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Investor Presentation
March 2017
Forward-Looking Statements
This presentation has been prepared by Xenia Hotels & Resorts, Inc. (the “Company” or “Xenia”) solely for informational purposes. This presentation
contains, and our responses to various questions from investors may include, “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies and financial performance, the amount and
timing of future cash distributions, our lodging portfolio, and our prospects and future events. Such statements involve known and unknown risks that
are difficult to predict. As a result, our actual financial results, performance, achievements or prospects may differ materially from those expressed or
implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,”
“expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “illustrative,” “forecasts,”
“guidance,” “project” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking
statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management based on
their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future
performance, and stockholders should not place undue reliance on forward-looking statements. Actual results may differ materially from those
expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the
factors listed and described under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by any subsequent Quarterly
Report on Form 10-Q, in each case as filed with the U.S. Securities and Exchange Commission (“SEC”). These factors are not necessarily all of the
important factors that could cause our actual financial results, performance, achievements or prospects to differ materially from those expressed in or
implied by any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. All forward-looking
statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above.
Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of
these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors
affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no
inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
On February 3, 2015, Xenia was spun off from InvenTrust Properties Corp. (“InvenTrust”). Prior to the separation, the Company effectuated certain
reorganization transactions which were designed to consolidate the ownership of its hotels into its operating partnership, consolidate its TRS lessees
in its TRS, facilitate its separation from InvenTrust, and enable the Company to qualify as a REIT for federal income tax purposes. Unless otherwise
indicated or the context otherwise requires, all financial and operating data herein reflect the operations of the Company after giving effect to the
reorganization transactions, the disposition of other hotels previously owned by the Company, and the spin-off.
Xenia Hotels & Resorts® and related trademarks, trade names and service marks of Xenia appearing in this presentation are the property of Xenia.
Unless otherwise noted, all other trademarks, trade names or service marks appearing in this presentation are the property of their respective
owners, including but not limited to Marriott International, Inc., Kimpton, Hyatt Hotels Corporation, Aston, Fairmont, Hilton Worldwide Holdings Inc.,
and Loews, or their respective parents, subsidiaries or affiliates. None of the owners of these trademarks, their respective parents, subsidiaries or
affiliates or any of their respective officers, directors, members, managers, shareholders, owners, agents or employees, has any responsibility for the
creation or contents of this presentation.
This document is not an offer to buy or the solicitation of an offer to sell any securities of the Company. Unless as specifically noted otherwise, all
information is as of February 28, 2017.
1
Company Overview
HI
FL
NM
DE
MD
TX
OK
KS
NE
SD
NDMT
WY
CO
UT
ID
AZ
NV
WA
CA
OR
KY
ME
NY
PA
VT
NH
RICT
WV
INIL
NC
TN
SC
ALMS
AR
LA
MO
IA
MN
WI
NJ
GA
DC
VA
OH
MI
MA
Primarily Located in Top 25 Lodging Markets and Key Leisure Destinations
Premium Full Service, Lifestyle and Urban Upscale Mix
Approximately 80% Luxury and Upper Upscale Hotels
Primarily Branded Hotels
42
HOTELS
10,911
ROOMS
20
STATES & DC
30
MARKETS
Aston Waikiki Beach Hotel
RiverPlace Hotel
Renaissance Austin
Andaz Savannah
Hilton Garden Inn Washington DCWestin Houston Galleria
2
Primarily Branded Hotels
60%
10%
10%
6%
5%
4%
3%
Independent
2%
Marriott
Westin
Renaissance
Autograph Collection
Courtyard
Residence Inn
Hilton Garden Inn
Hampton Inn
Andaz
Hyatt Regency
Hyatt Centric
Note: As a percentage of rooms as of 2/28/2017. Totals may not equal 100% due to rounding.
