Xenia Hotels Resorts net worth has been a focal point of interest in 2024. As one of the major players in the real estate and hospitality sectors, this company’s financial strength has drawn attention.
In this analysis, we’ll dive into Xenia Hotels Resorts financial performance, covering key aspects such as revenue drivers and its investment in luxury properties.
At Ando Money, we’re here to provide the latest insights into top companies’ financials.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Xenia Hotels & Resorts, Inc. |
| Full Name | Xenia Hotels & Resorts, Inc. |
| Website | www.xeniareit.com |
| Industry | Real Estate Investment Trust (REIT) |
| Traded as | NYSE: XHR |
| ISIN | N/A |
| Founded | 2014 |
| Founders | InvenTrust Properties |
| Country/Territory | United States |
| Headquarters | Orlando, Florida |
| Chief Executive Officer | Marcel Verbaas |
| Number of Employees | N/A |
| Market Cap | $1.60 billion |
| Total Assets | $2.91 billion |
| Total Equity | $1.32 billion |
| Revenue | $540.4 million (six months) |
| Net Income | $25.08 million (six months) |
What is the Net Worth/Market Cap of Xenia Hotels Resorts in 2024?
In 2024, Xenia Hotels & Resorts has a market cap of $1.60 billion. While this makes it a significant player in the hospitality and REIT sectors, Xenia’s value can be compared to some of its key industry peers.
Here are other notable companies and brands related to Xenia Hotels:
- Marriott International
- Hyatt Hotels
- Fairmont Hotels
- Grand Bohemian Hotel
- Ritz-Carlton
- InvenTrust Properties
- Hilton Hotels
- Loews Hotels
- Kimpton Hotels
Xenia’s position in the market is respectable but still far from the richest company status globally.
For a more detailed comparison, check out other top brands on this list of major companies.
Xenia Hotels Resorts Financial Performance Overview
In the first half of 2024, Xenia reported $540.4 million in total revenue, showing stability despite economic challenges.
The company’s net income for the same period stood at $25.08 million, reflecting growth from its luxury and upper-upscale hotel portfolio.
Factors Driving Xenia’s Hotel Portfolio Revenue
Xenia’s revenue stems mainly from its 31-hotel portfolio, which includes high-end properties like the Grand Hyatt Scottsdale.
Notable drivers include room rates and group bookings, particularly in properties like the Grand Bohemian Hotel Orlando and Hotel Monaco Salt Lake City.
Revenue also saw a boost from recently renovated properties, which helped lift occupancy rates to 71% in Q2 2024.
Major Sources of Operating Income
Operating income for Xenia is generated primarily from room revenues, followed by food and beverage.
In the first six months of 2024, room revenues totaled $313.9 million, while food and beverage brought in $181.9 million.
Ancillary services, such as events and amenities, also play a role in adding to the company’s financials.
Impact of Capital Expenditures on Financial Results
The $70-$75 million investment in renovating the Hyatt Regency Scottsdale has positioned Xenia to generate future revenue growth.
These capital expenditures are expected to significantly boost earnings in 2025, as the hotel is rebranded as the Grand Hyatt Scottsdale Resort.
The transformation will include a revamped pool complex, expanded ballroom, and new dining concepts.
Cost Management and Its Influence on Profits
Xenia’s management has focused heavily on cost control to counter rising operational expenses.
Despite a challenging environment, Xenia has kept its operating margin at 26.9% in Q2 2024.
Controlling labor costs, management fees, and real estate taxes has been crucial to maintaining profitability, particularly during the renovation of key properties.
Strategic Use of Debt and Equity
Xenia’s debt levels stand at $1.4 billion, with a weighted-average interest rate of 5.50%.
The company’s liquidity is strong, supported by $144 million in cash and $61 million in restricted cash as of June 30, 2024.
Notably, Xenia has full availability on its $450 million revolving credit line, ensuring it can continue to invest in growth opportunities while managing debt obligations.
Future Financial Projections and Revenue Opportunities
Looking ahead, Xenia’s financial outlook for the remainder of 2024 suggests continued revenue growth from newly renovated properties.
Corporate bookings and group travel are showing positive momentum, which should drive RevPAR (revenue per available room) higher across the portfolio.
The company’s Grand Hyatt Scottsdale project is expected to be a major revenue contributor in 2025 and beyond.
FAQs About Xenia Hotels Resorts
How does Xenia Hotels generate its revenue?
It generates revenue primarily from room bookings, food and beverage services, and other amenities provided across its portfolio of 31 hotels.
Luxury properties, corporate travel, and group bookings are key revenue drivers.
What impact do capital expenditures have on Xenia’ financial performance?
Capital expenditures, such as the $70-$75 million renovation of the Hyatt Regency Scottsdale, are crucial for future growth. These investments improve property appeal and allow Xenia to command higher room rates and occupancy.
What is Xenia Hotels’ approach to managing costs?
It focuses on cost control by managing labor costs, property management fees, and taxes. This approach has helped maintain profitability even with rising operational expenses.
How does Xenia Hotels fund its expansion and renovations?
It relies on a combination of debt and liquidity reserves to fund renovations and expansions.
As of mid-2024, it has $144 million in cash and full access to a $450 million credit line to support future projects.
What are the major revenue drivers for Xenia Hotels’ portfolio?
Luxury hotel properties, group bookings, and recently renovated assets drive the majority of Xenia’s revenue.
Conclusion
Xenia Hotels & Resorts has shown strong financial performance in 2024, with strategic investments driving future growth.
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