Core Viewpoint - Xenia Hotels & Resorts, Inc. has declared a cash dividend of $0.14 per share for the fourth quarter of 2025, reflecting the company's ongoing commitment to returning value to shareholders [1]. Company Overview - Xenia Hotels & Resorts, Inc. is a self-advised and self-administered Real Estate Investment Trust (REIT) that focuses on luxury and upper upscale hotels and resorts in the top 25 lodging markets and key leisure destinations across the United States [2]. - The company owns 30 hotels and resorts, totaling 8,868 rooms, and operates in 14 states, partnering with industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection [2].

Core Insights - Xenia Hotels & Resorts, Inc. (XHR) demonstrates resilience despite a weak sector outlook, with steady operations and improved financials following renovation completions [1] - Management expresses a preference for share buybacks over new investments, indicating confidence in the company's value [1] - XHR has no near-term debt maturities, positioning the company favorably for future financial stability [1] Financial Performance - The company has shown improved financials post-renovation, contributing to its operational steadiness [1] - The focus on share buybacks suggests a strategic allocation of capital towards enhancing shareholder value rather than pursuing new investments [1] Market Position - XHR's resilience in a challenging sector indicates a strong market position, potentially making it an attractive option for investors looking for stability [1]

Core Insights - Xenia Hotels & Resorts (XHR) demonstrates resilience despite a weak sector outlook, showing steady operations and improved financials following renovation completions [1] - Management expresses a preference for share buybacks over new investments, indicating confidence in the company's value [1] - XHR has no near-term debt maturities, positioning the company favorably for future financial stability [1] Financial Performance - The completion of renovations has led to improved financials for XHR, contributing to its steady operational performance [1] - The company's strategy of prioritizing share buybacks suggests a strong belief in its current valuation and future prospects [1] Market Position - XHR's resilience in a challenging sector highlights its competitive positioning and operational effectiveness [1] - The lack of near-term debt maturities enhances XHR's financial flexibility, allowing for strategic decisions without immediate pressure [1]

Core Insights - Orsted reported a quarterly net loss of 1.7 billion Danish kroner ($261.8 million) for the July-September period, a significant decline from a profit of 5.17 billion Danish kroner in the same period last year [2] - The company flagged third-quarter impairment costs of nearly 1.8 billion Danish kroner [2] - Orsted reiterated its full-year EBITDA guidance of 24-27 billion Danish kroner, excluding earnings from new partnerships and cancellation fees [3] - The company announced a deal to sell a 50% stake in its Hornsea 3 offshore wind farm in the U.K. to Apollo Global Management for $6 billion [3] - Orsted's CEO expressed satisfaction with the progress across the construction portfolio and emphasized the company's focus on maintaining its leadership in offshore wind [4] - Despite the challenges, Orsted's shares rose by 1.2% on Wednesday morning, although the stock price has significantly declined this year due to U.S. government actions against wind developments [5]

