XENIA HOTELS: Needs Covenant Waivers to Remain as a Going Concern

Xenia Hotels & Resorts, Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $37,130,000 on $215,353,000 of total revenues for the three months ended March 31, 2020, compared to a net income of $17,276,000 on $293,687,000 of total revenues for the same period in 2019.

At March 31, 2020, the Company had total assets of $3,516,545,000, total liabilities of $1,835,852,000, and $1,680,693,000 in total equity.

The Company said, “As of March 31, 2020, the Company was not in compliance with one of its debt financial maintenance covenants, which was a common financial covenant that has resulted in an event of default under both its Senior Unsecured Revolving Credit Facility and its unsecured term loans. In addition, management anticipates being unable to meet most, if not all, of its debt financial maintenance covenant requirements during the next twelve months due to the ongoing impact of the COVID-19 pandemic, which is expected to significantly reduce our operating income. The Company is currently in discussions with its lender group to obtain temporary covenant relief and an extension of its term loan maturing in February 2021. Any covenant waiver or debt extension will likely lead to operating restrictions, increased costs and fees, increased interest rates, additional restrictive covenants and other lender protections that may be applicable. There can be no assurance that we will be able to obtain temporary covenant relief, payment deferrals or an extension in a timely manner, on acceptable terms, or at all and, therefore, it cannot be considered probable of occurring. If we are not able to obtain waivers of the existing events of default, our lenders could potentially accelerate amounts due under our outstanding debt agreements and related derivative contract payables for which the Company may not have sufficient liquidity to pay. Therefore, the failure to obtain waivers would have a material adverse effect on our business and financial condition. As a result, the Company has substantial doubt about its ability to continue as a going concern for the next 12 months.”

A copy of the Form 10-Q is available at:

Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. Xenia’s hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, and Hilton, as well as leading independent management companies including The Kessler Collection and Sage Hospitality. The Company is headquartered in Orlando, Florida.

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