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1. Company Snapshot

1.a. Company Description

Xenia Hotels & Resorts, Inc.is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States.The Company owns 37 hotels comprising 10,749 rooms across 16 states.


Xenia's hotels are in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, and Hilton, as well as leading independent management companies including The Kessler Collection and Sage Hospitality.

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1.b. Last Insights on XHR

Xenia Hotels & Resorts' recent performance was driven by strong Q2 2025 earnings, with FFO of $0.57 per share beating estimates. The company's successful renovations are driving revenue and profit growth, with occupancy rates rebounding to pre-pandemic levels. A significant exposure to the 2026 FIFA World Cup positions Xenia for a surge in demand and higher RevPAR. Additionally, the company benefits from macro and sector tailwinds, with disinflation driving improved expense expectations. Xenia's Q2 FFO increased 9.6%, and 62% of equity REITs, including Xenia, raised their full-year FFO guidance.

1.c. Company Highlights

2. Xenia Hotels & Resorts Posts Mixed Q3 Results Amidst Challenging Market Conditions

Xenia Hotels & Resorts reported a net loss of $13.7 million for the third quarter of 2025, with adjusted FFO per share coming in at 23¢, a decrease of 8% compared to the same quarter last year. The company's same-property RevPAR was essentially flat for the 30-hotel portfolio, with an occupancy decrease of 100 basis points offset by a 1.6% increase in average daily rate. The actual EPS came out at $0.23, significantly higher than the estimated $0.04. Adjusted EBITDAre was $42.2 million.

Publication Date: Nov -26

📋 Highlights
  • Net Loss and Adjusted EBITDAre: Reported a $13.7M net loss, Adjusted EBITDAre of $42.2M, and adjusted FFO per share of 23¢, an 8% decline YoY.
  • Same-Property RevPAR Stability: RevPAR flat YoY for 30-hotel portfolio; ADR rose 1.6%, offsetting 100 bps occupancy decline. Excluding Houston, RevPAR increased 0.9%.
  • YTD RevPAR Growth: Total RevPAR up 3.7% for first nine months, driven by 2.4% ADR increase and 80 bps higher occupancy, led by Grand Hyatt Scottsdale.
  • Hotel EBITDA Margins: Same-property EBITDA rose 0.7% to $47M YoY, but margins contracted 60 bps. Excluding Scottsdale, EBITDA fell 7.8% and margins dropped 160 bps.
  • Capital Expenditure and Guidance: Full-year CapEx guidance raised to $90M (+$10M). 2025 RevPAR growth target remains 4%, with adjusted EBITDAre midpoint at $254M and adjusted FFO guidance at $1.01/share.

Revenue Performance

The company's total RevPAR for the first nine months of the year increased by 3.7%, driven by a 2.4% increase in average daily rate and an 80 basis points higher occupancy. This outperformance was mainly fueled by Grand Hyatt Scottsdale Resort during the early phase of its path towards stabilization. Same-property hotel EBITDA was $47 million, a 0.7% increase over 2024 levels.

Operational Highlights

The company reported a strong group base for the fourth quarter and 2026, giving them optimism that they will be able to continue to experience outsized total RevPAR gains in the quarters ahead. Marcel Verbaas mentioned that the company has a strong group base for next year, thanks in part to Grand Hyatt Scottsdale's growing group business. According to Verbaas, "group bookings remain strong, particularly at Grand Hyatt Scottsdale."

Outlook and Guidance

The company has revised its 2025 guidance, with a 50 basis points reduction in RevPAR guidance due to a 4% point reduction expected in the fourth quarter. Adjusted EBITDAre guidance is now $254 million at the midpoint, while adjusted FFO per diluted share guidance is $1.01. For 2026, the company anticipates strong citywide convention demand in several markets, including Pittsburgh.

Valuation

With a P/E Ratio of 23.72 and an EV/EBITDA of 11.08, the stock appears to be reasonably valued. The Dividend Yield is 3.85%, which may attract income investors. The Net Debt / EBITDA ratio is 5.33, indicating a moderate level of leverage. Analysts estimate next year's revenue growth at 2.8%.

