¹⁾

$       51,221

$       55,607

(7.9) %

$    207,808

$    206,080

0.8 %

Same-Property Hotel EBITDA Margin⁽¹⁾

22.1 %

23.8 %

          (169)   bps

26.9 %

28.5 %

          (154)   bps

1.

"Same-Property" includes all hotels owned as of September 30, 2023 and includes disruption from the COVID-19 pandemic in the nine months ended September 30, 2022 and renovation disruption for multiple capital projects during the periods presented. "Same-Property" also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022. The following is a reconciliation of Total Revenues and Total Hotel Operating Expenses consolidated on a GAAP basis to Total Same-Property Revenues and Total Same-Property Hotel Operating Expenses for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

2023

2022

Total Revenues - GAAP

$                        232,024

$                     240,668

$                     772,063

$                      734,466

Pro forma hotel level adjustments^(a)

—

(6,700)

19

(10,192)

Total Same-Property Revenues

$                        232,024

$                     233,968

$                     772,082

$                      724,274

Total Hotel Operating Expenses - GAAP

$                        167,659

$                     171,879

$                     525,572

$                      490,681

Real estate taxes, personal property taxes and insurance

12,918

11,228

38,196

33,452

Ground lease expense, net^(b)

765

699

2,284

2,075

Other income

(148)

(74)

(223)

(195)

Corporate-level costs and expenses

(370)

(407)

(1,350)

(1,271)

Pro forma hotel level adjustments, net^(a)

(21)

(4,964)

(205)

(6,548)

Total Same-Property Hotel Operating Expenses

$                        180,803

$                     178,361

$                     564,274

$                      518,194

a.

Includes adjustments for revenues and expenses from hotels that were acquired or sold during the periods presented. Includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the nine months ended September 30, 2022.

b.

Excludes non-cash ground rent expense.

Xenia Hotels & Resorts, Inc.

Same-Property⁽¹⁾ Historical Operating Data and Reconciliation to Hotel Net Income (Loss)

($ amounts in thousands, except ADR and RevPAR)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2023

2023

2023

2023

2023

Occupancy

66.1 %

68.6 %

63.8 %

ADR

$       271.79

$          265.98

$          248.58

RevPAR

$       179.55

$          182.49

$          158.48

Hotel Revenues

$     268,992

$       271,066

$       232,024

Hotel Net Income (Loss) - GAAP

$       40,797

$          43,591

$          16,055

Interest Expense

3,255

2,945

2,726

Depreciation & Amortization

33,150

32,849

32,440

Hotel EBITDA

$      77,202

$        79,385

$        51,221

Hotel EBITDA Margin

28.7 %

29.3 %

22.1 %

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2022

2022

2022

2022

2022

Occupancy

56.1 %

68.7 %

63.1 %

62.4 %

62.6 %

ADR

$       258.36

$          270.81

$          250.16

$          261.70

$          260.52

RevPAR

$       144.92

$          186.16

$          157.91

$          163.32

$          163.11

Hotel Revenues

$     213,726

$       276,580

$       233,968

$       259,804

$       984,078

Hotel Net Income (Loss) - GAAP

$       22,055

$          56,813

$          18,822

$          32,557

$       130,247

Interest Expense

3,155

3,171

3,936

4,098

14,360

Depreciation & Amortization

32,565

32,715

32,849

32,878

131,007

Hotel EBITDA

$      57,775

$        92,699

$        55,607

$        69,533

$      275,614

Hotel EBITDA Margin

27.0 %

33.5 %

23.8 %

26.8 %

28.0 %

1.

"Same-Property" includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented. "Same-Property" also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the three months ended March 31, 2022 and the year ended December 31, 2022.

Xenia Hotels & Resorts, Inc.

Same-Property⁽¹⁾ Historical Operating Data and Reconciliation to Hotel Net Income (Loss)

Excluding Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch

($ amounts in thousands, except ADR and RevPAR)

Third Quarter

2023

Occupancy

66.8 %

ADR

$          248.57

RevPAR

$          166.14

Hotel Revenues

$       229,889

Hotel Net Income (Loss) - GAAP

$          20,919

Interest Expense

2,726

Depreciation & Amortization

30,244

Hotel EBITDA

$        53,889

Hotel EBITDA Margin

23.4 %

Third Quarter

2022

Occupancy

63.9 %

ADR

$          250.17

RevPAR

$          159.80

Hotel Revenues

$       220,632

Hotel Net Income (Loss) - GAAP

$          18,310

Interest Expense

3,936

Depreciation & Amortization

30,688

Hotel EBITDA

$        52,934

Hotel EBITDA Margin

24.0 %

1.

"Same-Property" includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the periods presented.

Xenia Hotels & Resorts, Inc.