3
Strong Financial Profile
1. Share price as of 2/24/2017.
2. Adjusted EBITDA as defined in the Company’s line of credit documents; net debt as of 12/31/2016.
3. As of 12/31/2016.
4. Schedule as of 3/1/2017. Assumes all potential extension options are exercised.
Enterprise Value1 $2.8 billion
Net Debt / 2016 Adjusted EBITDA2 3.3x
Dividend Yield1 6.0%
Balance Sheet Overview3
$300M
Term
Loans
$784M
Property-
Level Debt
$400M
LOC
Availability
Debt Maturity Profile4
Unencumbered
Portfolio:
24 Hotels
> 55% of EBITDA
and Rooms
Fixed/Hedged
Floating
LOC Capacity
$95
$175
$266
$183
$73 $55
$105
$132
$400
$0
$100
$200
$300
$400
$500
$600
$700
4
2016 Highlights
Andaz Napa– Napa, CA
2016 Highlights
1. TTM as of month prior to disposition
2. Adjusted EBITDA as defined in the Company’s line of credit documents; net debt as of 12/31/2016
Differentiated Asset Management Platform
• Hotel EBITDA margin up 6 basis points despite 0.3% RevPAR decline with 73.2% flow-through
• Xenia’s proprietary Property Optimization Process (POP) completed at nine hotels in 2016
Continued Focus on Quality
• Acquired a high-quality, luxury asset in Boston with strong-growth opportunities
• Culled assets from lower end of the portfolio (average <$15k TTM1 EBITDA/key and average RevPAR >25%
discount to remainder of portfolio). Exited weakest properties in 3 markets with multi property exposure
• ~80% of assets are luxury or upscale. ADR of ~$201 across portfolio
Strong, Flexible Balance Sheet and Attractive Share Repurchases
• 3.3x net debt / 2016 Adjusted EBITDA2
• 24 properties unencumbered by debt (>55% of EBITDA)
• Full capacity available on $400 million Line of Credit and $216 million of cash on balance sheet
• Repurchased $75 million of common stock at an 8.8x weighted average EBITDA multiple
6
2016 Operating Results
1. Same-property definition can be found in fourth quarter earnings release dated 2/28/2017
Same-
Property
Portfolio1
Excluding
Houston
Occupancy Change (103) bps (3) bps
ADR Change 1.1 % 2.0%
RevPAR Change (0.3) % 1.9%
Hotel EBITDA Margin Growth 6 bps 40 bps
Company Results
Adjusted EBITDA ($ millions) $287.3
Adjusted FFO per diluted share $2.20
Aston Waikiki Beach Hotel
RiverPlace Hotel
7
Continued Focus on Cost Controls and Margin Retention
• Despite declines of 0.3% in RevPAR and 1.6% in Total Revenues in 2016, and challenges with the
Company’s Houston-area hotels, Xenia was able to maintain Hotel EBITDA margin with a 6 basis
point increase year over year
• These results were achieved largely through efficiencies in departmental operations and expense
controls via Xenia’s differentiated Asset Management platform.
