Xenia Hotels & Resorts, Inc. (NYSE:XHR) Q1 2024 Earnings Call Transcript

Barry Bloom: I guess when I think about as it relates to our portfolio and the markets we’re in that drive leisure business in the larger hotels, right, so, I think — really think about it two ways. One, larger hotels and then our smaller market, leisure-driven hotels. But when we think certainly near term and midterm about Orlando, Phoenix, Scottsdale, Aviara, that we think those properties all have really good attributes to them that will continue to drive performance and are not seeing anything that resembles softness in leisure in those higher-end resort properties. So — and we feel good about that. Again, they’re not positioned at the super ultra-luxury level. They’re positioned at a level that guests really like and want to visit those resorts.

And if there’s sufficient demand in those markets, will keep driving those. I think the — we’re certainly seeing normalization of demand in our leisure markets like Key West and Savannah and Northern California being Napa in our case, but nothing that is truly problematic in terms of the leisure downturn. Napa, for example, had another very, very tough quarter in terms of weather, which was no doubt part of the challenge there. But I think as we look across the portfolio, our assets are really desirable within their markets. We’ve not seen leisure — we’ve seen leisure, I mean, we use the word normalize really for a reason, that it’s a normalization. The part that we’re also particularly continuing to be enthusiastic about is that in general, we’ve been able to hold to the rate levels that we started to achieve during COVID.

Have they softened a little bit in some markets? Yeah, sure they have, but the guest has really been retrained and reaccustomed to paying a much, much higher rate for their leisure stays.

Bill Crow: Okay. All right. I appreciate that. We’re just — we’re trying to dissect as much information on the consumer as we can. There’s a lot of uncertainty out there. So, I appreciate your commentary. Thank you.

Operator: Thank you. At this time, we currently have no further questions, so I’ll hand back to Marcel Verbaas for any further remarks.

Marcel Verbaas: Thanks, Alex, and thanks, everyone, for joining us today. We’re certainly pleased with the continued momentum that we’re seeing within our portfolio and in our markets, and we look forward to seeing many of you at May REIT or any other conferences coming up or meeting opportunities. So thanks again for joining us today and look forward to speaking to you next.

Operator: Thank you for joining today’s call. You may now disconnect your lines.