[Overall Financial & Operational Highlights](index=1&type=section&id=XENIA%20HOTELS%20%26%20RESORTS%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company achieved strong Q2 2025 results with significant growth in Net Income, Adjusted EBITDAre, and FFO per share, alongside a 4.0% increase in Same-Property RevPAR Q2 2025 Key Financial & Operating Metrics (vs. Q2 2024) | Metric | Q2 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | | Net Income | $55.2 million | +259.6% | | Adjusted EBITDAre | $79.5 million | +16.3% | | Adjusted FFO per Diluted Share | $0.57 | +9.6% | | Same-Property Occupancy | 72.3% | +140 bps | | Same-Property ADR | $270.42 | +2.0% | | Same-Property RevPAR | $195.51 | +4.0% | | Same-Property Hotel EBITDA Margin | 29.4% | +269 bps | - Sold the 545-room Fairmont Dallas for **$111.0 million** in April[5](index=5&type=chunk) - Repurchased **2,948,912 shares** of common stock for approximately **$35.7 million** at a weighted-average price of **$12.10 per share**[5](index=5&type=chunk) - Declared a second-quarter dividend of **$0.14 per share**[5](index=5&type=chunk) [Year-to-Date 2025 Performance](index=1&type=section&id=Year-to-Date%202025%20Highlights) Year-to-date 2025, the company achieved robust growth with a 14.1% increase in Adjusted EBITDAre and a 13.7% rise in Adjusted FFO per share, alongside a 5.4% Same-Property RevPAR increase YTD 2025 Key Financial & Operating Metrics (vs. YTD 2024) | Metric | YTD 2025 | Change vs. YTD 2024 | | :--- | :--- | :--- | | Net Income | $70.7 million | +196.3% | | Adjusted EBITDAre | $152.5 million | +14.1% | | Adjusted FFO per Diluted Share | $1.08 | +13.7% | | Same-Property Occupancy | 71.0% | +180 bps | | Same-Property ADR | $272.88 | +2.7% | | Same-Property RevPAR | $193.66 | +5.4% | | Same-Property Hotel EBITDA Margin | 28.2% | +157 bps | - Year-to-date, the company repurchased **5,682,061 shares** of common stock for approximately **$71.5 million** at a weighted-average price of **$12.58 per share**[8](index=8&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO Marcel Verbaas noted Q2 results exceeded expectations due to the Grand Hyatt Scottsdale renovation and strong group business, leading to an 11% Same-Property Total RevPAR increase, prompting raised full-year guidance - Q2 results were driven by the recently renovated Grand Hyatt Scottsdale Resort and strong group business, leading to an **11% increase in Same-Property Total RevPAR**[7](index=7&type=chunk) - Outperformance was largely due to higher-than-expected, highly-profitable catering revenues and lower-than-expected expense growth[7](index=7&type=chunk) - The outlook for the second half of 2025 is consistent with prior expectations, with strong group business expected in Q4, slow corporate transient recovery, and normalizing leisure demand[7](index=7&type=chunk) - Full-year guidance for Adjusted EBITDAre and Adjusted FFO has been increased to reflect Q2 outperformance[7](index=7&type=chunk) [Financial Performance](index=5&type=section&id=Financial%20Performance) [Operating Results](index=5&type=section&id=Operating%20Results) Operating results for Q2 and YTD 2025 showed substantial profitability growth, with Q2 Net Income surging 259.6% to $55.2 million, driven by improved Same-Property performance and a 22.2% increase in Hotel EBITDA Q2 2025 vs Q2 2024 Operating Results | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $55,157 | $15,338 | 259.6% | | Net Income per Share | $0.56 | $0.15 | 273.3% | | Same-Property RevPAR | $195.51 | $187.95 | 4.0% | | Same-Property Total RevPAR | $354.50 | $319.44 | 11.0% | | Same-Property Hotel EBITDA (in thousands) | $84,027 | $68,747 | 22.2% | YTD 2025 vs YTD 2024 Operating Results | Metric | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $70,742 | $23,872 | 196.3% | | Net Income per Share | $0.71 | $0.23 | 208.7% | | Same-Property RevPAR | $193.66 | $183.82 | 5.4% | | Same-Property Total RevPAR | $349.85 | $316.07 | 10.7% | | Same-Property Hotel EBITDA (in thousands) | $158,477 | $135,874 | 16.6% | [Liquidity and Balance Sheet](index=6&type=section&id=Liquidity%20and%20Balance%20Sheet) As of June 30, 2025, the company maintained strong liquidity of approximately $673 million, with total outstanding debt at $1.4 billion and total assets increasing to $2.88 billion - Total liquidity as of June 30, 2025, was approximately **$673 million**, comprising **$173 million in cash** and full availability on the revolving line of