2016
Hotel EBITDA
Margin Change
Andaz Napa +462 bps
Marriott San Francisco Airport Waterfront +385 bps
Marriott Dallas City Center +308 bps
Hampton Inn & Suites Baltimore Inner Harbor +266 bps
Hyatt Regency Santa Clara +136 bps
Hotel Monaco Denver +107 bps
Hilton Garden Inn Washington DC Downtown +107 bps
Andaz Napa
Marriott Dallas City Center
Hotel Monaco Denver
Hampton Inn & Suites Baltimore Inner
Harbor
8
2016 Property Optimization Process Initiatives
Scheduling to demand and
appropriate productivity levels
in multiple departments
All
Departments
F&B
Rooms Other
Xenia’s proprietary Property Optimization Process (POP) was
completed at nine hotels in 2016
Restaurant operating hours
adjustments
Menu/banquet pricing
enhancements
Service charge increases in
banquets and room service
Energy
Energy usage reduction and
LED lighting implementation
Improved sustainability efforts
such as guest opt-out options
on linens and towel change
Implementation or increase of
ancillary fees such as rollaway
beds and early departures
Enhanced guest retail efforts
through product mix
INITIATIVES
9
2016 Transaction Activity
Acquisitions: $136 million
• Acquired the 245-room Hotel Commonwealth, a
luxury independent, lifestyle hotel located in Boston,
Massachusetts
• Hotel performance expected to outperform in 2017
due to continued post-expansion ramp and favorable
market demand characteristics
Dispositions: $290 million (9 Hotels, 1,887 rooms)
• Exited several non-core, low-growth markets including
Gainesville and St. Louis
• Reduced exposure in several markets with challenging
supply / demand characteristics including Houston,
Denver and Chicago
• Hotels on average generated EBITDA1 / key over 40%
below the remaining portfolio
• Average RevPAR1 of ~$110, over 25% below the
remaining portfolio
aa
Hotel Commonwealth
Strong transaction pace in 2016 led to further improvement of the portfolio
1. TTM as of month prior to disposition
10
Recent Capital Markets Activity
• Xenia used ~$300 million in proceeds to fortify balance sheet and maintain a “best in class” leverage profile
~$280 million of Swaps
Reduced interest rate risk by swapping LIBOR on five loans
New Loans, Refinancings, and Modifications
~$50 million of incremental proceeds
~$275 million of Loan Payoffs
Addressed all debt maturities through April 2018
Grand Bohemian Hotel Charleston Hotel Palomar Philadelphia Andaz San Diego
• Lowered interest rate, lengthened duration, and reduced exposure to variable rate debt
11
2017 Outlook
Bohemian Hotel Savannah Riverfront – Savannah, GA
2017 Guidance
As of 2/28/2017, not being updated or reconfirmed
Additional Details:
Low High
RevPAR Change
(includes current 42 hotels)
(2.0)% 0.0%
Adjusted EBITDA $241 million $255 million
Adjusted FFO $195 million $209 million
Adjusted FFO per Diluted Share $1.82 $1.95
Capital Expenditures $85 million $95 million
• Average RevPAR declines of 8% to 12% at the Company's Houston-area hotels, due to the impact of continued weakness in corporate demand,
the addition of new supply, and disruption due to renovations at the Westin Galleria and Westin Oaks. The Company's Houston-area hotels are
expected to negatively impact portfolio RevPAR change by approximately 100 basis points.
• Disruption due to renovations is expected to negatively impact portfolio RevPAR change by approximately 50 basis points.
• In 2016, the nine hotels that were sold during the year contributed approximately $17 million to Adjusted EBITDA.
• General and administrative expense of $22 million to $24 million, excluding non-cash share-based compensation.
• Interest expense of $41 million to $43 million, excluding non-cash loan related costs. The expected reduction in interest expense relative to
2016 is a result of changes in debt outstanding, offset by changes in the mix of fixed and variable rate debt, and an expected change in the LIBOR
curve.
• Income tax expense of $5 million to $6 million.
