Xenia Hotels Resorts Inc

Previous wording

Xenia 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 lodging markets as well as key leisure destinations in the United States ("U.S."). As of December 31, 2023, we owned 32 hotels and resorts, comprising 9,514 rooms across 14 states. Our hotels are primarily operated and/or licensed by industry leaders such as Marriott, Hyatt, Fairmont, Kimpton, Loews, Hilton, The Kessler Collection and Davidson.

Current wording

Xenia 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 lodging markets as well as key leisure destinations in the United States ("U.S."). As of December 31, 2024, we owned 31 hotels and resorts, comprising 9,408 rooms across 14 states. Our hotels are primarily operated and/or licensed by industry leaders such as Marriott, Hyatt, Fairmont, Kimpton, Loews, Hilton, and The Kessler Collection.

Previous wording

We plan to grow our business through a differentiated acquisition strategy, aggressive asset management and capital investment in our properties. We primarily target markets and sub-markets with particular positive characteristics, such as multiple demand generators, favorable supply and demand dynamics and attractive projected hotel revenue growth. We believe our focus on a broader range of markets allows us to evaluate a greater number of acquisition opportunities and thereby be highly selective in our pursuit of only those opportunities that best fit our investment criteria. We own and pursue hotels and resorts in the luxury and upper upscale hotel segments that are affiliated with premium leading brands, as we believe that these segments yield attractive risk-adjusted returns. Within these segments, we focus on hotels and resorts that will provide guests with a distinctive lodging experience and that are tailored to reflect local market environments.

Current wording

We plan to grow our business through a differentiated acquisition strategy, proactive asset management and capital investment in our properties. We primarily target markets and sub-markets with particular positive characteristics, such as multiple demand generators, favorable supply and demand dynamics and attractive projected hotel revenue growth. We believe our focus on a broader range of markets allows us to evaluate a greater number of acquisition opportunities and thereby be highly selective in our pursuit of only those opportunities that best fit our investment criteria. We own and pursue hotels and resorts in the luxury and upper upscale hotel segments that are affiliated with premium leading brands, as we believe that these segments yield attractive risk-adjusted returns. Within these segments, we focus on hotels and resorts that will provide guests with a distinctive lodging experience and that are tailored to reflect local market environments.

Previous wording

We also seek properties that exhibit an opportunity for us to enhance operating performance through aggressive asset management and targeted capital investment. While we do not operate our hotel properties, our asset management team and our executive management team monitor and work with our hotel managers by conducting regular revenue, sales, and financial performance reviews and also perform in-depth on-site reviews focused on ongoing operating margin improvement initiatives. We interact frequently with our management companies and on-site management personnel, including conducting regular meetings with key executives of our management companies and brands. Through these efforts, we seek to enhance the guest experience, improve property efficiencies, lower costs, maximize revenues, and grow property operating margins which we expect will increase long-term returns to our stockholders.

Current wording

We also seek properties that exhibit an opportunity for us to enhance operating performance through proactive asset management and targeted capital investment. While we do not operate our hotel properties, our asset management team and our executive management team monitor and work with our hotel managers by conducting regular revenue, sales, and financial performance reviews and also perform in-depth on-site reviews focused on ongoing operating margin improvement initiatives. We interact frequently with our management companies and on-site management personnel, including conducting regular meetings with key executives of our management companies and brands. Through these efforts, we seek to enhance the guest experience, improve property efficiencies, lower costs, maximize revenues, and grow property operating margins which we expect will increase long-term returns to our stockholders.

Previous wording

The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership and XHR Holding. The Company's subsidiaries generally consist of limited liability companies, limited partnerships and the TRS. The effects of all inter-company transactions have been eliminated. Corporate costs directly associated with our executive offices, personnel and other administrative costs are reflected as general and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

Current wording

The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership and XHR Holding. The Company's subsidiaries generally consist of limited liability companies, limited partnerships and the TRS. The effects of all inter-company transactions have been eliminated. Corporate costs directly associated with our executive offices, personnel and other administrative costs are reflected as general and administrative expenses on the consolidated statements of operations and comprehensive income.