credit[11](index=11&type=chunk) - Total outstanding debt stood at approximately **$1.4 billion** with a weighted-average interest rate of **5.67%**[11](index=11&type=chunk) Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $2,875,087 | $2,831,616 | | Total Liabilities | $1,613,138 | $1,551,283 | | Total Equity | $1,261,949 | $1,280,333 | [Statements of Operations](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2025 total revenues increased to $287.6 million, with operating income rising to $40.2 million, further enhanced by a $40.0 million gain on property sales, resulting in a net income of $58.6 million Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $287,579 | $272,904 | | Total Hotel Operating Expenses | $190,950 | $185,819 | | Operating Income | $40,218 | $30,267 | | Gain on sale of investment properties | $39,953 | $0 | | Net Income | $58,561 | $16,113 | YTD 2025 vs YTD 2024 Statement of Operations (in thousands) | Account | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Total Revenues | $576,506 | $540,392 | | Total Hotel Operating Expenses | $386,497 | $368,845 | | Operating Income | $76,082 | $57,893 | | Gain on sale of investment properties | $39,953 | $0 | | Net Income | $75,068 | $25,080 | [Strategic & Capital Activities](index=6&type=section&id=Strategic%20%26%20Capital%20Activities) [Capital Markets Activities](index=6&type=section&id=Capital%20Markets) In Q2, the company repurchased $35.7 million of common stock, bringing year-to-date repurchases to $71.5 million, with an additional $100 million authorized for future repurchases - In Q2, repurchased **2,948,912 shares** for approximately **$35.7 million** at an average price of **$12.10 per share**[12](index=12&type=chunk) - Year-to-date, repurchased **5,682,061 shares** for approximately **$71.5 million** at an average price of **$12.58 per share**[12](index=12&type=chunk) - The Board of Directors authorized an additional **$100 million** for share repurchases in Q2 2025, leaving **$146.4 million** in remaining capacity[14](index=14&type=chunk) [Transaction Activity](index=7&type=section&id=Transactions) In April, the company sold the 545-room Fairmont Dallas for $111.0 million, achieving an 8.6x Hotel EBITDA multiple and a 10.0% capitalization rate on Net Operating Income - Sold the 545-room Fairmont Dallas for **$111.0 million**, or approximately **$203,670 per key**[15](index=15&type=chunk) - The sale price represented an **8.6x multiple on Hotel EBITDA** and a **10.0% capitalization rate on NOI**, excluding an estimated **$80 million** of near-term capital expenditures[15](index=15&type=chunk) [Capital Expenditures](index=7&type=section&id=Capital%20Expenditures) The company invested $18.5 million in Q2 and $50.8 million year-to-date in portfolio improvements, including the Grand Hyatt Scottsdale renovation and ongoing upgrades across multiple properties - Invested **$18.5 million** in Q2 and **$50.8 million** YTD in portfolio improvements[16](index=16&type=chunk) - Significant progress was made on guest room upgrades at multiple properties, including Renaissance Atlanta Waverly and Marriott San Francisco Airport Waterfront[17](index=17&type=chunk) - The company is performing significant infrastructure upgrades at ten hotels, including façade waterproofing, chiller replacements, and elevator modernizations[18](index=18&type=chunk) [Outlook & Guidance](index=7&type=section&id=Current%20Full%20Year%202025%20Outlook%20and%20Guidance) [Full Year 2025 Guidance](index=7&type=section&id=Full%20Year%202025%20Guidance) The company raised its full-year 2025 guidance, projecting Net Income between $58 million and $72 million, Adjusted EBITDAre between $249 million and $263 million, and Adjusted FFO per diluted share between $1.66 and $1.80 Updated Full Year 2025 Guidance | Metric | Low End | High End | | :--- | :--- | :--- | | Net Income | $58 million | $72 million | | Same-Property RevPAR Change | 3.50% | 5.50% | | Adjusted EBITDAre | $249 million | $263 million | | Adjusted FFO per Diluted Share | $1.66 | $1.80 | | Capital Expenditures | $75 million | $85 million | - Key assumptions for the guidance include: G&A expense of approximately **$24 million**, interest expense of approximately **$81 million**, and **99.9 million** weighted-average diluted shares[24](index=24&type=chunk) [Supplemental Information](index=15&type=section&id=Supplemental%20Information) [Debt Summary](index=22&type=section&id=Debt%20Summary%20as%20of%20June%2030,%202025) As