Xenia Hotels & Resorts (XHR) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income rose to $55.2M, up over 259% year-over-year, driven by a $40M gain on the Fairmont Dallas sale and strong group and catering revenues, especially at Grand Hyatt Scottsdale Resort.

• Adjusted EBITDAre for Q2 was $79.5M, up 16.3% year-over-year, with significant increases in hotel EBITDA and margin, supported by robust group business.

• Portfolio RevPAR increased 4% to $195.51, with occupancy at 72.3% and ADR at $270.42, reflecting a balanced demand mix.

• Sale of Fairmont Dallas for $111M generated an 11.3% unlevered IRR and $40M gain, optimizing capital allocation.

• Share repurchases totaled nearly 6M shares YTD for $71.5M, with $146M remaining under authorization.

Financial highlights

• Q2 total revenues were $287.6M, up 5.4% year-over-year; six-month revenues reached $576.5M, up 6.7%.

• Q2 adjusted FFO per share was $0.57, up 9.6% year-over-year; Q2 same-property hotel EBITDA was $84M, up 22.2%.

• Q2 same-property hotel EBITDA margin was 29.4%, up 269 bps; same-property RevPAR up 4% to $195.51.

• Food and beverage revenues rose 14.7%–20.9% year-over-year in Q2.

• Gain on sale of Fairmont Dallas contributed $40M to Q2 results.

Outlook and guidance

• Full-year 2025 adjusted EBITDAre guidance raised to $249M–$263M; adjusted FFO to $166M–$180M; net income guidance $58M–$72M.

• Full-year RevPAR growth guidance at 3.5%–5.5%; excluding Scottsdale, expected at 1.5%.

• Capital expenditures for 2025 projected at $75M–$85M, down $25M from initial projection.

• Group room revenue pace for H2 up 16% (7% ex-Scottsdale); 2026 group pace up mid-teens percent.

• Management remains focused on maximizing revenue, profits, and sustainable cash flow amid macroeconomic headwinds.