Xenia Hotels & Resorts, Inc. (NYSE:XHR) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 01:00 pm ET


Xenia Hotels & Resorts, Inc. (NYSE:XHR) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Xenia Hotels & Resorts, Inc. Second Quarter 2020 Earnings Conference Call and Webcast. [Operator instructions] Please note, this event is being recorded.

I would now like to turn the conference call over to Ms. Lisa Ramey, Vice President, Finance. Ms. Ramey, the floor is yours, ma'am.

Lisa Ramey

Thank you, Mike. Good afternoon, everyone, and welcome to the second-quarter 2020 earnings call and webcast for Xenia Hotels & Resorts. I'm here with Marcel Verbaas, our Chairman and Chief Executive Officer; Barry Bloom, our President and Chief Operating Officer; and Atish Shah, our Chief Financial Officer. Marcel will begin with a discussion of the quarter and details on our current portfolio status.

Barry will follow with operating details and an update on our major capital projects, and Atish will finish the call discussing our liquidity and balance sheet. Following today's prepared remarks, we will open the call for Q&A. Before we get started, let me remind everyone that certain statements made on this call are not historical facts and are considered forward-looking statements. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K and other SEC filings, which could cause our actual results to differ materially from those expressed in or implied by our comments.

Forward-looking statements in the earnings release that we issued earlier this morning, along with the comments on this call, are made only as of today, July 30, 2020, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find a reconciliation of non-GAAP financial measures to net income and definitions of certain items referred to in our remarks in this morning's earnings release. An archive of this call will be available on our website for 90 days.

With that, I'll turn it over to Marcel to get started.

Marcel Verbaas

Thanks, Lisa, and thank you all for joining our second-quarter 2020 earnings call. It's hard to believe how much has changed in the lodging industry since the beginning of the year or even since our first-quarter earnings call in early May. The second-quarter operating environment was unlike anything we have experienced in the lodging industry. With the sector facing dramatic declines in revenues as the COVID-19 pandemic resulted in government-mandated lockdowns, restrictions on travel, and a severe negative impact on consumer desire to travel.

I would like to again thank our hotel operating teams and corporate employees for their agility and resilience during this unprecedented time and their continued dedication to the health and safety of guests at our hotels and resorts. Faced with this environment, we took swift and decisive action to preserve company value and liquidity as we outlined in our first-quarter earnings call. These actions include drawing down the balance of our revolving credit facility, working with our operators to significantly reduce operating expenses and working capital requirements at our hotels and resorts, a substantial reduction in staffing and expenses at the corporate level, a