Company Overview - As of September 30, 2025, Xenia owned 30 hotels and resorts, comprising 8,868 rooms across 14 states[131]. - The number of properties decreased from 31 to 30, and the number of rooms decreased from 9,408 to 8,868, representing a reduction of 540 rooms[143]. - The company owned 30 lodging properties as of September 30, 2025, compared to 31 properties in the same period of 2024[32]. Financial Performance - Total revenues for the nine months ended September 30, 2025, increased by $35.7 million, or 4.6%, to $812.9 million compared to $777.2 million for the same period in 2024[145]. - Total revenues for the three months ended September 30, 2025, were $236.4 million, a slight decrease of 0.2% compared to $236.8 million in the same period of 2024[14]. - Net income increased 243.1% for the nine months ended September 30, 2025, attributed to a $38.3 million increase in gain on sale of investment properties[141]. - Net income for the nine months ended September 30, 2025, was $60,540,000, compared to $17,647,000 for the same period in 2024, representing a significant increase of 242%[25]. - Comprehensive income attributable to the Company for the nine months ended September 30, 2025, was $56.3 million, compared to $15.0 million in the same period of 2024[17]. Revenue Breakdown - Rooms revenues for the nine months ended September 30, 2025, decreased by $0.9 million, or 0.2%, to $452.6 million, primarily due to the sale of Lorien Hotel & Spa and Fairmont Dallas[147]. - Food and beverage revenues for the nine months ended September 30, 2025, increased by $28.0 million, or 10.9%, to $284.7 million, driven by increased occupancy and strong group business demand[150]. - Other revenues for the nine months ended September 30, 2025, increased by $8.6 million, or 12.9%, to $75.7 million, attributed to increases in occupancy and ancillary fees[152]. Operating Expenses - Total hotel operating expenses for the nine months ended September 30, 2025, increased by $19.1 million, or 3.5%, to $563.6 million, largely due to increases in occupancy and renovation disruptions[156]. - Total hotel operating expenses for the three months ended September 30, 2025, increased by $1.4 million, or 0.8%, to $177.1 million, influenced by renovation disruptions[155]. - General and administrative expenses increased by $1.0 million, or 12.5%, to $8.8 million for the three months ended September 30, 2025, from $7.8 million for the same period in 2024[162]. Debt and Liquidity - Total debt as of September 30, 2025, was $1.4 billion with a weighted-average interest rate of 5.63%[180]. - As of September 30, 2025, the company had $188.2 million of consolidated cash and cash equivalents and $80.7 million of restricted cash and escrows[175]. - The Company had $200 million available for sale under the ATM Agreement as of September 30, 2025[176]. - The Operating Partnership entered into a new $825 million senior unsecured credit facility, which includes a $500 million revolving line of credit and a $225 million term loan, maturing in November 2028[182]. Shareholder Activity - The Company repurchased 974,645 shares for $12.3 million during the three months ended September 30, 2025, and 6,656,706 shares for $83.8 million during the nine months ended September 30, 2025[191]. - The Company declared dividends of $0.14 per share for the quarters ended March 31, June 30, and September 30, 2025[88]. - The Company had approximately $134.1 million remaining under its share repurchase authorization[87]. Market Conditions - Demand for hotel rooms decreased 0.6% during the three months ended September 30, 2025, while new hotel supply increased 0.9%[138]. - The U.S. lodging industry experienced a decrease in occupancy of 1.5% for the three months ended September 30, 2025, leading to a 1.4% decrease in industry RevPAR[138]. - The unemployment rate rose to 4.3% in August 2025, compared to 4.1% in June 2025[137]. Tax and Interest Expenses - Income tax expense increased by $5.6 million, or 138.9%, to $1.6 million for the nine months ended September 30, 2025, from an income tax benefit of $4.0 million for the same period in 2024[172]. - Interest expense increased by $1.7 million, or 8.3%, to $21.8 million for the three months ended September 30, 2025, from $20.1 million for the same period in 2024[171]. Capital Expenditures - The Company made total capital expenditures of $19.9 million and $70.7 million for the three and nine months ended September 30, 2025, respectively[193]. - Capital expenditures for the nine months ended September 30, 2025, were $70,703,000, down from $116,152,000 in 2024, indicating a decrease of 39.2%[25]. Cash Flow - Cash provided by operating activities increased to $155.1 million for the nine months ended September 30, 2025, compared to $133.1 million for the same period in 2024[197]. - The net increase in cash and cash equivalents at the end of the period was $125.4 million for the nine months ended September 30, 2025, compared to $1.6 million in 2024[196]. - Cash used in investing activities was $8.7 million for the nine months ended September 30, 2025, a significant improvement from $(84.5) million in 2024[198].