13
Market
% of 2016
EBITDA1
2017
Comparative Outlook Additional Commentary
Houston, TX 10% Continued weakness in demand related to energy sectorSignificant new supply to be absorbed
San Francisco, CA 7% Soft downtown market due to Moscone renovationAirport location expected to outperform downtown
Dallas, TX 7% Weak citywide convention demandNew supply downtown in the market
Oahu Island, HI 6% Expected low but stable growth
Boston, MA 6%
Increased citywide convention demand
Continued ramp-up post expansion at Hotel
Commonwealth
Santa Clara, CA 6% Tough Q1 comparison due to Super Bowl in 2016
Denver, CO 5% Weak citywide convention demandNew supply downtown
Napa Valley, CA 5% Post-renovation ramp at Marriott
Atlanta, GA 5% Group pace up >20%Continued development of new Braves complex
Washington, D.C. 4%
Inauguration/administration change
Group pace up >65% with citywide demand up
Demand growth expected to surpass supply growth
Near Term 2017 Market Outlook
Top 10 Markets By EBITDA1
1. Represents percentage of 2016 Year-End Portfolio Hotel EBITDA
14
Key Investment Highlights
Broad portfolio mix
Focus on quality
Differentiated portfolio management
Strong financial profile
Canary Santa BarbaraHyatt Regency Santa Clara Residence Inn Boston Cambridge
15
Broad Portfolio Mix
Andaz San Diego – San Diego, CA
Geographic Diversity + Variety of Hotels =
Superior Positioning
Flexibility to choose the best type of asset in each market
Premium Full Service
~ 55% of Rooms
Lifestyle
~ 25% of Rooms
Urban Upscale
~ 20% of Rooms
• Traditional luxury and
upper upscale assets
featuring restaurants,
meeting space and a range
of other amenities
• Prime locations with
corporate, group, and
leisure demand generators
• Unique luxury and upper
upscale assets with smaller
footprints and more
modern, boutique style
• Emphasis on local influence
and unmatched experience
• One-of-a-kind restaurant
and bar experiences
• Premium branded select
service assets
• In proximity to multiple
demand generators in
urban locations
• Select service model allows
for efficient cost structure
and higher profit margin
17
Portfolio Mix Provides Various Revenue and Demand Sources
1. 10-K Annual Report 2016
2. Room nights, STR as of December 2016
Business Mix2
Transient
70%
Group
30%
Revenue Mix1
Rooms
69%
Other
5%
Food and
Beverage
26%
18
Leisure as a Driver of Demand
Key leisure destination hotels have multiple
sources of demand resulting in 7-day-a-week
business.
In 2016, our key leisure destination
hotels achieved
• 82.4% Occupancy
• $234.09 ADR
• $192.93 RevPAR
In addition, several hotels in our portfolio
located outside of key leisure destinations
drive significant leisure business based on
their location in the market.
• Santa Clara
• Boston
• Orlando
• Houston
Marriott Napa Valley Hotel & Spa
Canary Santa Barbara
Aston Waikiki Beach Hotel
Hyatt Centric Key West Resort & Spa
Bohemian Hotel Celebration
Andaz Savannah
19
Focus on Quality
Hotel Commonwealth – Boston, MA
Focus on Quality Drives Portfolio Transformation
1. InvenTrust acquired two hotel portfolios in 2007, which were placed under Xenia’s asset management platform.
2. Includes Grand Bohemian Hotel Charleston and Grand Bohemian Hotel Mountain Brook.
Since inception in 2007, transformed portfolio and significantly improved quality
through strategic transactions. Only three hotels in current portfolio were owned in 2007
Over $5.5 billion of transaction activity
since 2007
$79
$152
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2007 2016
Portfolio RevPAR
Acquisitions Dispositions
Prior
Platform1
80 Hotels 0 Hotels
2007-2009 25 Hotels 0 Hotels
2010 5 Hotels 7 Hotels
2011 3 Hotels 7 Hotels
2012 7 Hotels 15 Hotels
2013 14 Hotels 5 Hotels
2014 1 Hotel 55 Hotels
2015 5 Hotels2 1 Hotel
2016 1 Hotel 9 Hotels
21
Capital Investment Drives Internal Growth
Hotel Project
2015 Completions
Marriott San Francisco Airport Waterfront
Guestroom and bathroom renovation and addition of three
guest rooms
Hyatt Regency Santa Clara Guestroom renovation and addition of two guest rooms
Andaz Napa Guestroom, public areas and façade
2016 Completions
Hyatt Centric Key West Resort
Renovated bar, relocated new spa, guestroom renovation and
addition of two guest rooms
Marriott Napa Valley Hotel & Spa
Guestroom and bathroom renovation, pool, outdoor function
space, and meeting rooms
Hyatt Regency Santa Clara Hyatt Centric Key West Resort Marriott Napa Valley
• Xenia continually reviews opportunities to invest and recycle capital to maintain quality,
as well as increase long-term value and generate attractive returns.
