Xenia Hotels & Resorts, Inc.

What they do

Xenia invests in luxury and upper upscale hotels and resorts, primarily in the top 25 U.S. lodging markets and key leisure destinations. As a REIT, it cannot operate or manage its hotels, so XHR LP leases the properties to XHR Holding, Inc., a taxable REIT subsidiary, which engages third-party eligible independent contractors as managers. As of December 31, 2025, the Company owned 94.4% of the Operating Partnership units, with 5.6% held by executive officers and current or former directors including vested and unvested LTIP units.

Revenue drivers

• Same-Property rooms revenue — Driven by Same-Property RevPAR of $206.54 in Q2 2026 (up 5.6%), which combines Same-Property Occupancy of 72.3% and Same-Property ADR of $285.71 (up 5.7%).
• Same-Property Total RevPAR — Captures rooms plus ancillary spending; reached $366.17 in Q2 2026, up 3.3% year over year, and $368.14 year-to-date, up 5.2%.
• Same-Property Hotel EBITDA — Portfolio-level profit of $84.9 million in Q2 2026 (up 1.0%), though same-property hotel EBITDA margin compressed 65 basis points to 28.7%.
• Adjusted EBITDAre — Company-wide measure of $78.1 million in Q2 2026, down 1.8%, and $159.5 million year-to-date 2026, up 4.6%.

Recent performance

For Q2 2026, Xenia reported a net loss attributable to common stockholders of $19.3 million, or $0.21 per diluted share, versus net income of $55.2 million, or $0.56 per diluted share, in Q2 2025. Adjusted EBITDAre was $78.1 million, down 1.8% year over year. Adjusted FFO per diluted share rose 7.0% to $0.61. Same-Property RevPAR increased 5.6% to $206.54 on a 5.7% ADR gain to $285.71, with occupancy flat at 72.3%. Year-to-date 2026, Same-Property RevPAR increased 6.5% to $206.24 and Same-Property Hotel EBITDA rose 9.0% to $172.7 million.

Strategy

Management cites deliberate portfolio curation through selective dispositions, acquisitions, and targeted value-increasing capital projects. The transformational renovation and upbranding of Grand Hyatt Scottsdale Resort is highlighted, with 2026 shaping up as the strongest group demand year in the resort's history. In February 2026 the Company paid off the $52 million mortgage loan secured by Grand Bohemian Hotel Orlando, Autograph Collection. Management states the balance sheet provides flexibility to be active on the transaction front.

Risks

• Brand and geographic concentration — The majority of hotels operate under Marriott and Hyatt brand families, and the portfolio is concentrated in California, Texas and Florida, exposing results to regional events.
• Reliance on third-party managers — As a REIT, Xenia cannot operate or manage its hotels and depends on third-party management companies and franchisors, with risks to relationship continuity and brand standards.
• Cyclical lodging demand — The lodging industry is highly cyclical, and adverse economic conditions, reduced business travel, or lower transient and group spending can reduce occupancy and ADR.
• Fixed cost structure and cost inflation — Many real estate and hotel operating costs are fixed even if revenue declines, while inflation, tariffs, labor costs, property taxes and insurance can reduce operating margins.

Outlook

Management increased the midpoint of full-year 2026 Adjusted EBITDAre guidance by $7 million compared to guidance provided after Q1 results. This is based on favorable current market conditions, first-half outperformance, and robust group rooms revenue pace for the second half. The Company estimates Same-Property RevPAR for July 2026 will increase approximately 10% compared to July 2025, fueled by substantial growth in both transient and group segments.