Real Estate
Adjusted FFO Jumps 56.5% As Xenia Raises Full-Year 2026 Forecast
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Xenia Hotels & Resorts announced (XHR ) on November 3, 2026, that stronger hotel demand and wider margins cut its third-quarter net loss attributable to common stockholders to $2.7 million from $13.7 million a year earlier. Adjusted FFO per diluted share, the REIT’s company-adjusted measure of funds from operations, rose 56.5% to $0.36, and Xenia raised its full-year 2026 outlook.
Total revenue for the quarter ended September 30, 2026, increased to $263.8 million from $236.4 million. Operating income rose to $16.3 million from $4.7 million, but interest expense of $20.3 million exceeded that operating profit. Although interest expense declined from $21.8 million, it still kept the company in a net loss despite the operating improvement.
Adjusted EBITDAre, Xenia’s company-adjusted version of earnings before interest, taxes, depreciation and amortization for real estate, increased 26.0% to $53.2 million. Unlike the GAAP result, that measure excludes the interest expense that weighed on bottom-line earnings.
Occupancy and Rates Drive Margin Growth
For its 29-hotel same-property portfolio, Xenia reported occupancy of 70.0%, up from 66.2%, while average daily rate increased 6.4% to $264.00. Revenue per available room, or RevPAR, rose 12.5% to $184.75. Total RevPAR, which measures total revenue per available room, increased 12.7% to $325.71.
Food and beverage provided an additional lift, with same-property revenue in that category up 15.0% to $88.3 million, compared with 12.5% growth in rooms revenue to $149.3 million. Total same-property revenue increased 12.7%, against an 8.5% rise in hotel operating expenses. That gap lifted Same-property Hotel EBITDA, a property-level measure that excludes interest, taxes, depreciation, amortization and corporate costs among other items, by 29.3% to $60.2 million. Its margin expanded to 22.9% from 19.9%.
Chairman and Chief Executive Marcel Verbaas attributed the performance to “strong broad-based group and corporate transient demand,” added leisure demand from several large events and disciplined expense management. RevPAR increased 34.5% in Philadelphia, 29.0% in New Orleans and 21.6% in San Diego, while Savannah recorded a 3.2% decline, showing that the improvement was broad but not uniform.
Full-Year Guidance Moves Higher
Verbaas estimated that October same-property RevPAR increased approximately 8% from October 2025, an early company estimate rather than a reported quarterly figure. Xenia cited that stronger-than-expected trading and its third-quarter performance in raising its full-year forecast:
| Metric | Current 2026 guidance | Prior 2026 guidance |
|---|---|---|
| Net income (loss) | $5 million to $11 million | ($6 million) to $6 million |
| Same-property RevPAR growth | 7.75% to 8.25% | 4.75% to 6.25% |
| Adjusted EBITDAre | $278 million to $284 million | $267 million to $279 million |
| Adjusted FFO | $199 million to $205 million | $187 million to $199 million |
| Adjusted FFO per diluted share | $2.08 to $2.14 | $1.96 to $2.08 |
| Capital expenditures | $70 million to $75 million | $70 million to $80 million |
The revision adds $8 million to the Adjusted EBITDAre midpoint and $0.09 to the Adjusted FFO per-share midpoint, while raising the RevPAR growth midpoint by 250 basis points. The forecast assumes no additional acquisitions, dispositions, equity issuances, or share or senior-note repurchases. It also retains approximately $78 million of interest expense, excluding non-cash loan-related costs, and Xenia said macroeconomic uncertainty continues to limit forecasting visibility.
Portfolio Investment and Debt Provide Context
Xenia invested $16.4 million in portfolio improvements during the third quarter and $47.0 million in the first nine months of 2026. The first phase of an Andaz Napa guest-room and corridor renovation and work on guest rooms, corridors and meeting space at The Ritz-Carlton, Denver were on track to begin in early December 2026.
In July 2026, the REIT sold the 85-room Kimpton RiverPlace Hotel in Portland for $11 million, approximately $129,400 per key, after recording a related $38.8 million non-cash impairment in the second quarter. At September 30, Xenia had approximately $1.4 billion of debt at a weighted-average interest rate of 5.55%, against about $161 million of cash and cash equivalents. Full revolver availability brought total liquidity to approximately $661 million.
The results show stronger pricing, occupancy and non-room spending flowing through to adjusted earnings faster than to GAAP profit. The raised outlook depends on that operating momentum continuing through the final quarter, with interest expense remaining a material claim on the hotels’ improved operating income.