Marriott San Francisco
Airport Waterfront
Note: Select projects
22
Capital Investment Drives Internal Growth (Cont.)
Hotel Project
2017 & 2018 Planned Projects
Andaz San Diego Guestroom renovation
Andaz Savannah Guestroom renovations
Hilton Garden Inn Washington DC Downtown Guestroom renovation
Hotel Monaco Chicago Guestroom renovation and restaurant repositioning
Hotel Monaco Denver Guestroom renovation
Hyatt Regency Santa Clara Lobby and meeting space renovation
Lorien Hotel and Spa Guestroom renovation
Marriott Chicago at Medical District/UIC Guestroom renovation
Marriott Dallas City Center Guestroom renovation
Marriott San Francisco Airport Waterfront Meeting space and lobby renovation
Marriott Woodlands Waterway Hotel Guestroom renovation
Residence Inn Denver Downtown Guestroom renovation
Westin Galleria Houston Guestroom renovation
Westin Oaks Houston Guestroom renovation
Marriott Dallas City Center Marriott Woodlands Waterway Hotel Residence Inn Denver DowntownHotel Monaco Chicago
Note: Select projects
23
Portfolio Weighted Towards Premium Hotels
Note: As a percentage of rooms. Totals may not equal 100% due to rounding
1. As defined by STR; Hotel Commonwealth included in Luxury (classified as Independent by STR)
Nearly 80% of rooms are Luxury or Upper Upscale1
Luxury
14%
Upper
Upscale
65%
Upscale
20%
Upper
Midscale
1%
Hotel Commonwealth
Andaz San Diego
24
Key Considerations for Portfolio Changes
Acquisitions Dispositions
Size Greater than $50 million Varies
Quality Upper upscale or luxury Varies- More heavily weighted towards upscale/midscale
Location
Top lodging market or key leisure destination
Desirable location within the market
Diversified demand generators
Secondary / tertiary market
Sub-optimal location within the market
Limited demand generators
Condition Appropriate required capital reinvestment (short and long-term)
Significant near-term capex requirements with
inadequate returns on investment
(e.g. PIP, competitive positioning capex, etc.)
Functional obsolescence
Barriers to Entry /
Supply
CBD or dense in-fill market
At or below replacement cost
Limited supply risk
(both in process and availability of land)
Low barriers to entry
Significant supply concerns
25
Differentiated Portfolio Management
Andaz Napa – Napa, CA
Differentiated Approach Drives Value Creation
Broad Footprint with Variety of Asset Types
Branded Hotels
Manager Diversification
Portfolio Management Platform Harvests Value
Multiple Demand and Revenue Sources
27
Asset Management Platform Drives Performance
Note: For those hotels operated by Marriott, our historical annual operating results represented here from 2011 to 2013 include a 52-53 week fiscal calendar used by Marriott at that time.
Otherwise presented for the calendar year. USALI 11 adjustments for 2014 when available and as reported by hotel operator.
1. Excludes hotels subsequently sold and the Andaz Napa due to earthquake disruption in the first year after acquisition
32%
33%
34%
35%
36%
37%
38%
39%
40%
$0
$100
$200
$300
$400
$500
$600
$700
Year Prior to Acquisition Acquisition Year Acquisition Year +1 Acquisition Year +2
$
M
ill
io
ns
Room Rev Other Rev GOP Margin
Properties Acquired Between 2010-20141
28
Property Optimization Process Adds Incremental Value
The Property Optimization Process (“POP”) includes an intensive site visit by industry
veteran team members, followed by a period of analysis, research, and implementation
Revenues
Expenses
Rooms
F&B
Engineering
Misc.