of June 30, 2025, total debt, net of unamortized costs, was $1.42 billion with a 5.67% weighted-average interest rate, comprising diverse debt instruments and a fully available $500 million revolving credit facility Debt Composition (in thousands) | Debt Type | Outstanding Amount | Weighted-Avg Rate | | :--- | :--- | :--- | | Mortgage Loans | $212,124 | 4.88% | | Corporate Credit Facilities | $325,000 | 6.23% | | 2029 Senior Notes | $500,000 | 4.88% | | 2030 Senior Notes | $400,000 | 6.63% | | **Total Debt, net** | **$1,423,681** | **5.67%** | [Same-Property Portfolio Analysis](index=23&type=section&id=Same-Property%20Portfolio%20Analysis) The 30-hotel Same-Property portfolio showed strong Q2 2025 performance, with Hotel EBITDA increasing 22.2% to $84.0 million and margins expanding to 29.4%, driven by 11.0% total revenue growth and significant RevPAR increases in key markets like Phoenix Q2 2025 Same-Property Performance vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Same-Property Revenues | $286.1M | $257.6M | +11.0% | | Same-Property Hotel EBITDA | $84.0M | $68.7M | +22.2% | | Same-Property Hotel EBITDA Margin | 29.4% | 26.7% | +269 bps | - The top two markets by 2024 Hotel EBITDA contribution are Houston (**17%**) and Orlando (**17%**)[83](index=83&type=chunk) - In Q2 2025, the Phoenix market experienced the highest Same-Property RevPAR growth at **66.9%**, followed by Pittsburgh at **27.5%**, while the largest declines were in Portland (**-13.0%**) and Dallas (**-12.7%**)[88](index=88&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=15&type=section&id=Non-GAAP%20Financial%20Measures) The report details reconciliations for non-GAAP measures, showing Q2 2025 Net Income of $58.6 million reconciled to Adjusted EBITDAre of $79.5 million and Adjusted FFO of $57.4 million, primarily adjusting for non-cash items and property sales Q2 2025 Non-GAAP Reconciliation Summary (in thousands) | Metric | Amount | | :--- | :--- | | Net Income | $58,561 | | EBITDA | $114,497 | | EBITDAre | $74,823 | | Adjusted EBITDAre | $79,543 | | FFO | $51,474 | | Adjusted FFO | $57,406 | YTD 2025 Non-GAAP Reconciliation Summary (in thousands) | Metric | Amount | | :--- | :--- | | Net Income | $75,068 | | EBITDA | $186,117 | | EBITDAre | $146,443 | | Adjusted EBITDAre | $152,485 | | FFO | $101,090 | | Adjusted FFO | $109,466 |

Core Insights - Xenia Hotels & Resorts, Inc. reported strong second quarter results for 2025, with significant increases in revenues and Hotel EBITDA compared to the same period last year [4][5] - The company has raised its full-year guidance for Adjusted EBITDAre and Adjusted FFO due to outperformance in the second quarter and stable expectations for the second half of the year [4][20] Second Quarter 2025 Highlights - Net income attributable to common stockholders was $55.2 million, or $0.56 per share, representing a 273.3% increase compared to the second quarter of 2024 [5][6] - Adjusted EBITDAre reached $79.5 million, a 16.3% increase year-over-year [5][6] - Same-Property RevPAR increased by 4.0% to $195.51, while Same-Property Total RevPAR rose by 11.0% to $354.50 [5][6] - Same-Property Hotel EBITDA was $84.0 million, up 22.2% from the previous year, with a margin of 29.4%, an increase of 269 basis points [5][6] Year-to-Date 2025 Highlights - For the first half of 2025, net income attributable to common stockholders was $70.7 million, or $0.71 per share, a 208.7% increase compared to the same period in 2024 [5][9] - Adjusted EBITDAre for the first half was $152.5 million, a 14.1% increase year-over-year [5][9] - Same-Property RevPAR for the first half increased by 5.4% to $193.66 [5][9] Transaction Activity - In April 2025, the company sold the 545-room Fairmont Dallas for $111.0 million, approximately $203,670 per key, with proceeds intended for general corporate purposes [14] - The sale represented an 8.6x multiple and a 10.0% capitalization rate on the property's Hotel EBITDA [14] Capital Markets Activities - The company repurchased 2,948,912 shares of common stock at a weighted-average price of $12.10 per share for a total of approximately $35.7 million in the second quarter [13] - Year-to-date, the company repurchased 5,682,061 shares at a weighted-average price of $12.58 per share for a total of approximately $71.5 million [13] Liquidity and Balance Sheet - As of June 30, 2025, total outstanding debt was approximately $1.4 billion with a weighted-average interest