Xenia, whose shares rose 6.6% to $13.89 a share on the wings of Tuesday's broader market rally, said on Wednesday that group cancellations have increased to $15 million in lost revenue since the company last issued full guidance for 2020 on Feb. 24.
The real estate investment trust, which focuses on buying luxury and “upper upscale” hotels in the top 25 lodging markets in the United States, said the cancellations were mostly for March and April.
Xenia also reported a jump in cancellations in the non-group, or “transient” market as well, which the company, in a press statement, attributed to “corporate travel restrictions and the negative sentiment towards travel as a result of Covid-19.”
Xenia’s decision to pull its guidance for 2020 comes on the heels of Hilton’s HLT decision on Tuesday to pull its own guidance for the first quarter of 2020 and for the full year as well.
Hilton cited growing cancellations amid the spread of the coronavirus from the Asia Pacific region to the rest of the world, with shares of the hotel giant down 3.68% to $87 a share in premarket trading.
Xenia noted that while the real estate investment trust’s local hotel operating partners are scrambling to rebook visits for later in the year, there is no way to accurately assess the revenue impact at this point.
“We believe it is prudent at this time to withdraw our full-year 2020 guidance,” said Marcel Verbaas, chairman and CEO of Xenia, in a press statement.