• The XHR “POP” has been
completed at ~45% of our
hotels accounting for nearly
60% of the room inventory.
• Implementation by property
and corporate management
teams
• Extend to remainder of hotels
in the portfolio over the next
few years
$4.1 million in implemented total net
enhancements and reductions from
2014 – 2016 POP reviews.
5%
40%
19%
12%
11%
13%
29
Case Study: Marriott San Francisco Airport Waterfront
Improvement Opportunity
• Need for capital investment with last renovations
completed in 2006 through 2008.
• Through strategic relationship with Marriott, launched
the first “M Club Lounge” in the Marriott system.
• Completed $18.4 million comprehensive guest room and
bathroom renovation in 2015.
• “POP” analysis and other strategic improvements
initiated and implemented post-renovation.
• $4.4 million meeting space and public area renovations
to be completed in 2017.
Acquisition
March 2012
$108 million - $157,664 per key
Total Current Investment: $132.8 million
30
Case Study: Marriott San Francisco Airport Waterfront
(continued)
1. YE 2016 compared to T12 at acquisition.
For hotels operated by Marriott, historical annual operating results represented here, 2013 and prior, include a 52-53 week fiscal calendar used by Marriott at that time.
Asset Performance1
RevPAR $82.90 or 73.3%
Total Revenue $24.4 million or 56.3%
GOP $17.0 million or 127.8%
EBITDA Margin 1,040 bps
Market Share 8.9 index points
$9,335
EBITDA
• Optimized market mix with increased focus
on negotiated corporate and high quality
group business
• Incremental revenue and savings
implemented based on “Property
Optimization Process” findings
o Improved efficiencies in housekeeping
and engineering operations
o Implemented amenity fees
o Optimized F&B items and offerings
$21,642
31
Strong Financial Profile
Hilton Garden Inn Washington D.C.
Conservative Leverage Profile
Sources: SNL Financial
1. 2016 Adjusted EBITDA as reported; net debt as of 12/31/2016
2. Adjusted EBITDA definition varies from Line of Credit definition. Per Line of Credit definition Net Debt/Adjusted EBITDA is 3.3x
Net Senior Capital / 2016 Adjusted EBITDA1
7.3x
7.0x
4.8x 4.7x
3.5x
3.1x 3.1x
2.8x
2.3x
HT FCH PEB CHSP LHO XHR RLJ DRH SHO
Net Debt Preferred Equity
2
33
Unencumbered Assets Enhance Flexibility
Property Keys Property Keys
Marriott San Francisco Airport Waterfront 688 Residence Inn Baltimore Inner Harbor 188
Aston Waikiki Beach Hotel 645 Courtyard Pittsburgh Downtown 182
Renaissance Atlanta Waverly Hotel & Convention Center 522 Andaz San Diego 159
Renaissance Austin Hotel 492 Courtyard Kansas City Country Club Plaza 123
Marriott Griffin Gate Resort & Spa 409 Courtyard Birmingham Downtown at UAB 122
Marriott Woodlands Waterway Hotel & Convention Center 343 Hyatt Centric Key West Resort & Spa 120
Hilton Garden Inn Washington DC Downtown 300 Hampton Inn & Suites Baltimore Inner Harbor 116
Marriott Napa Valley Hotel & Spa 275 Bohemian Hotel Celebration 115
Hotel Commonwealth 245 Marriott Chicago at Medical District/UIC 113
Hotel Monaco Salt Lake City 225 Lorien Hotel & Spa 107
Marriott West Des Moines 219 Canary Santa Barbara 97
Courtyard Fort Worth Downtown/Blackstone 203 RiverPlace Hotel 84
Unencumbered assets represent:
>55% of rooms
24 hotels
>55% of Hotel EBITDA
~$27,000 Hotel EBITDA / Key
6,092 rooms
~$155.00 RevPAR
34
Debt Maturity Profile, inclusive of extensions
Note: Schedule as of March 1, 2017. Assumes all potential extension options are exercised
1. Includes seven floating rate loans for which LIBOR has been fixed over the life of the loans
2. Unsecured Line of Credit of $400 million shown at fully extended maturity
No maturities through April 2018; manageable maturities in 2018 and 2019
Fixed 1
Floating
Line of Credit Capacity 2
WA Fixed Rate
Maturing Debt
N/A N/A N/A 3.13% 2.79% 3.77% 4.14% N/A 4.48% 4.53%
WA Floating Rate
Maturing Debt
N/A 3.04% 2.66% 3.01% 3.09% N/A N/A N/A N/A N/A
# Loans
Maturing
0 2 1 8 3 3 1 0 1 1
$95
$175
$266
$60 $63 $60 $73 $55
$105
$132
$400
$0
$100
$200
$300
$400
$500
$600
$700
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
35
