Xenia Hotels & Resorts Reports Second Quarter 2025 Results
ORLANDO, Fla., Aug. 1, 2025 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE:XHR) ("Xenia" or the "Company") today announced results for the quarter ended June 30, 2025.
Second Quarter 2025 Highlights
Net Income: Net income attributable to common stockholders was $55.2 million, or $0.56 per share
Adjusted EBITDAre: $79.5 million, increased 16.3% compared to the second quarter of 2024
Adjusted FFO per Diluted Share: $0.57, increased 9.6% compared to the second quarter of 2024
Same-Property Occupancy: 72.3%, increased 140 basis points compared to the second quarter of 2024
Same-Property ADR: $270.42, increased 2.0% compared to the second quarter of 2024
Same-Property RevPAR: $195.51, increased 4.0% compared to the second quarter of 2024
Same-Property Hotel EBITDA: $84.0 million, increased 22.2% compared to the second quarter of 2024
Same-Property Hotel EBITDA Margin: 29.4%, increased 269 basis points compared to the second quarter of 2024
Transaction Activity: In April, the Company sold the 545-room Fairmont Dallas for $111.0 million, or approximately $203,670 per key.
Dividends: The Company declared its second quarter dividend of $0.14 per share for stockholders of record on June 30, 2025.
Capital Markets Activities: The Company repurchased a total of 2,948,912 shares of common stock at a weighted-average price of $12.10 per share for a total consideration of approximately $35.7 million.
Year-to-Date 2025 Highlights
Net Income: Net income attributable to common stockholders was $70.7 million, or $0.71 per share
Adjusted EBITDAre: $152.5 million, increased 14.1% compared to the same period in 2024
Adjusted FFO per Diluted Share: $1.08, increased 13.7% compared to the same period in 2024
Same-Property Occupancy: 71.0%, increased 180 basis points compared to the same period in 2024
Same-Property ADR: $272.88, increased 2.7% compared to the same period in 2024
Same-Property RevPAR: $193.66, increased 5.4% compared to the same period in 2024
Same-Property Hotel EBITDA: $158.5 million, increased 16.6% compared to the same period in 2024
Same-Property Hotel EBITDA Margin: 28.2%, increased 157 basis points compared to the same period in 2024
Capital Markets Activity: In the first half of the year, the Company repurchased a total of 5,682,061 shares of common stock at a weighted-average price of $12.58 per share for a total consideration of approximately $71.5 million.
"Our second quarter results surpassed our expectations, as both revenues and Hotel EBITDA increased significantly compared to the same period last year," said Marcel Verbaas, Chair and Chief Executive Officer of Xenia. "Early performance at the recently renovated and upbranded Grand Hyatt Scottsdale Resort continues to be encouraging and was the main driver of our 4% Same-Property RevPAR increase for the quarter. Additionally, strong group business demand drove substantial food and beverage revenue increases throughout the portfolio, including at Grand Hyatt Scottsdale Resort, resulting in an 11% increase in Same-Property Total RevPAR compared to the second quarter of last year. The majority of our second-quarter outperformance was the result of outsized gains in highly-profitable catering revenues that substantially exceeded our expectations at a number of our group-oriented hotels which, when coupled with lower-than-expected expense growth across our portfolio, fueled solid operating margins and Hotel EBITDA growth."
"Looking ahead, the second half of the year is shaping up consistent with our prior expectations," continued Mr. Verbaas. "Group business continues to be a bright spot and is expected to be particularly strong in the fourth quarter. Meanwhile, corporate transient demand is continuing to recover slowly while leisure demand continues to normalize. Given these trends, we have increased our full-year guidance for Adjusted EBITDAre and Adjusted FFO to reflect our outperformance in the second quarter and an unchanged outlook for the second half of the year. We continue to be optimistic regarding the future growth prospects for our high-quality portfolio and our ability to drive shareholder value through superior capital allocation decisions, including the successful disposition of Fairmont Dallas and the repurchase of almost 3 million shares of our common stock in the second quarter at an attractive valuation."
