Xenia Hotels & Resorts (NYSE:XHR) detailed fourth-quarter and full-year 2025 results and provided its initial 2026 outlook on its earnings call held February 24, 2026, highlighting strong group demand, continued growth in food-and-beverage and ancillary revenues, and ongoing capital investment across its 30-hotel same-property portfolio.
Q4 and full-year 2025 results
Chairman and CEO Marcel Verbaas said 2025 performance exceeded the company’s expectations, citing “significant growth in food and beverage and other revenues” that helped drive total RevPAR growth of 8% for the year. He also pointed to a strong year for capital allocation, including more than $120 million in share repurchases and double-digit percentage growth in adjusted FFO per share compared to 2024.
- Net income: $6.1 million
- Adjusted EBITDAre: $63.6 million
- Adjusted FFO per share: $0.45
- Same-property RevPAR: up 4.5% year over year
- Same-property total RevPAR: up 6.7% year over year
Verbaas attributed quarterly growth to strong group and transient demand and continued strength in non-room revenues. He cited the ongoing ramp at the recently renovated and upbranded Grand Hyatt Scottsdale and strong results in Santa Barbara, Orlando, San Diego, and Santa Clara as key drivers. He also noted Houston-area hotels posted RevPAR and total RevPAR growth as that market improved after difficult comparisons earlier in the year.
On profitability, the company reported same-property fourth-quarter hotel EBITDA of $68.8 million, up 16.3% versus 2024, and hotel EBITDA margin up 214 basis points, as revenue growth outpaced operating expense increases.
For the full year 2025, Xenia reported:
- Net income: $63.1 million
- Adjusted EBITDAre: $258.3 million
- Adjusted FFO per share: $1.76
- Same-property RevPAR: up 3.9%
- Same-property total RevPAR: up 8%
Management emphasized outperformance in non-room categories: food-and-beverage revenue rose 13.4% year over year, driven by banquet and catering, while other revenues increased 13.8%. Verbaas said group demand led the year’s segment growth, corporate transient showed “steady improvement,” and leisure demand “stabilized.” Same-property group room revenues rose 12.8%, while banquet and catering revenues increased 17.2% in 2025.
Property-level trends: winners and laggards
President and COO Barry Bloom provided quarterly and annual operating details. For the fourth quarter, same-property RevPAR was $176.45, based on 66.1% occupancy and $266.88 ADR. Total RevPAR was $325.52. For full-year 2025, same-property RevPAR was $181.97 (with 68.6% occupancy and $265.38 ADR), and total RevPAR was $328.57.
Bloom singled out the strongest full-year RevPAR growers, including:
- Grand Hyatt Scottsdale: RevPAR up over 104% as the hotel lapped its transformative renovation
- Kimpton Canary Hotel Santa Barbara: up about 10%
- Grand Bohemian Orlando: up 8%
- Fairmont Pittsburgh: up nearly 8%
- Hyatt Regency Santa Clara and The Ritz-Carlton, Pentagon City: each up 7.5%
He also noted areas of weakness versus 2024, including both Portland hotels, Royal Palms Resort and Spa, Andaz San Diego, and all four Texas hotels, attributing several declines to softer citywide convention calendars. For Houston, he added that comparisons were complicated by 2024 performance that benefited from the “positive impact from Hurricane Beryl.”
Bloom said large corporate account demand continued to recover, with room night demand from the portfolio’s largest accounts growing at a mid-teens percentage rate in the fourth quarter. He also said Tuesday and Wednesday night RevPAR increased 6% for the year, which management framed as a sign of strengthening midweek business travel demand.
Capital allocation and balance sheet update
Verbaas said Xenia sold Fairmont Dallas in 2025 at what he described as an attractive price, adding that the transaction allowed the company to avoid an estimated $80 million of required capital expenditures over coming years. He also said Xenia acquired the land under Hyatt Regency Santa Clara to remove uncertainty around lease renewal and rent escalations.
In 2025, the company invested about $87 million in capital expenditures (Bloom cited $86.6 million for full-year 2025), spanning guest-facing upgrades and infrastructure projects across multiple hotels. Bloom said infrastructure work during the year included items such as facade waterproofing, chiller replacements, elevator and escalator modernization, and fire alarm system upgrades.