Previous wording

The U.S. lodging industry has historically exhibited a strong correlation to U.S. GDP, which increased at an annual rate of approximately 2.5% during 2023, according to the U.S. Department of Commerce, in comparison to an increase of approximately 1.9% during 2022. The increase in GDP during the year ended December 31, 2023 reflected increases in consumer spending, nonresidential fixed investment, state and local government spending, exports, and federal government spending as well a decrease in imports that were partially offset by decreases in residential fixed investment and inventory investment. During the fourth quarter of 2023, GDP increased at an annual rate of 3.3%, representing a decrease from the annual rate of 4.9% in the third quarter of 2023. The increase during the fourth quarter of 2023 reflected increases in consumer spending, exports, state and local government spending, federal government spending, private inventory investment, and residential and nonresidential fixed investment that were partially offset by an increase in imports. In addition, the unemployment rate decreased slightly to 3.7% in December 2023 compared to 3.8% in September 2023 and increased from 3.6% in June 2023.

Current wording

The U.S. lodging industry has historically exhibited a strong correlation to U.S. GDP, which increased at an annual rate of approximately 2.8% during 2024, according to the U.S. Department of Commerce, which was similar in comparison to an increase of approximately 2.9% during 2023. The increase in GDP during the year ended December 31, 2024 reflected increases in consumer spending, investment, government spending and exports that were partially offset by an increase in imports. During the fourth quarter of 2024, GDP increased at an annual rate of 2.3%, a decrease from the annual rate of 3.1% in the third quarter of 2024. The increase during the fourth quarter of 2024 reflected increases in consumer spending and government spending as well as a decrease in imports that were partially offset by a decrease in investment. In addition, the unemployment rate remained flat at 4.1% in December 2024 compared to September 2024 and June 2024.

Previous wording

As operating results continued to gain strength following the COVID-19 pandemic, overall industry lodging demand increased 1.1% and new hotel supply increased by 0.5% during the year ended December 31, 2023 compared to 2022. The increase in demand led to an increase in industry RevPAR of 4.9% for the year ended December 31, 2023 compared to 2022, which was driven by an increase in occupancy of 0.6% coupled with a 4.3% increase in ADR. All U.S. data for the year ended December 31, 2023 are per industry reports.

Current wording

Overall industry lodging demand increased 0.5% and new hotel supply increased by 0.5% during the year ended December 31, 2024 compared to 2023. Industry RevPAR increased 1.8% for the year ended December 31, 2024 compared to 2023, which was primarily driven by a 1.7% increase in ADR. All U.S. data for the year ended December 31, 2024 are per industry reports.

Previous wording

•During the year ended December 31, 2023, 10,414,262 shares were repurchased at a weighted-average price of $12.74 per share for an aggregate purchase price of $132.7 million.

Current wording

•During the year ended December 31, 2024, 1,130,846 shares were repurchased at a weighted-average price of $14.02 per share for an aggregate purchase price of $15.8 million.

Previous wording

•We invested approximately $120.9 million in portfolio improvements, which we believe will drive positive performance at these properties in the future. In June 2023, we commenced the transformative renovation and upbranding of the 491-room Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch to a Grand Hyatt with completion of all phases expected by the end of 2024. Upon completion, the property will have five additional keys, or 496 rooms.

Current wording

•We invested approximately $140.6 million in portfolio improvements, which we believe will drive positive performance at these properties in the future. We completed most components of the transformative renovation of the former Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch. In November 2024, the property was upbranded to Grand Hyatt Scottsdale Resort.

Previous wording

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of our financial statements and the reported amounts of revenues and expenses during the reporting period. We consider the following policies critical because they require the most difficult, subjective and complex judgments and include estimates about matters that are inherently uncertain, involve various assumptions, require management judgment, and because they are important for understanding and evaluating our reported financial results. As a result, these accounting policies could materially affect our financial position, results of operations and related disclosures. We evaluate our estimates, assumptions and judgments on an ongoing basis, based on information that is then available to us, our historical experiences and various matters that we believe are reasonable and appropriate for consideration under the circumstances. Actual results may differ significantly from these estimates due to changes in judgments, assumptions and conditions as a result of unforeseen events or otherwise, which could have a material impact on financial position or results of operations. All of our significant accounting policies are disclosed in the notes to our consolidated financial statements in "Part IV. Exhibits and Financial Statements Schedules." The following represent certain critical accounting policies that require us to exercise our business judgment or make significant estimates.