Operating Results
The Company's results include the following:
Three Months Ended June 30,
2025
2024
Change
($ amounts in thousands, except hotel statistics and per share amounts)
Net income attributable to common stockholders
$ 55,157
$ 15,338
259.6 %
Net income per share available to common stockholders - basic and diluted
$ 0.56
$ 0.15
273.3 %
Same-Property Number of Hotels(1)
30
30
—
Same-Property Number of Rooms(1)(6)
8,868
8,863
5
Same-Property Occupancy(1)
72.3 %
70.9 %
140 bps
Same-Property Average Daily Rate(1)
$ 270.42
$ 265.16
2.0 %
Same-Property RevPAR(1)
$ 195.51
$ 187.95
4.0 %
Same-Property Total RevPAR(1)(2)
$ 354.50
$ 319.44
11.0 %
Same-Property Hotel EBITDA(1)(3)
$ 84,027
$ 68,747
22.2 %
Same-Property Hotel EBITDA Margin(1)(3)
29.4 %
26.7 %
269 bps
Total Portfolio Number of Hotels(4)
30
32
(2)
Total Portfolio Number of Rooms(4)(6)
8,868
9,515
(647)
Total Portfolio RevPAR(5)
$ 192.51
$ 185.69
3.7 %
Adjusted EBITDAre(3)
$ 79,543
$ 68,417
16.3 %
Adjusted FFO(3)
$ 57,406
$ 53,700
6.9 %
Adjusted FFO per diluted share(3)
$ 0.57
$ 0.52
9.6 %
1.
"Same-Property" includes all hotels owned as of June 30, 2025 and also includes renovation disruption for multiple capital projects during the periods presented.
2.
Total Revenues per available room for the period presented.
3.
EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. See definitions and tables later in this press release for how we define these non-GAAP financial measures and for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, Same-Property Hotel EBITDA and Hotel EBITDA Margin.
4.
As of end of periods presented.
5.
Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company.
6.
Five rooms were added to inventory at Grand Hyatt Scottsdale Resort in the first quarter 2025.
Six Months Ended June 30,
2025
2024
Change
($ amounts in thousands, except hotel statistics and per share amounts)
Net income attributable to common stockholders
$ 70,742
$ 23,872
196.3 %
Net income per share available to common stockholders - basic and diluted
$ 0.71
$ 0.23
208.7 %
Same-Property Number of Hotels(1)
30
30
—
Same-Property Number of Rooms(1)(6)
8,868
8,863
5
Same-Property Occupancy(1)
71.0 %
69.2 %
180 bps
Same-Property Average Daily Rate(1)
$ 272.88
$ 265.64
2.7 %
Same-Property RevPAR(1)
$ 193.66
$ 183.82
5.4 %
Same-Property Total RevPAR(1)(2)
$ 349.85
$ 316.07
10.7 %
Same-Property Hotel EBITDA(1)(3)
$ 158,477
$ 135,874
16.6 %
Same-Property Hotel EBITDA Margin(1)(3)
28.2 %
26.7 %
157 bps
Total Portfolio Number of Hotels(4)
30
32
(2)
Total Portfolio Number of Rooms(4)(6)
8,868
9,515
(647)
Total Portfolio RevPAR(5)
$ 190.59
$ 181.28
5.1 %
Adjusted EBITDAre(3)
$ 152,485
$ 133,668
14.1 %
Adjusted FFO(3)
$ 109,466
$ 99,198
10.4 %
Adjusted FFO per diluted share(3)
$ 1.08
$ 0.95
13.7 %
1.
"Same-Property" includes all hotels owned as of June 30, 2025 and also includes renovation disruption for multiple capital projects during the periods presented.
2.
Total Revenues per available room for the period presented.
3.
EBITDA, EBITDAre, Adjusted EBITDAre, FFO, Adjusted FFO, and Same-Property Hotel EBITDA and Hotel EBITDA Margin are non-GAAP financial measures. See definitions and tables later in this press release for how we define these non-GAAP financial measures and for reconciliations from net income to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds From Operations ("FFO"), Adjusted FFO, Same-Property Hotel EBITDA and Hotel EBITDA Margin.
4.
As of end of periods presented.
5.
Results of all hotels as owned during the periods presented, including the results of hotels sold or acquired for the actual period of ownership by the Company.
6.