rate of 5.67% [12] - The company had approximately $173 million in cash and cash equivalents, resulting in total liquidity of approximately $673 million [12] Capital Expenditures - The company invested $18.5 million in portfolio improvements during the second quarter and $50.8 million year-to-date [17] - Significant renovations included the Grand Hyatt Scottsdale Resort, with ongoing upgrades at various properties [18][19] Current Full Year 2025 Outlook and Guidance - The company updated its full-year guidance, projecting net income between $58 million and $72 million and Adjusted EBITDAre between $249 million and $263 million [20][21] - Same-Property RevPAR change is expected to be between 3.50% and 5.50% compared to 2024 [20][21]

Group 1 - The article emphasizes the interconnectedness of market events and their impact on investment strategies, highlighting the importance of macroeconomic analysis in shaping investment decisions [1] - The investment strategy discussed involves a top-down approach to identify strong economies and favorable currencies, followed by a bottom-up analysis of individual companies to find quality investments [1] - The analyst has five years of experience in the investment field and holds an MBA in Macroeconomics and Portfolio Management, indicating a strong educational background in relevant areas [1] Group 2 - The analyst is a regulated investment analyst in Brazil, which adds credibility to the insights provided in the article [1] - There is no disclosure of any stock or derivative positions in the companies mentioned, ensuring an unbiased perspective in the analysis [2] - The article does not provide specific investment recommendations, focusing instead on the author's personal opinions and analysis [3]

Portfolio Highlights - Xenia Hotels & Resorts has a diverse portfolio of 30 luxury and upper-upscale hotels and resorts primarily in Top 25 markets and key leisure destinations[7, 12] - The portfolio is diversified across 22 markets, with no single market contributing more than 17% of 2024 EBITDA[12, 17] - The company focuses on uniquely positioned luxury and upper-upscale hotels & resorts, with 100% brand affiliation[15] Financial Performance and Strategy - Strategic capital allocation has delivered a superior portfolio, with significant acquisitions and dispositions since 2015, totaling $1.9 billion and $1.8 billion, respectively[27] - The company disposed of Fairmont Dallas in 2025 for $111 million, at a sale price per key of $203,670, and an EBITDA multiple of 8.6x[37] - In Q1, the company increased the quarterly dividend by 17% to $0.14/share and repurchased approximately 2.7 million shares of common stock for $35.8 million[47, 48] Growth Drivers - The transformative renovation of Grand Hyatt Scottsdale Resort is expected to drive significant long-term growth, with an expected RevPAR of approximately $300 upon stabilization[7, 102] - The company anticipates long-term recovery in Northern California assets, such as Marriott San Francisco Airport Waterfront and Hyatt Regency Santa Clara[61] Balance Sheet and Outlook - As of March 31, 2025, the company had approximately $113 million in unrestricted cash and $500 million in line of credit availability, totaling approximately $613 million in liquidity[108] - The company's current FY 2025 guidance includes a Same-Property (30 Hotel) RevPAR change of 2.50% to 6.50% compared to 2024[116]

Core Viewpoint - Xenia Hotels & Resorts, Inc. is set to report its financial results for the second quarter of 2025 on August 1, 2025, with a conference call scheduled for 10:00 am Eastern Time to discuss the results [1]. Group 1: Financial Reporting - The financial results for the second quarter of 2025 will be reported before the market opens on August 1, 2025 [1]. - A conference call will be held at 10:00 am Eastern Time on the same day to discuss the results [1]. - For those unable to attend the live call, a replay will be available one hour after the call ends, accessible via a specific phone number and access code [2]. Group 2: Company Overview - Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that focuses on luxury and upper upscale hotels and resorts in the top 25 lodging markets and key leisure destinations in the United States [4]. - The company owns 30 hotels with a total of 8,868 rooms across 14 states, operating under well-known brands such as Marriott, Hyatt, Fairmont, Kimpton, Loews, Hilton, and The Kessler Collection [4].

