Xenia Hotels & Resorts, Inc. has recently released its 10-Q report, detailing its operations and financial performance. The company is a self-advised and self-administered REIT that invests in luxury and upper upscale hotels and resorts in the United States. As of March 31, 2025, Xenia owned 31 hotels and resorts comprising 9,413 rooms across 14 states. The company's properties are operated and/or licensed by industry leaders such as Marriott, Hyatt, Fairmont, Kimpton, Loews, Hilton, and The Kessler Collection.
In the 10-Q report, Xenia Hotels & Resorts discusses various factors that could impact its financial performance, including macroeconomic factors, changing interest rates, potential domestic and/or global recession, global conflicts, trade disputes, and the evolving workforce and wage landscape. The report also highlights that the company's revenue primarily comes from hotel operations, including rooms revenue, food and beverage revenue, and other revenue such as parking, spa, resort fees, and tenant leases, among other items.
The report further discusses key indicators of operating performance, such as Revenue Per Available Room (RevPAR), average daily rate (ADR), occupancy rate, earnings before interest, income taxes, depreciation and amortization for real estate (EBITDAre), funds from operations (FFO), and adjusted funds from operations (AFFO). It evaluates individual hotel and company-wide performance with comparisons to budgets, prior periods, and competing properties.
In terms of the first quarter of 2025, Xenia Hotels & Resorts reported that its total portfolio RevPAR, which includes the results of hotels sold or acquired for the period of ownership by the company, increased by 6.7% to $188.73 for the three months ended March 31, 2025, compared to $176.86 for the same period in 2024. The increase in RevPAR was primarily driven by increases in occupancy and average daily rate as well as disruption from renovations in 2024. Excluding a property undergoing renovation, the total portfolio RevPAR increased by 4.1% to $185.38 for the three months ended March 31, 2025, compared to $178.07 for the three months ended March 31, 2024.
Net income also saw a significant increase of 84.1% for the three months ended March 31, 2025, compared to the same period in 2024. This increase was primarily attributed to an $8.5 million increase in hotel operating income for the 31 comparable hotels, a $1.3 million reduction in general and administrative expenses, and a $0.3 million reduction in impairment.
The 10-Q report provides a comprehensive insight into Xenia Hotels & Resorts' financial performance, the factors influencing its operations, and its future outlook. The market has reacted to these announcements by moving the company's shares 5.6% to a price of $11.44. For more information, read the company's full 10-Q submission here.
