Xenia Hotels & Resorts Reports $1.08 Billion Revenue and 296.6% Net Income Increase for Fiscal Year 2025

Xenia Hotels & Resorts, Inc. reported a total revenue of $1.08 billion for the fiscal year ending December 31, 2025, reflecting a 3.8% increase from $1.04 billion in 2024. The company's net income surged by 296.6% to $66.9 million, up from $16.9 million in the previous year, primarily driven by a $38.3 million gain on the sale of investment properties and a $33.7 million increase in hotel operating income across its 30 comparable hotels. Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders also saw increases of 8.9% and 5.7%, respectively, indicating a positive trend in operational performance.

In terms of operational metrics, Xenia's portfolio RevPAR (Revenue Per Available Room) increased by 4.8% to $180.65, supported by a rise in both occupancy rates and average daily rates (ADR), which reached $263.79, a 3.2% increase from the prior year. The company reported an occupancy rate of 68.5%, up from 67.4% in 2024. However, the overall industry faced challenges, with a slight decrease in lodging demand and an increase in new hotel supply, which could impact future performance.

Strategically, Xenia executed significant transactions during the year, including the sale of the Fairmont Dallas for $111 million and the purchase of the fee simple interest in the land associated with the Hyatt Regency Santa Clara for $25.4 million. The company also repurchased approximately 9.35 million shares of its common stock at an average price of $12.87 per share, totaling $120.4 million. These actions reflect Xenia's commitment to optimizing its capital structure and enhancing shareholder value.

As of December 31, 2025, Xenia owned 30 hotels with a total of 8,868 rooms across 14 states, with a significant portion of its portfolio (approximately 86.1%) operating under the Marriott and Hyatt brands. The company maintained a flexible capital structure, with $140.4 million in cash and cash equivalents and $82.7 million in restricted cash. Xenia's total debt stood at $1.4 billion, with a weighted-average interest rate of 5.51%. The company is focused on proactive asset management and capital investment to drive growth and improve operational efficiencies.

Looking ahead, Xenia anticipates continued growth in the lodging sector, although it remains cautious due to potential economic fluctuations and competitive pressures. The company plans to leverage its strong market position and brand affiliations to capitalize on opportunities in the luxury and upper upscale hotel segments, while also managing risks associated with rising interest rates and operational costs.