Core Points - Xenia Hotels & Resorts, Inc. announced a cash dividend of $0.14 per share for Q2 2025, payable on July 15, 2025, to shareholders of record as of June 30, 2025 [1] - The Board of Directors also authorized a share repurchase program of up to $100 million, with approximately $180 million remaining under total repurchase authorization as of May 13, 2025 [2] - Xenia is a self-advised and self-administered REIT focused on luxury and upper upscale hotels, owning 30 properties with a total of 8,868 rooms across 14 states [3]

Financial Performance - Total portfolio RevPAR increased 6.7% to $188.73 for the three months ended March 31, 2025, compared to $176.86 for the same period in 2024[139]. - Net income increased 84.1% for the three months ended March 31, 2025, primarily due to an $8.5 million increase in hotel operating income for 31 comparable hotels[140]. - Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders increased 11.8% and 14.4%, respectively, for the three months ended March 31, 2025, compared to the same period in 2024[141]. - Occupancy rate improved by 190 basis points to 69.3% for the three months ended March 31, 2025, compared to 67.4% in 2024[142]. - Average Daily Rate (ADR) increased by 3.8% to $272.41 for the three months ended March 31, 2025, compared to $262.39 in 2024[142]. - Total revenues increased by $21.4 million, or 8.0%, to $288.9 million for the three months ended March 31, 2025, compared to $267.5 million for the same period in 2024[143]. - Rooms revenues rose by $6.7 million, or 4.4%, to $159.9 million, driven by increased occupancy and average daily rates, despite a $1.2 million reduction from the sale of Lorien Hotel & Spa[144]. - Food and beverage revenues increased by $11.9 million, or 12.9%, to $104.7 million, primarily due to higher occupancy levels[145]. - Other revenues grew by $2.8 million, or 12.8%, to $24.4 million, attributed to increased occupancy[147]. - Net income for the three months ended March 31, 2025, was $16.5 million, a 83.5% increase from $9.0 million in the same period of 2024[197]. - FFO attributable to common stock and unit holders for Q1 2025 was $49.6 million, up 21.5% from $40.9 million in Q1 2024[199]. - Adjusted FFO for Q1 2025 reached $52.1 million, representing a 14.1% increase compared to $45.5 million in Q1 2024[199]. - Adjusted EBITDAre attributable to common stock and unit holders was $72.9 million for Q1 2025, a 11.5% increase from $65.3 million in Q1 2024[197]. Operational Metrics - Demand for hotel rooms increased by 1.0% during the three months ended March 31, 2025, while new hotel supply increased by 0.6%[138]. - The U.S. lodging industry experienced a RevPAR increase of 2.2% for the three months ended March 31, 2025, compared to the same period in 2024[138]. - The company owned 31 hotels and resorts, comprising 9,413 rooms across 14 states as of March 31, 2025[131]. Expenses and Debt - Total hotel operating expenses rose by $12.5 million, or 6.8%, to $195.5 million, largely due to increased occupancy and renovations, net of a $2.0 million reduction from the sale of Lorien Hotel & Spa[150]. - Corporate and other expenses increased by $0.7 million, or 1.2%, to $57.5 million, with depreciation and amortization expenses rising by $1.2 million, or 3.8%[151]. - Interest expense increased by $0.7 million, or 3.4%, to $21.1 million, primarily due to higher average outstanding term loan debt and rising interest rates[159]. - Total outstanding debt was $1.4 billion with a weighted-average interest rate of 5.67% as of March 31, 2025[168]. - Total debt as of March 31, 2025, was $1.44 billion, with a weighted-average interest rate of 5.74%[214]. - Fixed rate debt accounted for $1.06 billion of total debt, while variable rate debt was $378.1 million[214]. - The company has taken steps to reduce variable rate debt exposure by paying off floating rate mortgage debt and entering into interest rate swap agreements[212]. Cash Flow and Investments - Cash provided by operating activities was $54.8 million for the three months ended March 31, 2025, compared to $24.7 million for the same period in 2024, reflecting a significant increase[186]. - Cash used in investing activities was $56.2 million for the three months ended March 31, 2025, primarily due to $32.4 million in capital improvements and $25.4 million for land purchase[187]. - Cash provided by financing activities was $39.9 million for the three months ended March 31, 2025, driven by proceeds from the 2024 Delayed Draw Term Loan of $100 million[189]. Shareholder Returns and Compliance - During the three months ended March 31, 2025, the Company repurchased 2,733,149 shares at a weighted-average price of $13.09 per share, totaling $35.8 million[179]. - As of March 31, 2025, the Company