Xenia Hotels & Resorts Reports Q2 2026 Revenue Growth but Net Loss

Xenia Hotels & Resorts, Inc. reported its financial results for the second quarter and first half of 2026, revealing a total revenue of $295.5 million for the three months ended June 30, 2026, a 2.8% increase from $287.6 million in the same period of 2025. For the first half of 2026, total revenue reached $590.9 million, up 2.5% from $576.5 million year-over-year. The increase in revenue was primarily driven by a 5.2% rise in rooms revenue, which totaled $166.7 million, and a 0.3% increase in food and beverage revenue, amounting to $102.4 million. However, the company reported a net loss of $20.7 million for the second quarter, a significant decline from a net income of $58.6 million in the prior year, largely due to a $40 million gain from the sale of the Fairmont Dallas in April 2025 and a $38.8 million impairment loss related to the Kimpton RiverPlace Hotel.

In terms of operational metrics, the company maintained occupancy rates at 72.3% for the first half of 2026, slightly up from 71.8% in the same period of 2025. Average daily rates (ADR) also increased by 7.1% to $285.71, contributing to a revenue per available room (RevPAR) increase of 8.2% to $206.24. The company’s portfolio remained stable with 30 properties and 8,868 rooms as of June 30, 2026, consistent with the previous year.

Strategically, Xenia has been active in managing its asset portfolio. The company entered into an agreement to sell the Kimpton RiverPlace Hotel for $11 million, which was classified as held for sale as of June 30, 2026. This sale is part of Xenia's ongoing strategy to optimize its portfolio, although it recorded an impairment loss of approximately $38.8 million on this asset. The company also repaid $63.4 million in mortgage debt during the first half of 2026, reflecting its focus on reducing leverage.

Financially, Xenia's total debt as of June 30, 2026, was $1.4 billion, with a weighted-average interest rate of 5.49%. The company reported cash and cash equivalents of $112.4 million and restricted cash of $83.7 million, indicating a solid liquidity position. Looking ahead, Xenia remains focused on maximizing revenue and profits from its existing properties while maintaining a disciplined approach to capital expenditures and debt management. The company has $200 million available under its At-The-Market (ATM) program for potential equity offerings, which could provide additional liquidity for future investments or operational needs.