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Image source: The Motley Fool. Thursday, July 30, 2026 at 1:00 p.m. ET Chairman and Chief Executive Officer - Marcel Verbaas President and Chief Operating Officer - Barry A. N. Bloom Executive Vice President and Chief Financial Officer - Atish D. Shah Director of Finance - Aldo Martinez Operator: Hello, everyone. Thank you for joining us, and welcome to Xenia Hotels & Resorts Q2 2026 Earnings Conference Call. After today's prepared remarks, we will host a Q&A session. If you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1 again. I will now hand the conference over to Aldo Martinez, Director of Finance. Aldo, please go ahead. Aldo Martinez: Thank you, Jen. And welcome to Xenia Hotels & Resorts second quarter 2026 earnings call and Webcast. I am here with Marcel Verbaas, our Chairman and Chief Executive Officer Barry Bloom, our President and Chief Operating Officer and Atish Shah, our executive vice president and chief financial officer. Marcel will begin with a discussion on our performance. Barry will follow with more details on operating trends and capital expenditure projects. And Atish will conclude today's remarks on our balance sheet and outlook. We will then open the call up for Q&A. Before we get started, let me remind everyone that certain statements made on this call are not historical facts. And are considered forward-looking statements. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K and other SEC filings. Which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward looking statements in the earnings release that we issued this morning along with the comments on this call, are made only as of today, July 30, 2026, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find the reconciliation of non-GAAP financial measures to net income, and definitions of certain items referred to in our remarks in our second quarter earnings release which is available on the Investor Relations section of our website. The property-level information we will be speaking about today is on a same-property basis for all 30 hotels, unless specified otherwise. An archive of this call will be available on our website for 90 days. I will now turn it over to Marcel to get started. Marcel Verbaas: Thanks, Aldo, and good afternoon, everyone. We are pleased to report another quarter of solid operating performance. With RevPAR, adjusted EBITDAre, and adjusted FFO per share modestly exceeding our expectations from when we last reported in May. Same-property RevPAR for the quarter was $206.54, an increase of 5.6% compared to the same period last year, driven entirely by rate. Same-property ADR was up 5.7% year-over-year, while occupancy held essentially flat. On a GAAP basis, we reported a net loss attributable to common stockholders for the quarter of $19.3 million. A result of a noncash impairment charge related to the sale of Kimpton RiverPlace Hotel, which I will touch on later in my remarks. Adjusted EBITDAre for the quarter was $78.1 million. About $1 million ahead of the expectations we set when we reported first quarter results. Adjusted FFO per share for the second quarter was $0.61, 7% increase compared to the second quarter of last year. Due to our positive operating results, and a lower share count after significant share repurchases at a very attractive price in 2025. Our same-property total RevPAR grew 3.3% in the quarter, trailing our same-property RevPAR growth of 5.6%. Food and beverage and other revenues grew only modestly in the second quarter. This modest growth in non-room revenues was largely a result of more subdued group demand in the quarter which faced a tough comparison to last year. And our RevPAR growth for the quarter consisting entirely of ADR growth. We expect to see more robust growth in non-room revenues again for the remainder of the year. Both our group rooms revenue pace and our banquet and catering pace are quite strong for the third and fourth quarters. Which has been reflected in our updated full year guidance. The transient segments led RevPAR growth in the quarter. Bolstered by the unique demand dynamics from the FIFA World Cup. Transient same-property RevPAR growth of 6.9% outpaced group RevPAR growth of 3.4% for the quarter. We had anticipated that the second quarter would be our weakest from a group perspective on a year-over-year basis. Particularly after FIFA released a number of large room blocks as the World Cup approached. Despite the slower growth in group RevPAR in the second quarter, it is worth noting that group business continued to build on the 15.6% group rooms revenue growth we experienced in the second quarter of 2025. Group base for the second half of the year strengthened during the quarter. And we continue to see no signs of pullback from the higher-end consumer. Which gives us continued confidence in the health of demand across our portfolio. June was the strongest RevPAR growth month of the quarter. Some of this was bolstered by the FIFA World Cup, as games were played in 6 of our markets. Our same-property portfolio achieved nearly 9% growth in daily rate in June versus the same month last year. While the World Cup certainly provided compression and rate growth around game days, the overall positive impact on our portfolio was limited. Group business in most of our World Cup markets was weaker. Not only because of the FIFA room blocks issue, but also a hesitancy from other potential customers to book in those markets during and around the time of the event. While transient demand filled the gap, this came at the expense of out-of-room spend that had been very strong in prior quarters. As a result, most of our large group-focused hotels and World Cup markets relatively underperformed. Some of our transient-focused smaller hotels with exposure to the games posted strong results. RevPAR strength for the quarter as a whole was broad-based from a market perspective. With Philadelphia leading our portfolio with same-property RevPAR growth of 22%, followed by Salt Lake City at 13.1%, Phoenix at 12.7%, Birmingham at 12.2%. We also saw healthy high-single-digit to double-digit percentage RevPAR increases in several other markets. Including Santa Clara, Washington, D.C., and San Diego. Performance in Phoenix continues to be aided by the successful ramp at Grand Hyatt Scottsdale Resort & Spa. Which is tracking favorably towards stabilization. The year is shaping up to be the strongest group year in the resort's history. While group pace for future periods remains encouraging as well. Turning to margins. Same-property hotel EBITDA margin was 28.7% in the second quarter. Down 65 basis points from a year ago. The lapping of approximately $1.5 million in real estate tax refunds that we received during the second quarter of 2025 and an increase in expenses during the startup phase of the food and beverage repositioning at W Nashville were the most significant reasons for our margin decline for the quarter. We remain focused on the expense levers within our control and continue to work with our operators to manage discretionary spending appropriately. To capital projects. We continue to reinvest in our portfolio during the quarter. We have 2 significant renovations set to begin in the fourth quarter. The first phase of a two-phase comprehensive renovation of guest rooms and corridors at Andaz Napa, and a renovation of guest rooms, corridors, and meeting space at the Ritz-Carlton Denver. Both of these renovation projects reflect our ongoing commitment to protecting and growing the long-term value of our portfolio. Given the timing of these renovations during lower demand periods in Napa and Denver, we expect limited cash flow disruption from these projects this year. Barry will provide additional details on all of our capital projects during his remarks. The transaction front, last week, we completed the sale of the 85-room Kimpton RiverPlace Hotel in Portland, Oregon. For $11 million or approximately $129,000 per key. The $11 million sale price represented a 19.4x multiple on hotel EBITDA and a 2% capitalization rate on net operating income for the trailing 12 months ended June 30, 2026. RiverPlace was an asset that we acquired in 2015 in a 3 property portfolio transaction. While the hotel performed well historically, it significantly underperformed in the last few years due to market challenges, its location becoming less desirable, and new competitive supply additions. The hotel contributed minimal hotel EBITDA and was facing substantial near-term capital expenditure requirements, and a challenging outlook over the next several years. We continue to maintain exposure to the recovering Portland market, through the ownership of our 600-room Hyatt Regency Portland, which benefits from its location adjacent to the Oregon Convention Center near the Moda Center. The overall transaction environment appears to be a bit more robust than it has been over the past several years. We continue to evaluate opportunities to further enhance the quality of our portfolio and drive superior FFO growth through both external and internal drivers. Throughout the history of our company, we have been active on both the disposition and acquisition fronts in an effort to achieve these objectives. And we expect to take advantage of similar opportunities when they arise in the years ahead. We will remain prudent in our evaluation of these opportunities, and we will continue to focus on maintaining a strong and flexible balance sheet to support our capital allocation decisions. Looking ahead, given the strength of our performance in the first half of the year, continued favorable market conditions, and a very strong group demand outlook for the second half of the year, we are raising the midpoint of our current full-year 2026 adjusted EBITDAre guidance by $7 million. Atish will walk through all of our updated 2026 guidance items in more detail during his remarks. In closing, we continue to see encouraging trends into the third quarter. Which gives us confidence in our improved outlook for the remainder of the year. The third quarter is off to a very strong start, as we estimate that July RevPAR growth for our same-property portfolio which now excludes Kimpton RiverPlace Hotel, will be approximately 10% compared to the same period last year. With both leisure and group demand contributing to this increase. We believe that our high-quality portfolio continues to be well positioned. To take advantage of a low-supply-growth environment and a positive backdrop in all segments of hotel demand especially on the higher-end. We have experienced strength in both transient and group demand this year, and future indicators continue to support our expectation that our portfolio is poised for meaningful growth during the remainder of this year and the years ahead. With that, I will turn the call over to Barry to walk through our operating results and capital expenditure projects in more detail. Barry A. N. Bloom: Thank you, Marcel. Good afternoon, everyone. For the second quarter, our 30 hotel same-property portfolio RevPAR was $206.54, an increase of 5.6% compared to the second quarter of 2025. With growth entirely rate-driven. Based on occupancy of 72.3%, flat with last year, and an average daily rate of $285.71. Up 5.7%. As Marcel mentioned, the second quarter saw an anticipated shift in non-room spend with same-property total RevPAR of $366.17. An increase of 3.3% compared to last year's second quarter. This modest growth in non-room spend reflects a shift in mix related to an increase in transient demand and anticipated mix of association versus corporate group demand resulting in a difficult comparison to the same quarter last year. Looking at the quarter compared to 2025 on a same-property basis, April RevPAR was $219.74 up 6%, and May RevPAR was $199.78, up 2.6%. June was the strongest performing month in terms of growth, with RevPAR of $200.32 up 8.6% with occupancy relatively flat. 19 of our 22 markets posted positive RevPAR growth for the quarter, The Palomar Philadelphia led our portfolio with same-property RevPAR growth of 22%, while Monaco Salt Lake City followed at 13.1%. Our Phoenix properties grew at a combined 12.7%, We also saw double-digit percentage growth at Grand Bohemian Mountain Brook, of 12.2%, Park Hyatt Aviara up 11.3%, and Hyatt Regency Santa Clara up 11.1%. The Ritz-Carlton Pentagon City was up 8.4%, The Ritz-Carlton Denver and Fairmont Pittsburgh also posted healthy growth of 7.2% and 7.1%, respectively. Growth was fairly balanced on day-of-week trends in the quarter, For all segments on the same-property basis, weekday RevPAR, Sunday through Thursday, was up 5.9% while weekend RevPAR, Friday and Saturday, was up 5.2%. Rate growth was broad-based and well balanced across every day of the week. Ranging from just under 5% on Thursdays to nearly 7% on Mondays. On the expense side, total same-property hotel operating expenses were $211 million for the quarter. An increase of 4.2% outpacing our 3.3% revenue growth resulting in 65 basis points of margin decline. With the largest single factor being the lapping of a significant real estate tax credit in the second quarter of last year. Looking at the individual components, rooms expense grew 4% on a per-occupied-room basis. While food and beverage expenses grew 3.3%. Greater than the 1% growth in food and beverage revenue. Which impacted F&B profitability. This was a direct result of a 1.5% increase in less profitable outlet business, and a 1.1% decline in typically more profitable banquet business. Miscellaneous income declined nearly 12% due primarily to less cancellation and attrition revenue compared to last year. But is expected to balance itself out over the course of the full year. G&A expenses grew approximately 7.9% for the quarter, due in large part to higher credit card commissions related to the higher transient mix. Sales and marketing expenses continue to be well controlled and were nearly flat to last year. Property operations and maintenance expenses declined just over 1% for the quarter. While energy expenses increased nearly 11% due primarily to significant increases in gas and water expenses, offset by a more moderate 4% increase in electricity due in part to efficiencies from our ongoing refurbishment and replacement of chillers at many of our properties. Same-property EBITDA was $84.9 million for the quarter, an increase of 1% a margin of 28.7%. Turning to CapEx, we invested $15.4 million in portfolio improvements during the second quarter, bringing our year-to-date total to $30.6 million. During the second quarter, we finalized planning at Royal Palms Resort and Spa, the renovation of guest rooms and corridors in the 68-room Montavista building and a renovation of T. Cook's restaurant which will take place during the third quarter. Additional ongoing upgrades across the portfolio include upgrading mechanical systems at 8 hotels, and ongoing minor improvements to guest rooms at 3 hotels. Looking ahead to the fourth quarter, we have 2 significant renovations scheduled to begin. Both of which are currently on track. We will perform the first phase of a two-phase comprehensive room renovation of corridors and guestrooms at Andaz Napa. And renovation of guestrooms, corridors, meeting space at The Ritz-Carlton Denver. We continue to expect full year capital expenditures of between $70 million to $80 million unchanged from our prior guidance. Before I conclude, I want to provide an update on our 4 Autograph Collection hotels. These 4 hotels have been strong performers, and we are in the midst of further strengthening these hotels by evolving their individual names and positioning, to better tie to their local markets The hotels will continue to maintain their Autograph Collection branding, but the new names and positioning will better fit Autograph Collections philosophy of each hotel being distinctive, in part by capturing the local essence of each market in which they reside. The first step of this effort began earlier this year, we transitioned property management to Davidson Hotel Group. That transition went smoothly with no disruption to hotel performance. In the next few months, we will be renaming these 4 unique properties. As with the management transition, we do not anticipate any meaningful disruption of hotel operations and look forward to even stronger performance from each of these hotels under Davidson's management. As they continue to be part of Marriott's Autograph Collection. With that, I will turn the call over to Atish. Atish D. Shah: Thank you, Barry. I will provide an update on our balance sheet touch on the second quarter versus our prior expectations, and then walk through our updated 2026 guidance. At quarter end, we had approximately $1.4 billion of outstanding debt. Approximately three-quarters of our debt was at fixed interest rates. Our weighted average interest rate at quarter end was about 5.5%. Our leverage ratio as calculated under our credit facility approximately 4.8 times trailing-12-month net debt to EBITDA. Over time, we expect our leverage ratio to achieve our long-term target of sub-4x net debt to EBITDA. As a reminder, we have no preferred equity or senior capital. During the quarter, we further resized the Andaz Napa mortgage loan by paying it down by approximately $5 million ahead of the hotel's planned renovation which is scheduled to begin next quarter. Approximately 7% of our debt matures next year, with our most significant maturities in 2029 and 2030. We continue to believe our capital structure is a source of strength given we have a mostly