Xenia Hotels & Resorts(US:XHR)2026-02-24 19:02Financial Data and Key Metrics Changes - Adjusted EBITDAre for 2025 was $258.3 million, exceeding guidance and reflecting strong operational performance [10][18] - Net income for Q4 2025 was $6.1 million, with adjusted FFO per share at $0.45, meeting or exceeding guidance [8][10] - Full year adjusted FFO per share was $1.76, showing double-digit percentage growth compared to 2024 [6][10] Business Line Data and Key Metrics Changes - Food and beverage revenue increased by 13.4% in 2025, driven by strong banquet and catering performance [11][20] - Same-property RevPAR for Q4 2025 increased by 4.5%, building on a 5.6% growth in Q4 2024 [8][20] - Total RevPAR for the full year 2025 was $328.57, an increase of 8% compared to 2024 [21] Market Data and Key Metrics Changes - Properties in Scottsdale, Denver, Santa Clara, Orlando, San Diego, and Santa Barbara showed substantial RevPAR growth in 2025 [11][21] - Houston market experienced RevPAR growth as market performance improved after previous challenges [9][22] - Same-property RevPAR for Q1 2026 is estimated to have grown approximately 4.6% compared to the same period in 2025 [19] Company Strategy and Development Direction - The company plans to invest between $70 million and $80 million in capital expenditures in 2026, focusing on renovations and enhancements [16][29] - The strategy includes strengthening group business and capturing more corporate transient demand, with expectations for continued growth in these segments [12][43] - The company is optimistic about future growth prospects, driven by events like the FIFA World Cup and NFL Draft [18][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of lodging demand despite economic uncertainties [18][39] - The outlook for 2026 includes a projected same-property RevPAR growth range of 1.5%-4.5% [17][40] - Management highlighted the importance of group demand and the ongoing recovery in corporate transient demand as key growth drivers [12][41] Other Important Information - The company repurchased approximately 9.4 million shares in 2025, representing about 9.2% of outstanding shares at the start of the year [35] - A quarterly dividend of $0.14 per share was announced for Q1 2026, reflecting a yield of approximately 3.5% [36] - The company has no preferred equity or senior capital, with a strong balance sheet and liquidity position [34] Q&A Session Summary Question: Can you provide more context around the RevPAR guide ranges? - Management indicated that special events and strong group revenue pace are key components of the RevPAR outlook, with visibility on group business being a significant factor [47][48] Question: What are the recent trends in large corporate account growth? - Management noted that while corporate accounts are still below 2019 levels, there has been consistent growth, particularly in Q4, with mid-teens growth in large accounts [50][52] Question: What is the outlook for the asset trading market? - Management observed increased activity in the asset trading market and expressed interest in external growth opportunities, particularly in the $50 million-$200 million range [55][57] Question: How did the Nashville market perform in Q4 and what are the expectations for 2026? - Management acknowledged challenges in Q4 but expects improvement in midweek corporate and group segments in 2026 [67][68] Question: How is the company managing OpEx growth? - Management indicated that the 4.5% OpEx growth includes impacts from Grand Hyatt Scottsdale, with expectations for costs to moderate towards inflationary levels [85][86]