Xenia Hotels beats Q3 estimates and raises 2026 outlook for third straight quarter

Xenia Hotels & Resorts beat Wall Street's expectations for its third quarter, reporting an adjusted loss of 3 cents a share against a forecast of an 11-cent loss. Revenue came in at $263.84 million, ahead of the $255.52 million analysts had penciled in, and the company lifted its full-year 2026 outlook for the third consecutive quarter.

The headline numbers were supported by a wider base of strength. Management said the quarter was its best of 2026 so far, with 26 of its 29 luxury and upper-upscale hotels growing revenue per available room, and 21 of 22 markets posting gains. Philadelphia, New Orleans, San Diego and Salt Lake City stood out. A property-by-property improvement like that makes it harder to write the result off as a few lucky assets carrying the total.

The mix of growth also looked healthier. In the prior quarter, price increases did most of the work. This time, occupancy climbed 380 basis points to 70%, while the average daily rate rose 6.4% to $264. When filled rooms and pricing rise together, hotel operators usually have more pricing power and demand that is holding up, rather than guests simply paying more for the same beds.

Profitability followed the top line. Adjusted EBITDAre rose 26% to $53.2 million, and adjusted funds from operations per share jumped 57% to 36 cents. Same-property hotel EBITDA climbed 29.3% to $60.2 million, and the hotel EBITDA margin widened to 22.9%. For real estate investment trusts, those cash-flow measures matter more than the GAAP bottom line, which still showed a net loss of $2.7 million. Investors tend to read the operating metrics as the clearer signal of how the hotels are performing.

Markets responded positively. The shares rose 1.33% to $21.27 against a prior close of $20.99, sitting just below the 52-week high of $22.06 and far above the low of $12.31. Management also pointed to 2027 as likely to benefit from the continued recovery in business travel, while flagging that tougher comparisons against special-event periods could weigh on results. For now, the story is a company riding a broad-based demand upturn, with the guidance raises suggesting that momentum has not yet peaked.

Full quarterly results and the earnings call transcript are available at Investing.com.

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