Xenia Hotels & Resorts withdrew its 2020 guidance due to growing uncertainty around the coronavirus. The company also reported that it has seen more group cancellations since giving initial guidance on 24 February.
ORLANDO, Fla., March 11, 2020 -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced that it is withdrawing its previously issued full-year 2020 guidance due to increased uncertainty related to the financial impact of COVID-19 to the Company.
Since the Company issued full-year guidance on February 24, 2020, group cancellations have increased to approximately $15 million of revenues. Group cancellations to date are primarily for March and April 2020. This estimate excludes group cancellation fees which may be received. Additionally, transient cancellations have significantly increased, which the Company attributes to corporate travel restrictions and the negative sentiment towards travel as a result of COVID-19.
The Company's operating partners are working to rebook canceled activity for later in the year. However, as a result of cancellations experienced to date, as well as continued uncertainty, the Company is not able to accurately estimate the potential impact on full-year 2020 results at this time.
Marcel Verbaas, Chairman and Chief Executive Officer of Xenia, commented, "Over the past few weeks, we have seen a significant rise in cancellations across our portfolio as a result of growing concerns amidst the COVID-19 outbreak. As the outbreak and global reactions continue to develop, we believe it is prudent at this time to withdraw our full-year 2020 guidance while we continue to monitor and evaluate the financial impact across our portfolio. We are working with our operating partners across our portfolio to ensure appropriate measures are in place to maintain the safety of our guests and our operators' employees. Our hotel operators are expected to adjust operations, as appropriate, depending on the duration and severity of the outbreak."
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