was in compliance with all debt covenants except for one mortgage loan, which was cured by depositing $5.0 million in an escrow account[175]. - The Company had $200 million available for sale under its ATM program as of March 31, 2025, with no shares sold during the three months ended March 31, 2025[177]. Future Outlook and Strategic Initiatives - The company continues to monitor challenges associated with inflationary pressures and changing interest rates that could impact operating results[137]. - The company aims to maximize revenue and profits from existing properties while enhancing portfolio value and generating sustainable cash flow for shareholders[166]. - The Operating Partnership entered into a new $825 million senior unsecured credit facility, which includes a $500 million revolving line of credit and a $225 million term loan[170]. - The remaining commitments under renovation contracts as of March 31, 2025, totaled $24.2 million[183]. - The company recognized a net gain of $1.1 million from the purchase of land associated with a ground lease in Q1 2025[198]. - The sale of the Fairmont Dallas for $111.0 million in February 2025 resulted in an estimated gain of approximately $39.3 million, net of transaction costs[207]. - If market interest rates on variable rate debt increase or decrease by 1%, future earnings and cash flows would be impacted by approximately $3.3 million per annum[210]. Non-GAAP Financial Measures - The Company considers non-GAAP financial measures such as EBITDA and FFO useful for evaluating operating performance[190]. - As of March 31, 2025, the Company had $61.7 million in FF&E reserves, an increase from $58.9 million as of December 31, 2024[182].

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $15.6 million, adjusted EBITDAre of $72.9 million, and adjusted FFO per share of $0.51, reflecting nearly 12% growth in adjusted EBITDAre and nearly 16% growth in adjusted FFO per share compared to Q1 2024 [6][14][32] - RevPAR grew by 6.3% year-over-year, with same property RevPAR for the 31 hotel portfolio at $188.73, occupancy increasing by 80 basis points, and ADR increasing by 3.6% [6][19][24] Business Line Data and Key Metrics Changes - The Grand Hyatt Scottsdale's RevPAR grew approximately 60% in Q1 2025 compared to the same quarter last year, driven by a transformative renovation and strong group production [10][23] - Group room nights were up 6.6% with ADR up 4.1%, and business from the largest corporate accounts grew approximately 15% compared to Q1 2024 [21][36] Market Data and Key Metrics Changes - Hotels in Washington DC and New Orleans benefited from significant events, contributing to RevPAR growth, while the Houston market was softer due to winter storms [8][20] - The company’s same property portfolio grew RevPAR by approximately 3.4% in April 2025 compared to the previous year, despite the negative impact of Easter timing [14][32] Company Strategy and Development Direction - The company completed two significant transactions, acquiring land in Santa Clara for $25 million and selling Fairmont Dallas for $111 million, reflecting prudent capital allocation [11][12] - The company plans to reduce capital expenditures to between $75 million and $85 million for the year, a reduction of $25 million compared to previous guidance, in response to macroeconomic uncertainties [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite macroeconomic uncertainties, noting that all hotels are in luxury and upper upscale segments, which may be more resilient [17][39] - The company expects RevPAR growth to be driven more by occupancy than rate this year, with strong non-rooms revenue growth anticipated [33][39] Other Important Information - The company increased its quarterly dividend by 17% and repurchased 2.7% of its outstanding shares during Q1 2025 [18][31] - The balance sheet remains strong, with a leverage ratio of 5.4 times trailing twelve months net debt to EBITDA, and no significant debt maturities until late 2028 [30][31] Q&A Session Summary Question: Have group booking trends evolved in response to the current uncertainty? - Management noted that group booking activity remains healthy with no uptick in cancellations or attrition, indicating a positive outlook for group production [42][43] Question: Have you seen any meaningful impact from lower international inbound travel? - Management indicated limited impact from lower international visitation, as the portfolio is not heavily dependent on international travel [44][45] Question: Can you provide background on the Santa Clara acquisition process? - The acquisition was a unique opportunity from the city of Santa Clara, aimed at eliminating future rent escalation risks and increasing asset value [49][50][52] Question: What