Xenia Hotels & Resorts, a real estate investment trust (REIT), has recently released its 10-Q report. The company focuses on investing in luxury and upper upscale hotels and resorts in the top 25 lodging markets and key leisure destinations in the United States. As of September 30, 2025, Xenia owned 30 hotels and resorts comprising 8,868 rooms across 14 states, which are operated and/or licensed by industry leaders such as Marriott, Hyatt, Fairmont, and Hilton.
In the 10-Q report, Xenia Hotels & Resorts discussed various factors that could impact its financial performance and outlook, including inflation, changing interest rates, potential domestic and global recessions, and global conflicts. The report also highlighted the impact of macroeconomic factors, such as changes in consumer confidence levels, workforce and wage landscape, and capital expenditures, on the company's prospects and future events.
Xenia measures its hotel results of operations and business performance through financial and non-financial metrics 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 FFO. The report also provides an overview of the U.S. lodging industry, which historically exhibits a strong correlation to U.S. GDP.
The lodging industry overview included a discussion on the correlation between the U.S. lodging industry and U.S. GDP, as well as changes in the unemployment rate. It also highlighted the impact of demand and new hotel supply on industry RevPAR, which decreased by 1.4% for the three months ended September 30, 2025, compared to 2024.
In the third quarter of 2025, Xenia Hotels & Resorts reported an increase in its total portfolio RevPAR, driven primarily by an increase in average daily rate and a shift in demand to a more traditional mix of leisure, business transient, and group within its portfolio. Excluding dispositions and a hotel undergoing renovation, the total portfolio RevPAR decreased by 2.6% for the three months ended September 30, 2025, compared to the same period in 2024.
Following these announcements, the company's shares moved -0.86%, and are now trading at a price of $12.74. For more information, read the company's full 10-Q submission here.
