Xenia Hotels & Resorts, Inc.

Hello and welcome to the Xenia Hotels and Resorts Inc. Q2 2023 Earnings Conference Call. My name is Elliot and I'll be coordinating your call today. If you would like to register a question during today's event, please press R followed by 1 on your telephone keypad. I'd now like to hand over to Amanda Bryan, Vice President of Finance. The floor is yours. Please go ahead.

Thank you, Elliot, and welcome to Xenia Hotels and Resorts Second Quarter 2023 Earnings Call and Webcast. I'm here with Marcel Verbas, our chair and chief executive officer, Barry Bloom, our president and chief operating officer, and Atish Shah, our executive vice president and chief financial officer. Marcel will begin with the discussion on our performance. Barry will follow with more details on operating trends and capital expenditure projects, and Atish will conclude today's remarks on our balance sheet and outlook for 2023. We will then open the call for Q&A. Before we get started, Let me remind everyone that certain statements made on this call are not historical facts and are considered forward-looking statements. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K and other SEC filings, which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward-looking statements in our earnings release that we issued this morning along with the comments on this call are made only as of today August 2, 2023, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find reconciliations of non-GAAP financial measures to net income and definitions of certain items referred to in our remarks in the earnings release, which is available on the investor relations section of our website. The second quarter 2023 property level portfolio information we'll be speaking about today is on the same property basis for all 32 hotels, unless specified otherwise. An archive of this call will be available on our website for 90 days. I will now turn it over to Marcel to get started.

Thanks, Amanda, and good afternoon to everyone joining our call today. While overall results for the quarter were slightly below our expectations, the year is unfolding largely as we expected. Our demand segmentation mix continues to return towards pre-pandemic levels, as leisure demand has started to normalize, while business transit and group demands continue to recover. And we are seeing good earnings contribution from our recently acquired hotels, W. Nashville and I. Regency Portland at the Oregon Convention Center. For the quarter, we reported net income of $13.8 million, adjusted EBIT IRA of $74.7 million, and adjusted FFO per share of 47 cents. With all of these measures reflecting declines against outsized results in the second quarter of 2022. Same property ref are in the quarter was $182.49. A modest decrease of 2% as compared to 2022. As a result of software demands in a select number of our leader oriented properties, negative weather impact at our California hotels and resorts. And impact from our ongoing renovations. Occupancy decreased 10 basis points as compared to the second quarter of 2022, while average daily rate decreased 1.8%. Excluding renovation impacts in the quarter at Grand Bohemian Orlando, Hotel Monaco Salt Lake City, and Hyatt Regency Scottsdale, we estimate that same property, Ref Bar, would have been nearly flat compared to the second quarter of 2022. As compared to the second quarter of 2019, Ref Bar for the 30 hotels we currently own that were open at that time was down 1.6% in the quarter. For these 30 hotels, which exclude Hyde Regency Portland and W Nashville, occupancy was roughly 11 points below 2019, while ADR was up 14.7%.