Xenia Hotels & Resorts held its Q2 2026 earnings conference call on July 30, reporting adjusted EBITDAre of $78.1 million, surpassing expectations by approximately $1 million. The company recorded a net loss of $19.3 million attributable to common stockholders due to a noncash impairment charge linked to the sale of the Kimpton RiverPlace Hotel in Portland, Oregon. Same-property revenue per available room (RevPAR) reached $206.54, a 5.6% year-over-year increase driven solely by average daily rate gains, while occupancy remained flat. Adjusted funds from operations (FFO) per share rose 7% year-over-year to $0.61, reflecting operational improvements and a reduced share count
from prior share repurchases.
Market and Segment Performance
During the quarter, transient business led RevPAR growth with a 6.9% increase in same-property figures, outpacing the 3.4% growth in the group segment. Despite challenges in group bookings due to tough comparisons and disruptions related to FIFA World Cup room block releases across six Xenia markets, the company noted that transient demand sustained performance across its upscale portfolio. June posted the strongest monthly growth, with daily rates up nearly 9% compared to June 2025, partly influenced by FIFA matches. Weaker group demand in World Cup markets resulted from both the release of large room blocks and
hesitancy around event timing, limiting group revenue growth despite solid transient demand.
Geographic and Hotel Performance
Philadelphia led the portfolio with same-property RevPAR growth of 22% in Q2, followed by Salt Lake City at 13.1%, Phoenix at 12.7%, and Birmingham at 12.2%. Other notable markets with double-digit or high single-digit RevPAR increases included Santa Clara, Washington, D.C., and San Diego. The Grand Hyatt Scottsdale Resort & Spa in Phoenix showed a favorable ramp toward stabilization, projecting its strongest group year historically. The year-to-date group pace in Scottsdale remains encouraging, supporting confidence in ongoing performance at the resort.
Margins and Cost Management
Same-property hotel EBITDA margins declined by 65
basis points year-over-year to 28.7% in Q2 2026. This reduction resulted primarily from lapsing a $1.5 million real estate tax refund from Q2 2025 and higher food and beverage repositioning costs during the startup phase at W Nashville. Xenia emphasized ongoing efforts to control discretionary spending and optimize expenses under management’s control amid margin pressures.
Capital Projects and Renovations
Xenia plans to commence two major renovation projects in Q4 2026: a two-phase comprehensive upgrade of guest rooms and corridors at Andaz Napa, and renovations of guest rooms, corridors, and meeting spaces at Ritz-Carlton Denver. Both projects are scheduled during lower demand periods and are
expected to cause limited disruption to cash flow. These renovations reflect the company’s strategy to maintain and enhance long-term asset value.
Kimpton RiverPlace Sale
Last week, Xenia closed the sale of its 85-room Kimpton RiverPlace Hotel in Portland for $11 million, equating to approximately $129,000 per key. The sale represented a 19.4x EBITDA multiple and a 2% capitalization rate based on net operating income for the trailing 12 months through June 30, 2026. Acquired in 2015 as part of a three-property portfolio, Kimpton RiverPlace underperformed recently due to market challenges, less favorable location, increased competitive supply, and substantial near-term capital expenditure needs. The
company still holds the Hyatt Regency Portland, a 600-room property adjacent to the Oregon Convention Center, maintaining exposure to Portland’s market.
Portfolio Strategy and Outlook
Xenia described the transaction environment as improved compared to prior years and continues to evaluate opportunities to optimize its portfolio through acquisitions and dispositions. The company maintains a strong, flexible balance sheet to support its capital allocation strategy. Based on strong first-half results, favorable market trends, and a solid group booking outlook for the remainder of 2026, Xenia raised the midpoint of its full-year adjusted EBITDAre guidance by $7 million. Preliminary July 2026 figures show same-property RevPAR growth of
about 10%, excluding Kimpton RiverPlace, indicating a robust start to Q3.
