Xenia raises adjusted FFO per share outlook by $0.09 after quarterly growth of 56.5%
Key Facts
Xenia Hotels & Resorts reported third-quarter 2026 results on November 3, posting adjusted funds from operations per diluted share of $0.36, up 56.5% from $0.23 in the same period of 2025. The company said in its statement that quarterly results exceeded its expectations, and simultaneously raised the midpoint of its annual adjusted funds from operations per share outlook by $0.09 from its previous guidance. The announcement reflects improved comparable-hotel operating performance, alongside a higher forecast for revenue per available room growth. Xenia also raised the midpoint of its comparable-hotel RevPAR growth outlook by 250 basis points. It said the updated full-year results followed third-quarter performance and October estimates, as well as its confidence in the remainder of the year.
Comparable-hotel occupancy was 70.0% in the third quarter, up 380 basis points from the same quarter of 2025. Average daily rate rose to $264.00, up 6.4%, while RevPAR increased to $184.75, a 12.5% year-over-year gain. The company set its 2026 comparable-hotel RevPAR growth outlook at 7.75% to 8.25%, compared with previous guidance of 4.75% to 6.25%. That represents a 250-basis-point increase in the midpoint, according to the earnings statement. The metrics show the sources of improvement: increases in both occupancy and daily rates lifted revenue per available room.
The improved activity translated into comparable-hotel earnings before interest, taxes, depreciation and amortization of $60.2 million, up 29.3% from the third quarter of 2025. The margin on those earnings also rose to 22.9%, up 295 basis points year over year. Chief Executive Marcel Verbaas attributed the results, which exceeded the company's expectations, to "broad-based strong demand from groups and transient business, along with an additional increase in leisure demand driven by several major events." He added that expense management supported the margin improvement. Verbaas said third-quarter results "significantly exceeded our expectations," linking performance to sources of hotel demand and expense control.
Despite the increase in adjusted funds from operations, the company posted a net loss attributable to common shareholders of $2.7 million, or $0.03 per diluted share, in the third quarter. The loss in the same period of 2025 was $13.7 million, or $0.14 per diluted share. This highlights the divergence between the improved adjusted measure used by the company and the continued accounting net loss for the quarter. For the first nine months of 2026, adjusted FFO per diluted share was $1.61, up 22.9% from the same period of 2025. In the second quarter, the measure was $0.61 per share, up 7.0% year over year, despite a net loss of $19.3 million.
In July, the company had raised the midpoint of its 2026 adjusted hotel EBITDAre outlook by $7 million compared with its guidance after first-quarter results. According to its second-quarter disclosure, that adjustment was based on market conditions, outperformance in the first half and strong group bookings for the second half. But the second quarter included a net loss attributable to common shareholders of $19.3 million; comparable-hotel RevPAR was $206.54, up 5.6%, while comparable-hotel earnings before interest, taxes, depreciation and amortization reached $84.9 million, up 1.0%. In an earlier earnings report, Reuters reported that the company cut its July full-year net income outlook to a range from a loss of $6 million to a profit of $6 million, compared with previous expectations of $24 million to $40 million. The November 3 outlook increase places the third-quarter improvement in the context of a year in which the company had previously revised its estimates.
Xenia estimated that comparable-hotel RevPAR rose about 8% in October from the same month of 2025, a point the company included among the reasons for its confidence in the rest of the year and its higher annual outlook. Verbaas had linked the adjustment to third-quarter and October results exceeding expectations, as well as confidence in the remaining months of 2026. The company scheduled a call to discuss third-quarter results for November 3, 2026, at 1:00 p.m. Eastern time. Before the earnings announcement, Xenia shares traded at $20.45, near their 52-week high of $22.06, according to a Reuters report published ahead of the results. The statement provided here does not include a post-announcement share price.