Xenia Hotels & Resorts, Inc. (NYSE: XHR)

Sector: Real Estate Industry: REIT - Hotel & Motel CIK: 0001616000
Market Cap 1.80 Bn
P/B 1.19
P/E 16.40
P/S 1.94
ROIC (Qtr) 3.72
Div Yield % 1.82
Rev 1y % (Qtr) -0.16
Total Debt (Qtr) 1.42 Bn
Debt/Equity (Qtr) 1.21
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About

Xenia Hotels & Resorts, Inc. (XHR), a Maryland corporation, operates as a real estate investment trust (REIT) in the hospitality industry, primarily investing in luxury and upper upscale hotels and resorts. Its business strategy focuses on acquiring high-quality hotels associated with leading brands such as Marriott, Hilton, and Hyatt, in top lodging markets and key leisure destinations across the United States. Xenia's main business activities involve investing in and operating a diversified portfolio of luxury and upper upscale hotels. The company's...

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Investment thesis

Bull case

  • Operating cash flow of 185.71M provides exceptional 54.67x coverage of minority interest expenses 3.40M, showing strong core operations.
  • Operating cash flow of 185.71M provides strong 14.28x coverage of stock compensation 13.01M, indicating sustainable incentive practices.
  • Strong operating cash flow of 185.71M provides 5.11x coverage of SG&A expenses 36.35M, showing efficient operational cost management.
  • Cash position of 188.24M provides exceptional 55.41x coverage of minority interest expenses 3.40M, indicating strong liquidity.
  • Strong free cash flow of 90.60M provides 2.49x coverage of SG&A expenses 36.35M, indicating efficient cost management.

Bear case

  • Operating cash flow of 185.71M barely covers its investment activities of (15.04M), with a coverage ratio of -12.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 185.71M provides thin coverage of dividend payments of (52.98M) with a -3.51 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 143.15M show weak coverage of depreciation charges of 131.49M, with a 1.09 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 131.49M relative to operating cash flow of 185.71M, which is 0.71x suggests significant maintenance capital requirements affecting free cash flow.
  • Retained earnings of (663.57M) provide limited buffer against comprehensive income items of 179000, which is -3707.07x, indicating elevated exposure to market risks.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Hotel & Motel
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HST Host Hotels & Resorts, Inc. 11.01 Bn -1,000.50 3.81 5.64 Bn
2 RHP Ryman Hospitality Properties, Inc. 5.24 Bn 19.78 4.11 4.13 Bn
3 PK Park Hotels & Resorts Inc. 2.45 Bn 8.02 0.92 4.78 Bn
4 DRH DiamondRock Hospitality Co 1.84 Bn -111.00 2.53 1.19 Bn
5 XHR Xenia Hotels & Resorts, Inc. 1.80 Bn 16.40 1.94 1.42 Bn
6 PEB Pebblebrook Hotel Trust 1.65 Bn -3.89 3.73 2.57 Bn
7 RLJ RLJ Lodging Trust 1.36 Bn 31.88 1.08 2.34 Bn
8 APLE Apple Hospitality REIT, Inc. 1.13 Bn 14.99 3.09 1.62 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.06 0.89
EV to Cash from Ops. EV/CFO 16.81 26.26
EV to Debt EV to Debt 2.14 1.73
EV to EBIT EV/EBIT 17.63 25.23
EV to EBITDA EV/EBITDA 11.41 10.84
EV to Free Cash Flow [EV/FCF] EV/FCF 28.44 19.67
EV to Market Cap EV to Market Cap 1.69 13.92
EV to Revenue EV/Rev 3.29 3.79
Price to Book Value [P/B] P/B 1.19 2.70
Price to Earnings [P/E] P/E 16.40 -67.28
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.06 -3.61
Dividend Payout Ratio % Div Payout % (Qtr) 96.40 438.75
Dividend per Basic Share Div per Share (Qtr) 0.54 0.72
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 56.72 42.25
Interest Coverage Int. cover (Qtr) 1.69 1.26
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 43.24 -27.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 16.58 82.84
Dividend Growth (1y) % Div 1y % (Qtr) 17.39 15.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4.62 -26.70
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.45 -3.05
EBIT Growth (1y) % EBIT 1y % (Qtr) 46.29 -26.98
EBT Growth (1y) % EBT 1y % (Qtr) 254.60 -431.84
EPS Growth (1y) % EPS 1y % (Qtr) 143.48 -120.53
FCF Growth (1y) % FCF 1y % (Qtr) 252.43 73.92
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.66 -2.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.34
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.16
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.07
Debt to Equity Ratio Debt/Equity (Qtr) 1.21 1.85
Interest Cover Ratio Int Coverage (Qtr) 1.69 1.26
Times Interest Earned Times Interest Earned (Qtr) 1.69 1.26
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.60 23.64
EBIT Margin % EBIT Margin % (Qtr) 13.32 9.54
EBT Margin % EBT Margin % (Qtr) 5.42 -0.79
Gross Margin % Gross Margin % (Qtr) 30.30 38.19
Net Profit Margin % Net Margin % (Qtr) 5.20 -2.21