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net loss of $13.7 million, adjusted EBITDAre of $42.2 million, and adjusted FFO per share of $0.23, representing an 8% decrease compared to the same quarter last year [5][12] - Same property REvPAR for Q3 was essentially flat for the 30 hotel portfolio compared to Q3 2024, with a 100 basis points decrease in occupancy offset by a 1.6% increase in ADR [5][6] - For the first nine months of the year, same property REvPAR increased by 3.7%, driven by an 80 basis point higher occupancy and a 2.4% increase in ADR compared to the same period in 2024 [7][8] Business Line Data and Key Metrics Changes - Group business was the strongest segment this year, although it was not as significant a driver in Q3 as in the first half of the year [6][12] - Excluding Houston assets, same property REvPAR increased by 2.9%, largely due to significant growth at Grand Hyatt Scottsdale Resort & Spa at Gainey Ranch [6][8] - Q3 same property hotel EBITDA was $47 million, 0.7% above 2024 levels, while hotel EBITDA margin decreased by 60 basis points [8][19] Market Data and Key Metrics Changes - The Houston market negatively impacted portfolio performance due to tough comparisons from Hurricane Beryl's aftermath in Q3 last year [5][6] - The company experienced double-digit percentage REvPAR growth in markets such as Atlanta, Santa Clara, Birmingham, and Savannah [6][8] - For Q4, the same property portfolio REvPAR was $164.50, flat to Q3 in 2024, with total REvPAR increasing by 3.7% compared to the same period in 2024 [15][19] Company Strategy and Development Direction - The company plans to spend approximately $90 million on property improvements in 2025, reflecting a $10 million increase from prior guidance due to additional capital projects [9][10] - A significant relaunch of food and beverage venues at W Nashville is expected to drive incremental revenues, with an additional capital investment of approximately $9 million [10][11] - The company remains optimistic about the long-term growth prospects of its diversified and high-quality portfolio, particularly with strong group demand anticipated for 2026 [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging operating environment, particularly regarding leisure demand, but expressed optimism due to strong group demand and high-end portfolio positioning [4][12] - The company expects a same property REvPAR increase of 4% for the full year and adjusted EBITDAre of $254 million at the midpoint of updated guidance [12][31] - Management highlighted a projected 5.8% REvPAR growth for October, indicating a positive outlook for Q4 [12][13] Other Important Information - The company has approximately $1.4 billion of outstanding debt, with a leverage ratio of about five times trailing 12-month net debt to EBITDA [26] - The board authorized a Q3 dividend of $0.14 per share, reflecting a yield of over 4.5% on the current share price [27][28] - The company repurchased $12.3 million of common stock during the quarter, with a total of $83.8 million repurchased year-to-date [29] Q&A Session Summary Question: Dividend payout relative to taxable income - Management indicated that they continue to utilize NOLs generated post-COVID while balancing payout levels [38] Question: Group outlook and booking trends - Management noted strong volume growth with better rate growth than in previous years, with a shift from corporate to association business [39][40] Question: Impact of government shutdown on portfolio - Management reported limited impact from the government shutdown, with only a few cancellations noted [42] Question: Transaction markets and disposition plans - Management observed increased hotel transactions in the market but indicated a preference for share buybacks over acquisitions [43][44] Question: Sources of leisure demand weakness - Management attributed leisure demand weakness to normalization post-COVID and economic uncertainties, but noted stabilization in some markets [56][58] Question: Corporate account growth and market specifics - Management highlighted significant corporate growth in Northern California and Santa Clara, with overall improvement expected [61][62] Question: Future expectations for leisure demand - Management expressed that leisure demand could stabilize and potentially improve pricing power in 2026 [64]