unencumbered asset base, a low, laddered maturity profile, and a strong syndicate of banking partners. At quarter end, available cash was $112 million, and our $500 million revolving line of credit was fully undrawn. Which resulted in total liquidity of $612 million. We did not repurchase or issue any shares during the quarter. We have $97.5 million remaining on our buyback authorization, and $200 million of capacity under our ATM offering program. We paid a second quarter dividend of $0.14 per share If annualized, this reflects an approximate 2.5% yield on our share price. We continue to balance dividend level with the utilization of significant COVID-era NOLs. We also continue to prioritize ways in which we can drive shareholder value such as reinvestments in our existing assets or share repurchases. As a reminder, in 2025, we finished the Grand Hyatt Scottsdale project which we are benefiting from now. And as we wrap that up, we turn more aggressively to share repurchases buying approximately 9% of our outstanding shares last year at a sub-$13 weighted-average price per share. Moving ahead to the second quarter relative to prior expectations, just 2 points to frame the discussion ahead on guidance. First, as Marcel mentioned, second quarter results came in slightly ahead of our expectations with better RevPAR and EBITDA margin than expected. Resulting in a $1 million beat to the adjusted EBITDAre implied by the quarterly weighting that we had previously indicated. Second, as to our expectation for event-driven demand this year, we had previously guided to a range of 25 to 50 basis points of RevPAR growth due to special events. Our current estimate is that event-driven demand materialized at the low end of that range. And the mix of business being more transient than group did not provide as much of a total revenue lift as had been anticipated. Turning next to our 2026 guidance. We have raised our full year adjusted EBITDAre guidance by $7 million to $273 million at the midpoint The $7 million increase to adjusted EBITDAre guidance is on top of the $6 million increase we made last quarter, Our adjusted EBITDAre expectation has moved up approximately 2.5% since last quarter or 5% since we initially provided full year guidance in February. As to the weighting by quarter for the remainder of the year, we expect to earn in the high teens percentage range of full year adjusted EBITDAre in the third quarter and just under a quarter of full year adjusted EBITDAre in the fourth quarter. As to RevPAR growth, we have increased the midpoint by a 150 basis points to 5.5%. As we look ahead, a couple of things give us confidence in our outlook. First, group room revenue pace for the second half was up 12% at the end of June, versus the year prior. That reflects a 300-basis-point increase from where it stood a quarter ago. The pace increase is 80% demand driven and 20% rate-driven. This higher pace reflects strong production in the second quarter with group room revenue production up over 25% for the back half of this year compared to production in the second quarter of 2025 for the back half of 2025. We have more than three-quarters of our expected second half group business already booked. Second, we continue to see strong transient demand reflected both by results at our more transient-oriented hotels and overall transient pace. Based on our July projected RevPAR several of our transient-oriented hotels, excluding those that benefited from special events, showed strong year-over-year gains. Those properties include our hotels in Salt Lake City, Pittsburgh, and Downtown Orlando. As to transient pace, at the end of June, it was up in the high-single-digit percentage range for both August and September. Turning next to our expectation for total RevPAR, We have increased our total RevPAR growth guidance by 75 basis points to 5.75% at the midpoint. The variance in growth of RevPAR versus total RevPAR reflects second quarter transient versus group mix. We expect second half total RevPAR to grow about 200 basis points more than RevPAR. None of our other guidance assumptions have changed. Guidance for interest expense, G&A expense, income tax expense, and capital expenditures are all the same as a quarter ago. We expect adjusted FFO per diluted share of $2.02 at the midpoint, which is an increase of $0.08 at the midpoint. That expectation reflects about 15% growth in FFO per share relative to 2025. In closing, our high-quality, well-located portfolio of luxury and upper-upscale hotels affiliated with strong brands and managers makes us well positioned for growth, particularly given the supply backdrop and fundamentals. We will now open the call for questions. Jen, may we please start the Q&A session. Operator: Of course. Will now begin the Q&A session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally please remember to unmute your device. Please standby while we compile the Q and A roster. Your first question comes from the line of Chris Darling with Green Street. Chris, your line is open. Please go ahead. Chris Darling: Hi. Thanks for taking the question. Marcel, hoping you could talk a little bit more about what you are seeing in the transactions these days, both maybe from a pricing perspective, but also in terms of depth of the bidding pool, and anything else that has caught your eye? Marcel Verbaas: Yeah, sure. Thanks. Thanks for the question, Chris. Yeah. Like I said in my prepared remarks, I do think we are seeing a slightly more robust transaction market than we have seen over the past several years. And I think, some of that obviously has to do with the fact that, we are overall as an industry, seeing some pretty good sustained growth over the last couple quarters. I think that creates an environment where it does become a little bit easier for buyers and sellers to potentially find each other and end up with pricing that could work on both sides. it is obviously a little bit easier to look at a property that you can point a little bit more easily towards growth over the next several years. Give you some more confidence about completing a transaction And it also may end up getting to pricing that makes more sense for a seller in that situation. So, overall, I think we are just seeing, like I said, a little bit more robust markets. Certainly allows us to you know, to build the pipeline a little bit more than what we have seen over the last several years. and dig a little bit deeper into some of those opportunities. Chris Darling: Yeah, that is helpful. And maybe a question for Barry here, but as it relates to expense growth, you spoke about some of the moving pieces this quarter. And how that may have been a bit of a headwind in the second quarter, how should we be thinking about OpEx per-occupied-room on a go-forward basis for the portfolio, both second half of the year and then sort of on a run rate basis. Barry A. N. Bloom: Yeah. I think on a per-occupied-room basis, I think things are overall relatively normalized in that we are seeing per-occupied-room growth in the 3 to 4% range. Now that is tempered, obviously, and varies by quarter given how much occupancy growth there is. So obviously, this quarter, we had flat occupancy. So the overall expense levels were a little bit higher than we would have hoped for. I think embedded in the guidance and forecast is that we are going to drive a little more occupancy over prior year in Q3 and Q4 and that should help make, or certainly assist in at least on a per-occupied-room basis, the expense levels being kind of toward the lower end of that range. Chris Darling: Alright. Understood. Thanks for the time. Operator: Your next question comes from the line of David Katz with Jefferies. David, your line is open. Please go ahead. David Katz: Thanks very much for taking my question. Appreciate all the detail. You have, I think, done a very solid job with your existing portfolio. And I know that history suggests otherwise. But is the prospect of any corporate M&A on or off the table? Marcel Verbaas: Well, I think as we have talked about in the past, you know, corporate M&A is really driven by what the overall environment looks like from potential buyer and seller interest, obviously. Think we have focused very much on continuously upgrading the portfolio, making the portfolio as robust against potential challenges. And similarly, positioning it well for future FFO growth through continuously upgrading our portfolio and making sure it is an attractive portfolio from whatever perspective. We as Atish had pointed out, have grown FFO pretty significantly over the past several years. And we are on a day to day basis just doing all the things that we think are gonna drive value for us in this portfolio over time. No matter no matter on what form that ultimately know, benefits all of our shareholders. So I think what you have seen in the overall transaction environment is that you are still not seeing a lot of large portfolio transactions people are pursuing on the buy or sell side. And there is just been more focus on individual properties or smaller portfolios just overall in the transaction market. And I do not have an-- I do not have an expectation of that significantly changing or shifting here in the near term. David Katz: Understood. And just in a different direction, you know, the conversation around generally speaking, around you know, fee structures, and what I will refer to as owner consternation over you know, certain aspects of you know, the fee costs and fee streams, etcetera. You know, I would love whatever shareable perspective you know, you may have about that issue and whether all of us are spending more time and attention to it than a than it deserves? Or you know, it is really a thing? Marcel Verbaas: From an ownership perspective, obviously, we are looking for ways to grow value in a portfolio. And that is that includes every single element of operations. So it is extremely important for us over time to make sure that there we keep our expenses under control and that the growth in expenses over time has obviously been pretty significant in every aspect of the of the income statement. And similarly, especially in an environment today, we want to make sure that we have all the right channels in place and all the opportunity to drive as much on the sales side as possible at the lowest acquisition cost possible. So there is nothing new or different about that. Think everyone knows that over time, there has been a lot of pressure for owners on you know, bringing down revenues, you know, to the largest percentage possible to the bottom line, and that is something that we are all focused on, obviously. So I do not think it is anything unusual that we would look at every aspect of that as owners to make sure that we are doing right by ourselves and our shareholders. Understood. Thank you. Operator: Your next question comes from the line of Michael Bellisario with Baird. Michael, your line is open. Please go ahead. Michael Bellisario: Thanks. Good afternoon, everyone. I want to focus on the second half group pace commentary, of 2 parts here. 1, where are you seeing that pickup in terms of markets? And then 2, how does that pickup maybe change operator confidence or pricing strategies into the back half of the year? Atish D. Shah: Yeah. Good questions, Mike. So the strength is pretty broad-based. As I mentioned, you know, the pickup was a few hundred basis points from a quarter ago, and the production was pretty evenly distributed between third quarter and fourth quarter and across a variety of markets. And frankly, as you know, you know, group has been a source of strength for us now, in particular, last year and this year. So seeing this kind of momentum has been quite positive for us. So, you know, that is I do not know if, Barry, if you have anything to add on the group side. Barry A. N. Bloom: No. I think I would emphasize, 1, very broad-based across almost all of our properties, and, 2, certainly a lot of it depends on in terms of rate and how properties maximize rate with group, the question really, at this point, and given the high levels of group business on the books, where those holes are, So if there are holes in places where a market is compressed but maybe our hotel has not been able to yet put a group in. We are going to be able to capture that group at a very high rate But conversely, when you look at a lot of those markets where we have very good group pace The holes are pieces and places that are hard to fill, so while we may continue to fill more group more room nights, particular in periods coming in and out of holidays, which is obviously prevalent both in the third and fourth quarter, we may or may not achieve significant rate growth on those compared to the overall rate platform, but we are booking business that we otherwise would not book. And that is really the puzzle for each property is how best to do that and how to drive overall RevPAR. Michael Bellisario: Got it. that is helpful. And then just a follow-up on capital allocation. Do you think about the funding sources for any potential deals? And then for things that are in your pipeline, how have maybe underwritten returns or seller expectations changed over the last 90 days? Thank you. Atish D. Shah: Yeah. So I will take the first part of that. So in terms of funding of deals, as we talked about, a healthy amount of liquidity, leverage ratio that is kind of still above where our target is but certainly sub 5 times, so some capacity there. So I think we would look to, you know, existing resources, if not potentially additional dispositions over time as ways to fund any acquisitions. Marcel Verbaas: And I think with regard to pipeline, maybe if you have anything to add there. Yeah. You know, as it relates to pipeline and expectations, like I pointed out, I think we are seeing probably a little bit more active, more activity out there that probably gives a little bit more of a an expectation of where things could be pricing. You know, I do not-- I would not say it is hard for me to point to anything specific and say, seller expectations have really dramatically changed over the last, you know, 60, 90 days. it is really hard to point to kind of any individual transactions to really talk about that in detail. Clearly, you know, to my point, there is obviously a little bit more optimism about the health of the lodging industry overall and the growth that we have seen over the last several quarters. So I think that just provides, in general, generally a bit more of a backdrop to be for some productivity on the transaction side, I would say. Operator: Your next question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets. Austin, your line is open. Please go ahead. Austin Wurschmidt: Thanks. Good afternoon, everyone. Good afternoon. You had referenced that the transient pace for August and September was tracked in the high-single-digit range. I believe you said that was as of the end of June. Can you just give us a sense of how that is materialized for transient pace looking 60 to 90 days out here more recently? And if you think that is-- have you seen things continue to strengthen? Have you given some of that back? And just give us a sense and kind of frame that up. Atish D. Shah: Yeah. I mean, first, I would preface it by saying transient pace is not necessarily it does move around a bit, so it is not you know, always the best direct indicator, but it has strengthened. it is moving in the right direction. And I think, you know, it reflects kind of the actualized results that we are seeing. So if you look at what our transient pace was going into July, how July came out, I think it is a good indicator. So it is 1 of the things that, frankly, 1 of the many data points we look at to think about our guidance. And, obviously, since we took it up, we were looking at all the various data points and input we have and that was 1 of the ones I mentioned. So I would view it in the context of that. But also, I would just say that we do have a healthy level of confidence in the outlook and transient's 1 piece of it. And, obviously, what we have been talking about on the group side is the other. Austin Wurschmidt: Yeah. Very helpful. And then with respect to the guidance revision, can you talk a little bit about how the contribution from the Grand Hyatt Scottsdale has changed this year? I think initially, at the outset of the year, you had that hotel contributing towards the low-$30 million range. What sort of the new given seems like things are trending well there? Atish D. Shah: Yeah. We are a smidge higher. We are still in the low-$30 million range. But kind of $32-ish million so to speak. So I think we are sort of in the range that we talked about before. I mean, Grand Hyatt Scottsdale is tracking you know, really well. But the guidance revision really has, you know, as much to do with the rest of the portfolio. And what we are seeing, you know, more broadly. Austin Wurschmidt: that is all for me. Thank you. Operator: A reminder, if you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1. Again. Your next question comes from the line of Ari Klein with BMO Capital Markets. Ari, your line is open. Please go ahead. Aryeh Klein: Thank you and good afternoon. Barry, I think you mentioned some hesitancy amongst groups in the second quarter. Around World Cup markets. Curious what that looked like maybe outside of World Cup markets? And then is some of the strength in group pace you are seeing in the second half of the year related to maybe a shift just in where the group ended up coming in. And just on that topic in general, 