Xenia Hotels & Resorts, Inc. (XHR) has reported a 21.08 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $48.76 million, or $0.44 a share in the quarter, compared with $61.78 million, or $0.55 a share for the same period last year.
Revenue during the quarter dropped 11.58 percent to $219.80 million from $248.59 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 36.29 percent. Total expenses were 89.46 percent of quarterly revenues, up from 86.77 percent for the same period last year. That has resulted in a contraction of 269 basis points in operating margin to 10.54 percent.
Operating income for the quarter was $23.16 million, compared with $32.89 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $64.13 million compared with $73.19 million in the prior year period. At the same time, adjusted EBITDA margin contracted 27 basis points in the quarter to 29.17 percent from 29.44 percent in the last year period.
"Our portfolio performed in-line with our expectations during the fourth quarter, as Same-Property RevPAR came in toward the higher end of our implied guidance range and Adjusted FFO exceeded the top end of the range," commented Marcel Verbaas, President and Chief Executive Officer of Xenia. "Our quarterly results were negatively impacted by the continued weakness in the Houston market, disruption due to renovations, and weak food and beverage revenues at several of our larger, group-oriented hotels. Several non-recurring events in the fourth quarter of 2015 also impacted the year-over-year comparison.
For fiscal year 2017, Xenia Hotels & Resorts, Inc. projects net income to be $40 million. The company forecasts net income to be in the range of $34 million to $48 million.
Debt comes down marginally
Xenia Hotels & Resorts, Inc. has recorded a decline in total debt over the last one year. It stood at $1,077.13 million as on Dec. 31, 2016, down 1.59 percent or $17.40 million from $1,094.54 million on Dec. 31, 2015. Xenia Hotels & Resorts has recorded a decline in long-term debt over the last one year. It stood at $1,077.13 million as on Dec. 31, 2016, down 1.59 percent or $17.40 million from $1,094.54 million on Dec. 31, 2015. Total debt was 37.66 percent of total assets as on Dec. 31, 2016, compared with 36.41 percent on Dec. 31, 2015. Debt to equity ratio was at 0.65 as on Dec. 31, 2016, up from 0.63 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.29 for the quarter from 2.72 for the same period last year.
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