Current wording

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of our financial statements and the reported amounts of revenues and expenses during the reporting period. We consider the following policies critical because they require the most difficult, subjective and complex judgments and include estimates about matters that are inherently uncertain, involve various assumptions, require management judgment, and because they are important for understanding and evaluating our reported financial results. As a result, these accounting policies could materially affect our financial position, results of operations and related disclosures. We evaluate our estimates, assumptions and judgments on an ongoing basis, based on information that is then available to us, our historical experiences and various matters that we believe are reasonable and appropriate for consideration under the circumstances. Actual results may differ significantly from these estimates due to changes in judgments, assumptions and conditions as a result of unforeseen events or otherwise, which could have a material impact on financial position or results of operations. All of our significant accounting policies are disclosed in the notes to our consolidated financial statements in "Part IV-Item 15. Exhibits and Financial Statements Schedules." The following represent certain critical accounting policies that require us to exercise our business judgment or make significant estimates.

Previous wording

Acquired assets are recorded at their relative fair value based on total accumulated costs of the acquisition, which includes direct acquisition-related costs. Identifiable assets include land, land improvements, building and building improvements, furniture, fixtures and equipment, inventory and identifiable intangible assets or liabilities. Identifiable intangible assets or liabilities typically arise from contractual arrangements assumed in connection with the transaction, including terms that are above or below market compared to an estimated market agreement at the acquisition date. The allocation of the purchase price to elements of our acquired hotel properties is an area that requires judgment and significant estimates. Therefore, the amounts allocated to acquired assets and liabilities could be materially different than if that transaction had occurred on a different date or in a different location. At times estimates are determined based on limited data for comparable market transactions, such as discount rates used in the market or income valuation approach, or the purchase involves land or a ground lease in a niche market. This could materially impact the allocation to identifiable assets and the related amortization and depreciation over future periods if the value was assigned to another identifiable asset acquired.

Current wording

Acquired assets are recorded at their relative fair value based on total accumulated costs of the acquisition, which includes direct acquisition-related costs. Identifiable assets include land, land improvements, buildings and building improvements, furniture, fixtures and equipment, inventory and identifiable intangible assets or liabilities. Identifiable intangible assets or liabilities typically arise from contractual arrangements assumed in connection with the transaction, including terms that are above or below market compared to an estimated market agreement at the acquisition date. The allocation of the purchase price to elements of our acquired hotel properties is an area that requires judgment and significant estimates. Therefore, the amounts allocated to acquired assets and liabilities could be materially different than if that transaction had occurred on a different date or in a different location. At times estimates are determined based on limited data for comparable market transactions, such as discount rates used in the market or income valuation approach, or the purchase involves land or a ground lease in a niche market. This could materially impact the allocation to identifiable assets and the related amortization and depreciation over future periods if the value was assigned to another identifiable asset acquired.

Previous wording

Our total portfolio RevPAR, which includes the results of hotels sold or acquired for the period of ownership by the Company, increased 4.1% to $169.46 for the year ended December 31, 2023, compared to $162.75 for the year ended December 31, 2022. The increase in our total portfolio RevPAR for the year ended December 31, 2023 compared to the same period in 2022 was driven by increases in both occupancy and ADR.

Current wording

Our total portfolio RevPAR, which includes the results of hotels sold or acquired for the period of ownership by the Company, increased 1.7% to $172.36 for the year ended December 31, 2024, compared to $169.46 for the year ended December 31, 2023. The increase in our total portfolio RevPAR for the year ended December 31, 2024 compared to the same period in 2023 was driven by an increase in occupancy partially offset by a decrease in ADR.

Previous wording

Net income decreased 65.5% for the year ended December 31, 2023 compared to 2022, which was primarily attributed to:

Current wording

Net income decreased 15.1% for the year ended December 31, 2024 compared to 2023, which was primarily attributed to:

Previous wording

•a $0.9 million increase in loss on extinguishment of debt; and

Current wording

•a $2.7 million increase in loss on extinguishment of debt;

Previous wording

•a $0.5 million increase in other operating expenses.

Current wording

•a $0.8 million increase in other operating expenses;

Previous wording

•a $5.5 million reduction in hotel operating income attributed to the three hotels sold in 2022;

Current wording

•a $0.5 million reduction in hotel operating income attributed to the sale of Lorien Hotel & Spa in July 2024.

Previous wording

These decreases were offset by:

Current wording

These decreases were partially offset by:

Previous wording

•a $0.6 million reduction in depreciation and amortization expense.

