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Xenia Hotels & Resorts (XHR)
NYSE:XHR
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Xenia Hotels & Resorts
(NYSE:XHR)
Rating:67Neutral
Price Target:
$13.00
▲(8.51%Upside)
Positive Factors
Asset Management
The sale of the Fairmont Dallas for $111MM reduces disruption and capital expenditure needs, improving the portfolio's quality and medium-term growth trajectory.
Debt Management
The next debt maturity for XHR is limited, with only 4% of debt maturing in March 2026.
Financial Performance
XHR delivered a solid Q1, with upside to RevPAR/EBITDA/FFO led by Scottsdale's post-renovation ramp.
Negative Factors
Earnings Guidance
Management set 2025 EBITDA guidance below expectations.
Labor Costs
Expected cost pressures in labor are likely to dampen EBITDA growth potential.
Market Performance
Shares are trading at a discount compared to historical averages.
Xenia Hotels & Resorts (XHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.18B
Dividend Yield4.67%
Average Volume (3M)882.39K
Price to Earnings (P/E)53.5
Beta (1Y)1.26
Revenue Growth3.57%
EPS Growth12.66%
CountryUS
Employees46
SectorReal Estate
Sector Strength69
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.15
Shares Outstanding98,703,130
10 Day Avg. Volume772,255
30 Day Avg. Volume882,388
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)1.04
Price to Sales (P/S)0.00
P/FCF Ratio12.88
Enterprise Value/Market Cap2.22
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit4.91
Enterprise Value/Ebitda3.64
Forecast
1Y Price Target
$12.20Price Target Upside1.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Xenia Hotels & Resorts Business Overview & Revenue Model
Company DescriptionXenia Hotels & Resorts (XHR) is a self-advised and self-administered real estate investment trust (REIT) primarily engaged in the investment in high-quality, upper upscale and luxury hotels and resorts. The company focuses on acquiring, owning, and operating premium hotel properties in key urban and resort markets across the United States. Xenia's portfolio consists of a diverse range of properties, including leading hotel brands and independent hotels, strategically located in major cities and popular tourist destinations.
How the Company Makes MoneyXenia Hotels & Resorts generates revenue primarily through the ownership and operation of its hotel properties. The company's primary revenue streams include room revenue, which is generated from the leasing of hotel rooms to guests, and food and beverage revenue, derived from the operation of restaurants, bars, and event catering within its hotels. Additionally, Xenia may earn ancillary revenue from services such as parking, spa, and other guest services offered at its properties. The company benefits from strategic partnerships with major hotel brands, which provide branding, marketing, and operational support, enhancing the performance and marketability of its properties. Xenia's financial performance is influenced by factors such as hotel occupancy rates, average daily room rates (ADR), and the overall economic and travel industry conditions.
Xenia Hotels & Resorts Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q1-2025)
| % Change Since: 10.62%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results, successful strategic transactions, and growth in group business. However, challenges included weather impacts, macroeconomic uncertainties, and deferral of capital projects. Despite these challenges, the company remains positive about its positioning and growth prospects.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Net income for Q1 2025 was $15.6 million, adjusted EBITDAre was $72.9 million, and adjusted FFO per share was $0.51. RevPAR grew by 6.3% compared to Q1 2024, leading to nearly 12% growth in adjusted EBITDAre and nearly 16% growth in adjusted FFO per share.
Grand Hyatt Scottsdale Success
The Grand Hyatt Scottsdale reported a 60% RevPAR increase following its renovation. The project was completed successfully with strong group production and high guest satisfaction scores.
Strategic Transactions
Acquired land underlying Hyatt Regency Santa Clara for $25 million, eliminating future rent escalation risk. Sold Fairmont Dallas for $111 million, which avoided costly renovations and resulted in an unlevered IRR of 11.3%.
Group Business Growth
Group room nights increased by 6.6% and group rooms revenue was up over 15% in February and March. Group revenue pace for 2025 now exceeds 2019 levels.
Shareholder Returns
Increased quarterly dividend by 17% and repurchased 2.7% of outstanding shares during the first quarter.
Negative Updates
Weather Impact on Sunbelt Locations
January results were negatively impacted by winter storms in several Sunbelt locations, particularly in Texas.
Macroeconomic Uncertainty
Concerns about potential macroeconomic impacts and tariffs on goods sourced internationally have led to reduced capital expenditures and adjustments to full-year guidance.
Soft Leisure Business in Certain Markets
Leisure business at Hyatt Regency Grand Cypress was softer, although offset by increased group business.
Deferred Capital Projects
Deferral of guestroom renovations at Andaz Napa and Ritz-Carlton Denver due to uncertainties around tariffs and costs, impacting planned CapEx.