2027, how is that shaping up for group or just maybe growth tailwinds in general, how are you thinking about that for next year? Marcel Verbaas: Well, yeah, let me let me start off with that and then and Barry can jump in. So I did mention in my comments that we certainly saw a little bit of pullback in group around the World Cup markets around the time of the World Cup, which we did attribute to some extent to, groups obviously wanting to stay away from some of those markets and, frankly, that you are also, obviously, driving rates, and trying to get more transient in as a result of that, too. So that definitely was something that impacted June in the world cup markets. I did mention, and I think it is fair to say, some of the softness in group in the second quarter was not just related to that. May had always shaped up to be 1 of our weaker group markets from a from a growth perspective. We had a particularly strong second quarter last year on the group side. It was hard to replicate some of that, and had some holes in various properties in the month of May that just never really filled. So we saw some weaker group specifically in the World Cup markets around the World Cup, but then also saw some softness in the month of May kind of throughout the portfolio. So, you know, it is always hard to say whether things shift or not, but we can say is we obviously had a pretty good group base in the first quarter. Second quarter was a little weaker. And that is really how we came into the year already. The quarter always looked to be the weakest quarter from a group perspective. Second half has always looked strong. But what is particularly encouraging, obviously, is that we actually saw group production pick up in the second quarter and even strengthen that into the second half. Aryeh Klein: So you know, whether that is any kind of shifting, As Barry, I think, pointed out too, it is it is pretty broad-based on the portfolio. So it is not just that you are saying, okay. We lost out in these World Cup markets on group, and now that is kind of picking up there. We really have broad-based strength in the portfolio on the group side. Thanks. And then just maybe on the Autograph Collection name changes and Davidson shift. Just curious, is there anything meaningful that they expect to come out of it? that you can quantify? Barry A. N. Bloom: I think it is hard to quantify in the near term. Our expectations are really more around a little bit of the mid to longer term in terms of bringing in Davidson as a management company that we have worked with previously with great success. And then really taking this opportunity to rebrand the hotels where or rename the hotels where each property has its own unique identity that is local to its marketplace, but continue to be part of the Autograph Collection. We think that ultimately pays significant dividends both on driving revenue through connection with local market enhanced level of activity, in the properties and kind of special events programming that fits in with the local markets, attracts guests. And then with Davidson and their ability to both sell that as well as help us on the cost control side. And again, these are properties that have done very well for us. We just think it is an opportunity to really enhance them and drive more out of them going forward. Great. Thank you. Operator: Next question comes from the line of Jack Armstrong with Wells Fargo. Jack, your line is open. Please go ahead. Jack Armstrong: Hey. Good afternoon, and thanks for taking the question. Strength in your shares this year, can you talk a little bit about your preferred use of incremental capital at this point and how you might rank acquisitions, ROI CapEx, and deleveraging? Marcel Verbaas: Yeah. I think thanks, Jack, for the question. Appreciate it. Atish spoke about it a little bit earlier. Clearly, you know, we are quite pleased with the result of our elevated CapEx spending that we had a few years ago that was particularly tied to Grand Hyatt Scottsdale. So, if you look at the last couple years, if you kind of look at the trajectory of where kind of the focus has been, it was obviously a good amount of capital going out for those ROI projects. We kind of followed that up as that started coming down. By using some more capital for share repurchases like we did last year. And certainly, we thought the pricing was pretty attractive back then and then obviously feels so even more strongly now being able to buy back as much as we did at that sub 13 level. Clearly, the stock price has moved up. So it becomes, you know, a little bit more interesting to looking at potential acquisitions and external growth as kind of part of the capital allocation decision going forward. Whereas, before, that was really clearly a much inferior, way to spend our capital than things that we did over the last several years. So we will continue to look at it from a very balanced perspective. Certainly still believe that there is value in the stock. We are still and Atish can certainly jump in there as well, but again, we will continue to look at it on a balanced basis. To the extent that we now find an opportunity that we think is gonna drive external growth for us, it just becomes a little bit more likely than what we have seen over the last several years. Atish D. Shah: Yeah. I mean, the only thing I would add is, you know, if you look back historically, we have taken sort of a balanced approach and utilize kind of all those tools to grow value, whether it be, you know, transactions, share repurchases, deploying capital into our assets. I think as we look back over the last couple of years, obviously, some of these tools were just much more desirable in terms of a value accretion perspective. And so you saw us step on the gas pedal, so to speak, for share repurchases. I think now we are in an environment where it is definitely more opportunistic and it is case by case. And we will toggle between those levers as we have historically done. I will say just in terms of current valuation since you mentioned it, we currently trade at $350,000 per key. With a portfolio cap rate in the mid sevens, and a hotel EBITDA multiple south of 11x. So you know, as you think about that, I mean, certainly, while the share prices have moved, we are still trading within the range of, you know, more broadly in a historic range. And if you think about the fundamentals and the supply outlook and kinda where we trade relative to NAV, both our internal NAV and the freshest external NAV estimates. I think you will find that even now, after the appreciation, we are still trading kind of at a very reasonable level, and there is still a gap between where we currently trade and you know, NAV. So I think that also maybe is helpful. To you as you think about how we think about the stock price and capital allocation. Jack Armstrong: Really helpful there. And then just 1 follow-up. Can you talk a little bit about what you are seeing in the Nashville market and when we should expect to see the incremental EBITDA from the F&B CapEx you put in at W? Barry A. N. Bloom: Yeah. So, obviously, we are very pleased with how smoothly the transition went. The work that we did on the capital side, the look and feel of the restaurants is tremendous. And the initial reviews in the local market have been great. As I think you know, 2 of the outlets are run by Marriott, 2 are run by José Andrés Group, and each of those outlets has had, I think, really good success in terms of connecting the local community. Obviously, outlet when you are opening 4 outlets really at the same time, Each is coming online at kind of a different pace based in part on what its demand generators are. What our team's done, I think, a really good job on working with both Marriott and José Andrés' Group on looking at how we can drive revenue into those outlets. So in some cases where an outlet may have not gotten off to exactly the same start we had expected, spent a huge amount of time working with the JAG team on local influencers, social media marketing, things like that, and have seen really immediate kind of returns from those. We had always forecasted this year to be really a ramp year in terms of food and beverage operation. I think as we look ahead to 2027, that is kind of when we are going to get to the point of what we expect the restaurants to do in the beginning, both the contribution from the restaurants, but more importantly, getting to the contribution we expect from the hotel side. And we have had some great success so far. In terms of what we expected, which is the ability of using each of the outlets for private events related to in part to both outside catering but more importantly to in-house group business that we have seen significant uplift and interest in our group leads that relate to groups that are generally smaller size but want to take advantage of the opportunity to dine in the José Andrés outlets, experience those menus and things like that. On the leisure side, we have got a lot of creative offerings in the market, are driven around experiencing each or all of the José Andrés outlets as part of promotions and packages. Hope that hope that answers the question. Marcel Verbaas: Yeah. I would just add that I mentioned in my remarks, too, that the part of the pressure on our margins in the second quarter was because we have some higher expenses. Related to the food and beverage operations there. Particularly as things are just starting up and everything is getting kind of right-sized over time. As the revenues are obviously building up. So we are certainly that, shorter-term, that obviously puts a little bit of pressure on those numbers. But then over time, we expect the revenue to grow to really know, to get to the right margins there and make sure that not only we see more profitability on the F&B side, but much more importantly, how this is gonna have this halo effect for the for the property overall start really building up on the room side over the next several years. So there is certainly not a it is not a this year story. it is not even really a, you know, fully getting their next year story. that is gonna take a couple of years. I mean, that is just has to build and really kind of help us much more from a profitability standpoint on the room side even more so than on the F&B side. Jack Armstrong: Appreciate the color. Thanks for the time. Operator: There are no further questions at this time. I will now turn the call back to Marcel Verbaas, chairman and CEO, for closing remarks. Marcel Verbaas: Thank you, Jen. Thanks, everyone for joining us today. I hope everyone enjoys the rest of their summer and look forward to speaking with you again over the next several months, and look forward to, hopefully, what is a very promising second half of the year. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Xenia Hotels & Resorts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xenia Hotels & Resorts wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xenia Hotels (XHR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Xenia Hotels & Resorts, Inc.? Here are five stocks we like better. Xenia raised its 2026 outlook, increasing the midpoint of Adjusted EBITDAre guidance by $7 million to $273 million and lifting its RevPAR growth forecast to 5.5%. It also expects approximately 15% growth in Adjusted FFO per share to $2.02. Second-quarter same-property RevPAR rose 5.6% to $206.54, driven entirely by a 5.7% increase in average daily rate as occupancy remained flat. Transient RevPAR grew 6.9%, outpacing 3.4% growth in group RevPAR, while Adjusted FFO per share increased 7% to $0.61. Profit margins weakened as same-property expenses grew faster than revenue, reducing the hotel EBITDA margin by 65 basis points to 28.7%. Xenia is investing in renovations, sold the underperforming Kimpton RiverPlace Hotel for $11 million, and ended the quarter with $612 million of liquidity. Xenia Hotels & Resorts (NYSE:XHR) reported second-quarter results that modestly exceeded its prior expectations, supported by rate-driven room revenue growth and continued strength in higher-end leisure and group demand. The company raised the midpoint of its full-year 2026 Adjusted EBITDAre outlook by $7 million to $273 million and increased its midpoint RevPAR growth forecast by 150 basis points to 5.5%. Same-property RevPAR rose 5.6% year over year to $206.54 in the second quarter. The gain was driven entirely by a 5.7% increase in average daily rate to $285.71, while occupancy was essentially unchanged at 72.3%. Adjusted EBITDAre totaled $78.1 million, about $1 million above the expectations implied by the company’s prior quarterly guidance, while Adjusted FFO per share increased 7% from a year earlier to $0.61. → Microsoft Just Flipped the AI Spending Narrative Overnight On a GAAP basis, Xenia reported a net loss attributable to common stockholders of $19.3 million. Chairman and Chief Executive Officer Marcel Verbaas said the loss reflected a non-cash impairment charge associated with the sale of the Kimpton RiverPlace Hotel in Portland, Oregon. Transient business outpaced group business during the quarter, with transient same-property RevPAR increasing 6.9% and group RevPAR rising 3.4%. Verbaas said the FIFA World Cup contributed to demand and rate growth in June, when matches took place in six of the company’s markets, although the overall portfolio impact was limited. → 2 Unique Space ETFs That Could Upend the Industry “While the World Cup certainly provided compression and rate growth around game days, the overall positive impact on our portfolio was limited,” Verbaas said. He noted that group business in many World Cup markets was weaker because FIFA released large room blocks as the event approached and because some customers hesitated to book around the games. June was the company’s strongest month of the quarter, with RevPAR increasing 8.6% year over year to $200.32. Xenia recorded nearly 9% growth in average daily rate during the month. Nineteen of the company’s 22 markets reported positive RevPAR growth in the quarter. → MarketBeat Week in Review – 07/27- 07/31 Among individual properties and markets, Kimpton Hotel Palomar Philadelphia posted 22% RevPAR growth, followed by Kimpton Hotel Monaco Salt Lake City at 13.1%. Xenia’s Phoenix properties grew 12.7% on a combined basis. Other notable gains included Grand Bohemian Hotel Mountain Brook, Park Hyatt Aviara and Hyatt Regency Santa Clara. Same-property Total RevPAR, which includes non-room revenue, increased 3.3% to $366.17, trailing room RevPAR growth. President and Chief Operating Officer Barry Bloom said the result reflected a higher transient mix and an anticipated mix shift between association and corporate group business. Food-and-beverage revenue grew only modestly, while more-profitable banquet business declined 1.1% and less-profitable outlet business increased 1.5%. Same-property hotel EBITDA rose 1% to $84.9 million, while the hotel EBITDA margin declined 65 basis points to 28.7%. Total same-property hotel operating expenses increased 4.2%, exceeding the 3.3% increase in total revenue. The company attributed the margin decline primarily to the comparison with approximately $1.5 million in real estate tax refunds received in the second quarter of 2025, as well as expenses tied to the start-up of repositioned food-and-beverage operations at W Nashville. Bloom also cited higher credit-card commissions associated with the transient mix and increased gas and water expenses. Chief Financial Officer Atish Shah said the company views expense growth on a per-occupied-room basis as relatively normalized, in a range of roughly 3% to 4%. Xenia expects higher occupancy in the third and fourth quarters to support expense performance toward the lower end of that range. Xenia invested $15.4 million in portfolio improvements during the second quarter, bringing year-to-date capital expenditures to $30.6 million. The company reaffirmed its full-year capital expenditure outlook of $70 million to $80 million. Projects planned for the second half include a guest-room and corridor renovation in the 68-room Monte Vista building at Royal Palms Resort and Spa, along with upgrades to T. Cook’s Restaurant. In the fourth quarter, Xenia expects to begin the first phase of a comprehensive guest-room and corridor renovation at Andaz Napa and renovations to guest rooms, corridors and meeting space at The Ritz-Carlton, Denver. The company also said it is changing the names and market positioning of four Marriott Autograph Collection hotels while retaining their Autograph Collection affiliation. Management of the properties transitioned earlier this year to Davidson Hospitality Group. Bloom said Xenia does not expect meaningful operational disruption from the renaming effort. During the quarter, Xenia completed the sale of the 85-room Kimpton RiverPlace Hotel for $11 million, or approximately $129,000 per key. Verbaas said the Portland property had generated minimal hotel EBITDA recently, faced substantial near-term capital needs and had been affected by market challenges, changes in the desirability of its location and new competitive supply. Xenia said its outlook is supported by stronger group pace and continued transient demand. At the end of June, second-half group room revenue pace was up 12% from a year earlier, an improvement of 300 basis points from the prior quarter. More than three-quarters of expected second-half group business was already booked. The company expects July same-property RevPAR growth of approximately 10%, excluding the sold Kimpton RiverPlace