Xenia Hotels & Resorts (NYSE: XHR) reported fourth‑quarter and full‑year 2025 results that marked a dramatic turnaround from the prior year. Net income for the quarter rose to $6.1 million, up from a $0.6 million loss in Q4 2024, while diluted earnings per share climbed to $0.07 from a $0.01 loss. For the full year, net income reached $63.1 million, a 290.8% increase over the $16.1 million reported in 2024, and diluted EPS grew to $0.64 from $0.15.
The company’s same‑property RevPAR increased 4.5% in the quarter and 8.0% for the year, driven by robust group and transient demand and the successful ramp‑up at Grand Hyatt Scottsdale. EBITDA margin expanded to 25.9% from 23.8% a year earlier, reflecting effective cost controls and a shift toward higher‑margin food, beverage and ancillary services. Xenia’s liquidity remains strong, with $140 million in cash and $500 million of available revolving credit, and the company repurchased $36.6 million of shares in the quarter.
Xenia’s management highlighted the earnings beat and margin expansion as evidence of disciplined execution. The company’s EPS beat analyst expectations by roughly $0.41, largely due to tighter operating costs and a favorable revenue mix. Revenue, however, fell short of consensus by about $2.9 million, a miss attributed to slightly weaker top‑line growth than analysts projected. The company guided for 2026 Adjusted FFO per diluted share of $1.78 to $1.99, in line with consensus estimates, and projected Adjusted EBITDAre between $250 million and $270 million, signaling confidence in continued profitability.
Market reaction to the results was muted, with investors focusing on the revenue miss despite the strong earnings beat. Analysts noted that while Xenia’s cost discipline and margin expansion are positive, the slight revenue shortfall raises questions about demand resilience in a tightening macro environment. The company’s guidance for 2026 remains steady, suggesting management’s confidence in maintaining profitability while navigating potential headwinds such as rising operating expenses and competitive pricing pressures.
Management emphasized that the company’s strategic focus on luxury and upper‑upscale properties in top U.S. markets, combined with active portfolio recycling and a diversified revenue mix, positions Xenia well for sustained growth. The successful repositioning of Grand Hyatt Scottsdale and continued group demand are expected to support RevPAR growth in the near term.
Xenia’s share repurchase program and quarterly dividend of $0.14 per share for Q1 2026 underscore the company’s commitment to returning value to shareholders while maintaining a solid capital structure.
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