Company Guidance
During the Xenia Hotels & Resorts Q1 2025 earnings call, the company provided guidance reflecting both recent transactions and potential macroeconomic impacts. They reported a net income of $15.6 million, adjusted EBITDAre of $72.9 million, and adjusted FFO per share of $0.51, with RevPAR increasing by 6.3% from the previous year. The guidance for full-year RevPAR growth was adjusted to a midpoint of 4.5%, with anticipated strong contributions from the Grand Hyatt Scottsdale, which has shown a 60% RevPAR increase post-renovation. Group revenue pace has also been robust, with a 22% increase forecasted for the rest of the year. The company reduced its capital expenditure guidance by $25 million to between $75 million and $85 million, partly due to the sale of Fairmont Dallas and the deferral of projects like those at Andaz Napa and Ritz-Carlton Denver. Despite potential economic headwinds, Xenia is optimistic, citing a strong portfolio and geographic diversity, and has increased its quarterly dividend by 17%.Xenia Hotels & Resorts Financial Statement Overview
Summary
Xenia Hotels & Resorts has shown resilience with revenue recovery and debt elimination, contributing to financial stability. However, low net income margins and declining ROE highlight profitability challenges, while cash flow generation remains robust despite declining free cash flow.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.06B | 1.04B | 1.03B | 997.61M | 616.19M | 369.78M | Gross Profit |
| 534.91M | 252.31M | 268.17M | 278.15M | 128.10M | -34.74M | EBIT |
| 95.07M | 86.83M | 97.61M | 111.39M | -34.37M | -241.69M | EBITDA |
| 147.08M | 213.25M | 229.42M | 275.21M | 95.03M | -36.23M | Net Income Common Stockholders |
| 23.19M | 16.14M | 19.14M | 55.92M | -146.62M | -166.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 112.56M | 78.20M | 167.25M | 305.10M | 517.38M | 389.82M | Total Assets |
| 2.89B | 2.83B | 2.90B | 3.08B | 3.09B | 3.08B | Total Debt |
| 0.00 | 1.33B | 1.41B | 1.43B | 1.49B | 1.37B | Net Debt |
| -112.56M | 1.26B | 1.25B | 1.12B | 976.85M | 984.66M | Total Liabilities |
| 1.64B | 1.55B | 1.58B | 1.62B | 1.65B | 1.51B | Stockholders Equity |
| 1.21B | 1.24B | 1.29B | 1.44B | 1.43B | 1.55B |
| Cash Flow | Free Cash Flow | ||||
| 54.28M | 23.17M | 77.16M | 116.75M | 8.94M | -146.95M | Operating Cash Flow |
| 193.76M | 163.72M | 198.06M | 187.13M | 40.76M | -77.72M | Investing Cash Flow |
| -132.17M | -108.25M | -118.75M | -265.39M | -24.21M | 254.19M | Financing Cash Flow |
| -76.47M | -134.97M | -222.15M | -110.06M | 108.89M | 57.37M |
Xenia Hotels & Resorts Technical Analysis
Negative
11.98
Price Trends
11.23
Positive
12.34
Negative
13.45
Negative
Market Momentum
0.20
Positive
50.73
Neutral
50.81
Neutral
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 11.98 is below the 20-day moving average (MA) of 12.07, above the 50-day MA of 11.23, and below the 200-day MA of 13.45, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.81 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.18B | 53.48 | 1.83% | 4.67% | 3.57% | 12.66% | |
65 Neutral | $1.98B | 16.69 | 3.46% | 10.10% | -3.68% | 35.35% | |
64 Neutral | $1.69B | 87.80 | 1.66% | 4.24% | -3.90% | -89.21% | |
63 Neutral | $1.08B | 27.00 | 2.92% | 8.51% | 2.82% | -8.08% | |
62 Neutral | $1.06B | ― | -0.33% | 0.45% | 2.18% | 56.00% | |
61 Neutral | $2.83B | 10.72 | 0.40% | 6.10% | 5.80% | -21.26% | |
60 Neutral | $1.55B | 37.91 | 3.22% | 4.28% | 3.73% | -44.49% |
* Real Estate Sector Average
Performance Comparison
XHR
Xenia Hotels & Resorts
11.98
-1.84
-13.31%
DRH
Diamondrock
7.48
-0.48
-6.03%
SHO
Sunstone Hotel
8.49
-1.33
-13.54%
PEB
Pebblebrook Hotel
8.96
-5.02
-35.91%
RLJ
RLJ Lodging
7.05
-2.02
-22.27%
PK
Park Hotels & Resorts
9.90
-3.62
-26.78%
Xenia Hotels & Resorts Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Xenia Hotels Approves Incentive Plan Amendment at Meeting
Positive
May 14, 2025
On May 13, 2025, Xenia Hotels & Resorts, Inc. held its annual stockholders meeting where several key decisions were made. The stockholders approved the fifth amendment to the 2015 Incentive Award Plan, increasing the share limit by 2,250,000 to a total of 14,000,000 shares. Additionally, the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent auditor for 2025 were confirmed, indicating strong shareholder support for the company’s strategic direction.
The most recent analyst rating on (XHR) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Xenia Hotels & Resorts stock, see the XHR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.