Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship & Sustainability
• Social Responsibility
• Ethics and Governance

Environmental Achievements

• Championed the reduction of guestroom collateral and newspapers
• Adherence to brand-sponsored linen reuse programs
• Reduction in bathroom amenities through installation of pump amenities
• Recycling of unused bathroom amenities through donations to Clean theWorld
• Window tinting/blackout shades
• Smart thermostats that reset upon guest departure
• LED lighting upgrades throughout hotels
• Recycling construction materials to divert waste from landfills
• Low water usage landscaping
• Low-flow fixtures in guestroom renovations
• Water harvesting to divert rainwater to landscaping

Social Achievements

• Orlando Sentinel “Top 100 Companies” – 3 consecutive years
• Orlando Sentinel “Community Service Champion” – 2017
• Participation in various worthy causes in Orlando (Ronald McDonald House, Cannonball Kids Cancer, Second Harvest Food Bank)
• Xenia supports and encourages all operators to adopt and abide by the principles of AHLA’s 5-Star Promise
• Xenia funds the purchase of emergency alert devices for use by our third-party managers’ employees
• Natural disaster relief efforts in communities where we are invested and where our operators’ employees live and work
• Xenia supports local charitable contributions made by our operators

Governance Achievements

• Adopted proxy access
• All directors must be elected annually via a majority vote standard with a resignation policy
• 7 of our 8 directors are independent
• 25% of the Company’s current directors are female
• Each year, the Company’s independent directors designate an independent, non-employee director to serve as our Lead Director
• The Company’s independent directors meet regularly without the presence of any of our officers or employees
• All members of our audit committee are financial experts
• In 2018, the Company completed its full opt-out of the Maryland Unsolicited Takeover Act
• Eligible stockholders have the right to submit a binding proposal to amend the Company's bylaws
• The Company maintains an anti-hedging and anti-pledging policy applicable to all Xenia employees
• The Company maintains executive and director stock ownership guidelines
• The Company engages in an extensive shareholder outreach program
• Robust succession planning for senior management
• The Company has a compensation claw-back policy in place
• No poison pill in place

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Orlando Sentinel “Top 100 Companies” (3 consecutive years)
• Orlando Sentinel “Community Service Champion” (2017)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Decreased Scope 1 and Scope 2 carbon emissions intensity despite a 2% increase in occupancy.
• Reduced energy intensity.
• Diverted over 32 tons of food waste from landfills at The Ritz-Carlton, Pentagon City.
• Invested $24.6 million in capital expenditure for upgrades to mechanical systems, leading to energy efficiencies.

Social Achievements

• Continued DiversityTalks sessions celebrating diverse backgrounds of workforce.
• Supported various local charitable organizations through associate volunteer outreach program.
• Enhanced health and wellness program for employees.

Governance Achievements

• 7 out of 8 directors on the Board are independent.
• 3 out of 8 directors identify as women and 25% identify with a minority or underrepresented group.
• Strong shareholder engagement (reached out to shareholders owning >65% of common stock).

Climate Goals & Targets

Environmental Challenges

• Continued recovery from the effects of the COVID-19 pandemic on occupancy levels.
• Unforeseen circumstances or challenges that may impact progress towards 2030 goals.
• Climate-related risks such as extreme weather events, natural disasters, rising sea levels, and changes in consumer behavior.

Mitigation Strategies

• Investing in capital improvements to reduce emissions, increase sustainability, and increase efficiencies.
• Ongoing asset management and operational monitoring.
• Evaluating opportunities for renovation or refurbishment to address risks.
• Developing a risk management plan to protect assets and partner with a disaster recovery service provider.
• Investing in defensive measures and structural enhancements to fortify hotels.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct document added to vendor/supplier contracts
• Policy that prefers local suppliers (91% of properties)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters
• Rising sea levels
• Water shortages
• Droughts
• Wildfires

Transition Risks

• Emerging regulations
• Changes in consumer behavior
• Changes in market demand
• Increased energy and water costs

Opportunities

• Use of renewable energy sources
• Sustainable supplies/building materials
• Reduced water consumption
• Increased funding of capital improvements to reduce emissions and increase efficiencies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: LEED (3 properties)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Initiatives to reduce energy consumption, carbon emissions, and water intensity; community engagement and employee well-being programs; partnerships with industry associations and charitable organizations.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Newsweek's America's Most Responsible Companies 2024