3. NewsRoom

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Xenia Hotels & Resorts Provides Business Update

Dec -04

Source: prnewswire.com

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Ensign Peak Advisors Inc Has $568,000 Position in Xenia Hotels & Resorts, Inc. $XHR

Dec -01

Source: defenseworld.net

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Xenia Hotels & Resorts Declares Dividend for Fourth Quarter 2025

Nov -13

Source: prnewswire.com

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Xenia Hotels Bets On Buybacks Amid Sluggish Recovery

Nov -05

Source: seekingalpha.com

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Xenia Hotels & Resorts, Inc. (XHR) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Xenia Hotels & Resorts Reports Third Quarter 2025 Results

Oct -31

Source: prnewswire.com

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Asset Management One Co. Ltd. Sells 13,861 Shares of Xenia Hotels & Resorts, Inc. $XHR

Oct -30

Source: defenseworld.net

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Yousif Capital Management LLC Reduces Stake in Xenia Hotels & Resorts, Inc. $XHR

Oct -24

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Rooms

Expected Growth: 3.5%

Xenia Hotels & Resorts, Inc.'s 3.5% rooms growth driven by strategic acquisitions, increasing RevPAR (Revenue per Available Room) due to effective pricing strategies, and expansion into high-demand markets. Additionally, investments in digital marketing and loyalty programs contribute to improved occupancy rates and customer retention.

Food and Beverage

Expected Growth: 3.8%

Xenia Hotels & Resorts' Food and Beverage segment growth of 3.8% is driven by increasing average daily rates, higher occupancy rates, and a focus on premium offerings. Additionally, strategic partnerships with popular restaurants and bars, as well as investments in digital marketing and loyalty programs, contribute to the segment's growth.

Other

Expected Growth: 4.2%

Xenia Hotels & Resorts, Inc.'s 4.2% growth in 'Other' segment is driven by increasing demand for its non-hotel amenities, such as food and beverage services, and growing revenue from its golf courses and spas. Additionally, the company's strategic partnerships and loyalty programs have contributed to the growth, along with a favorable operating environment and effective cost management.

7. Detailed Products

Luxury Accommodations

Xenia Hotels & Resorts offers luxurious rooms and suites with modern amenities and exceptional service.

Fine Dining Experiences

Xenia Hotels & Resorts features upscale restaurants serving gourmet cuisine and craft cocktails.

Meeting and Event Spaces

Xenia Hotels & Resorts offers versatile meeting and event spaces with state-of-the-art amenities and catering services.

Recreational Activities

Xenia Hotels & Resorts provides access to fitness centers, spas, and outdoor recreational activities such as golf and tennis.

Wedding and Honeymoon Packages

Xenia Hotels & Resorts offers customized wedding and honeymoon packages with luxurious amenities and personalized service.

Business and Leisure Travel Services

Xenia Hotels & Resorts provides concierge services, transportation, and travel arrangements for business and leisure travelers.

8. Xenia Hotels & Resorts, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Xenia Hotels & Resorts, Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Xenia Hotels & Resorts, Inc. has a large customer base, and individual customers have limited bargaining power. However, the company's reliance on online travel agencies and tour operators gives them some bargaining power.

Bargaining Power Of Suppliers

Xenia Hotels & Resorts, Inc. has a diverse supplier base, and no single supplier has significant bargaining power. The company's scale and purchasing power also help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The hotel industry has high barriers to entry, including significant capital requirements and regulatory hurdles. However, the rise of alternative accommodations and boutique hotels poses a threat to traditional hotel chains like Xenia Hotels & Resorts, Inc.

Intensity Of Rivalry

The hotel industry is highly competitive, with many established players and new entrants vying for market share. Xenia Hotels & Resorts, Inc. faces intense competition from other hotel chains, boutique hotels, and alternative accommodations.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.93%
Debt Cost 6.25%
Equity Weight 48.07%
Equity Cost 11.24%
WACC 8.65%
Leverage 108.05%

11. Quality Control: Xenia Hotels & Resorts, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 2.5

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Xenia Hotels & Resorts

A-Score: 5.1/10

Value: 5.5

Growth: 4.7

Quality: 3.5

Yield: 6.0

Momentum: 4.0

Volatility: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.5$

Current Price

13.5$

Potential

-0.00%

Expected Cash-Flows