Xenia Hotels & Resorts (XHR) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 rose to $15.6M–$16.5M, up 84.1% year-over-year, driven by higher hotel operating income, reduced G&A expenses, and strong group business.

• Adjusted EBITDAre increased 11.8% to $72.9M, and Adjusted FFO per share rose 15.9% to $0.51, with one-third of assets achieving double-digit RevPAR growth.

• Portfolio benefited from special events, robust group and corporate demand, and the successful ramp-up of Grand Hyatt Scottsdale post-renovation.

• Strategic capital allocation included acquiring land under Hyatt Regency Santa Clara and selling Fairmont Dallas, improving portfolio quality and reducing future CapEx needs.

• Dividend increased by 17% to $0.14 per share and 2.7% of shares repurchased in Q1, reflecting confidence in future performance.

Financial highlights

• Net income: $15.6M ($0.15 per share); total revenues: $288.9M (+8.0% year-over-year); Adjusted EBITDAre: $72.9M; Adjusted FFO: $52.1M; Adjusted FFO per share: $0.51.

• Same-property RevPAR: $188.73, up 6.3%–6.7% year-over-year; occupancy: 69.3% (+180–190 bps); ADR: $272.41 (+3.6%–3.8%).

• Hotel EBITDA: $79.3M, up 10.5% year-over-year; margin improved to 27.4% (+42 bps).

• Food & beverage revenue up 12.9%–13.4%; other department income up 12.8%–14%.

• Cash and cash equivalents at quarter-end: $112.6M–$113M; total liquidity: $613M–$715M.

Outlook and guidance

• Full-year 2025 RevPAR growth guidance midpoint lowered by 50 bps to 4.5%; same-property RevPAR growth expected between 2.5% and 6.5%.

• Adjusted EBITDAre guidance cut by $6M at midpoint; full-year Adjusted EBITDAre: $235–$261M; Adjusted FFO: $152–$178M; Adjusted FFO per share forecasted at $1.62.

• Group business expected to be the main driver of growth; leisure segment to see low single-digit decline.

• CapEx for 2025 reduced to $75–$85M, down $25M from prior guidance.

• Guidance reflects macroeconomic uncertainty, with reduced expectations for revenue and earnings growth.