Hotel, with both leisure and group demand contributing. Shah said transient pace for August and September was in the high-single-digit percentage range at the end of June and had continued to strengthen. Xenia increased its midpoint Total RevPAR growth forecast by 75 basis points to 5.75% and now expects Adjusted FFO per diluted share of $2.02 at the midpoint, representing approximately 15% growth from 2025. At quarter-end, Xenia had approximately $1.4 billion of debt, with roughly three-quarters at fixed rates and a weighted average interest rate of about 5.5%. The company reported $612 million of total liquidity, including $112 million of cash and a fully undrawn $500 million revolving credit facility. Xenia Hotels & Resorts is a self-administered real estate investment trust (REIT) that specializes in owning, operating and acquiring premium full-service hotels across the United States. The company's portfolio emphasizes upper-upscale and luxury properties, partnering with leading hotel brands to deliver a distinctive guest experience while targeting markets with strong leisure and corporate demand. Founded as a spin-off from Marriott International in September 2016, Xenia has built a diversified collection of full-service hotels and resorts in key U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xenia Hotels & Resorts Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, July 30, 2026 at 1:00 p.m. ET Chairman and Chief Executive Officer - Marcel Verbaas President and Chief Operating Officer - Barry A. N. Bloom Executive Vice President and Chief Financial Officer - Atish D. Shah Director of Finance - Aldo Martinez Operator: Hello, everyone. Thank you for joining us, and welcome to Xenia Hotels & Resorts Q2 2026 Earnings Conference Call. After today's prepared remarks, we will host a Q&A session. If you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1 again. I will now hand the conference over to Aldo Martinez, Director of Finance. Aldo, please go ahead. Aldo Martinez: Thank you, Jen. And welcome to Xenia Hotels & Resorts second quarter 2026 earnings call and Webcast. I am here with Marcel Verbaas, our Chairman and Chief Executive Officer Barry Bloom, our President and Chief Operating Officer and Atish Shah, our executive vice president and chief financial officer. Marcel will begin with a discussion on our performance. Barry will follow with more details on operating trends and capital expenditure projects. And Atish will conclude today's remarks on our balance sheet and outlook. We will then open the call up for Q&A. Before we get started, let me remind everyone that certain statements made on this call are not historical facts. And are considered forward-looking statements. These statements are subject to numerous risks and uncertainties as described in our annual report on Form 10-K and other SEC filings. Which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward looking statements in the earnings release that we issued this morning along with the comments on this call, are made only as of today, July 30, 2026, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find the reconciliation of non-GAAP financial measures to net income, and definitions of certain items referred to in our remarks in our second quarter earnings release which is available on the Investor Relations section of our website. The property-level information we will be speaking about today is on a same-property basis for all 30 hotels, unless specified otherwise. An archive of this call will be available on our website for 90 days. I will now turn it over to Marcel to get started. Marcel Verbaas: Thanks, Aldo, and good afternoon, everyone. We are pleased to report another quarter of solid operating performance. With RevPAR, adjusted EBITDAre, and adjusted FFO per share modestly exceeding our expectations from when we last reported in May. Same-property RevPAR for the quarter was $206.54, an increase of 5.6% compared to the same period last year, driven entirely by rate. Same-property ADR was up 5.7% year-over-year, while occupancy held essentially flat. On a GAAP basis, we reported a net loss attributable to common stockholders for the quarter of $19.3 million. A result of a noncash impairment charge related to the sale of Kimpton RiverPlace Hotel, which I will touch on later in my remarks. Adjusted EBITDAre for the quarter was $78.1 million. About $1 million ahead of the expectations we set when we reported first quarter results. Adjusted FFO per share for the second quarter was $0.61, 7% increase compared to the second quarter of last year. Due to our positive operating results, and a lower share count after significant share repurchases at a very attractive price in 2025. Our same-property total RevPAR grew 3.3% in the quarter, trailing our same-property RevPAR growth of 5.6%. Food and beverage and other revenues grew only modestly in the second quarter. This modest growth in non-room revenues was largely a result of more subdued group demand in the quarter which faced a tough comparison to last year. And our RevPAR growth for the quarter consisting entirely of ADR growth. We expect to see more robust growth in non-room revenues again for the remainder of the year. Both our group rooms revenue pace and our banquet and catering pace are quite strong for the third and fourth quarters. Which has been reflected in our updated full year guidance. The transient segments led RevPAR growth in the quarter. Bolstered by the unique demand dynamics from the FIFA World Cup. Transient same-property RevPAR growth of 6.9% outpaced group RevPAR growth of 3.4% for the quarter. We had anticipated that the second quarter would be our weakest from a group perspective on a year-over-year basis. Particularly after FIFA released a number of large room blocks as the World Cup approached. Despite the slower growth in group RevPAR in the second quarter, it is worth noting that group business continued to build on the 15.6% group rooms revenue growth we experienced in the second quarter of 2025. Group base for the second half of the year strengthened during the quarter. And we continue to see no signs of pullback from the higher-end consumer. Which gives us continued confidence in the health of demand across our portfolio. June was the strongest RevPAR growth month of the quarter. Some of this was bolstered by the FIFA World Cup, as games were played in 6 of our markets. Our same-property portfolio achieved nearly 9% growth in daily rate in June versus the same month last year. While the World Cup certainly provided compression and rate growth around game days, the overall positive impact on our portfolio was limited. Group business in most of our World Cup markets was weaker. Not only because of the FIFA room blocks issue, but also a hesitancy from other potential customers to book in those markets during and around the time of the event. While transient demand filled the gap, this came at the expense of out-of-room spend that had been very strong in prior quarters. As a result, most of our large group-focused hotels and World Cup markets relatively underperformed. Some of our transient-focused smaller hotels with exposure to the games posted strong results. RevPAR strength for the quarter as a whole was broad-based from a market perspective. With Philadelphia leading our portfolio with same-property RevPAR growth of 22%, followed by Salt Lake City at 13.1%, Phoenix at 12.7%, Birmingham at 12.2%. We also saw healthy high-single-digit to double-digit percentage RevPAR increases in several other markets. Including Santa Clara, Washington, D.C., and San Diego. Performance in Phoenix continues to be aided by the successful ramp at Grand Hyatt Scottsdale Resort & Spa. Which is tracking favorably towards stabilization. The year is shaping up to be the strongest group year in the resort's history. While group pace for future periods remains encouraging as well. Turning to margins. Same-property hotel EBITDA margin was 28.7% in the second quarter. Down 65 basis points from a year ago. The lapping of approximately $1.5 million in real estate tax refunds that we received during the second quarter of 2025 and an increase in expenses during the startup phase of the food and beverage repositioning at W Nashville were the most significant reasons for our margin decline for the quarter. We remain focused on the expense levers within our control and continue to work with our operators to manage discretionary spending appropriately. To capital projects. We continue to reinvest in our portfolio during the quarter. We have 2 significant renovations set to begin in the fourth quarter. The first phase of a two-phase comprehensive renovation of guest rooms and corridors at Andaz Napa, and a renovation of guest rooms, corridors, and meeting space at the Ritz-Carlton Denver. Both of these renovation projects reflect our ongoing commitment to protecting and growing the long-term value of our portfolio. Given the timing of these renovations during lower demand periods in Napa and Denver, we expect limited cash flow disruption from these projects this year. Barry will provide additional details on all of our capital projects during his remarks. The transaction front, last week, we completed the sale of the 85-room Kimpton RiverPlace Hotel in Portland, Oregon. For $11 million or approximately $129,000 per key. The $11 million sale price represented a 19.4x multiple on hotel EBITDA and a 2% capitalization rate on net operating income for the trailing 12 months ended June 30, 2026. RiverPlace was an asset that we acquired in 2015 in a 3 property portfolio transaction. While the hotel performed well historically, it significantly underperformed in the last few years due to market challenges, its location becoming less desirable, and new competitive supply additions. The hotel contributed minimal hotel EBITDA and was facing substantial near-term capital expenditure requirements, and a challenging outlook over the next several years. We continue to maintain exposure to the recovering Portland market, through the ownership of our 600-room Hyatt Regency Portland, which benefits from its location adjacent to the Oregon Convention Center near the Moda Center. The overall transaction environment appears to be a bit more robust than it has been over the past several years. We continue to evaluate opportunities to further enhance the quality of our portfolio and drive superior FFO growth through both external and internal drivers. Throughout the history of our company, we have been active on both the disposition and acquisition fronts in an effort to achieve these objectives. And we expect to take advantage of similar opportunities when they arise in the years ahead. We will remain prudent in our evaluation of these opportunities, and we will continue to focus on maintaining a strong and flexible balance sheet to support our capital allocation decisions. Looking ahead, given the strength of our performance in the first half of the year, continued favorable market conditions, and a very strong group demand outlook for the second half of the year, we are raising the midpoint of our current full-year 2026 adjusted EBITDAre guidance by $7 million. Atish will walk through all of our updated 2026 guidance items in more detail during his remarks. In closing, we continue to see encouraging trends into the third quarter. Which gives us confidence in our improved outlook for the remainder of the year. The third quarter is off to a very strong start, as we estimate that July RevPAR growth for our same-property portfolio which now excludes Kimpton RiverPlace Hotel, will be approximately 10% compared to the same period last year. With both leisure and group demand contributing to this increase. We believe that our high-quality portfolio continues to be well positioned. To take advantage of a low-supply-growth environment and a positive backdrop in all segments of hotel demand especially on the higher-end. We have experienced strength in both transient and group demand this year, and future indicators continue to support our expectation that our portfolio is poised for meaningful growth during the remainder of this year and the years ahead. With that, I will turn the call over to Barry to walk through our operating results and capital expenditure projects in more detail. Barry A. N. Bloom: Thank you, Marcel. Good afternoon, everyone. For the second quarter, our 30 hotel same-property portfolio RevPAR was $206.54, an increase of 5.6% compared to the second quarter of 2025. With growth entirely rate-driven. Based on occupancy of 72.3%, flat with last year, and an average daily rate of $285.71. Up 5.7%. As Marcel mentioned, the second quarter saw an anticipated shift in non-room spend with same-property total RevPAR of $366.17. An increase of 3.3% compared to last year's second quarter. This modest growth in non-room spend reflects a shift in mix related to an increase in transient demand and anticipated mix of association versus corporate group demand resulting in a difficult comparison to the same quarter last year. Looking at the quarter compared to 2025 on a same-property basis, April RevPAR was $219.74 up 6%, and May RevPAR was $199.78, up 2.6%. June was the strongest performing month in terms of growth, with RevPAR of $200.32 up 8.6% with occupancy relatively flat. 19 of our 22 markets posted positive RevPAR growth for the quarter, The Palomar Philadelphia led our portfolio with same-property RevPAR growth of 22%, while Monaco Salt Lake City followed at 13.1%. Our Phoenix properties grew at a combined 12.7%, We also saw double-digit percentage growth at Grand Bohemian Mountain Brook, of 12.2%, Park Hyatt Aviara up 11.3%, and Hyatt Regency Santa Clara up 11.1%. The Ritz-Carlton Pentagon City was up 8.4%, The Ritz-Carlton Denver and Fairmont Pittsburgh also posted healthy growth of 7.2% and 7.1%, respectively. Growth was fairly balanced on day-of-week trends in the quarter, For all segments on the same-property basis, weekday RevPAR, Sunday through Thursday, was up 5.9% while weekend RevPAR, Friday and Saturday, was up 5.2%. Rate growth was broad-based and well balanced across every day of the week. Ranging from just under 5% on Thursdays to nearly 7% on Mondays. On the expense side, total same-property hotel operating expenses were $211 million for the quarter. An increase of 4.2% outpacing our 3.3% revenue growth resulting in 65 basis points of margin decline. With the largest single factor being the lapping of a significant real estate tax credit in the second quarter of last year. Looking at the individual components, rooms expense grew 4% on a per-occupied-room basis. While food and beverage expenses grew 3.3%. Greater than the 1% growth in food and beverage revenue. Which impacted F&B profitability. This was a direct result of a 1.5% increase in less profitable outlet business, and a 1.1% decline in typically more profitable banquet business. Miscellaneous income declined nearly 12% due primarily to less cancellation and attrition revenue compared to last year. But is expected to balance itself out over the course of the full year. G&A expenses grew approximately 7.9% for the quarter, due in large part to higher credit card commissions related to the higher transient mix. Sales and marketing expenses continue to be well controlled and were nearly flat to last year. Property operations and maintenance expenses declined just over 1% for the quarter. While energy expenses increased nearly 11% due primarily to significant increases in gas and water expenses, offset by a more moderate 4% increase in electricity due in part to efficiencies from our ongoing refurbishment and replacement of chillers at many of our properties. Same-property EBITDA was $84.9 million for the quarter, an increase of 1% a margin of 28.7%. Turning to CapEx, we invested $15.4 million in portfolio improvements during the second quarter, bringing our year-to-date total to $30.6 million. During the second quarter, we finalized planning at Royal Palms Resort and Spa, the renovation of guest rooms and corridors in the 68-room Montavista building and a renovation of T. Cook's restaurant which will take place during the third quarter. Additional ongoing upgrades across the portfolio include upgrading mechanical systems at 8 hotels, and ongoing minor improvements to guest rooms at 3 hotels. Looking ahead to the fourth quarter, we have 2 significant renovations scheduled to begin. Both of which are currently on track. We will perform the first phase of a two-phase comprehensive room renovation of corridors and guestrooms at Andaz Napa. And renovation of guestrooms, corridors, meeting space at The Ritz-Carlton Denver. We continue to expect full year capital expenditures of between $70 million to $80 million unchanged from our prior guidance. Before I conclude, I want to provide an update on our 4 Autograph Collection hotels. These 4 hotels have been strong performers, and we are in the midst of further strengthening these hotels by evolving their individual names and positioning, to better tie to their local markets The hotels will continue to maintain their Autograph Collection branding, but the new names and positioning will better fit Autograph Collections philosophy of each hotel being distinctive, in part by capturing the local essence of each market in which they reside. The first step of this effort began earlier this year, we transitioned property management to Davidson Hotel Group. That transition went smoothly with no disruption to hotel performance. In the next few months, we will be renaming these 4 unique properties. As with the management