Xenia Hotels & Resorts Reports Mixed Q3 Results with Revenue Decline and Increased Net Loss

Xenia Hotels & Resorts, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a mixed performance compared to the same period in 2024. Total revenues for the third quarter were $236.4 million, a slight decrease of 0.2% from $236.8 million in the prior year. For the nine months, revenues increased by 4.6% to $812.9 million, up from $777.2 million. The company experienced a net loss of $14.5 million for the third quarter, a significant increase from a loss of $7.4 million in the same quarter last year. However, net income for the nine months rose to $60.5 million, compared to $17.6 million in 2024.

The company’s operational metrics showed a decline in rooms revenue, which fell by 3.8% to $134.2 million for the third quarter, primarily due to the sale of properties and a reduction in demand. Conversely, food and beverage revenues increased by 4.0% to $77.8 million, and other revenues rose by 8.9% to $24.4 million, reflecting growth in ancillary services. The overall occupancy rate for the portfolio was 66.3%, down from 66.9% in the previous year, while the average daily rate (ADR) increased by 3.1% to $248.10.

Strategically, Xenia made significant changes to its portfolio, including the acquisition of land associated with the Hyatt Regency Santa Clara for $25.4 million and the sale of the Fairmont Dallas for $111 million, which closed in April 2025. This sale resulted in a gain of $40 million. The company also repurchased 6.7 million shares of its common stock during the nine months, totaling approximately $83.8 million, as part of its ongoing stock repurchase program.

As of September 30, 2025, Xenia's total assets amounted to $2.87 billion, with total liabilities of $1.64 billion, resulting in stockholders' equity of $1.22 billion. The company reported cash and cash equivalents of $188.2 million, significantly up from $78.2 million at the end of 2024. The company’s debt increased to $1.42 billion, with a weighted average interest rate of 5.63%. Xenia is currently in compliance with most of its debt covenants, although it did experience a violation on one mortgage loan, which has since been cured.

Looking ahead, Xenia remains focused on maximizing revenue and profits from its existing properties while continuing to explore acquisition opportunities. The company is also monitoring macroeconomic factors that could impact its operations, including inflation and interest rates. The outlook for the remainder of 2025 suggests cautious optimism, with expectations for continued growth in food and beverage revenues and a strategic focus on enhancing the value of its hotel portfolio.