Xenia Hotels & Resorts Reports 8% Revenue Growth and 84% Increase in Net Income for Q1 2025

Xenia Hotels & Resorts, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $288.9 million, an 8% increase from $267.5 million in the same period of 2024. The growth was driven by a 4.4% rise in rooms revenue to $159.9 million, a 12.9% increase in food and beverage revenue to $104.7 million, and a 12.8% rise in other revenues to $24.4 million. The company’s net income also saw a substantial increase of 84.1%, amounting to $16.5 million compared to $9.0 million in the prior year, resulting in a net income per share of $0.15, up from $0.08.

In terms of operational metrics, Xenia's total portfolio revenue per available room (RevPAR) increased by 6.7% to $188.73, driven by improved occupancy rates and average daily rates. The occupancy rate rose to 69.3% from 67.4%, while the average daily rate increased by 3.8% to $272.41. The company owned 31 hotels as of March 31, 2025, with a total of 9,413 rooms across 14 states, maintaining a focus on luxury and upper upscale markets.

Strategically, Xenia made notable acquisitions and dispositions during the quarter. The company purchased the fee simple interest in the land associated with the Hyatt Regency Santa Clara for $25.4 million. Additionally, it entered into an agreement to sell the Fairmont Dallas for $111 million, which is expected to close in April 2025, yielding an estimated gain of $39.3 million. These transactions reflect Xenia's ongoing strategy to optimize its portfolio in key lodging markets.

Financially, Xenia's total debt increased to $1.4 billion as of March 31, 2025, with a weighted average interest rate of 5.67%. The company reported cash and cash equivalents of $112.6 million, alongside $69.5 million in restricted cash. The increase in debt was primarily due to the drawdown of a $100 million delayed draw term loan and a $10 million draw on the revolving credit facility. The company remains committed to maintaining liquidity and has $200 million available for issuance under its at-the-market program.

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 aims to enhance shareholder returns through strategic acquisitions, effective management of existing properties, and maintaining a strong liquidity position. The outlook remains cautiously optimistic, with a focus on leveraging its portfolio to generate sustainable cash flows and dividends for shareholders.