Current wording

•a $3.3 million reduction in depreciation and amortization expense;

Previous wording

•a $2.3 million reduction in business interruption proceeds;

Current wording

•a $2.1 million increase in business interruption proceeds;

Previous wording

•no gain or loss on the sale of investment properties in 2023 compared to a $27.3 million gain on the sale of investment properties in 2022;

Current wording

•a $1.6 million gain on the sale of investment properties; and

Previous wording

Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders decreased 2.0% and 4.0%, respectively, for the year ended December 31, 2023 compared to 2022. The decreases during the year ended December 31, 2023 were primarily attributable to a reduction in operating income primarily attributable to normalizing leisure demand and renovation disruption. Refer to "Non-GAAP Financial Measures" for the definition of these financial measures, a description of how they are useful to investors as key supplemental measures of our operating performance and the reconciliation of these non-GAAP financial measures to net income (loss) attributable to common stock and unit holders.

Current wording

Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders decreased 5.8% and 2.9%, respectively, for the year ended December 31, 2024 compared to 2023. The decrease during the year ended December 31, 2024 was primarily attributable to a reduction in operating income related to normalizing leisure demand and disruption from renovations, particularly at Grand Hyatt Scottsdale Resort. Refer to "Non-GAAP Financial Measures" for the definition of these financial measures, a description of how they are useful to investors as key supplemental measures of our operating performance and the reconciliation of these non-GAAP financial measures to net income attributable to common stock and unit holders.

Previous wording

As of December 31, 2023 and 2022, the Company owned 32 lodging properties with a total of 9,514 and 9,508 rooms, respectively. As of December 31, 2021, the Company owned 34 lodging properties with a total of 9,659 rooms.

Current wording

As of December 31, 2024, the Company owned 31 lodging properties with a total of 9,408 rooms. As of December 31, 2023 and 2022, the Company owned 32 lodging properties with a total of 9,514 and 9,508 rooms, respectively.

Previous wording

The following represents our acquisitions activity for the year ended December 31, 2022 (in thousands, except number of rooms):

Current wording

The following details our acquisitions activity for the year ended December 31, 2022 (in thousands, except number of rooms):

Previous wording

(1) During the year ended December 31, 2023, we added three newly created rooms at both The Ritz-Carlton, Denver and Marriott Woodlands Waterway Hotel & Convention Center. During the year ended December 31, 2022, we acquired the 346-room W Nashville.

Current wording

(1) During the year ended December 31, 2024, we added one newly created room at Grand Bohemian Hotel Orlando, Autograph Collection. During the year ended December 31, 2023, we added three newly created rooms at both The Ritz-Carlton, Denver and Marriott Woodlands Waterway Hotel & Convention Center.

Previous wording

(3) For hotels disposed of during the period, operating results and statistics are only included through the date of the respective disposition.

Current wording

(3) For hotels sold during the period, operating results and statistics are only included through the date of the respective disposition.

Previous wording

Generally, hotel operating costs fluctuate based on various factors, including occupancy, labor costs, utilities and insurance costs which have increased during the last year. Luxury and upper upscale hotels generally have higher fixed costs than other types of hotels due to the services and amenities provided to guests.

Current wording

In general, hotel operating costs correlate to increases or decreases in revenues and fluctuate based on various factors, including occupancy, labor costs, utilities and insurance costs. Luxury and upper upscale hotels generally have higher fixed costs than other types of hotels due to the level of services and amenities provided to guests.

Previous wording

Depreciation and amortization expense decreased $0.6 million, or 0.5%, to $132.0 million for the year ended December 31, 2023 from $132.6 million for the year ended December 31, 2022. This decrease was primarily attributed a reduction of $2.7 million in depreciation and amortization expense related to the three hotels sold in 2022 as well as the timing of new assets being placed in service and fully depreciated assets during the comparable periods. These decreases were partially offset by an increase attributed to the acquisition of W Nashville in March 2022.

Current wording

Depreciation and amortization expense decreased $3.3 million, or 2.5%, to $128.7 million for the year ended December 31, 2024 from $132.0 million for the year ended December 31, 2023. The decrease was primarily attributed to fully depreciated assets during the comparable periods and the sale of Lorien Hotel & Spa in July 2024, partially offset by the timing of new assets being placed in service.

