Xenia Hotels & Resorts (XHR) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: 3.84%
• Average Volume (3M): 918.60K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.23
• Revenue Growth: 4.29%
• EPS Growth: 141.01%
• Country: US
• Employees: 46
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.14
• Shares Outstanding: 94,805,750
• 10 Day Avg. Volume: 956,758
• 30 Day Avg. Volume: 918,599
• PEG Ratio: -7.97
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 65.33
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 10.58
• Enterprise Value/Ebitda: 10.78
• 1Y Price Target: $15.50
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $1.08B

• Rating: 65 Neutral
• Price Target: $15.00 ▲(12.53% Upside)

Xenia Hotels & Resorts' overall stock score is driven by its resilient financial performance and positive technical indicators, despite a challenging earnings call and high valuation. The company's strong cash flow and improving profitability are significant strengths, but the high P/E ratio and recent net loss pose risks.

Positive Factors

Cash Flow Generation

Robust cash flow generation indicates strong liquidity and operational efficiency, providing the company with flexibility for investments and debt management.

Group Demand

Sustained strong group demand supports revenue stability and growth, enhancing the company's market position and long-term profitability.

Strategic Partnerships

Strategic partnerships with renowned operators can enhance service offerings and drive additional revenue, strengthening competitive advantage.

Negative Factors

Net Loss

A net loss impacts financial health and may limit reinvestment capabilities, posing risks to future growth and shareholder value.

Houston Market Challenges

Persistent challenges in key markets like Houston can hinder overall portfolio performance, affecting revenue and profitability.

Leverage Concerns

Moderate leverage increases financial risk, potentially impacting the company's ability to finance operations and growth initiatives.

Xenia Hotels & Resorts Business Overview & Revenue Model

Company Description

Xenia Hotels & Resorts (XHR) is a real estate investment trust (REIT) that specializes in the ownership and acquisition of premium-branded, upscale, and upper-upscale hotels. The company primarily operates in the hospitality sector, focusing on properties that cater to both business and leisure travelers. Xenia's core portfolio includes hotels operating under well-known brands, providing guests with high-quality accommodations and services across various key markets in the United States.

How the Company Makes Money

Xenia Hotels & Resorts generates revenue primarily through the ownership and leasing of hotel properties. The company earns money from the rental income generated by these hotels, which is derived from room bookings and ancillary services such as food and beverage sales, meeting and event space rentals, and other hotel amenities. Additionally, XHR may benefit from management fees if it partners with hotel management companies to operate its properties. Key revenue streams include room revenue, food and beverage sales, and other service-related income. The company may also engage in capital improvements and renovations to enhance property value and increase future revenue potential. Strategic partnerships with well-known hotel brands and operators further bolster Xenia's market position and profitability.

Xenia Hotels & Resorts Financial Statement Overview

Summary

Xenia Hotels & Resorts demonstrates a resilient financial performance with notable improvements in profitability and cash flow generation. Despite a recent decline in revenue growth, the company has managed to enhance its profit margins and cash flow metrics. The balance sheet shows moderate leverage, which requires careful management to mitigate potential risks.

Income Statement

Xenia Hotels & Resorts shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth at -3.6%, contrasting with previous years' growth. Gross profit margin has decreased to 20.93% from 24.28% in 2024, and net profit margin is at 5.24%, showing improvement from 1.55% in 2024. The EBIT margin is stable at around 8.92%. Despite the recent revenue decline, profitability metrics have improved, indicating better cost management.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 1.21, indicating moderate leverage. Return on equity has improved to 4.65% in the TTM period, reflecting better profitability. However, the equity ratio has slightly decreased, suggesting a higher reliance on debt financing. The company maintains a balanced asset structure, but the leverage level poses a potential risk if not managed carefully.

Cash Flow

Cash flow analysis shows a strong improvement in free cash flow growth at 78.59% for the TTM period, indicating robust cash generation. The operating cash flow to net income ratio is healthy, reflecting efficient cash conversion. The free cash flow to net income ratio is at 48.79%, showing a solid cash flow position relative to earnings. Overall, cash flow metrics suggest strong liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.04B	1.03B	997.61M	616.19M	369.78M
Gross Profit	238.35M	252.31M	268.17M	278.15M	128.10M	-34.74M
EBITDA	234.02M	222.76M	229.42M	275.21M	64.78M	-95.18M
Net Income	56.37M	16.14M	19.14M	55.92M	-143.52M	-163.33M
Balance Sheet
Total Assets	2.87B	2.83B	2.90B	3.08B	3.09B	3.08B
Cash, Cash Equivalents and Short-Term Investments	188.24M	78.20M	164.72M	305.10M	517.38M	389.82M
Total Debt	1.42B	1.33B	1.39B	1.43B	1.50B	1.37B
Total Liabilities	1.64B	1.55B	1.58B	1.62B	1.65B	1.51B
Stockholders Equity	1.18B	1.24B	1.29B	1.44B	1.43B	1.55B
Cash Flow
Free Cash Flow	90.60M	23.17M	77.16M	116.75M	8.94M	-146.95M
Operating Cash Flow	185.71M	163.72M	198.06M	187.13M	40.76M	-77.72M
Investing Cash Flow	-15.04M	-108.25M	-118.75M	-265.39M	-24.21M	254.19M
Financing Cash Flow	-126.32M	-134.97M	-222.15M	-110.06M	108.89M	57.37M

Xenia Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XHR, the sentiment is Positive. The current price of 13.33 is below the 20-day moving average (MA) of 13.45, below the 50-day MA of 13.43, and above the 200-day MA of 12.60, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 72.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XHR.

Xenia Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
XHR	65 Neutral	$1.33B	25.00	4.58%	3.84%	4.29%	141.01%
DRH	64 Neutral	$1.87B	34.90	3.98%	5.16%	0.95%	-8.40%
RLJ	62 Neutral	$1.10B	150.10	1.49%	7.88%	-0.58%	-83.32%
SHO	61 Neutral	$1.80B	1,890.00	0.88%	3.88%	3.04%	-98.77%
PEB	52 Neutral	$1.29B	―	-3.74%	0.35%	0.99%	-360.58%
PK	52 Neutral	$2.16B	―	-0.36%	13.05%	-3.57%	-104.55%

Xenia Hotels & Resorts Corporate Events

Xenia Hotels & Resorts Faces Challenges Amid Earnings Call

The recent earnings call for Xenia Hotels & Resorts Inc. painted a picture of a challenging operating environment. While there were some positive developments, such as strong group demand and individual property performance, these were overshadowed by a net loss, weak market performance in Houston, and reduced expectations for the fourth quarter. The overall sentiment was cautious, reflecting the difficulties the company faces in the current market landscape.