Xenia Hotels secures $100 million term loan

ORLANDO, FL – Xenia Hotels & Resorts, Inc. (NYSE:XHR) has announced the borrowing of $100 million under its delayed draw term loan commitment, according to a recent SEC filing. The transaction, completed on Thursday, increases the total outstanding term loans under the company’s amended and restated credit agreement to $325 million.

The new funding, termed the 2024 Delayed Draw Term Loan, was drawn in full on January 30, 2025, and carries the same interest rate and maturity date as the existing $225 million term loan, known as the 2024 Initial Term Loan. Both loans are governed by the same covenants and default events under the credit agreement.

Xenia, a real estate investment trust specializing in hotels and motels, utilized the proceeds to repay outstanding amounts on its revolving credit facility. The company plans to use the remaining funds for general corporate purposes, which may include refinancing other debts and supporting working capital needs.

The credit facility, which also includes a $500 million revolving line of credit, was put in place through an agreement with a syndicate of banks led by JPMorgan Chase (NYSE:JPM) Bank, N.A. The details of the credit agreement were previously disclosed in Xenia’s Quarterly Report on Form 10-Q filed on November 7, 2024.

The financial move by Xenia Hotels & Resorts comes as the company continues to manage its capital structure amidst the hospitality industry’s ongoing recovery. The information provided in this article is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Xenia Hotels & Resorts has been in the spotlight for its financial performance and strategic initiatives.

The company reported a net loss of $7.1 million in the recent third quarter, alongside an adjusted EBITDAre of $44.3 million. Despite facing challenges from hurricanes and renovation disruptions, Xenia saw a RevPAR increase of 1.5% across its portfolio. However, the firm revised its full-year adjusted EBITDAre guidance downward due to recent demand trends and the impact of Hurricane Milton.

In another development, Xenia announced its intention to offer $365 million in senior notes due in 2030. The offering aims to redeem its 6.375% senior notes due in 2025 and cover related fees and expenses. The notes will be guaranteed by Xenia and certain subsidiaries, and the proceeds will be used in conjunction with borrowings under Xenia’s amended credit agreement from 2024.

Despite a downward revision in full-year adjusted EBITDAre guidance, Xenia maintains a positive outlook, with strong future group bookings and an increase in capital expenditures planned for the year.

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