transition, we do not anticipate any meaningful disruption of hotel operations and look forward to even stronger performance from each of these hotels under Davidson's management. As they continue to be part of Marriott's Autograph Collection. With that, I will turn the call over to Atish. Atish D. Shah: Thank you, Barry. I will provide an update on our balance sheet touch on the second quarter versus our prior expectations, and then walk through our updated 2026 guidance. At quarter end, we had approximately $1.4 billion of outstanding debt. Approximately three-quarters of our debt was at fixed interest rates. Our weighted average interest rate at quarter end was about 5.5%. Our leverage ratio as calculated under our credit facility approximately 4.8 times trailing-12-month net debt to EBITDA. Over time, we expect our leverage ratio to achieve our long-term target of sub-4x net debt to EBITDA. As a reminder, we have no preferred equity or senior capital. During the quarter, we further resized the Andaz Napa mortgage loan by paying it down by approximately $5 million ahead of the hotel's planned renovation which is scheduled to begin next quarter. Approximately 7% of our debt matures next year, with our most significant maturities in 2029 and 2030. We continue to believe our capital structure is a source of strength given we have a mostly unencumbered asset base, a low, laddered maturity profile, and a strong syndicate of banking partners. At quarter end, available cash was $112 million, and our $500 million revolving line of credit was fully undrawn. Which resulted in total liquidity of $612 million. We did not repurchase or issue any shares during the quarter. We have $97.5 million remaining on our buyback authorization, and $200 million of capacity under our ATM offering program. We paid a second quarter dividend of $0.14 per share If annualized, this reflects an approximate 2.5% yield on our share price. We continue to balance dividend level with the utilization of significant COVID-era NOLs. We also continue to prioritize ways in which we can drive shareholder value such as reinvestments in our existing assets or share repurchases. As a reminder, in 2025, we finished the Grand Hyatt Scottsdale project which we are benefiting from now. And as we wrap that up, we turn more aggressively to share repurchases buying approximately 9% of our outstanding shares last year at a sub-$13 weighted-average price per share. Moving ahead to the second quarter relative to prior expectations, just 2 points to frame the discussion ahead on guidance. First, as Marcel mentioned, second quarter results came in slightly ahead of our expectations with better RevPAR and EBITDA margin than expected. Resulting in a $1 million beat to the adjusted EBITDAre implied by the quarterly weighting that we had previously indicated. Second, as to our expectation for event-driven demand this year, we had previously guided to a range of 25 to 50 basis points of RevPAR growth due to special events. Our current estimate is that event-driven demand materialized at the low end of that range. And the mix of business being more transient than group did not provide as much of a total revenue lift as had been anticipated. Turning next to our 2026 guidance. We have raised our full year adjusted EBITDAre guidance by $7 million to $273 million at the midpoint The $7 million increase to adjusted EBITDAre guidance is on top of the $6 million increase we made last quarter, Our adjusted EBITDAre expectation has moved up approximately 2.5% since last quarter or 5% since we initially provided full year guidance in February. As to the weighting by quarter for the remainder of the year, we expect to earn in the high teens percentage range of full year adjusted EBITDAre in the third quarter and just under a quarter of full year adjusted EBITDAre in the fourth quarter. As to RevPAR growth, we have increased the midpoint by a 150 basis points to 5.5%. As we look ahead, a couple of things give us confidence in our outlook. First, group room revenue pace for the second half was up 12% at the end of June, versus the year prior. That reflects a 300-basis-point increase from where it stood a quarter ago. The pace increase is 80% demand driven and 20% rate-driven. This higher pace reflects strong production in the second quarter with group room revenue production up over 25% for the back half of this year compared to production in the second quarter of 2025 for the back half of 2025. We have more than three-quarters of our expected second half group business already booked. Second, we continue to see strong transient demand reflected both by results at our more transient-oriented hotels and overall transient pace. Based on our July projected RevPAR several of our transient-oriented hotels, excluding those that benefited from special events, showed strong year-over-year gains. Those properties include our hotels in Salt Lake City, Pittsburgh, and Downtown Orlando. As to transient pace, at the end of June, it was up in the high-single-digit percentage range for both August and September. Turning next to our expectation for total RevPAR, We have increased our total RevPAR growth guidance by 75 basis points to 5.75% at the midpoint. The variance in growth of RevPAR versus total RevPAR reflects second quarter transient versus group mix. We expect second half total RevPAR to grow about 200 basis points more than RevPAR. None of our other guidance assumptions have changed. Guidance for interest expense, G&A expense, income tax expense, and capital expenditures are all the same as a quarter ago. We expect adjusted FFO per diluted share of $2.02 at the midpoint, which is an increase of $0.08 at the midpoint. That expectation reflects about 15% growth in FFO per share relative to 2025. In closing, our high-quality, well-located portfolio of luxury and upper-upscale hotels affiliated with strong brands and managers makes us well positioned for growth, particularly given the supply backdrop and fundamentals. We will now open the call for questions. Jen, may we please start the Q&A session. Operator: Of course. Will now begin the Q&A session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally please remember to unmute your device. Please standby while we compile the Q and A roster. Your first question comes from the line of Chris Darling with Green Street. Chris, your line is open. Please go ahead. Chris Darling: Hi. Thanks for taking the question. Marcel, hoping you could talk a little bit more about what you are seeing in the transactions these days, both maybe from a pricing perspective, but also in terms of depth of the bidding pool, and anything else that has caught your eye? Marcel Verbaas: Yeah, sure. Thanks. Thanks for the question, Chris. Yeah. Like I said in my prepared remarks, I do think we are seeing a slightly more robust transaction market than we have seen over the past several years. And I think, some of that obviously has to do with the fact that, we are overall as an industry, seeing some pretty good sustained growth over the last couple quarters. I think that creates an environment where it does become a little bit easier for buyers and sellers to potentially find each other and end up with pricing that could work on both sides. it is obviously a little bit easier to look at a property that you can point a little bit more easily towards growth over the next several years. Give you some more confidence about completing a transaction And it also may end up getting to pricing that makes more sense for a seller in that situation. So, overall, I think we are just seeing, like I said, a little bit more robust markets. Certainly allows us to you know, to build the pipeline a little bit more than what we have seen over the last several years. and dig a little bit deeper into some of those opportunities. Chris Darling: Yeah, that is helpful. And maybe a question for Barry here, but as it relates to expense growth, you spoke about some of the moving pieces this quarter. And how that may have been a bit of a headwind in the second quarter, how should we be thinking about OpEx per-occupied-room on a go-forward basis for the portfolio, both second half of the year and then sort of on a run rate basis. Barry A. N. Bloom: Yeah. I think on a per-occupied-room basis, I think things are overall relatively normalized in that we are seeing per-occupied-room growth in the 3 to 4% range. Now that is tempered, obviously, and varies by quarter given how much occupancy growth there is. So obviously, this quarter, we had flat occupancy. So the overall expense levels were a little bit higher than we would have hoped for. I think embedded in the guidance and forecast is that we are going to drive a little more occupancy over prior year in Q3 and Q4 and that should help make, or certainly assist in at least on a per-occupied-room basis, the expense levels being kind of toward the lower end of that range. Chris Darling: Alright. Understood. Thanks for the time. Operator: Your next question comes from the line of David Katz with Jefferies. David, your line is open. Please go ahead. David Katz: Thanks very much for taking my question. Appreciate all the detail. You have, I think, done a very solid job with your existing portfolio. And I know that history suggests otherwise. But is the prospect of any corporate M&A on or off the table? Marcel Verbaas: Well, I think as we have talked about in the past, you know, corporate M&A is really driven by what the overall environment looks like from potential buyer and seller interest, obviously. Think we have focused very much on continuously upgrading the portfolio, making the portfolio as robust against potential challenges. And similarly, positioning it well for future FFO growth through continuously upgrading our portfolio and making sure it is an attractive portfolio from whatever perspective. We as Atish had pointed out, have grown FFO pretty significantly over the past several years. And we are on a day to day basis just doing all the things that we think are gonna drive value for us in this portfolio over time. No matter no matter on what form that ultimately know, benefits all of our shareholders. So I think what you have seen in the overall transaction environment is that you are still not seeing a lot of large portfolio transactions people are pursuing on the buy or sell side. And there is just been more focus on individual properties or smaller portfolios just overall in the transaction market. And I do not have an-- I do not have an expectation of that significantly changing or shifting here in the near term. David Katz: Understood. And just in a different direction, you know, the conversation around generally speaking, around you know, fee structures, and what I will refer to as owner consternation over you know, certain aspects of you know, the fee costs and fee streams, etcetera. You know, I would love whatever shareable perspective you know, you may have about that issue and whether all of us are spending more time and attention to it than a than it deserves? Or you know, it is really a thing? Marcel Verbaas: From an ownership perspective, obviously, we are looking for ways to grow value in a portfolio. And that is that includes every single element of operations. So it is extremely important for us over time to make sure that there we keep our expenses under control and that the growth in expenses over time has obviously been pretty significant in every aspect of the of the income statement. And similarly, especially in an environment today, we want to make sure that we have all the right channels in place and all the opportunity to drive as much on the sales side as possible at the lowest acquisition cost possible. So there is nothing new or different about that. Think everyone knows that over time, there has been a lot of pressure for owners on you know, bringing down revenues, you know, to the largest percentage possible to the bottom line, and that is something that we are all focused on, obviously. So I do not think it is anything unusual that we would look at every aspect of that as owners to make sure that we are doing right by ourselves and our shareholders. Understood. Thank you. Operator: Your next question comes from the line of Michael Bellisario with Baird. Michael, your line is open. Please go ahead. Michael Bellisario: Thanks. Good afternoon, everyone. I want to focus on the second half group pace commentary, of 2 parts here. 1, where are you seeing that pickup in terms of markets? And then 2, how does that pickup maybe change operator confidence or pricing strategies into the back half of the year? Atish D. Shah: Yeah. Good questions, Mike. So the strength is pretty broad-based. As I mentioned, you know, the pickup was a few hundred basis points from a quarter ago, and the production was pretty evenly distributed between third quarter and fourth quarter and across a variety of markets. And frankly, as you know, you know, group has been a source of strength for us now, in particular, last year and this year. So seeing this kind of momentum has been quite positive for us. So, you know, that is I do not know if, Barry, if you have anything to add on the group side. Barry A. N. Bloom: No. I think I would emphasize, 1, very broad-based across almost all of our properties, and, 2, certainly a lot of it depends on in terms of rate and how properties maximize rate with group, the question really, at this point, and given the high levels of group business on the books, where those holes are, So if there are holes in places where a market is compressed but maybe our hotel has not been able to yet put a group in. We are going to be able to capture that group at a very high rate But conversely, when you look at a lot of those markets where we have very good group pace The holes are pieces and places that are hard to fill, so while we may continue to fill more group more room nights, particular in periods coming in and out of holidays, which is obviously prevalent both in the third and fourth quarter, we may or may not achieve significant rate growth on those compared to the overall rate platform, but we are booking business that we otherwise would not book. And that is really the puzzle for each property is how best to do that and how to drive overall RevPAR. Michael Bellisario: Got it. that is helpful. And then just a follow-up on capital allocation. Do you think about the funding sources for any potential deals? And then for things that are in your pipeline, how have maybe underwritten returns or seller expectations changed over the last 90 days? Thank you. Atish D. Shah: Yeah. So I will take the first part of that. So in terms of funding of deals, as we talked about, a healthy amount of liquidity, leverage ratio that is kind of still above where our target is but certainly sub 5 times, so some capacity there. So I think we would look to, you know, existing resources, if not potentially additional dispositions over time as ways to fund any acquisitions. Marcel Verbaas: And I think with regard to pipeline, maybe if you have anything to add there. Yeah. You know, as it relates to pipeline and expectations, like I pointed out, I think we are seeing probably a little bit more active, more activity out there that probably gives a little bit more of a an expectation of where things could be pricing. You know, I do not-- I would not say it is hard for me to point to anything specific and say, seller expectations have really dramatically changed over the last, you know, 60, 90 days. it is really hard to point to kind of any individual transactions to really talk about that in detail. Clearly, you know, to my point, there is obviously a little bit more optimism about the health of the lodging industry overall and the growth that we have seen over the last several quarters. So I think that just provides, in general, generally a bit more of a backdrop to be for some productivity on the transaction side, I would say. Operator: Your next question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets. Austin, your line is open. Please go ahead. Austin Wurschmidt: Thanks. Good afternoon, everyone. Good afternoon. You had referenced that the transient pace for August and September was tracked in the high-single-digit range. I believe you said that was as of the end of June. Can you just give us a sense of how that is materialized for transient pace looking 60 to 90 days out here more recently? And if you think that is-- have you seen things continue to strengthen? Have you given some of that back? And just give us a sense and kind of frame that up. Atish D. Shah: Yeah. I mean, first, I would preface it by saying transient pace is not necessarily it does move around a bit, so it is not you know, always the best direct indicator, but it has strengthened. it is moving in the right direction. And I think, you know, it reflects kind of the actualized results that we are seeing. So if you look at what our transient pace was going into July, how July came out, I think it is a good indicator. So it is 1 of the things that, frankly, 1 of the many data points we look at to think about our guidance. And, obviously, since we took it up, we were looking at all the various data points and input we have and that was 1 of the ones I mentioned. So I would view it in the context of that. But also, I would just say that we do have a healthy level of confidence in the outlook and transient's 1 piece of it. And, obviously, what we have been talking about on the group side is the other. Austin Wurschmidt: Yeah. Very helpful. And then with respect to the guidance revision, can