Same-Property⁽¹⁾ Portfolio Data by Market (2022)

% of 2022

Hotel Net Income

(Loss) - GAAP

% of 2022

Hotel EBITDA⁽³⁾

Number of

Hotels

Number of

Rooms ⁽⁴⁾⁽⁵⁾

Phoenix, AZ

21 %

14 %

2

610

Orlando, FL

16 %

14 %

2

1,026

Houston, TX

9 %

11 %

3

1,220

San Diego, CA

8 %

8 %

2

486

Dallas, TX

10 %

7 %

2

961

Atlanta, GA

5 %

6 %

2

649

Florida Keys, FL

9 %

5 %

1

120

Nashville, TN

(2) %

4 %

1

346

San Francisco/San Mateo, CA

2 %

4 %

1

688

California North, CA

4 %

3 %

1

141

Portland, OR

— %

3 %

2

685

Savannah, GA

5 %

3 %

2

226

Washington, DC-MD-VA

(1) %

3 %

2

472

Denver, CO

2 %

2 %

1

205

San Jose/Santa Cruz, CA

2 %

2 %

1

505

Salt Lake City/Ogden, UT

2 %

2 %

1

225

Birmingham, AL

2 %

2 %

1

99

Pittsburgh, PA

2 %

2 %

1

185

Louisiana South, LA

1 %

2 %

1

285

Philadelphia, PA

1 %

1 %

1

230

California Central Coast, CA

1 %

1 %

1

97

Charleston, SC

1 %

1 %

1

50

Same-Property Portfolio⁽¹⁾

100 %

100 %

32

9,511

1.

"Same-Property" includes all hotels owned as of September 30, 2023 and also includes disruption from the COVID-19 pandemic and renovation disruption for multiple capital projects during the period presented. "Same-Property" also includes pre-acquisition historical operating results for W Nashville that were obtained from the seller and/or manager of the hotel for a portion of the year ended December 31, 2022.

2.

As defined by STR, Inc.

3.

Hotel EBITDA, Same-Property Hotel EBITDA, and Hotel EBITDA Margin are non-GAAP financial measures. See definitions earlier in this press release for how we define these non-GAAP financial measures and the table on page 24 for reconciliations from Hotel Net Income (Loss) to Hotel Earnings Before Interest, Taxes, Depreciation and Amortization ("Hotel EBITDA") and Same-Property Hotel EBITDA.

4.

As of September 30, 2023.

5.

Two rooms at Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch were removed from inventory in 2022 and three rooms at The Ritz-Carlton, Denver were added in April 2023.

Xenia Hotels & Resorts, Inc.

Same-Property⁽¹⁾ Portfolio Data by Market (2022)

For the Three Months Ended September 30, 2023 and 2022

Three Months Ended

Three Months Ended

September 30, 2023

September 30, 2022

% Change

Market⁽²⁾

Occupancy

ADR

RevPAR

Occupancy

ADR

RevPAR

RevPAR

Phoenix, AZ

15.6 %

$    291.19

$       45.31

49.1 %

$    267.69

$    131.35

(65.5) %

Orlando, FL

65.1 %

191.34

124.66

71.4 %

187.74

134.13

(7.1) %

Houston, TX

55.9 %

214.40

119.77

46.6 %

205.07

95.64

25.2 %

San Diego, CA

70.7 %

418.47

295.77

64.0 %

444.37

284.36

4.0 %

Dallas, TX

63.7 %

182.17

116.10

58.9 %

172.75

101.70

14.2 %

Atlanta, GA

66.4 %

245.50

163.03

69.1 %

237.54

164.05

(0.6) %

Florida Keys, FL

85.4 %

377.26

322.01

75.6 %

418.72

316.39

1.8 %

Nashville, TN

69.8 %

375.66

262.39

56.2 %

397.92

223.70

17.3 %

San Francisco/San Mateo, CA

82.9 %

209.44

173.67

75.7 %

212.74

161.00

7.9 %

California North, CA

72.4 %

444.51

321.80

79.2 %

485.62

384.73

(16.4) %

Portland, OR

71.8 %

197.77

142.03

59.1 %

201.78

119.21

19.1 %

Savannah, GA

76.1 %

225.47

171.49

81.8 %

245.76

201.04

(14.7) %

Washington, DC-MD-VA

67.4 %

240.76

162.18

67.9 %

233.96

158.79

2.1 %

Denver, CO

75.2 %

387.40

291.15

76.1 %

378.56

288.26

1.0 %

San Jose/Santa Cruz, CA

57.1 %

237.92

135.83

57.2 %

227.18

129.92

4.5 %

Salt Lake City/Ogden, UT

48.2 %

215.04

103.75

66.6 %

217.13

144.59

(28.2) %

Birmingham, AL

78.0 %

330.79

258.04

77.6 %

314.00

243.60

5.9 %

Pittsburgh, PA

78.1 %

291.05

227.18

72.1 %

289.24

208.57

8.9 %

Louisiana South, LA

59.8 %

165.36

98.92

55.3 %

184.82

102.17

(3.2) %

Philadelphia, PA

73.0 %

217.35

158.77

73.2 %

221.33

162.08

(2.0) %

California Central Coast, CA

83.8 %

479.09

401.25

84.3 %

520.78

438.90

(8.6) %

Charleston, SC

82.1 %

360.27

295.89

74.7 %

377.23

281.78

5.0 %

Same-Property⁽¹⁾ Portfolio

63.8 %

$   248.58

$   158.48

63.1 %

$   250.16

$   157.91

0.4 %