Portfolio Highlights - Xenia Hotels & Resorts owns a diverse portfolio of 30 luxury and upper-upscale hotels and resorts, primarily in Top 25 U S markets and key leisure destinations[7] - The portfolio is diversified across 16 brands, with a focus on uniquely positioned luxury and upper-upscale hotels and resorts[12] - No single market contributed more than 17% of the company's trailing twelve months (TTM) EBITDA as of September 30, 2025, with Orlando, FL being the largest market[18] - Approximately 75% of the portfolio's demand mix comes from business transient and group segments[20] Financial Performance and Outlook - As of September 30, 2025, the company had approximately $188 million in unrestricted cash and $500 million in line of credit availability, resulting in total liquidity of approximately $688 million[101] - The company repurchased 6,656,706 shares of common stock YTD 2025 at a weighted-average price of $12 59 per share, for a total consideration of approximately $83 8 million[105] - The company's 3Q25 dividend was $0 14 per share, representing an approximate 17% increase compared to the same time last year[112] - The company's preliminary October Same-Property RevPAR increased by approximately 5 8% compared to October 2024[115] Strategic Initiatives - The company expects $3-5 million of incremental Hotel EBITDA upon stabilization from the Food & Beverage Relaunch at W Nashville[48] - The transformative renovation of Grand Hyatt Scottsdale Resort is expected to drive RevPAR to approximately $300 upon stabilization[93]

Financial Performance - Net loss attributable to common stockholders for Q3 2025 was $13.7 million, or $0.14 per share, compared to a net loss of $7.1 million, or $0.07 per share in Q3 2024, representing a 93.7% increase in loss [5][8]. - Adjusted EBITDAre for Q3 2025 was $42.2 million, a decrease of 4.6% compared to Q3 2024 [5][8]. - Total revenues for the three months ended September 30, 2025, were $236.4 million, a slight decrease of 0.2% compared to $236.8 million in the same period of 2024 [38]. - Operating income for the nine months ended September 30, 2025, was $80.8 million, up 23.5% from $65.4 million in the same period of 2024 [38]. - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $57.0 million, compared to $16.8 million in the same period of 2024 [40]. - The company reported a net loss of $(14.5) million for Q3 2025, compared to a net loss of $(7.4) million in Q3 2024 [40]. - Comprehensive income attributable to the company for the nine months ended September 30, 2025, was $56.3 million, compared to $15.0 million in the same period of 2024 [40]. - EBITDA for the nine months ended September 30, 2025, was $225.306 million, an increase from $169.993 million in 2024, representing a growth of approximately 32.5% [58]. - FFO attributable to common stock and unit holders for the nine months ended September 30, 2025, was $119.073 million, compared to $111.396 million in 2024, reflecting an increase of approximately 6.9% [66]. Revenue and Occupancy Metrics - Same-Property RevPAR for Q3 2025 was flat at $164.50, while Same-Property Total RevPAR increased by 3.7% to $289.76 compared to Q3 2024 [5][8]. - Same-Property occupancy for Q3 2025 was 66.3%, a decrease of 100 bps compared to 67.3% in Q3 2024 [79]. - Same-Property average daily rate (ADR) increased by 1.6% to $248.09 in Q3 2025 from $244.24 in Q3 2024 [79]. - Total Same-Property revenues for Q3 2025 were $236,405, representing a 3.8% increase from $227,812 in Q3 2024 [80]. - Same-Property Hotel EBITDA for Q3 2025 was $46,956, a slight increase of 0.7% from $46,617 in Q3 2024 [79]. - For the nine months ended September 30, 2025, the same-property portfolio occupancy was 69.4%, up from 68.6% in the same period of 2024 [93]. - The ADR for the nine-month period increased to $264.90, compared to $258.59, marking a 4.9% increase year-over-year [93]. - RevPAR for the nine-month period improved to $183.84, up from $177.31, reflecting a 4.3% increase [93]. Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, were $19.9 million, including investments in the renovation of Grand Hyatt Scottsdale Resort [16][18]. - The company anticipates approximately $9 million in capital expenditures for modifying existing food and beverage venues, with completion expected by Q2 2026 [21]. - Capital expenditures for 2025 are projected to be between $87.5 million and $92.5 million, reflecting a variance of $12.5 million to $7.5 million from prior guidance [24]. Debt and Financial Position - Total outstanding debt as of September 30, 2025, was approximately $1.4 billion with a weighted-average interest rate of 5.63% [12]. - Total debt as of September 30, 2025, was $1.423 billion, with a weighted-average interest rate of 5.63% [75]. - Cash and cash equivalents increased to $188.2 million as of September 30, 2025, compared to $78.2 million at the end of 2024 [36]. - The company has a total of $325 million in corporate credit facilities, with a variable interest rate of 6.05% [75]. Guidance and Future Expectations - The company expects a Same-Property RevPAR increase of 4% and Adjusted EBITDAre of $254 million for the full year 2025 [6]. - The updated full year 2025 guidance includes a net income range of $59 million to $67 million, with Same-Property RevPAR change projected at 3.50% to 4.50% [24]. - Adjusted EBITDAre is expected to be between $250 million and $258 million for 2025, with Adjusted FFO ranging from $167 million to $175 million [24]. - The company expects general and administrative expenses of approximately $24 million and interest expenses of about $81 million for 2025, with no changes from prior guidance [28]. - The company emphasizes that forward-looking statements are based on management's assumptions and are subject to various risks and uncertainties [29]. Operational Developments - The company completed significant infrastructure upgrades at ten hotels, with most work expected to be completed in Q4 2025 or early 2026 [18]. - Agreements were made with José Andrés Group to operate food & beverage outlets at W Nashville, aiming to drive incremental revenues [20]. - The company operates a Same-Property portfolio of 30 hotels with a total of 8,868 rooms as of September 30, 2025 [84].