Five rooms were added to inventory at Grand Hyatt Scottsdale Resort in the first quarter 2025.
Liquidity and Balance Sheet
As of June 30, 2025, the Company had total outstanding debt of approximately $1.4 billion with a weighted-average interest rate of 5.67%. The Company had approximately $173 million of cash and cash equivalents, including hotel working capital, and full availability on its revolving line of credit, resulting in total liquidity of approximately $673 million as of June 30, 2025. In addition, the Company held approximately $78 million of restricted cash and escrows at the end of the second quarter.
Capital Markets
In the quarter, the Company repurchased 2,948,912 shares of common stock at a weighted-average price of $12.10 per share for a total consideration of approximately $35.7 million. Year-to-date, the Company repurchased 5,682,061 shares of common stock at a weighted-average price of $12.58 per share for a total consideration of approximately $71.5 million. The Company currently has $146.4 million in capacity remaining under its repurchase authorization inclusive of the additional $100 million authorized by the Company's Board of Directors in the second quarter 2025. The Company did not issue any shares of its common stock through its At-The-Market ("ATM") program in the quarter and had $200 million of remaining availability as of June 30, 2025.
Transactions
As previously disclosed, in April the Company sold the 545-room Fairmont Dallas for $111.0 million, or approximately $203,670 per key. The sale price represented a 8.6x multiple and a 10.0% capitalization rate on the property's Hotel EBITDA and Net Operating Income for the twelve months ended February 28, 2025, respectively. These transaction price metrics are exclusive of an estimated $80 million of near-term capital expenditures. Net proceeds from the sale will be utilized for general corporate purposes, which may include debt repayments, potential acquisitions consistent with the Company's strategy, and/or share repurchases under the Company's existing authorization.
Capital Expenditures
During the three and six months ended June 30, 2025, the Company invested $18.5 million and $50.8 million in portfolio improvements, respectively. These amounts are inclusive of capital expenditures related to the substantial completion of the transformative renovation of Grand Hyatt Scottsdale Resort.
The Company made significant progress in the second quarter on select upgrades to guest rooms at a number of properties including Renaissance Atlanta Waverly Hotel & Convention Center, Marriott San Francisco Airport Waterfront, Hyatt Centric Key West Resort & Spa, Hyatt Regency Santa Clara, Grand Bohemian Hotel Mountain Brook, Grand Bohemian Hotel Charleston and Kimpton RiverPlace Hotel. This work will continue throughout the year and is being done based on hotel seasonality and is expected to result in minimal disruption. Work is expected to commence in the fourth quarter on a limited room renovation at Fairmont Pittsburgh and a renovation of the M Club at Marriott Dallas Downtown.
At Grand Hyatt Scottsdale Resort, the Company began work on improvements to the building façade and parking lot in the second quarter with completion expected in the third quarter. Additionally, the Company continues to perform significant infrastructure upgrades at ten hotels this year, including façade waterproofing, chiller replacements, elevator and escalator modernization projects and fire alarm system upgrades.
Current Full Year 2025 Outlook and Guidance
The Company has updated its full year 2025 outlook. The range below reflects the Company's limited visibility in forecasting due to macroeconomic uncertainty and is based on the current economic environment and does not take into account any unanticipated impacts to the business or operations. Furthermore, this guidance assumes no additional acquisitions, dispositions, equity issuances, or share and/or senior note repurchases. The Same-Property (30 Hotel) RevPAR change shown includes all hotels owned as of August 1, 2025.
Current Full Year 2025 Guidance
Variance to Prior Guidance
Low End
High End
Low End
High End
($ in millions, except stats and per share data)
Net Income
$58
$72
$15
$3
Same-Property (30 Hotel) RevPAR Change (vs. 2024)
3.50 %
5.50 %
1.00 %
(1.00) %
Adjusted EBITDAre
$249
$263
$14
$2
Adjusted FFO
$166
$180
$14
$2
Adjusted FFO per Diluted Share
$1.66
$1.80
$0.16
$0.05
Capital Expenditures
$75
$85
$—
$—
Current full year 2025 guidance is inclusive of the following assumptions:
Capital expenditures are expected to have minimal disruption to revenues. Final capital expenditures related to the transformative renovation of Grand Hyatt Scottsdale Resort are included in guidance.
