Xenia Hotels & Resorts, Inc (XHR) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $8.11 million, or $ 0.07 a share in the quarter, against a net loss of $8.92 million, or $0.08 a share in the last year period. Revenue during the quarter dropped 7.05 percent to $218.46 million from $235.04 million in the previous year period.
Cost of revenue dropped 8.45 percent or $12.95 million during the quarter to $140.24 million. Gross margin for the quarter expanded 98 basis points over the previous year period to 35.81 percent.
Total expenses were $198.07 million for the quarter, down 11.53 percent or $25.81 million from year-ago period. Operating margin for the quarter expanded 459 basis points over the previous year period to 9.33 percent.
Operating income for the quarter was $20.39 million, compared with $11.15 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $59.09 million compared with $62.53 million in the prior year period. At the same time, adjusted EBITDA margin improved 44 basis points in the quarter to 27.05 percent from 26.60 percent in the last year period.
For financial year 2017, Xenia Hotels & Resorts projects net income to be in the range of $36 million to $49 million.
Occupancy revenue was $144.45 million for the quarter, down 9.33 percent or $14.87 million. Food and beverage revenue was $61.82 million during the quarter, down 2.59 percent or $1.64 million from year-ago period. Revenue from other hotel operating activities was $12.18 million for the quarter, down 0.53 percent or $0.07 million from year-ago period.
"We are pleased with the performance of our portfolio during the quarter and remain focused on enhancing bottom-line efficiency, as demonstrated by our continued margin improvement," commented Marcel Verbaas, President and Chief Executive Officer of Xenia. "Our Houston-area hotels experienced positive RevPAR growth for the quarter as our assets benefited from Super Bowl LI and the Easter shift into April. Additionally, we had several markets that outperformed the overall lodging industry during the quarter. We have made significant strides in upgrading the quality of our portfolio over the past several years and continued this theme through the sale of the Courtyard Birmingham at UAB which was completed in April. We will look to continue improving the quality of our portfolio through transactions as well as capital expenditures during 2017 and beyond.”
Total assets stood at $2,834.48million as on Mar. 31, 2017. On the other hand, total liabilities were at $1,202.16 million as on Mar. 31, 2017.
Return on assets was at 0.65 percent in the quarter. At the same time, return on equity was at 0.50 percent in the quarter.
Shareholders equity was at $1,632.32 million as on Mar. 31, 2017.
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