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Xenia Hotels & Resorts (XHR)
NYSE:XHR
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Xenia Hotels & Resorts
(NYSE:XHR)
54Neutral
Positive Factors
Growth Potential
The Grand Hyatt Scottsdale Resort is anticipated to meaningfully contribute to growth in 2025.
Renovation Impact
Prior renovation headwinds are now tailwinds with implied YTD RevPAR growth of 7.3% and 2025 guidance of 5.0%.
Share Valuation
Shares are trading at a discount compared to historical averages.
Negative Factors
Earnings Guidance
Management set 2025 EBITDA guidance below expectations.
Earnings Miss
XHR delivered disappointing 3Q results and guidance that fell short of expectations, and a negative initial share reaction is expected.
Expense Pressures
Expected cost pressures in labor are likely to dampen EBITDA growth potential.
Xenia Hotels & Resorts (XHR) vs. S&P 500 (SPY)
Market Cap
$995.09M
Dividend Yield5.1%
Average Volume (3M)997.73K
Price to Earnings (P/E)63.7
Beta (1Y)1.30
Revenue Growth1.33%
EPS Growth-10.65%
CountryUS
Employees46
SectorReal Estate
Sector Strength79
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.15
Shares Outstanding101,436,290
10 Day Avg. Volume928,225
30 Day Avg. Volume997,732
Financial Highlights & Ratios
PEG RatioN/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 Ratio51.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.25Price Target Upside55.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Xenia Hotels & Resorts Business Overview & Revenue Model
Company DescriptionXenia Hotels & Resorts, Inc. (XHR) is a self-advised and self-administered real estate investment trust (REIT) that invests in top-tier hotels and resorts. The company focuses on acquiring, owning, and selectively developing luxury and upper upscale hotels, with a strategic emphasis on major metropolitan areas and key leisure destinations across the United States. Xenia's portfolio includes a diverse range of hospitality properties, operated under well-known brands and managed by leading hotel management companies.
How the Company Makes MoneyXenia 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.72
Positive
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.65
Positive
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.68
Positive
| 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
Negative
9.81
Price Trends
13.28
Negative
14.14
Negative
13.96
Negative
Market Momentum
-0.47
Positive
30.27
Neutral
16.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XHR, the sentiment is Negative. The current price of 9.81 is below the 20-day moving average (MA) of 12.09, below the 50-day MA of 13.28, and below the 200-day MA of 13.96, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 30.27 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XHR.
Xenia Hotels & Resorts Risk Analysis
Xenia Hotels & Resorts disclosed 84 risk factors in its most recent earnings report. Xenia Hotels & Resorts reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xenia Hotels & Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.19B | 13.27 | 10.53% | 6.09% | 7.02% | -4.78% | |
72 Outperform | $2.75B | 12.97 | 6.50% | 8.34% | 6.52% | 14.45% | |
68 Neutral | $1.89B | 9.27 | 5.68% | 10.68% | -3.67% | 122.68% | |
61 Neutral | $4.43B | 16.13 | -3.23% | 11.37% | 6.25% | -21.19% | |
58 Neutral | $1.01B | ― | -0.16% | 0.47% | 2.35% | 57.81% | |
58 Neutral | $1.04B | 24.88 | 2.94% | 8.08% | 3.31% | -15.16% | |
54 Neutral | $995.09M | 63.66 | 1.24% | 5.10% | 1.33% | -10.65% |
* Real Estate Sector Average
Performance Comparison
XHR
Xenia Hotels & Resorts
9.81
-5.02
-33.85%
HST
Host Hotels & Resorts
13.14
-6.34
-32.55%
PEB
Pebblebrook Hotel
8.43
-7.29
-46.37%
RLJ
RLJ Lodging
6.81
-4.40
-39.25%
APLE
Apple Hospitality REIT
11.51
-3.63
-23.98%
PK
Park Hotels & Resorts
9.36
-6.68
-41.65%
Xenia Hotels & Resorts Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -28.81% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call presented both positive and negative aspects. Highlights included the successful completion of the Grand Hyatt Scottsdale renovation, strong fourth-quarter performance, and positive group demand and bookings for 2025. However, the company also faced challenges, such as a net loss in Q4, declining EBITDA margins, and softening leisure demand. Despite these challenges, the overall outlook for 2025 remains optimistic.Highlights
Successful Completion of Grand Hyatt Scottsdale Renovation
The transformative renovation and upbranding of Grand Hyatt Scottsdale was substantially completed, with the expanded Arizona ballroom finished on schedule. This project is expected to drive significantly higher cash flow and returns.
Strong Fourth Quarter Performance
Same property RevPAR increased by 5.1% in Q4 2024 compared to the previous year, with double-digit growth in markets like Nashville, Santa Barbara, and Phoenix.
Positive Full Year 2024 Metrics
For the full year, adjusted EBITDAre was $237.1 million, and net income was $16.1 million. Same property portfolio achieved a RevPAR increase of 1.6%.
Strong Group Demand and Bookings for 2025
Group room revenue excluding Scottsdale increased by 5% in 2024 compared to 2023, with a strong group bookings pace for 2025.
Improved Balance Sheet and Capital Allocation
Addressed all near-term debt maturities, increased liquidity to $650 million, and repurchased 1.1 million shares in 2024 at an average price of $14 per share.
Lowlights
Net Loss and Decline in EBITDA Margin
Reported a net loss of $638,000 in Q4 2024, with hotel EBITDA margin decreasing by 120 basis points compared to 2023.
Leisure Demand Softening
Leisure demand moderated in 2024, with declines in leisure-focused markets like Savannah, Phoenix, and Napa.
Lower Full Year EBITDA Margins
2024 hotel EBITDA was 5.5% below 2023 levels, and margins were 189 basis points lower compared to 2023.
Challenges in West Coast Markets
RevPAR declines in properties like Andaz San Diego and Hyatt Regency Grand Cypress due to difficult market conditions.
Company Guidance
During the call, the company provided guidance for 2025 with several key metrics. They projected a 3.5% to 6.5% increase in same property RevPAR, or 5% at the midpoint, and anticipated adjusted EBITDAre growth of 7%, reaching a midpoint of $254 million. The guidance also included an adjusted FFO per share increase of 3.5%. The company highlighted that the Grand Hyatt Scottsdale would significantly contribute to RevPAR growth, adding approximately 300 basis points. For 2025, they expect hotel-level expenses to increase about 4% per occupied room, with wages and benefits rising slightly higher. The company also noted that group room revenue booking pace was up 17% as of year-end 2024, driven by a mix of demand and rate growth. The guidance reflects the expectation of continued improvement in business transient demand and strong group booking momentum, with Scottsdale driving over half of the projected RevPAR growth for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.