General and administrative expense of approximately $24 million, excluding non-cash share-based compensation - an increase of $1 million from prior guidance
Interest expense of approximately $81 million, excluding non-cash loan related costs - no change from prior guidance
Income tax expense of approximately $2 million - no change from prior guidance
99.9 million weighted-average diluted shares/units - a decrease of 1.7 million shares/units from prior guidance
Second Quarter 2025 Earnings Call
The Company will conduct its quarterly conference call on Friday, August 1, 2025 at 10:00 AM Eastern Time. To participate in the conference call, please dial (833) 470-1428, access code 728188. Additionally, a live webcast of the conference call will be available through the Company's website, www.xeniareit.com. A replay of the conference call will be archived and available online through the Investor Relations section of the Company's website for 90 days.
About Xenia Hotels & Resorts, Inc.
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 lodging markets as well as key leisure destinations in the United States. The Company owns 30 hotels and resorts comprising 8,868 rooms across 14 states. Xenia's hotels are in the luxury and upper upscale segments, and are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection. For more information on Xenia's business, refer to the Company website at www.xeniareit.com.
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements are generally identifiable by use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," references to "outlook" and "guidance" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include, among others, statements about our strategies or plans, our performance relative to the industry and/or peers, or other future events, the outlook related to macroeconomic factors, our beliefs or expectations relating to our future performance including our 2025 outlook and guidance, results of operations and financial conditions and the timing of renovations and capital expenditures projects and the potential impact on the same due to the imposition of reciprocal and retaliatory tariffs. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) general economic uncertainty and a contraction in the U.S. or global economy or low levels of economic growth; (ii) macroeconomic and other factors beyond our control that can adversely affect and reduce demand for hotel rooms, food and beverage services, and/or meeting facilities, such as wars, global conflicts and geopolitical unrest, changes in trade policy, other political conditions or uncertainty, actual or threatened terrorist or cyber-attacks, mass casualty events, government shutdowns and closures, travel-related health concerns, global outbreaks of pandemics (such as the COVID-19 pandemic) or contagious diseases, or fear of such outbreaks, weather and climate-related events, such as hurricanes, tornadoes, floods, wildfires, and droughts, and natural or man-made disasters; (iii) inflation and inflationary pressures which increases labor costs and other costs of providing services to guests and complying with hotel brand standards, as well as costs related to construction and other capital expenditures including increased costs due to the imposition of tariffs on imported goods, property and other taxes, and insurance costs which could result in reduced operating profit margins; (iv) bank failures and concerns over a potential domestic and/or global recession; (v) the Company's dependence on third-party managers of its hotels, including its inability to directly implement strategic operational business decisions; (vi) risks associated with the hotel industry, including competition, increases in wages and benefits, energy costs and other operating costs, cyber incidents, information technology failures, downturns in general and local economic conditions, prolonged periods of civil unrest in our markets, and disruption caused by cancellation of or delays in the completion of anticipated demand generators; (vii) the availability and terms of financing and capital and the general volatility of securities markets; (viii) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws; (ix) interest rate changes; (x) ability to successfully negotiate amendments and covenant waivers with its unsecured and secured indebtedness; (xi) the Company's ability to comply with covenants, restrictions, and limitations in any existing or revised loan agreements with our unsecured and secured lenders; (xii) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs; (xiii) the possibility of uninsured or underinsured losses, including those relating to natural disasters, terrorism, government shutdowns and closures, civil unrest, or cyber incidents; (xiv) risks associated with redevelopment and repositioning projects, including disruption, delays and cost overruns; (xv) levels of spending in business and leisure segments as well as consumer confidence; (xvi) declines in occupancy and average daily rate; (xvii) the seasonal and cyclical nature of the real estate and hospitality businesses; (xviii) changes in distribution arrangements, such as through online travel intermediaries; (xix) relationships with labor unions and changes in labor laws, including increases to minimum wages and/or work rule requirements; (xx) the impact of changes in the tax code and uncertainty as to how some of those changes may be applied; (xxi) monthly cash expenditures and the uncertainty around predictions; (xxii) labor shortages; (xxiii) disruptions in supply chains resulting in delays or inability to procure required products; and (xiv) the risk factors discussed in the Company's Annual Report on Form 10-K, as updated in its Quarterly Reports. Accordingly, there is no assurance that the Company's expectations will be realized. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company's website at www.xeniareit.com.
