Xenia Hotels & Resorts released its Q2 2026 earnings call transcript reporting financial results that modestly surpassed internal projections. The company raised its full-year earnings and revenue guidance based on second quarter performance. Same-property revenue per available room (RevPAR) reached $206.54, up 5.6% year-over-year, driven fully by average daily rate (ADR) increases as occupancy remained essentially stable.
Adjusted EBITDAre for the quarter totaled $78.1 million, exceeding expectations by approximately $1 million. Adjusted funds from operations (FFO) per share rose 7% to $0.61 compared with Q2 2025. Total same-property RevPAR growth, which includes all revenues, amounted to 3.3%. Food and beverage
and other revenues increased modestly amid weaker group demand.
Operational Trends and Market Demand
The transient hotel segment led RevPAR growth with a 6.9% gain, outpacing the group segment’s 3.4% rise. Group demand was impacted by challenging year-over-year comparisons due to the release of large FIFA World Cup room blocks and booking hesitancy in World Cup markets. Despite these challenges, transient demand remained resilient across Xenia’s high-end portfolio.
Geographic Performance Highlights
RevPAR growth was geographically broad based. Philadelphia recorded the strongest same-property growth at 22%. Salt Lake City followed with 13.1%, Phoenix 12.7%, and Birmingham 12.2%. Other markets with robust increases included Santa Clara, Washington, D.C., and San
Diego. The Grand Hyatt Scottsdale Resort & Spa in Phoenix showed particularly strong momentum, tracking toward its best group year in history.
Margins, Expenses and Capital Projects
Same-property hotel EBITDA margin declined 65 basis points to 28.7% compared to the prior year quarter. The decrease reflected the absence of $1.5 million in real estate tax refunds received in Q2 2025 and increased expenses linked to a food and beverage repositioning at W Nashville. Xenia plans two major renovations commencing in Q4 2026 at Andaz Napa and the Ritz-Carlton Denver, targeting guest rooms, corridors, and meeting spaces. These projects are scheduled during low demand periods to
minimize cash flow impacts.
Asset Sale and Portfolio Strategy
Xenia completed the sale of its 85-room Kimpton RiverPlace Hotel in Portland, Oregon, for $11 million, approximately $129,000 per key. The sale price equated to a 19.4x EBITDA multiple and a 2% capitalization rate on trailing 12-month net operating income. The property had underperformed due to location disadvantages, new competitive supply, low EBITDA contribution, and capital expenditure needs. Xenia continues to maintain exposure to the Portland market through its Hyatt Regency Portland, adjacent to the Oregon Convention Center and near the Moda Center.
The broader transaction environment is currently more active than in recent years, and
the company is evaluating opportunities to optimize its portfolio through acquisitions and dispositions. Xenia remains focused on preserving a strong and flexible balance sheet to support capital allocation decisions.
July Performance and Outlook
July 2026 began strongly with estimated same-property RevPAR growth near 10% year-over-year excluding the sold Kimpton RiverPlace asset. Group rooms and banquet/catering bookings for the second half of 2026 remain robust. Management anticipates more significant growth in non-room revenues for the remainder of the year, underpinning the raised full-year guidance.
