Xenia Hotels & Resorts, Inc. (XHR) Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Q4 2025 Results::

Net Income: $6.1 million

Adjusted EBITDA: $63.6 million

Adjusted FFO per share: $0.45

Same-property RevPAR: $176.45 (up 4.5% YoY)

Total RevPAR: $325.52 (up 6.7% YoY)

Hotel EBITDA: $68.8 million (up 16.3% YoY)

Full Year 2025 Results::

Net Income: $63.1 million

Adjusted EBITDAre: $258.3 million

Adjusted FFO per share: $1.76 (double-digit growth from 2024)

Same-property RevPAR: $181.97 (up 3.9% YoY)

Total RevPAR: $328.57 (up 8% YoY)

2Strategic Updates and Business Highlights

Portfolio Improvements::

Sold Fairmont Dallas, avoiding $80 million in future capital expenditures.

Acquired land under Hyatt Regency Santa Clara, enhancing long-term stability.

Invested approximately $87 million in capital expenditures, focusing on property enhancements and infrastructure improvements.

Operational Highlights::

Strong growth in food and beverage revenues (up 13.4% YoY) and other revenues (up 13.8% YoY).

Significant group demand, with same-property group room revenues up 12.8% YoY.

Notable performance from Grand Hyatt Scottsdale, contributing to overall portfolio growth.

3Forward Guidance and Outlook

2026 Guidance::

Same-property RevPAR growth: 1.5% to 4.5% (midpoint at 3%).

Total RevPAR growth: 2.75% to 5.75% (midpoint at 4.25%).

Adjusted FFO per share expected to increase by 7% to $1.89 (midpoint).

Anticipated capital expenditures between $70 million and $80 million.

Demand Outlook::

Continued strength in group business and gradual recovery in corporate transient demand.

Anticipation of increased leisure demand due to major events like the FIFA World Cup and NFL Draft.

4Bad News, Challenges, or Points of Concern

Market Challenges::

Certain markets, particularly in Portland and San Diego, faced RevPAR weakness due to softer citywide convention calendars.

Houston market showed improvement but had tough year-over-year comparisons due to Hurricane Beryl's impact in 2024.

Expense Pressures::

Expected increase in costs per occupied room by approximately 3%, with overall hotel expenses projected to rise by 4.5% in 2026, driven by wage and benefit inflation.

5Notable Q&A Insights

RevPAR Guidance:: Management indicated that the RevPAR outlook is bolstered by strong group demand and special events, with visibility limited for the second half of the year.

Corporate Demand Recovery:: There is optimism regarding the recovery of large corporate accounts, with mid-teens growth noted in Q4 2025.

Asset Trading Market:: Management noted an increase in market activity and expressed interest in potential acquisitions, particularly in the $50 million to $200 million range.

Nashville Market Performance:: The Nashville market faced challenges in Q4, but management expects improvements in midweek corporate and group segments moving forward. Overall, XHR demonstrated solid financial performance in 2025, with a positive outlook for 2026, despite facing some market-specific challenges and cost pressures.