Xenia Hotels & Resorts (NYSE:XHR) reported third-quarter adjusted earnings of $0.23 per share, topping analyst expectations of $0.16, as the lodging REIT managed to outperform despite a sluggish hospitality market and flat revenue per available room (RevPAR) compared with last year.
Quarterly revenue held steady at $236.4 million, with Same-Property RevPAR unchanged at $164.50 from the third quarter of 2024. Occupancy slipped 100 basis points to 66.3%, but this was offset by a 1.6% rise in Average Daily Rate (ADR) to $248.09.
Same-Property Total RevPAR, which includes food and beverage sales, showed stronger growth — climbing 3.7% to $289.76, driven by an 8.3% year-over-year increase in food and beverage revenue.
“Our third quarter performance met our expectations and reflected a challenging operating environment in the lodging industry as a whole, including muted leisure demand during the summer months,” said Marcel Verbaas, Chair and Chief Executive Officer of Xenia. “Despite these challenges, Same-Property RevPAR for the quarter was flat and, excluding our assets in Houston, increased 2.9%.”
Shares of Xenia were recently trading at $12.74, maintaining a dividend yield of 3.9%. For the full year 2025, the company reaffirmed its outlook for 4% Same-Property RevPAR growth and projected Adjusted EBITDAre of around $254 million at the midpoint of its updated guidance.
Performance was mixed across markets — the Houston portfolio underperformed, with RevPAR down 21.2% year-over-year, reflecting tough comparisons following a temporary demand surge caused by Hurricane Beryl in the prior year’s third quarter.
In contrast, Phoenix delivered standout results, as RevPAR soared 123.2% thanks to strong momentum at the Grand Hyatt Scottsdale, which continues to stabilize following its renovation.
During the quarter, Xenia repurchased 974,645 shares of its common stock at an average price of $12.66, spending approximately $12.3 million — a move signaling management’s confidence in the company’s long-term performance despite broader industry headwinds.