Xenia Hotels & Resorts Q2 Earnings Call Highlights

Xenia Hotels & Resorts NYSE: XHR reported second-quarter results that modestly exceeded its prior expectations, supported by rate-driven room revenue growth and continued strength in higher-end leisure and group demand.

The company raised the midpoint of its full-year 2026 Adjusted EBITDAre outlook by $7 million to $273 million and increased its midpoint RevPAR growth forecast by 150 basis points to 5.5%.

Same-property RevPAR rose 5.6% year over year to $206.54 in the second quarter. The gain was driven entirely by a 5.7% increase in average daily rate to $285.71, while occupancy was essentially unchanged at 72.3%.

Adjusted EBITDAre totaled $78.1 million, about $1 million above the expectations implied by the company’s prior quarterly guidance, while Adjusted FFO per share increased 7% from a year earlier to $0.61.

On a GAAP basis, Xenia reported a net loss attributable to common stockholders of $19.3 million. Chairman and Chief Executive Officer Marcel Verbaas said the loss reflected a non-cash impairment charge associated with the sale of the Kimpton RiverPlace Hotel in Portland, Oregon.

Transient business outpaced group business during the quarter, with transient same-property RevPAR increasing 6.9% and group RevPAR rising 3.4%.

Verbaas said the FIFA World Cup contributed to demand and rate growth in June, when matches took place in six of the company’s markets, although the overall portfolio impact was limited.

“While the World Cup certainly provided compression and rate growth around game days, the overall positive impact on our portfolio was limited,” Verbaas said.

He noted that group business in many World Cup markets was weaker because FIFA released large room blocks as the event approached and because some customers hesitated to book around the games.

June was the company’s strongest month of the quarter, with RevPAR increasing 8.6% year over year to $200.32.

Xenia recorded nearly 9% growth in average daily rate during the month.

Nineteen of the company’s 22 markets reported positive RevPAR growth in the quarter.

Among individual properties and markets, Kimpton Hotel Palomar Philadelphia posted 22% RevPAR growth, followed by Kimpton Hotel Monaco Salt Lake City at 13.1%.

Xenia’s Phoenix properties grew 12.7% on a combined basis.

Other notable gains included Grand Bohemian Hotel Mountain Brook, Park Hyatt Aviara and Hyatt Regency Santa Clara.

Same-property Total RevPAR, which includes non-room revenue, increased 3.3% to $366.17, trailing room RevPAR growth.

President and Chief Operating Officer Barry Bloom said the result reflected a higher transient mix and an anticipated mix shift between association and corporate group business.

Food-and-beverage revenue grew only modestly, while more-profitable banquet business declined 1.1% and less-profitable outlet business increased 1.5%.

Same-property hotel EBITDA rose 1% to $84.9 million, while the hotel EBITDA margin declined 65 basis points to 28.7%.

Total same-property hotel operating expenses increased 4.2%, exceeding the 3.3% increase in total revenue.

The company attributed the margin decline primarily to the comparison with approximately $1.5 million in real estate tax refunds received in the second quarter of 2025, as well as expenses tied to the start-up of repositioned food-and-beverage operations at W Nashville.

Bloom also cited higher credit-card commissions associated with the transient mix and increased gas and water expenses.

Chief Financial Officer Atish Shah said the company views expense growth on a per-occupied-room basis as relatively normalized, in a range of roughly 3% to 4%.

Xenia expects higher occupancy in the third and fourth quarters to support expense performance toward the...