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Xenia Hotels & Resorts reported a net loss of USD 13.7 million for the third quarter, with adjusted EBITDAre dropping 4.6% year-on-year. Adjusted funds from operations (FFO) per share decreased by 8%, while the company repurchased 974,645 shares for USD 12.3 million during the quarter. Despite the decline, Xenia projected a 4% rise in full-year 2025 same-property RevPAR and anticipated adjusted EBITDAre of USD 254 million at the midpoint. Analysts maintained a generally positive stance on the stock.
Xenia Hotels & Resorts recorded a net loss of USD 13.7 million for the third quarter, alongside a 4.6% year-on-year fall in adjusted EBITDAre. Adjusted FFO stood at USD 22.18 million, with FFO per share dropping 8% to USD 0.23. The company's quarterly dividend remained at USD 0.14 per share. Advertisement
During the quarter, Xenia repurchased 974,645 shares worth USD 12.3 million as part of its capital allocation strategy. The firm stated that performance in the Houston market had negatively impacted overall results due to difficult year-on-year comparisons following Hurricane Beryl. However, this was partially offset by strong growth at Grand Hyatt Scottsdale, which supported RevPAR performance excluding Houston.
Xenia also highlighted that stronger group business and enhancements in food and beverage offerings had contributed to an 8.5% rise in same-property total RevPAR. Looking ahead, the company projected a 4% increase in full-year 2025 same-property RevPAR and anticipated adjusted EBITDAre of approximately USD 254 million at the midpoint. It also expected strong group demand to drive non-room revenue growth into 2026.
Analysts maintained a positive outlook on the company, with four out of six recommending a "buy' or "strong buy". The remaining two issued 'hold' ratings, while none suggested selling the stock. Xenia's shares were recently trading at USD 12.74, with Wall Street"s median 12-month price target set at USD 15.00 representing an upside of roughly 15%. The stock traded at 52 times projected 12-month earnings, compared to a P/E ratio of 32 three months earlier.
Xenia Hotels third-quarter results reflected a challenging environment, particularly in the Houston market, though strength at Grand Hyatt Scottsdale and improved group business partially balanced the impact. The company's steady share repurchases and optimistic forecasts for 2025 and 2026 signalled confidence in future growth. With analysts maintaining a predominantly positive stance and expectations of rising RevPAR, Xenia's management remained focused on leveraging robust group demand and enhanced hospitality offerings to sustain recovery momentum.
Source - Reuters
5th Jun, 2025
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