XHR — Xenia Hotels & Resorts, Inc.

Summary of Xenia Hotels & Resorts Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Same-Property RevPAR: $206.54, up 5.6% year-over-year, driven entirely by rate increases (ADR up 5.7%).
• Net Loss: $19.3 million attributable to common stockholders, primarily due to a noncash impairment charge from the sale of Kimpton RiverPlace Hotel.
• Adjusted EBITDAre: $78.1 million, exceeding expectations by approximately $1 million.
• Adjusted FFO per Share: $0.61, a 7% increase from Q2 2025.
• Same-Property Total RevPAR: Grew 3.3% to $366.17, reflecting modest growth in non-room revenues.
• EBITDA Margin: 28.7%, down 65 basis points due to increased expenses and the absence of prior year tax refunds.

2. Strategic Updates and Business Highlights:

• Group and Transient Demand: Strong transient demand, bolstered by the FIFA World Cup, with transient RevPAR growth of 6.9% compared to group RevPAR growth of 3.4%.
• Capital Expenditures: Invested $15.4 million in portfolio improvements in Q2, with plans for significant renovations at Andaz Napa and Ritz-Carlton Denver starting in Q4.
• Sale of Kimpton RiverPlace Hotel: Sold for $11 million, reflecting a 19.4x EBITDA multiple, allowing for strategic repositioning in the Portland market.
• Operational Focus: Continued emphasis on managing expenses and improving food and beverage operations, particularly at W Nashville.

3. Forward Guidance and Outlook:

• Adjusted EBITDAre Guidance: Raised by $7 million to a midpoint of $273 million for 2026.
• RevPAR Growth: Increased midpoint guidance to 5.5% for the year, with expectations of strong group room revenue pace for the second half.
• Third Quarter Outlook: Anticipated RevPAR growth of approximately 10% year-over-year, driven by both leisure and group demand.

4. Challenges and Points of Concern:

• Group Demand Weakness: Notable hesitancy in group bookings during the World Cup period, with some properties underperforming due to competition and market conditions.
• Margin Pressures: Decline in EBITDA margin attributed to increased operating expenses and the absence of prior year tax credits.
• Mixed Performance: While some markets showed strong RevPAR growth, others, particularly those focused on group business, faced challenges.

5. Notable Q&A Insights:

• Transaction Market: Marcel Verbaas noted a more robust transaction environment, with increased buyer-seller confidence due to sustained industry growth.
• Expense Management: Barry Bloom indicated that operating expenses are expected to normalize, with per-occupied-room growth anticipated in the 3-4% range moving forward.
• Future M&A Activity: The management team remains focused on enhancing portfolio quality rather than pursuing large corporate M&A, with a preference for individual property transactions.
• Food and Beverage Operations: The ramp-up of F&B operations at W Nashville is expected to take time, with significant contributions anticipated in 2027.

Overall, Xenia Hotels & Resorts reported solid operational performance in Q2 2026, with positive RevPAR growth and strategic initiatives aimed at enhancing portfolio value, despite facing challenges in group demand and margin pressures. The outlook for the remainder of the year appears optimistic, supported by strong transient demand and a robust group booking pipeline.