Dividends, Share Repurchases, and TSR Highlights
1. Share price as of 2/24/2017
2. Calculated using 2016 Adjusted FFO less 5% FF&E reserve on full year 2016 revenues
3. Peers include APLE, CHSP, DRH, FCH, HT, LHO, PEB, RLJ, SHO
Dividend Yield1
6.0%
Payout Ratio2
61.6%
Strong
Dividend Dividend / Share
$1.10
2016 Coverage
1.62x
Executing against share repurchase authorization
Approximately $75 million purchased in 2016
8.8x weighted average EBITDA multiple
Over $100 million remaining authorization
2016 Total Shareholder Return
XHR 35.5%
Comparable Lodging
REITs3
16.6%
MSCI US REIT Index 8.6%
36
What You Can Continue to Expect from Us
Opportunistic investing
Transaction-oriented mindset with focus on quality
Aggressive asset management initiatives
Healthy balance sheet throughout the cycle
Leveraging relationships with brands and managers
37
Non-GAAP Financial Measures
We consider the following non-GAAP financial measures useful to investors as key supplemental measures of our operating performance: Gross Operating Profit (GOP), GOP margin, EBITDA, Adjusted EBITDA, FFO and
Adjusted FFO. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss, operating profit, cash from operations, or any other operating performance measure as
prescribed per GAAP. Please refer to the Company's filings with the SEC and its earnings releases, which are available in the investor relations section of the Company’s website at www.xeniareit.com, for disclosure of the
Company's net income, for reconciliations of GOP and GOP Margin, EBITDA and EBITDA Margin, FFO and Adjusted FFO, Adjusted FFO per diluted share, to net income and for additional detail on the Company's use of non-
GAAP measures.
Gross Operating Profit (GOP) and GOP Margin
We calculate hotel GOP in accordance with the Uniform System Accounts for the Lodging Industry (USALI) Eleventh Revised Edition, which defines GOP as net income or loss (calculated in accordance with GAAP) after
adding back base and incentive management fees, non-operating income and expenses, replacement reserve and excluding franchise fees. We believe GOP provides another financial measure in evaluating and facilitating
comparison of operating performance between periods of our underlying hotel property entities.
EBITDA and Adjusted EBITDA
EBITDA is a commonly used measure of performance in many industries and is defined as net income or loss (calculated in accordance with GAAP) excluding interest expense, provision for income taxes (including income
taxes applicable to sale of assets) and depreciation and amortization. The Company considers EBITDA useful to an investor regarding results of operations, in evaluating and facilitating comparisons of operating
performance between periods and between REITs by removing the impact of capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from operating results, even though
EBITDA does not represent an amount that accrues directly to common stockholders. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions and along with FFO and
Adjusted FFO, it is used by management in the annual budget process for compensation programs. The Company further adjusts EBITDA for certain additional items such as hotel property acquisitions and pursuit costs,
amortization of share-based compensation, equity investment adjustments, the cumulative effect of changes in accounting principles, impairment of real estate assets, operating results from properties sold and other costs it
believes do not represent recurring operations and are not indicative of the performance of its underlying hotel property entities. The Company believes Adjusted EBITDA provides investors with another financial measure
in evaluating and facilitating comparison of operating performance between periods and between REITs that report similar measures. Hotel EBITDA and Hotel EBITDA Margin The Company calculates Hotel EBITDA in
accordance with USALI, which defines hotel EBITDA as net income or loss (calculated in accordance with GAAP) after adding back replacement reserves. Hotel EBITDA Margin is calculated by dividing Hotel EBITDA by Total
Operating Revenues.