EVP and CFO Atish Shah said year-end debt totaled about $1.4 billion, with just over three-quarters fixed or hedged to fixed and a weighted average interest rate of 5.51%. The company’s leverage ratio was about 5.2x trailing 12-month net debt to EBITDA under its credit facility calculation, and management reiterated a long-term target in the low 3x to low 4x range.
Shah said the company fully repaid a $52 million mortgage at Grand Bohemian Orlando using cash on hand. After that payoff, Xenia had $75 million of available cash (excluding restricted cash) and an undrawn $500 million revolving line of credit, for total liquidity of roughly $575 million. He added that 28 of 30 hotels are free of property-level debt.
On capital returns, Xenia repurchased 2.7 million shares in the fourth quarter at an average price of $13.56. For full-year 2025, the company repurchased about 9.4 million shares at an average price of $12.87, representing about 9.2% of shares outstanding at the start of 2025. The board authorization allows an additional $97.5 million of repurchases.
The company also announced a quarterly dividend of $0.14 per share for the first quarter of 2026, which Shah said implies an annualized yield of about 3.5%.
2026 guidance: modest RevPAR growth, higher FFO per share
Management issued initial 2026 guidance calling for 1.5% to 4.5% same-property RevPAR growth (3% at the midpoint) and 2.75% to 5.75% same-property total RevPAR growth (4.25% at the midpoint). Adjusted FFO per share is expected to rise to $1.89 at the midpoint, which Shah said would be nearly 7% growth versus 2025.
Adjusted EBITDAre guidance was about $260 million at the midpoint, or roughly 1% growth year over year. Shah outlined several headwinds affecting the year-over-year comparison, including: Fairmont Dallas EBITDA earned prior to its sale, non-recurring property tax refunds in Q4 2025, lower interest income expected in 2026, and approximately $1 million of renovation disruption expected in 2026. He said these items collectively represent an $11 million adjusted EBITDAre headwind, partially offset by about $8 million of incremental EBITDA expected from Grand Hyatt Scottsdale.
On expenses, Shah said cost per occupied room is expected to increase about 3% in 2026, with wage-and-benefit costs (about half of hotel-level costs) expected to rise about 6%. With occupancy expected to increase, same-property hotel expense is expected to rise about 4.5%, implying slight margin contraction.
Management also provided early-year performance and demand commentary. Verbaas said first-quarter same-property RevPAR through February 19 was up about 4.6% versus the same period in 2025. Shah said that as of the end of January, nearly 70% of 2026 group business was definite, and for March through December, group revenue pace was up about 10% year over year (up 8% excluding Grand Hyatt Scottsdale). He also said preliminary estimates suggest special events such as the FIFA World Cup and America 250 could contribute roughly 75 basis points of 2026 RevPAR growth, though he cautioned much of that demand is expected to be transient and not yet booked.
Renovations and W Nashville food-and-beverage relaunch
Xenia expects to invest $70 million to $80 million in capital expenditures in 2026, with about $1 million of expected adjusted EBITDAre and adjusted FFO displacement from renovation disruption. Bloom said major 2026 projects include the start of guest room renovations at Andaz Napa and The Ritz-Carlton, Denver (both expected to begin in the fourth quarter), limited renovations at Royal Palms, and continued infrastructure and facade upgrades at 10 hotels.
Bloom also discussed a major reconcepting of food-and-beverage facilities at W Nashville through agreements with José Andrés Group. He said Zaytinya opened in mid-February, while Bar Mar and Butterfly are expected to open in late March and Glowbird is expected to open by the end of April. Bloom said the company expects the relaunch to add $3 million to $5 million to hotel EBITDA upon stabilization and believes the property could generate more than $20 million of hotel EBITDA in the next few years.
In the Q&A, management said the company is seeing somewhat more activity in the asset transaction market compared with recent years, but reiterated it has favored share repurchases given the perceived discount to NAV. Leaders also pointed to continued improvement in business transient demand and said the long-term benefit of the W Nashville relaunch is expected to build over several years as the hotel’s overall appeal improves across leisure, corporate transient, and group customers.
About Xenia Hotels & Resorts (NYSE:XHR)
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.
