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Xenia Hotels & Resorts: Second Quarter 2025 Results Overview

Xenia Hotels & Resorts, Inc. has released its second quarter results for 2025, marking a significant upswing in financial performance compared to the previous year. The quarter ended on June 30, 2025, shows promising metrics across various financial indicators, indicating a positive trajectory for the company.

Financial Highlights

Xenia reported a net income of $55.2 million, translating to $0.56 per share. This represents an impressive increase from the previous year's figures. Notably, the Adjusted EBITDAre for the quarter reached $79.5 million, reflecting a 16.3% increase year-over-year. Further enhancing shareholder value, Adjusted Funds From Operations (FFO) per diluted share also rose to $0.57, which is a 9.6% increase compared to Q2 2024.

Occupancy rates for same-property buildings improved to 72.3%, marking a 140 basis point increase, and the Average Daily Rate (ADR) surged to $270.42, which is up 2.0% from last year. These metrics highlight the overall strong performance of Xenia's portfolio, as evidenced by a 4% increase in Same-Property Revenue Per Available Room (RevPAR), bringing it to $195.51. Furthermore, Same-Property Hotel EBITDA rose to $84.0 million, a 22.2% increase from the previous year, with margins improving to 29.4%.

Transaction and Capital Market Activities

In a strategic move earlier in April, Xenia sold the 545-room Fairmont Dallas for approximately $111 million, demonstrating effective capital allocation by achieving about $203,670 per key. The proceeds from this sale are poised to be utilized for various corporate purposes, including potential acquisitions and share repurchases, in line with the company's ongoing strategy.

In the second quarter alone, Xenia repurchased approximately 2.9 million shares at an average price of $12.10 per share, contributing to a total of about $35.7 million in stock buybacks. Year-to-date, the company has repurchased over 5.6 million shares, reinforcing its commitment to returning value to shareholders.

CEO Comments

Marcel Verbaas, Chair and CEO of Xenia, commented, "Our second quarter results have exceeded expectations, with marked increases in both revenue and Hotel EBITDA compared to the same period last year. The positive performance of our Grand Hyatt Scottsdale Resort, which has been recently renovated and rebranded, has been a key driver of our success. The increase in group business demand has also fueled substantial revenue growth, particularly in food and beverage operations across our portfolio."

Looking forward, Verbaas highlighted that the second half of 2025 is anticipated to continue following current expectations, especially electric in terms of group business. Despite slow recovery in corporate transient demand, leisure demand is gradually returning to pre-pandemic levels.

The company has set revised guidance for the full-year Adjusted EBITDAre and FFO in light of the robust Q2 performance, aiming to reflect this growth in its operational outlook for the remainder of the year.

Conclusion

Xenia Hotels & Resorts is on a strong growth trajectory, as shown by its impressive second quarter results. The company continues to focus on enhancing shareholder value through strategic acquisitions and effective capital allocation. With positive indicators pointing toward recovery in demand, Xenia is positioned well for sustained success in the hospitality sector.