Xenia Hotels & Resorts, Inc. - Q1 2026 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2026. Xenia Hotels & Resorts, Inc. (XHR) is a self-advised REIT investing in luxury and upper upscale hotels. As of the reporting date, the Company owned 30 properties comprising 8,868 rooms across 14 states. The portfolio is operated by third-party managers including Marriott, Hyatt, and Hilton.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $295.4 million | $288.9 million |
| Net Income (GAAP) | $21.2 million | $16.5 million |
| Net Income Attributable to Common Stockholders | $19.8 million | $15.6 million |
| Diluted EPS | $0.21 | $0.15 |
| Hotel EBITDA | $87.8 million | $79.2 million |
| Adjusted EBITDAre | $81.4 million | $72.9 million |
| Operating Cash Flow | $45.0 million | $54.8 million |
| Total Debt (Net) | $1.36 billion | $1.42 billion |
| Cash & Restricted Cash | $179.6 million | $182.1 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 2.2% year-over-year, driven by a 2.8% increase in rooms revenue and a 6.9% increase in other revenues. This growth occurred despite the absence of the Fairmont Dallas property, which was sold in April 2025.
- Profitability: Net income increased 28.5% to $21.2 million. This was primarily due to a $13.2 million increase in hotel operating income for comparable properties, lower depreciation, and reduced interest expense.
- Operating Performance: RevPAR increased 9.1% to $205.93, driven by a 6.0% increase in Average Daily Rate (ADR) to $288.62 and a 210 basis point increase in occupancy to 71.4%.
- Debt Reduction: Total debt decreased by approximately $58 million. The Company fully repaid the $51.8 million mortgage on the Grand Bohemian Hotel Orlando and partially repaid the Andaz Napa mortgage.
- Unusual Items: The Company incurred $0.5 million in impairment and other losses related to property damage cleanup costs. Other operating expenses increased significantly ($3.3 million) due to non-recurring operator transition costs at four hotels.
Outlook, Risks, and Management Commentary
- Liquidity: The Company maintains strong liquidity with $101.1 million in cash and cash equivalents and a fully available $500 million Revolving Credit Facility. No shares were repurchased in Q1 2026, leaving approximately $97.5 million remaining under the repurchase authorization.
- Dividends: A quarterly dividend of $0.14 per share/unit was declared for the quarter ended March 31, 2026.
- Capital Expenditures: Capital expenditures were $15.2 million for the quarter. The Company has $10.1 million in remaining renovation commitments.
- Risks: Management highlights risks related to macroeconomic factors (inflation, interest rates), potential recession, supply chain disruptions, and reliance on third-party managers. The Company is exposed to interest rate risk on variable rate debt, though it utilizes interest rate swaps to hedge exposure.
Investor Verification Checklist
- Portfolio Composition: Verify the impact of the Fairmont Dallas disposition on future revenue streams and the performance ramp-up of the renovated Grand Hyatt Scottsdale Resort.
- Debt Maturity Profile: Review the debt maturity schedule, noting significant fixed-rate maturities in 2029 ($500M) and 2030 ($400M) and the weighted-average interest rate of 5.53%.
- Non-Recurring Expenses: Assess the sustainability of operating margins given the $3.3 million increase in other operating expenses due to operator transitions.
- FF&E Reserves: Confirm the adequacy of the $73.5 million in restricted cash reserves for future capital improvements required by management agreements.
- Share Count: Note the reduction in weighted-average shares outstanding (92.2M in 2026 vs. 100.7M in 2025) due to prior year repurchases, which supports EPS growth.