Core Insights - Xenia Hotels & Resorts, Inc. reported third quarter results reflecting a challenging lodging industry environment, with flat Same-Property RevPAR and a cautious near-term outlook for the fourth quarter [4][6][19] Third Quarter 2025 Highlights - Same-Property RevPAR for the quarter was flat, but increased by 2.9% excluding Houston properties, driven by growth at Grand Hyatt Scottsdale [4][6] - Net loss attributable to common stockholders was $13.7 million, or $0.14 per share, a significant increase from a loss of $7.1 million, or $0.07 per share, in the same quarter of 2024 [5][6] - Same-Property Total RevPAR increased by 3.7% year-over-year to $289.76, while Same-Property Hotel EBITDA increased by 0.7% to $46.96 million [5][6] Year-to-Date 2025 Highlights - For the first nine months of 2025, Same-Property RevPAR increased by 3.7%, and Same-Property Hotel EBITDA Margin improved by 101 basis points [4][6] - Adjusted EBITDAre for the year-to-date was $194.7 million, a 9.4% increase compared to the same period in 2024 [6][7] Operating Results - Total revenues for the third quarter were $236.4 million, slightly down from $236.8 million in the same quarter of 2024 [33] - Same-Property occupancy decreased to 66.3%, down 100 basis points from the previous year, while Same-Property ADR increased by 1.6% to $248.09 [5][6] Capital Markets Activities - The company repurchased 974,645 shares of common stock at an average price of $12.66 per share during the quarter, totaling approximately $12.3 million [11] - Year-to-date, the company repurchased 6,656,706 shares at an average price of $12.59 per share, totaling approximately $83.8 million [11] Capital Expenditures - In the third quarter, the company invested $19.9 million in portfolio improvements, including the completion of renovations at Grand Hyatt Scottsdale [13][15] - Significant upgrades were made to guest rooms at various properties, with minimal disruption expected during lower occupancy periods [14][15] Current Full Year 2025 Outlook and Guidance - The company updated its full-year guidance, expecting Same-Property RevPAR to increase by 3.5% to 4.5% compared to 2024, with Adjusted EBITDAre projected between $250 million and $258 million [19][20] - The guidance reflects macroeconomic uncertainties and assumes no additional acquisitions or equity issuances [19][20] Liquidity and Balance Sheet - As of September 30, 2025, the company had total outstanding debt of approximately $1.4 billion and total liquidity of approximately $688 million [10] - The company held approximately $188 million in cash and cash equivalents, with full availability on its revolving line of credit [10] About the Company - Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT focused on luxury and upper upscale hotels in the top 25 lodging markets in the U.S., owning 30 hotels with 8,868 rooms [22]

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