Xenia Hotels & Resorts, Inc. Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Income: $19.8 million

Adjusted EBITDAre: $81.4 million, up nearly 12% year-over-year

Adjusted FFO per Share: $0.63, a 23.5% increase from 2025

Same-Property RevPAR: Increased by 7.4% to $205.93, with occupancy rising 180 basis points and average daily rate (ADR) up 4.8%

Total RevPAR: Grew to $370.13, reflecting a 7.2% increase

Same-Property Hotel EBITDA: $87.8 million, up almost 18% with a margin improvement from 27% to 29.7%

2Strategic Updates and Business Highlights

Strong performance driven by both group and transient demand, particularly in March.

Grand Hyatt Scottsdale Resort showed significant improvement post-renovation, achieving record revenues and hotel EBITDA.

Non-rooms revenue growth was notable, with food and beverage revenues up 6.2% and other revenues up nearly 11%.

Capital expenditures for 2026 are projected between $70 million and $80 million, with recent renovations completed on time and within budget.

The company is evaluating potential acquisitions while maintaining a focus on portfolio improvements.

3Forward Guidance and Outlook

Full-year 2026 Adjusted EBITDAre guidance raised by $6 million to $266 million at the midpoint.

Adjusted FFO per share guidance increased to $1.94, representing a 10% growth over 2025.

RevPAR growth for the full year is expected between 2.75% and 5.25%, with total RevPAR growth between 3.75% and 6.25%.

The company anticipates continued strength in transient and group demand, despite some expected softness from special events.

4Bad News, Challenges, or Points of Concern

Anticipated softness in special event-driven demand, particularly related to the FIFA World Cup, leading to a reduction in expected RevPAR growth from special events to 25-50 basis points.

Some properties underperformed due to one-time events in 2025 (e.g., Super Bowl, presidential inauguration) and disruptions from capital projects.

Market and geopolitical uncertainties remain, which could impact future performance.

5Notable Q&A Insights

Urban demand is improving, with both corporate and leisure segments contributing to growth.

Changes in the Hyatt loyalty program are being monitored for their potential impact on demand and RevPAR.

The transaction market is opening up, with the company considering acquisitions based on opportunities rather than specific market preferences.

The W Nashville is expected to stabilize in earnings over time, with new food and beverage outlets anticipated to enhance revenue.

The luxury and upper upscale segments are performing well, with a benign supply environment expected to continue supporting growth. Overall, Xenia Hotels & Resorts reported a strong Q1 2026, with significant growth in key financial metrics and a positive outlook for the remainder of the year, despite some challenges related to special events and market uncertainties.