Previous wording

Real estate taxes, personal property taxes and insurance expenses increased $6.1 million, or 13.7%, to $50.5 million for the year ended December 31, 2023 from $44.4 million for the year ended December 31, 2022. This increase was primarily attributed to a

Current wording

Real estate taxes, personal property taxes and insurance expenses increased $2.6 million, or 5.2%, to $53.1 million for the year ended December 31, 2024 from $50.5 million for the year ended December 31, 2023. This increase was primarily attributed to a $1.8 million increase in insurance premiums and a net $0.9 million increase in real estate taxes compared to the prior period.

Previous wording

Ground lease expense increased $0.2 million, or 8.0%, to $3.0 million for the year ended December 31, 2023 from $2.8 million for the year ended December 31, 2022, which was primarily attributable to an increase in percentage rent in 2023, which is based on revenues at certain hotels with ground leases, compared to 2022.

Current wording

Ground lease expense increased $0.2 million, or 5.4%, to $3.2 million for the year ended December 31, 2024 from $3.0 million for the year ended December 31, 2023, which was primarily attributable to an increase in percentage rent in 2024, which is based on revenues at certain hotels with ground leases, compared to 2023.

Previous wording

Gain on business interruption insurance was $0.2 million for the year ended December 31, 2023, which was attributed to insurance proceeds for a portion of lost income associated with cancellations at Fairmont Pittsburgh due to power outages during certain portions of December 2022 and January 2023. Gain on business interruption insurance was $2.5 million for the year ended December 31, 2022, which was attributed to $1.5 million in insurance proceeds for a portion of lost income associated with cancellations at Loews New Orleans Hotel due to the impact of Hurricane Ida in August 2021 as well as $1.0 million in proceeds for lost income associated with cancellations for properties in Texas due to the impact of the Texas winter storms in February 2021.

Current wording

Gain on business interruption insurance was $2.3 million for the year ended December 31, 2024, which was attributed to insurance proceeds, net of license and management fees, for a portion of lost income related to a restaurant kitchen fire that occurred in 2023. Gain on business interruption insurance was $0.2 million for the for the year ended December 31, 2023, which was attributed to insurance proceeds for a portion of lost income associated with cancellations due to a power outage.

Previous wording

The gain on sale of investment properties for the year ended December 31, 2022 was attributed to the disposition of Bohemian Hotel Celebration, Autograph Collection in October 2022 and Kimpton Hotel Monaco Denver in December 2022. The sale of Kimpton Hotel Monaco Chicago in January 2022 did not result in a gain or loss after previously recording an impairment during the year ended December 31, 2021.

Current wording

Gain on sale of investment properties

Previous wording

Interest expense increased $2.3 million, or 2.7%, to $85.0 million for the year ended December 31, 2023 from $82.7 million for the year ended December 31, 2022. The increase was primarily due to higher average outstanding corporate credit facility term loan debt coupled with rising interest rates on variable rate debt. This increase was partially offset by the impact of interest rate swaps entered into during the second quarter of 2023, reduced interest resulting from the repurchase and retirement of $35.3 million aggregate principal of 6.375% 2020 Senior Notes due 2025 and capitalized interest of $0.9 million in the second half of 2023. Refer to Note 6 in the consolidated financial statements included herein for further discussion.

Current wording

Interest expense decreased $4.1 million, or 4.8%, to $80.9 million for the year ended December 31, 2024 from $85.0 million for the year ended December 31, 2023. The decrease was primarily due to capitalized interest of $2.3 million during the year ended December 31, 2024. Additionally, for the year ended December 31, 2024, interest expense decreased compared to the year ended December 31, 2023 due to the impact of interest rate swaps entered into during the second quarter of 2023 and reduced interest expense related to the repurchase and retirement of $35.3 million aggregate principal of the 2020 Senior Notes during 2023. In addition, the Company issued $400 million of the 2024 Senior Notes which were used, together with cash on hand, to redeem in full the outstanding $464.7 million aggregate principal of the 2020 Senior Notes. These decreases were partially offset by an increase attributed to rising interest rates on variable debt and higher average outstanding term loan debt. Refer to Note 6 in the consolidated financial statements included herein for further discussion.

