Xenia Hotels & Resorts (NYSE:XHR) Posts Quarterly Earnings Results, Beats Expectations By $0.37 EPS

Key Points

• Xenia Hotels & Resorts exceeded quarterly earnings expectations: EPS was $0.61 versus the $0.24 consensus, while revenue rose 2.7% year over year to $295.5 million but fell short of estimates.
• Management raised its full-year 2026 outlook for Adjusted FFO per share to $2.02, with RevPAR growth expected at 5.5%; strong group bookings and rising transient demand support the outlook.
• Despite the upbeat results and guidance, same-property Hotel EBITDA margins declined to 28.7% because expenses grew faster than revenue, and the stock fell 7.7% during Thursday trading.

Xenia Hotels & Resorts (NYSE:XHR - Get Free Report) issued its quarterly earnings data on Thursday. The real estate investment trust reported $0.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.37, Zacks reports. Xenia Hotels & Resorts had a return on equity of 5.53% and a net margin of 6.20%.The company had revenue of $295.49 million during the quarter, compared to the consensus estimate of $302.39 million. During the same period last year, the company earned $0.57 earnings per share. The firm's revenue was up 2.7% compared to the same quarter last year. Xenia Hotels & Resorts updated its FY 2026 guidance to 1.960-2.080 EPS.

Here are the key takeaways from Xenia Hotels & Resorts' conference call:

• Second-quarter performance exceeded expectations: same-property RevPAR increased 5.6% to $206.54, driven by a 5.7% increase in ADR, while Adjusted EBITDAre reached $78.1 million and Adjusted FFO per share rose 7% to $0.61.
• Management raised full-year 2026 guidance, increasing the midpoint for Adjusted EBITDAre by $7 million to $273 million, RevPAR growth to 5.5%, total RevPAR growth to 5.75%, and Adjusted FFO per share to $2.02. July RevPAR is estimated to be up approximately 10% year over year.
• Second-half demand indicators are strong: group room revenue pace was up 12% year over year at the end of June, with more than three-quarters of expected second-half group business already booked, while August and September transient pace was up in the high-single-digit range.
• Same-property Hotel EBITDA margin declined 65 basis points to 28.7% as operating expenses grew faster than revenue. Headwinds included the absence of last year’s $1.5 million real-estate-tax refund, higher energy and credit-card costs, weaker banquet revenue, and start-up expenses at W Nashville’s repositioned food-and-beverage outlets.
• Xenia sold the underperforming 85-room Kimpton RiverPlace Hotel for $11 million and said the transaction market is becoming more active, but management expects near-term activity to remain focused primarily on individual properties and smaller portfolios rather than major corporate M&A.

Xenia Hotels & Resorts Stock Down 7.7%

XHR stock traded down $1.67 during trading on Thursday, reaching $20.15. 1,441,953 shares of the stock were exchanged, compared to its average volume of 770,274. The firm's 50 day moving average is $19.60 and its 200 day moving average is $16.91. The firm has a market cap of $1.86 billion, a P/E ratio of 28.78 and a beta of 1.14. The company has a current ratio of 2.05, a quick ratio of 2.05 and a debt-to-equity ratio of 1.14. Xenia Hotels & Resorts has a twelve month low of $11.75 and a twelve month high of $22.06.

Xenia Hotels & Resorts Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 30th. Xenia Hotels & Resorts's dividend payout ratio is 80.00%.

Insider Activity at Xenia Hotels & Resorts

In other news, insider Atish Shah sold 120,000 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $17.00, for a total transaction of $2,040,000.00. Following the completion of the sale, the insider owned 250,805 shares in the company, valued at $4,263,685. The trade was a 32.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 4.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Xenia Hotels & Resorts

Hedge funds and other institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP lifted its stake in shares of Xenia Hotels & Resorts by 3.1% in the third quarter. Wellington Management Group LLP now owns 9,044,142 shares of the real estate investment trust's stock valued at $124,086,000 after buying an additional 273,876 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of Xenia Hotels & Resorts by 30.6% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,704,360 shares of the real estate investment trust's stock worth $37,104,000 after acquiring an additional 633,820 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Xenia Hotels & Resorts by 2.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,345,600 shares of the real estate investment trust's stock worth $33,167,000 after acquiring an additional 49,979 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Xenia Hotels & Resorts by 2.4% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,374,459 shares of the real estate investment trust's stock worth $18,859,000 after acquiring an additional 32,635 shares during the last quarter. Finally, Millennium Management LLC raised its holdings in shares of Xenia Hotels & Resorts by 15.2% in the 4th quarter. Millennium Management LLC now owns 1,134,615 shares of the real estate investment trust's stock worth $16,043,000 after acquiring an additional 149,869 shares during the last quarter. Institutional investors own 92.43% of the company's stock.

Analyst Ratings Changes

Several research firms have recently weighed in on XHR. KeyCorp lifted their price objective on Xenia Hotels & Resorts from $16.00 to $21.00 and gave the stock an "overweight" rating in a research report on Thursday, June 11th. BMO Capital Markets reaffirmed an "outperform" rating and set a $21.00 target price on shares of Xenia Hotels & Resorts in a research note on Friday, June 12th. Wells Fargo & Company boosted their price target on Xenia Hotels & Resorts from $18.00 to $22.00 and gave the company an "overweight" rating in a research note on Thursday, July 23rd. Finally, Weiss Ratings upgraded Xenia Hotels & Resorts from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, July 13th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Xenia Hotels & Resorts presently has a consensus rating of "Buy" and a consensus price target of $20.25.

About Xenia Hotels & Resorts

Xenia Hotels & Resorts is a self-administered real estate investment trust (REIT) that specializes in owning, operating and acquiring premium full-service hotels across the United States. The company's portfolio emphasizes upper-upscale and luxury properties, partnering with leading hotel brands to deliver a distinctive guest experience while targeting markets with strong leisure and corporate demand.

Founded as a spin-off from Marriott International in September 2016, Xenia has built a diversified collection of full-service hotels and resorts in key U.S.

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