Xenia Hotels reports Q3 EPS 25c, consensus 29c

Reports Q3 revenue $236.81M, consensus $239.06M. “Our Q3 Adjusted EBITDARe came in modestly below our expectations, as greater renovation impact at the now newly branded Grand Hyatt Scottsdale Resort, softer leisure demand, impact from multiple hurricanes and continued expense pressures weighed on our results,” said CEO Marcel Verbaas. “While our portfolio experienced a meaningful occupancy increase compared to Q3 of last year, a 3.3% decrease in ADR negatively impacted Hotel EBITDA Margin. Based on preliminary October results, we estimate that RevPAR increased by approximately 4% as compared to last year, which represents an acceleration from our RevPAR growth in the third quarter. However, the negative impact of Hurricane Milton on demand at a number of our hotels and resorts in the Southeast as well as on-going renovation disruption in Scottsdale muted the growth we had previously projected for the month…As a result of more significant demand displacement during the third quarter and an approximate one-month delay in the opening of the signature restaurants and bars at the resort, we estimate that renovation disruption is approximately $3M greater than our previous estimate. However, we expect financial results at the resort to ramp up gradually over the next few quarters…As a result, we continue to expect that Grand Hyatt Scottsdale Resort will be a significant driver of the company’s expected earnings growth in the years ahead.”