Previous wording

The loss on extinguishment of debt of $1.2 million for year ended December 31, 2023 was primarily attributable to the write-off of certain unamortized debt issuance costs associated with the prior revolving credit facility, which was refinanced with the revolving line of credit in January 2023, as well as the early repayments of the corporate credit facility term loan that was due to mature in September 2024 and one mortgage loan. The loss on extinguishment of debt of $0.3 million for the year ended December 31, 2022 was attributable to the write-off of unamortized debt issuance costs upon the early repayment of one mortgage loan.

Current wording

The loss on extinguishment of debt of $1.2 million for the year ended December 31, 2023 primarily attributable to the write-off of certain unamortized debt issuance costs associated with the prior revolving credit facility, which was refinanced with the 2023 revolving line of credit in January 2023, as well as the early repayments of the corporate credit facility term loan that was due to mature in September 2024 and one mortgage loan.

Previous wording

We further adjust FFO for certain additional items that are not in Nareit’s definition of FFO such as terminated transaction and pre-opening expenses, amortization of debt origination costs and share-based compensation, non-cash ground rent and straight-line rent expense, operating results from properties that are sold and other items we believe do not represent recurring operations. We believe that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors’ complete understanding of our operating performance.

Current wording

We further adjust FFO for certain additional items that are not in Nareit’s definition of FFO such as terminated transaction and pre-opening expenses, amortization of debt origination costs and share-based compensation, non-cash ground rent and straight-line rent expense and other items we believe do not represent recurring operations. We believe that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors’ complete understanding of our operating performance.

Previous wording

The following is a reconciliation of net income (loss) to EBITDA, EBITDAre and Adjusted EBITDAre attributable to common stock and unit holders for the years ended December 31, 2023, 2022, and 2021 (in thousands):

Current wording

The following is a reconciliation of net income to EBITDA, EBITDAre and Adjusted EBITDAre attributable to common stock and unit holders for the years ended December 31, 2024, 2023, and 2022 (in thousands):

Previous wording

(2) During the years ended December 31, 2023 and 2022, we recorded $0.5 million and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. These gains on insurance recovery are included in other income (loss) on the consolidated statements of operations and comprehensive income (loss) for the periods then ended.

Current wording

(1) During the years ended December 31, 2024, 2023, and 2022, we recorded $4.4 million, $0.5 million, and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to casualty losses at certain properties. These gains on insurance recovery are included in other income on the consolidated statements of operations and comprehensive income for the periods then ended.

Previous wording

The following is a reconciliation of net income (loss) to FFO and Adjusted FFO for the years ended December 31, 2023, 2022, and 2021 (in thousands):

Current wording

The following is a reconciliation of net income to FFO and Adjusted FFO for the years ended December 31, 2024, 2023, and 2022 (in thousands):

Previous wording

(2) During the years ended December 31, 2023 and 2022, we recorded $0.5 million and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to damage sustained at Loews New Orleans Hotel during Hurricane Ida in August 2021. These gains on insurance recovery are included in other income (loss) on the consolidated statements of operations and comprehensive income (loss) for the periods then ended.

Current wording

(1) During the years ended December 31, 2024, 2023, and 2022, we recorded $4.4 million, $0.5 million, and $3.6 million, respectively, of insurance proceeds in excess of recognized losses related to casualty losses at certain properties. These gains on insurance recovery are included in other income on the consolidated statements of operations and comprehensive income for the periods then ended.

Previous wording

(3) Loan related costs included amortization of debt premiums, discounts and deferred loan origination costs.

Current wording

(2) Loan related costs include amortization of debt premiums, discounts and deferred loan origination costs.

Previous wording

We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable GAAP financial measures, and our consolidated statements of operations and comprehensive income (loss), include interest expense, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

Current wording

We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable GAAP financial measures, and our consolidated statements of operations and comprehensive income, include interest expense, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.

Previous wording

We expect to meet our short-term liquidity requirements from cash on hand, cash flow from hotel operations, use of our unencumbered asset base, asset dispositions, borrowings under our revolving line of credit, and proceeds from various capital market transactions, including issuances of debt and equity securities. The objectives of our cash management policy are to maintain the availability of liquidity and minimize operational costs.

Current wording

We expect to meet our short-term liquidity requirements from cash on hand, cash flow from hotel operations, use of our unencumbered asset base, asset dispositions, borrowings under our revolving credit facility, and proceeds from various capital market transactions, including issuances of debt and equity securities. The objectives of our cash management policy are to maintain the availability of liquidity and minimize operational costs.