Hotel EBITDA and Hotel EBITDA Margin
The Company calculates Hotel EBITDA in accordance with the current edition of USALI, which is defined as net income or loss (calculated in accordance with GAAP) after adding back replacement reserves. Hotel EBITDA
Margin is calculated by dividing Hotel EBITDA by Total Operating Revenues.
FFO and Adjusted FFO
We calculate FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which defines FFO as net income or loss (calculated in accordance with GAAP), excluding
real estate-related depreciation, amortization and impairments, gains (losses) from sales of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and
joint ventures, and items classified by GAAP as extraordinary. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values
instead have historically risen or fallen with market conditions, most industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by
themselves. We believe that the presentation of FFO provides useful supplemental information to investors regarding our operating performance by excluding the effect of real estate depreciation and amortization, gains
(losses) from sales for real estate, impairments of real estate assets, extraordinary items and the portion of these items related to unconsolidated entities, all of which are based on historical cost accounting and which may
be of lesser significance in evaluating current performance. We believe that the presentation of FFO can facilitate comparisons of operating performance between periods and between REITs, even though FFO does not
represent an amount that accrues directly to common stockholders. Our calculation of FFO may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not
calculate FFO per diluted share in accordance with NAREIT guidance. Additionally, FFO may not be helpful when comparing us to non-REITs.
We further adjust FFO for certain additional items that are not in NAREIT’s definition of FFO such as hotel property acquisition and pursuit costs, amortization of debt origination costs and share-based compensation,
operating results from properties that are sold and other expenses we believe do not represent recurring operations. We believe that Adjusted FFO provides investors with useful supplemental information that may
facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors’ complete understanding of our operating performance.
FFO, Adjusted FFO, EBITDA and Adjusted EBITDA do not represent cash generated from operating activities under GAAP and should not be considered as alternatives to net income or loss, operating profit, cash flows from
operations or any other operating performance measure prescribed by GAAP. Although we present and use FFO, Adjusted FFO, EBITDA and Adjusted EBITDA because we believe they are useful to investors in evaluating and
facilitating comparisons of our operating performance between periods and between REITs that report similar measures, the use of these non-GAAP measures has certain limitations as analytical tools. These non-GAAP
financial measures are not measures of liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to fund capital expenditures, contractual commitments, working capital, service debt or
make cash distributions. These measures do not reflect cash expenditures for long-term assets and other items that we have incurred and will incur. These non-GAAP financial measures may include funds that may not be
available for management’s discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, and other commitments and uncertainties. These non-GAAP financial measures
as presented may not be comparable to non-GAAP financial measures as calculated by other real estate companies. Therefore, these measures should not be considered in isolation or as an alternative to GAAP measures. For
a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for historical periods presented and our calculation of Hotel EBITDA, please refer to our website www.xeniareit.com
Adjusted FFO per diluted share
The Company calculates Adjusted FFO per diluted share by dividing the Adjusted FFO for the respective period by the diluted weighted average number of common stock shares for the corresponding period. The Company’s
diluted weighted average number of common shares outstanding is calculated by taking the weighted average of the common stock outstanding for the respective period plus the effect of any dilutive securities. Any anti-
dilutive securities are excluded from the diluted earnings per-share calculation.
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