Xenia Hotels & Resorts Reports 5.4% Revenue Growth and Significant Net Income Increase in Latest Quarter

Xenia Hotels & Resorts, Inc. reported significant financial performance improvements in its latest quarterly filing for the period ending June 30, 2025. The company achieved total revenues of $287.6 million for the second quarter, marking a 5.4% increase from $272.9 million in the same period last year. For the first half of 2025, revenues rose to $576.5 million, up 6.7% from $540.4 million in the first half of 2024. The net income attributable to common stockholders surged to $55.2 million, or $0.56 per share, compared to $15.3 million, or $0.15 per share, in the prior year quarter. For the six-month period, net income reached $70.7 million, a substantial increase from $23.9 million in 2024.

The company experienced notable changes in its operational metrics, with a total portfolio Revenue Per Available Room (RevPAR) increasing by 3.7% to $192.51 for the second quarter and 5.1% to $190.59 for the first half of 2025. This growth was driven by improved occupancy rates and average daily rates, despite a slight decrease in overall occupancy. The company also reported a gain of $40 million from the sale of the Fairmont Dallas, which contributed significantly to the net income increase.

Strategically, Xenia made key acquisitions and dispositions during the reporting period. The company purchased the fee simple interest in the land associated with the Hyatt Regency Santa Clara for $25.4 million and sold the Fairmont Dallas for $111 million, resulting in net cash proceeds of $101.4 million. As of June 30, 2025, Xenia owned 30 hotels, down from 32 properties a year earlier, reflecting its ongoing strategy to optimize its portfolio.

Operationally, Xenia's hotel operating expenses increased to $191 million for the second quarter, up 2.8% from the previous year, primarily due to higher occupancy and associated costs. The company reported a total of 8,868 rooms across its properties, with a slight decrease in the number of rooms compared to the previous year. The company also maintained a strong liquidity position, with $172.6 million in cash and cash equivalents and $78.4 million in restricted cash as of June 30, 2025.

Looking ahead, Xenia's management expressed optimism about the company's ability to navigate potential economic challenges, including inflation and changing interest rates. The company plans to continue focusing on maximizing revenue and profits from its existing properties while exploring opportunities for acquisitions and capital improvements. The outlook remains cautiously optimistic, with expectations for continued growth in revenue and profitability driven by strategic management of its hotel portfolio.