Xenia Hotels & Resorts released its second quarter 2026 earnings call transcript on July 31, 2026, reporting modestly better-than-expected financial results and raising its full-year guidance for earnings and revenue growth. The company noted ongoing strong demand in its portfolio despite some challenges in group bookings during the quarter.
Financial Performance Metrics for Q2 2026
The company’s same-property revenue per available room (RevPAR) reached $206.54 in Q2 2026, up 5.6% year-over-year, with growth driven entirely by an increase in average daily rate (ADR), which rose 5.7%. Occupancy levels remained essentially flat compared to the prior year. Adjusted EBITDAre for the quarter totaled $78.1 million, exceeding prior
expectations by approximately $1 million. Adjusted funds from operations (FFO) per share improved 7% to $0.61, reflecting operational gains and a lower share count following previous repurchases.
Total same-property RevPAR growth was 3.3%, trailing the rate-driven RevPAR increase. The transient segment led growth with a 6.9% rise in same-property RevPAR, surpassing group segment growth, which rose 3.4%.
Segment Demand and Market Highlights
Group demand was softer in Q2 due to difficult year-over-year comparisons and disruptions linked to the FIFA World Cup, which affected several markets where the company operates. Large room blocks released in World Cup host cities and hesitancy among corporate clients contributed to
slower group bookings. Meanwhile, transient demand strengthened, aided in part by the soccer tournament’s draw. June 2026 was the strongest month in the quarter, with daily rates up nearly 9% versus June 2025.
Geographically, Philadelphia posted the strongest same-property RevPAR growth of 22%, followed by Salt Lake City at 13.1%, Phoenix at 12.7%, and Birmingham at 12.2%. In Phoenix, the Grand Hyatt Scottsdale Resort & Spa’s performance continues to improve toward stabilization, and 2026 is on track to be its strongest year for group business.
EBITDA Margins and Operating Expenses
Same-property hotel EBITDA margin declined 65 basis points to 28.7% in Q2 2026. The margin
contraction was mainly due to lapping approximately $1.5 million in real estate tax refunds received in the second quarter of 2025 and increased expenses related to the startup phase of food and beverage repositioning at the W Nashville property. Management remains focused on controlling discretionary spending and working closely with operators to manage costs.
Asset Sale and Portfolio Exposure
Xenia completed the sale of the 85-room Kimpton RiverPlace Hotel in Portland, Oregon, for $11 million, equating to about $129,000 per key. The transaction reflected a 19.4x multiple on hotel EBITDA and a 2% capitalization rate on net operating income for the trailing twelve months ended
June 30, 2026. The hotel underperformed due to market headwinds, location challenges, new competitive supply, and substantial near-term capital expenditure requirements. Despite the sale, Xenia retains Portland market exposure through its 600-room Hyatt Regency Portland, located adjacent to the Oregon Convention Center and near the Moda Center.
Capital Expenditures and Renovations
Two major renovation projects are scheduled to launch in the fourth quarter of 2026. Andaz Napa will undergo a two-phase comprehensive renovation of guest rooms and corridors, while the Ritz-Carlton Denver will receive upgrades to guest rooms, corridors, and meeting spaces. These initiatives aim to enhance the long-term value of the portfolio, with
limited cash flow disruption expected as renovations are timed during lower demand periods.
Market Environment and Outlook
The broader transaction environment for hotel assets has improved compared to previous years. Xenia continues to assess portfolio enhancement opportunities to boost funds from operations growth through both acquisitions and dispositions. The company emphasized its cautious approach to capital allocation while maintaining a strong balance sheet to support strategic decisions.
Based on the strong first half performance, favorable market conditions, and positive group demand outlook for the second half of 2026, Xenia raised the midpoint of its full-year adjusted EBITDAre guidance by $7 million. Early indications for
Q3 2026 include estimated same-property RevPAR growth of approximately 10% in July, excluding the sold Kimpton RiverPlace Hotel, signaling continued momentum into the second half of the year.