All information in this press release is as of the date of its release. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations.
Availability of Information on Xenia's Website
Investors and others should note that Xenia routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts, and the Investor Relations section of Xenia's website. While not all the information that the Company posts to the Xenia website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Xenia to review the information that it shares at the Investor Relations link located on www.xeniareit.com. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Investor Email Alerts" in the "Corporate Overview" section of Xenia's Investor Relations website at www.xeniareit.com.
Contact:
Atish Shah, Executive Vice President and Chief Financial Officer, Xenia Hotels & Resorts, (407) 246-8100
For additional information or to receive press releases via email, please visit our website at www.xeniareit.com.
Xenia Hotels & Resorts, Inc.Condensed Consolidated Balance SheetsAs of June 30, 2025 and December 31, 2024($ amounts in thousands, except per share data)
June 30, 2025
December 31, 2024
Assets:
(Unaudited)
Investment properties:
Land
$ 472,648
$ 455,907
Buildings and other improvements
3,140,539
3,188,885
Total
$ 3,613,187
$ 3,644,792
Less: accumulated depreciation
(1,088,910)
(1,053,971)
Net investment properties
$ 2,524,277
$ 2,590,821
Cash and cash equivalents
172,609
78,201
Restricted cash and escrows
78,384
65,381
Accounts and rents receivable, net of allowance for doubtful accounts
35,592
25,758
Intangible assets, net of accumulated amortization
4,853
4,856
Deferred tax assets
5,171
5,345
Other assets
54,201
61,254
Total assets
$ 2,875,087
$ 2,831,616
Liabilities:
Debt, net of loan premiums, discounts and unamortized deferred financing costs
$ 1,423,681
$ 1,334,703
Accounts payable and accrued expenses
96,683
102,896
Distributions payable
13,994
12,566
Other liabilities
78,780
101,118
Total liabilities
$ 1,613,138
$ 1,551,283
Commitments and Contingencies
Stockholders' equity:
Common stock, $0.01 par value, 500,000,000 shares authorized, 95,780,393 and 101,310,135 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively
$ 958
$ 1,013
Additional paid in capital
1,851,433
1,921,006
Accumulated other comprehensive income
274
925
Accumulated distributions in excess of net earnings
(636,480)
(679,841)
Total Company stockholders' equity
$ 1,216,185
$ 1,243,103
Non-controlling interests
45,764
37,230
Total equity
$ 1,261,949
$ 1,280,333
Total liabilities and equity
$ 2,875,087
$ 2,831,616
Xenia Hotels & Resorts, Inc.Condensed Consolidated Statements of Operations and Comprehensive IncomeFor the Three and Six Months Ended June 30, 2025 and 2024(Unaudited) ($ amounts in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenues:
Rooms revenues
$ 158,497
$ 160,786
$ 318,363
$ 313,910
Food and beverage revenues
102,186
89,080
206,885
181,853
Other revenues
26,896
23,038
51,258
44,629
Total revenues
$ 287,579
$ 272,904
$ 576,506
$ 540,392
Expenses:
Rooms expenses
39,156
39,028
78,478
77,221
Food and beverage expenses
65,626
60,634
132,153
121,114
Other direct expenses
7,338
6,757
14,059
12,844
Other indirect expenses
68,674
69,749
139,687
137,382
Management and franchise fees
10,156
9,651
22,120
20,284
Total hotel operating expenses
$ 190,950
$ 185,819
$ 386,497
$ 368,845
Depreciation and amortization
32,631
31,823
65,823
63,787
Real estate taxes, personal property taxes and insurance
11,928
13,340
25,657
26,833
Ground lease expense
527
837
1,358
1,623
General and administrative expenses
10,822
10,341
19,733
20,599
Gain on business interruption insurance
—
—
—
(745)
Other operating expenses
224
377
1,077
1,207
Impairment and other losses
279
100
279
350
Total expenses
$ 247,361
$ 242,637