is the plan for deferred CapEx projects? - Management stated that they will continually evaluate deferred projects and may consider executing them in 2026, depending on macroeconomic conditions and tariff impacts [54][73] Question: What trends are seen in leisure business? - Management observed varied performance in leisure business across properties, with a slight decline expected in RevPAR at leisure assets overall [61][65]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $15.6 million, adjusted EBITDAre of $72.9 million, and adjusted FFO per share of $0.51, reflecting nearly 12% growth in adjusted EBITDAre and nearly 16% growth in adjusted FFO per share compared to Q1 2024 [5][6][30] - RevPAR grew by 6.3% year-over-year, with same property RevPAR for the 31 hotel portfolio at $188.73, occupancy increasing by 80 basis points, and ADR increasing by 3.6% [5][17] Business Line Data and Key Metrics Changes - The Grand Hyatt Scottsdale's RevPAR grew by approximately 60% in Q1 2025 compared to the same quarter last year, driven by the completion of its transformative renovation [9][22] - One-third of the company's assets achieved double-digit percentage RevPAR growth, while several others experienced high single-digit percentage growth [6][17] Market Data and Key Metrics Changes - Hotels in Washington DC and New Orleans benefited from significant events, such as the presidential inauguration and the Super Bowl, contributing positively to RevPAR [6] - The Houston market experienced softness due to winter storms impacting travel, leading to a 2.1% increase in January RevPAR but a decline in occupancy [18] Company Strategy and Development Direction - The company completed two significant transactions, acquiring land in Santa Clara for $25 million and selling Fairmont Dallas for $111 million, reflecting prudent capital allocation [10][12] - The company plans to reduce capital expenditures for 2025 to between $75 million and $85 million, a reduction of $25 million compared to previous guidance, in response to macroeconomic uncertainties [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite macroeconomic uncertainties, noting that all high-quality branded hotels cater to more resilient customers [15][30] - The company expects RevPAR growth to be driven more by occupancy than rate, with a forecasted full-year RevPAR growth of approximately 4.5% [30][31] Other Important Information - The company increased its quarterly dividend by 17% and repurchased 2.7% of its outstanding shares during Q1 2025 [16][29] - The company has a strong balance sheet with a leverage ratio of 5.4 times trailing twelve months net debt to EBITDA, and current liquidity of approximately $75 million [28][29] Q&A Session Summary Question: Have group booking trends evolved in response to the current uncertainty? - Management noted that group booking activity remains healthy with no uptick in cancellations or attrition, indicating a positive outlook for group business [40][41] Question: Have you seen any meaningful impact from lower international inbound travel? - Management indicated limited impact from lower international visitation, as the portfolio is not heavily dependent on international travel [42][43] Question: Can you provide background on the Santa Clara acquisition? - The acquisition was a unique opportunity from the city of Santa Clara, aimed at eliminating future rent escalation risks and increasing asset value [46][50] Question: What is the plan for deferred CapEx projects? - Management stated that they will continually evaluate deferred projects and may consider executing them in 2026, depending on macroeconomic conditions and tariff impacts [52][70] Question: What are the trends in leisure business? - Management observed varied performance in leisure business across properties, with a slight decline expected in leisure RevPAR for the year [57][62]

Core Insights - Xenia Hotels & Resorts reported revenue of $288.93 million for Q1 2025, an 8% year-over-year increase, with an EPS of $0.51 compared to $0.08 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate by 5.66%, while the EPS surprise was 21.43% above the consensus estimate of $0.42 [1] Revenue Breakdown - Food and beverage revenue reached $104.70 million, surpassing the average estimate of $94.62 million, reflecting a year-over-year increase of 12.9% [4] - Room revenue was $159.87 million, exceeding the average estimate of $156.67 million, with a year-over-year change of 4.4% [4] - Other revenues totaled $24.36 million, above the estimated $22.12 million, marking a 12.8% increase compared to the previous year [4] Stock Performance - Xenia Hotels & Resorts shares returned 2.9% over the past month, contrasting with a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]