Weekly Real Estate News
Xenia Hotels & Resorts reported a sharp improvement in third-quarter hotel operating performance and raised its 2026 outlook, citing stronger group and business travel demand across its upscale portfolio.
The November 3 earnings release, issued at 6:30 a.m. Eastern, covers the three months ended September 30. Same-property revenue per available room, or RevPAR, rose 12.5% from a year earlier to $184.75. That growth reflected both higher room rates and more occupied rooms.
Occupancy and pricing move higher together
Same-property occupancy increased 380 basis points to 70.0%, while average daily rate rose 6.4% to $264.00. The combined result produced the 12.5% RevPAR gain. Total revenue per available room, which captures additional hotel spending beyond rooms, rose 12.7% to $325.71.
Hotel-level profitability improved faster than room revenue. Same-property hotel EBITDA rose 29.3% to $60.2 million, and the corresponding margin increased 295 basis points to 22.9%. Those measures help owners judge whether stronger demand is flowing through to property earnings rather than being absorbed by higher operating costs.
At the corporate level, Xenia reported a net loss attributable to common shareholders of $2.7 million, compared with a $13.7 million loss a year earlier. Adjusted EBITDAre increased 26% to $53.2 million, while adjusted funds from operations per diluted share increased to 36 cents from the prior-year level. The adjusted metrics are non-GAAP and should not be confused with net income.
Management raises the full-year range
Xenia increased its expected 2026 same-property RevPAR growth to 7.75% to 8.25%, up from a previous 4.75% to 6.25% range. It raised adjusted EBITDAre guidance to $278 million to $284 million, compared with $267 million to $279 million previously.
The company also lifted its adjusted FFO per diluted share forecast to $2.08 to $2.14, versus the earlier $1.96 to $2.08 range. Management said preliminary October same-property RevPAR was approximately 8% higher than in October 2025, but that estimate remains subject to subsequent reporting.
Xenia cited particularly strong results in Philadelphia, New Orleans, San Diego, Santa Clara, Pittsburgh, Houston, Key West and Orlando. Those examples do not imply the same gains occurred at every property or in the broader hotel market.
Real estate investors face a different set of risks
The company said its debt totaled approximately $1.36 billion at quarter-end after net loan costs and related adjustments. Hotel property owners remain exposed to refinancing rates, capital spending and operating volatility even when room demand improves.
For commercial real estate investors, the results show how a relatively modest occupancy increase can magnify hotel earnings when pricing also strengthens. The revised guidance is management’s forecast, not a guaranteed outcome, and demand could still change with business travel, consumer spending or broader economic conditions.
