Xenia Hotels & Resorts (XHR) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: 4.74%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 68.4
• Beta (1Y): 1.20
• Revenue Growth: 1.33%
• EPS Growth: -10.65%
• Country: US
• Employees: 46
• Sector: Real Estate
• Sector Strength: 77
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.15
• Shares Outstanding: 101,436,290
• 10 Day Avg. Volume: 814,541
• 30 Day Avg. Volume: 1,015,628
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.22
• Price to Cash Flow (P/CF): 10.30
• P/FCF Ratio: 51.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.80
• Price Target Upside: 21.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Xenia Hotels & Resorts scores a 59.65, reflecting a balanced view of its strengths and weaknesses. The company's financial resilience and positive earnings guidance are notable positives, offset by technical bearishness and valuation concerns. Despite the potential for revenue growth and improved stability, investor caution is warranted due to the high P/E ratio and declining profitability metrics.

Positive Factors

EBITDA Growth

The disposition raises XHR's total Revenue Per Available Room by 1.5% and EBITDA per key by 0.8%, improving portfolio quality and supporting EBITDA growth.

Financial Reserves

XHR sold the Fairmont Dallas for $111MM, adding to its dry powder in an uncertain environment, improving the portfolio's quality and medium-term growth trajectory, and reducing its near-term capital needs.

Negative Factors

Earnings Guidance

Management set 2025 EBITDA guidance below expectations.

Earnings Performance

XHR delivered disappointing 3Q results and guidance that fell short of expectations, and a negative initial share reaction is expected.

Renovation Disruption

The convention center in Dallas is undergoing a partial demolition, renovation, and expansion, which is highly disruptive in the near term.

Xenia Hotels & Resorts Business Overview & Revenue Model

Company Description

Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 37 hotels comprising 10,749 rooms across 16 states. Xenia's hotels are in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, and Hilton, as well as leading independent management companies including The Kessler Collection and Sage Hospitality.

How the Company Makes Money

Xenia Hotels & Resorts generates revenue primarily through the ownership and operation of its hotel and resort properties. The company's income is largely derived from room occupancy rates, food and beverage sales, and other ancillary services offered at its properties. Xenia's portfolio of luxury and upper upscale hotels is operated under franchise or management agreements with renowned hotel brands, which enhances its market presence and attracts a steady stream of guests. Additionally, the company's strategic focus on prime locations in key markets helps to optimize occupancy rates and revenue per available room (RevPAR), further contributing to its earnings. As a REIT, Xenia also benefits from tax advantages, distributing a significant portion of its taxable income to shareholders in the form of dividends.

Xenia Hotels & Resorts Financial Statement Overview

Summary

Xenia Hotels & Resorts has demonstrated resilience with revenue recovery and debt elimination, positioning itself for future stability. However, the low net income margins and declining ROE highlight profitability challenges. While cash flow generation remains robust, the declining free cash flow signals necessary strategic adjustments to maintain improvement.

Income Statement

Xenia Hotels & Resorts has shown a positive trend in revenue growth from 2020 to 2023, bouncing back from the pandemic-induced dip in 2020. The gross profit margin has improved significantly from a negative margin in 2020 to being fully aligned with total revenue due to the absence of COGS data. The net profit margin remains low, at 1.55% in 2023, reflecting challenges in translating revenue growth into net income. The EBIT and EBITDA margins have shown recovery, evidencing operational improvements. However, the decline in both EBIT and EBITDA in 2024 indicates potential operational pressures.

Balance Sheet

Xenia maintains a strong equity base, with an equity ratio of 43.89% in 2024. The complete elimination of debt in 2024 is a significant positive development, reducing financial risk. However, the return on equity (ROE) has decreased to 1.30% in 2024, indicating inefficiencies in utilizing equity for generating profits. Overall, the balance sheet reflects improved stability but suggests limited profitability of equity.

Cash Flow

The company's free cash flow turned positive in 2024 after dipping in 2023, but it remains significantly lower than in previous years. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. However, the negative free cash flow growth rate and reduced free cash flow to net income ratio reflect challenges in sustaining cash flow improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.04B	1.03B	997.61M	616.19M	369.78M
	Gross Profit
252.31M	268.17M	278.15M	128.10M	-34.74M
	EBIT
86.83M	97.61M	111.39M	-34.37M	-241.69M
	EBITDA
222.76M	229.42M	275.21M	95.03M	-36.23M
	Net Income Common Stockholders
16.14M	19.14M	55.92M	-146.62M	-166.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.20M	167.25M	305.10M	517.38M	389.82M
	Total Assets
2.83B	2.90B	3.08B	3.09B	3.08B
	Total Debt
1.33B	1.41B	1.43B	1.49B	1.37B
	Net Debt
1.26B	1.25B	1.12B	976.85M	984.66M
	Total Liabilities
1.55B	1.58B	1.62B	1.65B	1.51B
	Stockholders Equity
1.24B	1.29B	1.44B	1.43B	1.55B
Cash Flow		Free Cash Flow
23.17M	77.16M	116.75M	8.94M	-146.95M
	Operating Cash Flow
163.72M	198.06M	187.13M	40.76M	-77.72M
	Investing Cash Flow
-108.25M	-118.75M	-265.39M	-24.21M	254.19M
	Financing Cash Flow
-134.97M	-222.15M	-110.06M	108.89M	57.37M

Xenia Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XHR, the sentiment is Neutral. The current price of 10.54 is above the 20-day moving average (MA) of 10.31, below the 50-day MA of 11.96, and below the 200-day MA of 13.70, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 83.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XHR.

Xenia Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PK	69 Neutral	$2.02B	9.90	5.68%	10.00%	-3.67%	122.68%
SHO	64 Neutral	$1.66B	58.83	2.01%	4.47%	-8.18%	-85.42%
DRH	63 Neutral	$1.51B	39.34	2.98%	2.36%	5.12%	-49.88%
RLJ	61 Neutral	$1.07B	25.39	2.94%	7.83%	3.31%	-15.16%
XHR	60 Neutral	$1.07B	68.40	1.24%	4.74%	1.33%	-10.65%
Sector *	59 Neutral	$2.72B	11.59	0.11%	8770.69%	5.44%	-16.52%
PEB	58 Neutral	$1.09B	―	-0.16%	0.44%	2.35%	57.81%