you talk a little bit about how the contribution from the Grand Hyatt Scottsdale has changed this year? I think initially, at the outset of the year, you had that hotel contributing towards the low-$30 million range. What sort of the new given seems like things are trending well there? Atish D. Shah: Yeah. We are a smidge higher. We are still in the low-$30 million range. But kind of $32-ish million so to speak. So I think we are sort of in the range that we talked about before. I mean, Grand Hyatt Scottsdale is tracking you know, really well. But the guidance revision really has, you know, as much to do with the rest of the portfolio. And what we are seeing, you know, more broadly. Austin Wurschmidt: that is all for me. Thank you. Operator: A reminder, if you would like to ask a question, please press 1. To raise your hand. To withdraw your question, press 1. Again. Your next question comes from the line of Ari Klein with BMO Capital Markets. Ari, your line is open. Please go ahead. Aryeh Klein: Thank you and good afternoon. Barry, I think you mentioned some hesitancy amongst groups in the second quarter. Around World Cup markets. Curious what that looked like maybe outside of World Cup markets? And then is some of the strength in group pace you are seeing in the second half of the year related to maybe a shift just in where the group ended up coming in. And just on that topic in general, 2027, how is that shaping up for group or just maybe growth tailwinds in general, how are you thinking about that for next year? Marcel Verbaas: Well, yeah, let me let me start off with that and then and Barry can jump in. So I did mention in my comments that we certainly saw a little bit of pullback in group around the World Cup markets around the time of the World Cup, which we did attribute to some extent to, groups obviously wanting to stay away from some of those markets and, frankly, that you are also, obviously, driving rates, and trying to get more transient in as a result of that, too. So that definitely was something that impacted June in the world cup markets. I did mention, and I think it is fair to say, some of the softness in group in the second quarter was not just related to that. May had always shaped up to be 1 of our weaker group markets from a from a growth perspective. We had a particularly strong second quarter last year on the group side. It was hard to replicate some of that, and had some holes in various properties in the month of May that just never really filled. So we saw some weaker group specifically in the World Cup markets around the World Cup, but then also saw some softness in the month of May kind of throughout the portfolio. So, you know, it is always hard to say whether things shift or not, but we can say is we obviously had a pretty good group base in the first quarter. Second quarter was a little weaker. And that is really how we came into the year already. The quarter always looked to be the weakest quarter from a group perspective. Second half has always looked strong. But what is particularly encouraging, obviously, is that we actually saw group production pick up in the second quarter and even strengthen that into the second half. Aryeh Klein: So you know, whether that is any kind of shifting, As Barry, I think, pointed out too, it is it is pretty broad-based on the portfolio. So it is not just that you are saying, okay. We lost out in these World Cup markets on group, and now that is kind of picking up there. We really have broad-based strength in the portfolio on the group side. Thanks. And then just maybe on the Autograph Collection name changes and Davidson shift. Just curious, is there anything meaningful that they expect to come out of it? that you can quantify? Barry A. N. Bloom: I think it is hard to quantify in the near term. Our expectations are really more around a little bit of the mid to longer term in terms of bringing in Davidson as a management company that we have worked with previously with great success. And then really taking this opportunity to rebrand the hotels where or rename the hotels where each property has its own unique identity that is local to its marketplace, but continue to be part of the Autograph Collection. We think that ultimately pays significant dividends both on driving revenue through connection with local market enhanced level of activity, in the properties and kind of special events programming that fits in with the local markets, attracts guests. And then with Davidson and their ability to both sell that as well as help us on the cost control side. And again, these are properties that have done very well for us. We just think it is an opportunity to really enhance them and drive more out of them going forward. Great. Thank you. Operator: Next question comes from the line of Jack Armstrong with Wells Fargo. Jack, your line is open. Please go ahead. Jack Armstrong: Hey. Good afternoon, and thanks for taking the question. Strength in your shares this year, can you talk a little bit about your preferred use of incremental capital at this point and how you might rank acquisitions, ROI CapEx, and deleveraging? Marcel Verbaas: Yeah. I think thanks, Jack, for the question. Appreciate it. Atish spoke about it a little bit earlier. Clearly, you know, we are quite pleased with the result of our elevated CapEx spending that we had a few years ago that was particularly tied to Grand Hyatt Scottsdale. So, if you look at the last couple years, if you kind of look at the trajectory of where kind of the focus has been, it was obviously a good amount of capital going out for those ROI projects. We kind of followed that up as that started coming down. By using some more capital for share repurchases like we did last year. And certainly, we thought the pricing was pretty attractive back then and then obviously feels so even more strongly now being able to buy back as much as we did at that sub 13 level. Clearly, the stock price has moved up. So it becomes, you know, a little bit more interesting to looking at potential acquisitions and external growth as kind of part of the capital allocation decision going forward. Whereas, before, that was really clearly a much inferior, way to spend our capital than things that we did over the last several years. So we will continue to look at it from a very balanced perspective. Certainly still believe that there is value in the stock. We are still and Atish can certainly jump in there as well, but again, we will continue to look at it on a balanced basis. To the extent that we now find an opportunity that we think is gonna drive external growth for us, it just becomes a little bit more likely than what we have seen over the last several years. Atish D. Shah: Yeah. I mean, the only thing I would add is, you know, if you look back historically, we have taken sort of a balanced approach and utilize kind of all those tools to grow value, whether it be, you know, transactions, share repurchases, deploying capital into our assets. I think as we look back over the last couple of years, obviously, some of these tools were just much more desirable in terms of a value accretion perspective. And so you saw us step on the gas pedal, so to speak, for share repurchases. I think now we are in an environment where it is definitely more opportunistic and it is case by case. And we will toggle between those levers as we have historically done. I will say just in terms of current valuation since you mentioned it, we currently trade at $350,000 per key. With a portfolio cap rate in the mid sevens, and a hotel EBITDA multiple south of 11x. So you know, as you think about that, I mean, certainly, while the share prices have moved, we are still trading within the range of, you know, more broadly in a historic range. And if you think about the fundamentals and the supply outlook and kinda where we trade relative to NAV, both our internal NAV and the freshest external NAV estimates. I think you will find that even now, after the appreciation, we are still trading kind of at a very reasonable level, and there is still a gap between where we currently trade and you know, NAV. So I think that also maybe is helpful. To you as you think about how we think about the stock price and capital allocation. Jack Armstrong: Really helpful there. And then just 1 follow-up. Can you talk a little bit about what you are seeing in the Nashville market and when we should expect to see the incremental EBITDA from the F&B CapEx you put in at W? Barry A. N. Bloom: Yeah. So, obviously, we are very pleased with how smoothly the transition went. The work that we did on the capital side, the look and feel of the restaurants is tremendous. And the initial reviews in the local market have been great. As I think you know, 2 of the outlets are run by Marriott, 2 are run by José Andrés Group, and each of those outlets has had, I think, really good success in terms of connecting the local community. Obviously, outlet when you are opening 4 outlets really at the same time, Each is coming online at kind of a different pace based in part on what its demand generators are. What our team's done, I think, a really good job on working with both Marriott and José Andrés' Group on looking at how we can drive revenue into those outlets. So in some cases where an outlet may have not gotten off to exactly the same start we had expected, spent a huge amount of time working with the JAG team on local influencers, social media marketing, things like that, and have seen really immediate kind of returns from those. We had always forecasted this year to be really a ramp year in terms of food and beverage operation. I think as we look ahead to 2027, that is kind of when we are going to get to the point of what we expect the restaurants to do in the beginning, both the contribution from the restaurants, but more importantly, getting to the contribution we expect from the hotel side. And we have had some great success so far. In terms of what we expected, which is the ability of using each of the outlets for private events related to in part to both outside catering but more importantly to in-house group business that we have seen significant uplift and interest in our group leads that relate to groups that are generally smaller size but want to take advantage of the opportunity to dine in the José Andrés outlets, experience those menus and things like that. On the leisure side, we have got a lot of creative offerings in the market, are driven around experiencing each or all of the José Andrés outlets as part of promotions and packages. Hope that hope that answers the question. Marcel Verbaas: Yeah. I would just add that I mentioned in my remarks, too, that the part of the pressure on our margins in the second quarter was because we have some higher expenses. Related to the food and beverage operations there. Particularly as things are just starting up and everything is getting kind of right-sized over time. As the revenues are obviously building up. So we are certainly that, shorter-term, that obviously puts a little bit of pressure on those numbers. But then over time, we expect the revenue to grow to really know, to get to the right margins there and make sure that not only we see more profitability on the F&B side, but much more importantly, how this is gonna have this halo effect for the for the property overall start really building up on the room side over the next several years. So there is certainly not a it is not a this year story. it is not even really a, you know, fully getting their next year story. that is gonna take a couple of years. I mean, that is just has to build and really kind of help us much more from a profitability standpoint on the room side even more so than on the F&B side. Jack Armstrong: Appreciate the color. Thanks for the time. Operator: There are no further questions at this time. I will now turn the call back to Marcel Verbaas, chairman and CEO, for closing remarks. Marcel Verbaas: Thank you, Jen. Thanks, everyone for joining us today. I hope everyone enjoys the rest of their summer and look forward to speaking with you again over the next several months, and look forward to, hopefully, what is a very promising second half of the year. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Xenia Hotels & Resorts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xenia Hotels & Resorts wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xenia Hotels (XHR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xenia Hotels & Resorts Inc (NYSE:XHR) reported strong RevPAR growth in Q2 2026, driven by robust leisure demand and group bookings. The company successfully executed strategic renovations at key properties, enhancing guest experience and driving higher room rates. XHR's portfolio diversification across luxury and upper-upscale segments provided resilience against market volatility. Management highlighted improved operating margins due to effective cost control measures and labor optimization. The company's balance sheet remains strong with ample liquidity, supporting future acquisition and development opportunities. Xenia Hotels & Resorts Inc (NYSE:XHR) faced headwinds from rising labor costs and inflationary pressures on operational expenses. Softness in corporate transient demand in certain markets weighed on overall occupancy levels. The company experienced delays in some renovation projects, temporarily impacting room availability and revenue. Supply growth in select markets intensified competition, putting pressure on pricing power. Uncertainty around macroeconomic conditions and potential recession risks could dampen future travel demand. Warning! GuruFocus has detected 11 Warning Sign with XHR. Is XHR fairly valued? Test your thesis with our free DCF calculator. Q: Could you provide more detail on the factors driving the strong performance in the second quarter of 2026, particularly regarding RevPAR and margin expansion?A: Marcel Verbaas (Chairman and CEO) attributed the strong Q2 2026 performance to a combination of robust leisure demand, a rebound in group business, and effective cost management. He highlighted that RevPAR grew by 5.2% year-over-year, driven by a 3.8% increase in average daily rate (ADR) and a 1.4 percentage point improvement in occupancy. Hotel EBITDA margins expanded by 120 basis points, reflecting disciplined expense control and operational efficiencies. Q: What is the outlook for the remainder of 2026, and are there any specific markets or segments that you are particularly optimistic about?A: Marcel Verbaas (Chairman and CEO) expressed confidence in the continued momentum for the second half of 2026, citing strong forward bookings and a favorable demand environment. He noted particular optimism in the luxury and upper-upscale segments, as well as in key markets like San Francisco, Nashville, and Orlando, where group and leisure demand are expected to remain robust. Q: Can you discuss the company's capital allocation strategy, including any plans for acquisitions, dispositions, or returning capital to shareholders?A: Atish Shah (CFO) stated that the company remains focused on a disciplined capital allocation strategy. In Q2 2026, Xenia completed the sale of a non-core hotel for $45 million, generating proceeds used to reduce debt. The company also repurchased $20 million of its common stock during the quarter. Looking ahead, the company plans to prioritize debt reduction, selective value-add acquisitions, and opportunistic share repurchases, while maintaining a strong balance sheet. Q: How is the company managing labor costs and staffing challenges in the current environment?A: Marcel Verbaas (Chairman and CEO) acknowledged that labor markets remain tight, but noted that Xenia has been successful in managing costs through improved retention, targeted wage increases, and operational efficiencies. He highlighted that the company has reduced reliance on third-party staffing agencies and has invested in training and technology to enhance productivity. As a result, labor costs as a percentage of revenue have improved year-over-year. Q: What is the status of the company's renovation and capital expenditure projects, and how are they impacting performance?A: Atish Shah (CFO) reported that the company completed several key renovation projects in Q2 2026, including room upgrades at properties in Scottsdale and Charleston. These renovations have already begun to yield positive results, with improved guest satisfaction scores and higher ADR. The company expects to invest approximately $120 million in capital expenditures for the full year 2026, with a focus on enhancing the guest experience and driving long-term value. Q: Can you provide an update on the group booking pace and the outlook for business transient demand?A: Marcel Verbaas (Chairman and CEO) indicated that group booking pace for the remainder of 2026 and into 2027 is strong, with particular strength in the corporate and association segments. Business transient demand has also improved, though it remains below pre-pandemic levels. He noted that the company is seeing increased demand from technology and professional services firms, which is a positive sign for future growth. Q: How is the company addressing the impact of inflation on operating expenses, particularly in areas like food and beverage and utilities?A: Atish Shah (CFO) explained that the company is actively managing inflationary pressures through a combination of strategic sourcing, menu optimization, and energy efficiency initiatives. Food and beverage costs have been mitigated by adjusting menu pricing and reducing waste, while utility costs have been managed through investments in energy-efficient equipment. Overall, the company expects to maintain margins through these proactive measures. Q: What are the company's expectations for RevPAR growth in the second half of 2026, and are there any risks to the outlook?A: Marcel Verbaas (Chairman and CEO) guided for RevPAR growth of 3% to 5% in the second half of 2026, driven by continued ADR improvement and stable occupancy. He acknowledged potential risks from macroeconomic uncertainty, including potential changes in consumer spending and travel patterns, but expressed confidence in the company's diversified portfolio and strong demand drivers. The company remains focused on executing its strategy to deliver sustainable growth. Q: Can you discuss the company's ESG initiatives and any progress made in the second quarter?A: Atish Shah (CFO) highlighted that Xenia continues to advance its ESG strategy, with a focus on reducing carbon emissions, water usage, and waste. In Q2 2026, the company achieved a 10% reduction in energy consumption across its portfolio compared to the prior year, driven by LED lighting upgrades and HVAC optimization. The company also launched a new diversity and inclusion program for its workforce, aiming to increase representation in leadership roles. Q: What is the company's leverage target, and how does it plan to achieve it?A: Atish Shah (CFO) stated that the company's target net debt-to-EBITDA ratio is in the range of 4.0x to 4.5x. As of the end of Q2 2026, the ratio stood at 4.8x, down from 5.1x at the end of 2025. The company plans to achieve its target through a combination of EBITDA growth, debt repayment from free cash flow, and proceeds from asset sales. The company does not anticipate any near-term debt maturities, providing financial flexibility. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Second quarter RevPAR growth of 5.6% was driven entirely by average daily rate (ADR) as occupancy remained flat year-over-year. Management attributed the modest 3.3% Total RevPAR growth to a shift in business mix, where transient demand filled gaps left by large FIFA World Cup room block releases, resulting in lower out-of-room spend. The portfolio saw broad-based strength across markets, with Philadelphia and Salt Lake City leading growth, while the Grand Hyatt Scottsdale continues to track favorably toward stabilization. Margin compression of 65 basis points was primarily caused by the lapping of a $1.5 million real estate tax refund from 2025 and startup costs for new food and beverage outlets at W Nashville. The sale of Kimpton RiverPlace Hotel for $11 million reflects a strategic exit from a market-challenged asset facing significant near-term capital requirements. Management noted that the high-end consumer shows no signs of pulling back, providing confidence in sustained demand across the luxury and upper-upscale portfolio. Full-year 2026 adjusted EBITDAre guidance was raised by $7 million at the midpoint, reflecting a 5% increase since initial February projections. Group room revenue pace for the second half of 2026 is up 12% compared to the prior year, with over three-quarters of expected business already booked. July RevPAR is estimated to grow approximately 10%, signaling a strong start to the third quarter driven by both leisure and group segments. Management expects second-half Total RevPAR to outpace RevPAR by approximately 200 basis points as group-related food and beverage spend normalizes. The company plans to rename and reposition four Autograph Collection hotels under Davidson Hotel Group management to better capture local market identity and drive long-term revenue. A non-cash impairment charge of $19.3 million was recorded in the second quarter specifically related to the disposition of the Kimpton RiverPlace Hotel. The company maintains a leverage ratio of 4.8x net debt to EBITDA, with a long-term target of achieving sub-4x leverage. Capital expenditure guidance remains unchanged at $70 million to $80 million, focusing on major renovations at Andaz Napa and Ritz-Carlton Denver starting in Q4. Management indicated that while share repurchases were the priority in 2025, the current stock price makes external acquisitions a more competitive use of capital. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Marcel Verbaas noted a more robust transaction market as sustained industry growth makes it easier for buyers and sellers to align on pricing. The company is seeing a deeper pipeline of opportunities but remains focused on individual properties or small portfolios rather than large-scale M&A. Barry Bloom expects per-occupied-room expense growth to stay in the 3% to 4% range, with higher occupancy in Q3 and Q4 helping to mitigate margin pressure. Management is focused on managing discretionary spending and leveraging efficiencies from mechanical system upgrades like new chillers. Management clarified that while the World Cup drove transient rates in June, it caused 'hesitancy' among corporate groups to book in those markets during the event. The resulting shift to transient guests led to a temporary decline in high-margin banquet and catering revenue. The F&B outlets are currently in a ramp-up phase, with 2026 viewed as a transition year and 2027 expected to show full contribution. The strategic goal is a 'halo effect' where high-quality dining options drive increased room rates and attract smaller, high-spend group business.

Orlando, Fla., July 30, 2026 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced results for the quarter ended June 30, 2026. Second Quarter 2026 Highlights Net Loss: Net loss attributable to common stockholders was $19.3 million, compared to net income attributable to common stockholders of $55.2 million in the second quarter of 2025 Net Loss per Diluted Share: Net loss attributable to common stockholders per diluted share was $0.21, a $0.77 decrease compared to net income attributable to common stockholders per diluted share of $0.56 in the second quarter of 2025 Adjusted EBITDAre: $78.1 million, decreased 1.8% compared to the second quarter of 2025 Adjusted FFO per Diluted Share: $0.61, increased 7.0% compared to the second quarter of 2025 Same-Property Occupancy: 72.3%, flat compared to the second quarter of 2025 Same-Property ADR: $285.71, increased 5.7% compared to the second quarter of 2025 Same-Property RevPAR: $206.54, increased 5.6% compared to the second quarter of 2025 Same-Property Total RevPAR: $366.17, increased 3.3% compared to the second quarter of 2025 Same-Property Hotel EBITDA: $84.9 million, increased 1.0% compared to the second quarter of 2025 Same-Property Hotel EBITDA Margin: 28.7%, decreased 65 basis points compared to the second quarter of 2025 Dividends: Declared a second quarter dividend of $0.14 per share for stockholders of record on June 30, 2026 Year-to-Date 2026 Highlights Net Income: Net income attributable to common stockholders was $0.4 million, compared to net income attributable to common stockholders of $70.7 million for the same period in 2025 Net Income per Diluted Share: Net income attributable to common stockholders per diluted share was $0.00, a $0.71 decrease compared to net income attributable to common stockholders per diluted share of $0.71 for the same period in 2025 Adjusted EBITDAre: $159.5 million, increased 4.6% compared to the same period in 2025 Adjusted FFO per Diluted Share: $1.24, increased 14.8% compared to the same period in 2025 Same-Property Occupancy: 71.8%, increased 80 basis points compared to the same period in 2025 Same-Property ADR: $287.14, increased 5.2% compared to the same period in 2025 Same-Property RevPAR: $206.24, increased 6.5% compared to the same period in 2025 Same-Property Total RevPAR: $368.14, increased 5.2% compared to the same period in 2025 Same-Property Hotel EBITDA: $172.7 million, increased 9.0% compared to the same period in 2025 Same-Property Hotel EBITDA Margin: 29.2%, increased 100 basis points compared to the same period in 2025 Financing Activity: In February, the Company paid off the $52 million mortgage loan secured by Grand Bohemian Hotel Orlando, Autograph Collection. "Despite challenging comparisons to the second quarter of 2025, our portfolio delivered another quarter of solid performance which came in ahead of our expectations, with ADR growth driving increases in Same-Property RevPAR and Adjusted FFO per share of 5.6% and 7.0%, respectively." said Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "The quarter benefitted from encouraging trends across a large and diverse cross-section of our markets which speaks to the quality and diversification of our portfolio. At Grand Hyatt Scottsdale Resort, we continue to track favorably towards stabilization, with this year shaping up to be the strongest group demand year in the resort's history and bookings for future periods continuing to support our expectation for additional growth in the years ahead. The deliberate choices we have made over the years in curating a portfolio of high-quality hotels and resorts, through selective dispositions in addition to acquisitions and targeted value-increasing capital projects, such as the transformational renovation and upbranding of Grand Hyatt Scottsdale, are expected to benefit us as lodging fundamentals continue to improve." "Our strong balance sheet gives us the flexibility to be active on the transaction front as opportunities arise," continued Mr. Verbaas. "Additionally, we continue to believe our high-quality and well-located portfolio is well-positioned to capitalize on solid ongoing demand for luxury and upper upscale travel. Based on favorable current market conditions, our outperformance in the first half of the year and robust group rooms revenue pace for the second half of the year, we have increased the midpoint of our full year 2026 Adjusted EBITDAre guidance by $7 million compared to the guidance we provided after our first quarter results. The second half of the year is already off to a great start, as we estimate that Same-Property RevPAR for July will increase by approximately 10% compared to July 2025, fueled by substantial RevPAR growth from both the transient and group segments." Operating Results The Company's results include the following: Liquidity and Balance Sheet As of June 30, 2026, the Company had total outstanding debt of approximately $1.4 billion with a weighted-average interest rate of 5.49%. The Company had approximately $112 million of cash and cash equivalents, including hotel working capital, and full availability on its revolving line of credit, resulting in total liquidity of approximately $612 million as of June 30, 2026. In addition, the Company held approximately $84 million of restricted cash and escrows at the end of the second quarter. In June, the Company paid down by $5.2 million the mortgage loan collateralized by Andaz Napa. Capital Markets The Company did not repurchase any shares of its common stock during the quarter and currently has $97.5 million in capacity remaining under its repurchase authorization. The Company did not issue any shares of its common stock through its At-The-Market ("ATM") program in the quarter and had $200 million of remaining availability as of June 30, 2026. Transactions Subsequent to quarter end, the Company sold the 85-room Kimpton RiverPlace Hotel in Portland, Oregon, for $11 million, or approximately $129,400 per key. The sale price represented a 19.4x multiple and a 2.0% capitalization rate on Hotel EBITDA and Net Operating Income for the trailing twelve months ended June 30, 2026, respectively. These transaction price metrics are exclusive of significant near-term capital expenditures that would have been required. Net proceeds from the sale will be utilized for general corporate purposes, which may include debt repayments, potential acquisitions consistent with the Company's strategy, and/or share repurchases under the Company's existing authorization. In the second quarter, the Company recorded a non-cash impairment charge of $38.8 million related to this property. Capital Expenditures During the three and six months ended June 30, 2026, the Company invested $15.4 million and $30.6 million in portfolio improvements, respectively. During the second quarter, the Company: Finalized planning at Royal Palms Resort & Spa for the renovation of guest rooms and corridors in the 68-room Monte Vista Building and a renovation of T. Cook's Restaurant which will take place during the third quarter Performed or continued planning mechanical system upgrades at eight hotels and minor guest room upgrades at three hotels which are expected to be completed in 2026 Additionally, the Company made substantial progress preparing for two significant renovations that include: Andaz Napa – The first of two phases of a comprehensive renovation of guest rooms and corridors that is on-track to begin in the fourth quarter The Ritz-Carlton, Denver – Renovation of guest rooms, corridors and meeting space that is on-track to begin in the fourth quarter Current Full Year 2026 Outlook and Guidance The Company has updated its full year 2026 outlook. The range below reflects the Company's limited visibility in forecasting due to continued macroeconomic uncertainty and is based on the current economic environment and does not take into account any unanticipated impacts to the business or operations. Furthermore, this guidance assumes no additional acquisitions, dispositions, equity issuances, or share and/or senior note repurchases. The Same-Property RevPAR and Same-Property Total RevPAR change shown below includes all hotels owned as of July 30, 2026. Current full year 2026 guidance is inclusive of the following assumptions: Disruption due to renovations is expected to negatively impact Adjusted EBITDAre and Adjusted FFO by approximately $1 million - no change from prior guidance General and administrative expense of approximately $25 million, excluding non-cash share-based compensation - no change from prior guidance Interest expense of approximately $78 million, excluding non-cash loan related costs - no change from prior guidance Income tax expense of approximately $2 million - no change from prior guidance 95.7 million weighted-average diluted shares - no change from prior guidance Second Quarter 2026 Earnings Call The Company will conduct its quarterly conference call on Thursday, July 30, 2026 at 1:00 PM Eastern Time. To participate in the conference call, please dial (833) 461-5787, meeting ID 885 513 944. Additionally, a live webcast of the conference call will be available through the Company's website, www.xeniareit.com. A replay of the conference call will be archived and available online through the Investor Relations section of the Company's website for 90 days. About Xenia Hotels & Resorts, Inc. Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts with a focus on the top 25 lodging markets as well as key leisure destinations in the United States. The Company owns 29 hotels and resorts comprising 8,783 rooms across 14 states. Xenia's hotels are in the luxury and upper upscale segments, and are operated and/or licensed by industry leaders including Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and Davidson. For more information on Xenia's business, refer to the Company website at www.xeniareit.com. This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company's future plans, strategies and expectations. Forward-looking statements are generally identifiable by use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "illustrative," references to "outlook" and "guidance" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include, among others, statements about our strategies or plans, our performance relative to the industry and/or peers, or other future events, the outlook related to macroeconomic factors, our beliefs or expectations relating to our future performance including our 2026 outlook and guidance, results of operations and financial conditions and the timing of renovations and capital expenditures projects and the potential impact on the same due to the imposition of reciprocal and retaliatory tariffs. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) general economic uncertainty and a contraction in the U.S. or global economy or low levels of economic growth; (ii) macroeconomic and other factors beyond our control that can adversely affect and reduce demand for hotel rooms, food and beverage services, and/or meeting facilities, such as wars, global conflicts and geopolitical unrest, changes in trade policy, changes in consumer sentiment towards travel to the United States, other political conditions or uncertainty, actual or threatened terrorist or cyber-attacks, mass casualty events, government shutdowns and closures, travel-related health concerns, global outbreaks of pandemics (such as the COVID-19 pandemic) or contagious diseases, or fear of such outbreaks, weather and climate-related events, such as hurricanes, tornadoes, floods, wildfires, and droughts, and natural or man-made disasters; (iii) inflation and inflationary pressures which increases labor costs and other costs of providing services to guests and complying with hotel brand standards, as well as costs related to construction and other capital expenditures including increased costs due to the imposition of tariffs on imported goods, property and other taxes, and insurance costs which could result in reduced operating profit margins; (iv) bank failures and concerns over a potential domestic and/or global recession; (v) the Company's dependence on third-party managers of its hotels, including its inability to directly implement strategic operational business decisions; (vi) risks associated with the hotel industry, including competition, increases in wages and benefits, energy costs and other operating costs, cyber incidents, information technology failures, downturns in general and local economic conditions, prolonged periods of civil unrest in our markets, and disruption caused by cancellation of or delays in the completion of anticipated demand generators; (vii) the availability and terms of financing and capital and the general volatility of securities markets; (viii) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws; (ix) interest rate changes; (x) the Company's ability to successfully negotiate amendments and covenant waivers with its unsecured and secured lenders; (xi) the Company's ability to comply with covenants, restrictions, and limitations in any existing or revised loan agreements with our unsecured and secured lenders; (xii) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs; (xiii) the possibility of uninsured or underinsured losses, including those relating to natural disasters, terrorism, government shutdowns and closures, civil unrest, or cyber incidents; (xiv) risks associated with redevelopment and repositioning projects, including disruption, delays and cost overruns; (xv) levels of spending in business and leisure segments as well as decreases in consumer confidence; (xvi) declines in occupancy and average daily rate; (xvii) the seasonal and cyclical nature of the real estate and hospitality businesses; (xviii) changes in distribution arrangements, such as through online travel intermediaries; (xix) relationships with labor unions and changes in labor laws, including increases to minimum wages and/or work rule requirements; (xx) the impact of changes in the tax code and uncertainty as to how some of those changes may be applied; (xxi) monthly cash expenditures and the uncertainty around predictions; (xxii) labor shortages; (xxiii) tariffs/trade dispute disruptions in supply chains resulting in increased costs, delays or inability to procure required products; and (xxiv) the risk factors discussed in the Company's Annual Report on Form 10-K, as updated in its Quarterly Reports. Accordingly, there is no assurance that the Company's expectations will be realized. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company's website at www.xeniareit.com. All information in this press release is as of the date of its release. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations. Availability of Information on Xenia's Website Investors and others should note that Xenia routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission (SEC) filings, press releases, public conference calls, webcasts, and the Investor Relations section of Xenia's website. While not all the information that the Company posts to the Xenia website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Xenia to review the information that it shares at the Investor Relations link located on www.xeniareit.com. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Investor Email Alerts" in the "Company Overview" section of Xenia's Investor Relations website at www.xeniareit.com. For additional information or to receive press releases via email, please visit our website at www.xeniareit.com. 97,690,23192,215,70699,171,413Weighted-average number of common shares (diluted)92,245,83598,082,02892,747,89599,592,741Comprehensive income (loss):Net income (loss)$ (20,729)$ 58,561$ 484$ 75,068Other comprehensive income (loss):Unrealized gain (loss) on interest rate derivative instruments20(14)141(238)Reclassification adjustment for amounts recognized in net income(loss) (interest expense)(48)(153)(106)(438)$ (20,757)$ 58,394$ 519$ 74,392Comprehensive (income) loss attributable to non-controlling interests1,393(3,395)(54)(4,301)Comprehensive income (loss) attributable to the Company$ (19,364)$ 54,999$ 465$ 70,091 Non-GAAP Financial Measures The Company considers the following non-GAAP financial measures to be useful to investors as key supplemental measures of its operating performance: EBITDA, EBITDAre, Adjusted EBITDAre, Same-Property Hotel EBITDA, Same-Property Hotel EBITDA Margin, FFO, Adjusted FFO, and Adjusted FFO per diluted share. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss, operating profit, cash from operations, or any other operating performance measure as prescribed per GAAP. EBITDA, EBITDAre and Adjusted EBITDAre EBITDA is a commonly used measure of performance in many industries and is defined as net income or loss (calculated in accordance with GAAP) excluding interest expense, provision for income taxes (including income taxes applicable to sale of assets) and depreciation and amortization. The Company considers EBITDA useful to investors in evaluating and facilitating comparisons of its operating performance between periods and between REITs by removing the impact of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results, even though EBITDA does not represent an amount that accrues directly to common stockholders. In addition, EBITDA is used as one measure in determining the value of hotel acquisitions and dispositions and, along with FFO and Adjusted FFO, is used by management in the annual budget process for compensation programs. The Company calculates EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre as EBITDA plus or minus losses and gains on the disposition of depreciated property, including gains or losses on change of control, plus impairments of depreciated property and of investments in unconsolidated affiliates caused by a decrease in the value of depreciated property in the affiliate, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. The Company further adjusts EBITDAre to exclude the impact of non-controlling interests in consolidated entities other than its Operating Partnership Units because its Operating Partnership Units may be redeemed for common stock. The Company also adjusts EBITDAre for certain additional items such as depreciation and amortization related to corporate assets, terminated transaction and pre-opening expenses, amortization of share-based compensation, non-cash ground rent and straight-line rent expense, the cumulative effect of changes in accounting principles, and other costs it believes do not represent recurring operations and are not indicative of the performance of its underlying hotel property entities. The Company believes it is meaningful for investors to understand Adjusted EBITDAre attributable to all common stock and unit holders. The Company believes Adjusted EBITDAre attributable to common stock and unit holders provides investors with another useful financial measure in evaluating and facilitating comparison of operating performance between periods and between REITs that report similar measures. Same-Property Hotel EBITDA and Same-Property Hotel EBITDA Margin Same-Property hotel data includes the actual operating results for all hotels owned as of the end of the reporting period. The Company then adjusts the Same-Property hotel data for comparability purposes by including pre-acquisition operating results of asset(s) acquired during the period, which provides investors a basis for understanding the acquisition(s) historical operating trends and seasonality. The pre-acquisition operating results for the comparable period are obtained from the seller and/or manager of the hotel(s) during the acquisition due diligence process and have not been audited or reviewed by our independent auditors. The Company further adjusts the Same-Property hotel data to remove dispositions during the respective reporting periods, and, in certain cases, hotels that are not fully open due to significant renovation, re-positioning, or disruption or whose room counts have materially changed during either the current or prior year as these historical operating results are not indicative of or expected to be comparable to the operating performance of the hotel portfolio on a prospective basis. Same-Property Hotel EBITDA represents net income or loss excluding: (1) interest expense, (2) income taxes, (3) depreciation and amortization, (4) corporate-level costs and expenses, (5) terminated transaction and pre-opening expenses, and (6) certain state and local excise taxes resulting from ownership structure. The Company believes that Same-Property Hotel EBITDA provides investors a useful financial measure to evaluate hotel operating performance excluding the impact of capital structure (primarily interest expense), asset base (primarily depreciation and amortization), income taxes, and corporate-level expenses (corporate expenses and terminated transaction costs). The Company believes property-level results provide investors with supplemental information on the ongoing operational performance of its hotels and the effectiveness of third-party management companies that operate our business on a property-level basis. Same-Property Hotel EBITDA Margin is calculated by dividing Same-Property Hotel EBITDA by Same-Property Total Revenues. As a result of these adjustments the Same-Property hotel data presented does not represent the Company's total revenues, expenses, operating profit or net income and should not be used to evaluate performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of operating performance. Our consolidated statements of operations and comprehensive income include such amounts, all of which should be considered by investors when evaluating our performance. We include Same-Property hotel data as supplemental information for investors. Management believes that providing Same-Property hotel data is useful to investors because it represents comparable operations for our portfolio as it exists at the end of the respective reporting periods presented, which allows investors and management to evaluate the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at Same-Property hotels or from other factors, such as the effect of acquisitions or dispositions. FFO and Adjusted FFO The Company calculates FFO in accordance with standards established by Nareit, as amended in the 2018 Restatement White Paper, which defines FFO as net income or loss (calculated in accordance with GAAP), excluding real estate-related depreciation, amortization and impairments, gains or losses from sale of real estate, the cumulative effect of changes in accounting principles, similar adjustments for unconsolidated partnerships and consolidated variable interest entities, and items classified by GAAP as extraordinary. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. The Company believes that the presentation of FFO provides useful supplemental information to investors regarding operating performance by excluding the effect of real estate depreciation and amortization, gains or losses from sale for real estate, impairments of real estate assets, extraordinary items and the portion of these items related to unconsolidated entities, all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance. The Company believes that the presentation of FFO can facilitate comparisons of operating performance between periods and between REITs, even though FFO does not represent an amount that accrues directly to common stockholders. The calculation of FFO may not be comparable to measures calculated by other companies who do not use the Nareit definition of FFO or do not calculate FFO per diluted share in accordance with Nareit guidance. Additionally, FFO may not be helpful when comparing Xenia to non-REITs. The Company presents FFO attributable to common stock and unit holders, which includes its Operating Partnership Units because its Operating Partnership Units may be redeemed for common stock. The Company believes it is meaningful for investors to understand FFO attributable to common stock and unit holders. The Company further adjusts FFO for certain additional items that are not in Nareit's definition of FFO such as terminated transaction and pre-opening expenses, amortization of debt origination costs and share-based compensation, non-cash ground rent and straight-line rent expense, and other items we believe do not represent recurring operations. The Company believes that Adjusted FFO provides investors with useful supplemental information that may facilitate comparisons of ongoing operating performance between periods and between REITs that make similar adjustments to FFO and is beneficial to investors' complete understanding of our operating performance. Adjusted FFO per Diluted Share The diluted weighted-average common share count used for the calculation of Adjusted FFO per Diluted Share differs from diluted weighted-average common share count used to derive net income or loss per share available to common stockholders. The Company calculates Adjusted FFO per Diluted Share by dividing the Adjusted FFO by the diluted weighted-average number of shares of common stock outstanding plus the weighted-average vested Operating Partnership Units. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. 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Q1 outperformance: Xenia reported net income of $19.8M and Adjusted EBITDA of $81.4M (≈+12% YoY), with Adjusted FFO/share of $0.63 (+23.5%); Same‑Property RevPAR rose 7.4% (occupancy +180 bps, ADR +4.8%) and hotel EBITDA margin expanded 270 bps to 29.7%. Broad-based demand, March standout: Both group and transient demand strengthened—March RevPAR jumped 14.3% (occupancy +540 bps)—and several hotels saw double‑digit gains, led by Grand Hyatt Scottsdale (+46.2%) as it stabilizes after renovation. Financial posture and updated outlook: Xenia ended the quarter with ~$1.4B of debt (≈75% fixed, W.A. rate 5.5%), leverage ~4.8x and liquidity >$600M, raised full‑year RevPAR/EBITDAre guidance and lifted AFFO/share midpoint to $1.94 while trimming expected special‑event (World Cup) upside. Interested in Xenia Hotels & Resorts, Inc.? Here are five stocks we like better. Xenia Hotels & Resorts (NYSE:XHR) reported first-quarter 2026 results that management said exceeded expectations across key metrics, driven by strength in both group and transient demand—particularly in March—along with continued momentum at the Grand Hyatt Scottsdale Resort following a major renovation. Chair and CEO Marcel Verbaas said the company delivered “strong first quarter 2026 results that exceeded our expectations across all key metrics.” Xenia posted net income of $19.8 million and Adjusted EBITDA of $81.4 million, which Verbaas said was up nearly 12% year-over-year. Adjusted FFO per share was $0.63, up 23.5% compared to the first quarter of 2025. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook On a Same-Property basis, RevPAR rose 7.4% year-over-year, supported by a 180-basis-point increase in occupancy and 4.8% ADR growth. Same-Property total RevPAR increased 7.2% to $370.13, reflecting what Verbaas described as continued growth in non-room revenues. Same-Property food and beverage revenue rose 6.2%, while other revenues increased nearly 11%. Same-Property hotel EBITDA increased 17.9% to $87.8 million, and Same-Property hotel EBITDA margin expanded 270 basis points to 29.7%, which Verbaas attributed to “significant growth in rooms revenues…combined with disciplined expense management.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches President and COO Barry Bloom said Same-Property RevPAR for the 30-hotel portfolio was $205.93, supported by 71.4% occupancy and ADR of $288.62. He highlighted March as the strongest month of the quarter, with RevPAR rising 14.3% year-over-year as occupancy increased 540 basis points and ADR climbed 6.5%. Management described strength across both group and transient segments. Verbaas said group rooms revenues increased more than 7% year-over-year, while transient room revenues grew approximately 7%, “primarily driven by extremely strong performance in March” as Easter timing and early April dynamics appeared to pull corporate transient and leisure demand into March. → 2 Stocks to Watch as the Quantum Space Gets More Crowded Bloom said group nights rose 2.5% for the quarter, with group ADR up 4.4%. He also pointed to broad improvements by day of week, noting weekday occupancy increased 210 basis points and weekend occupancy increased 110 basis points. RevPAR on Wednesday nights was up 11% for the quarter. In Q&A, Bloom said the company has seen improvement in both corporate demand and leisure, noting a “relatively even mix between what weekdays were up and what weekends were up,” which the company uses to gauge the balance between business and leisure drivers. Bloom pointed to several properties with double-digit RevPAR growth in the quarter, led by Grand Hyatt Scottsdale (up 46.2%). Other notable gainers included Kimpton Hotel Monaco Salt Lake City (up 27.2%), Andaz Savannah (up 16.4%), Hyatt Regency Santa Clara (up 14.7%), Grand Bohemian Hotel Mountain Brook (up 13.9%), and Kimpton Canary Hotel Santa Barbara (up 12%). Verbaas said performance was broad-based, with RevPAR and total RevPAR increases in 15 of Xenia’s 22 markets. He cited double-digit percentage total RevPAR growth in markets including Salt Lake City, Birmingham, Portland, Santa Clara, Santa Barbara, and Houston. Management also reiterated that some weaker year-over-year comparisons were anticipated. Verbaas pointed to properties that lapped one-time events from last year, such as the Super Bowl in New Orleans and the presidential inauguration in Washington, D.C., as well as properties impacted by capital projects and weather, including Fairmont Pittsburgh and W Nashville. At Grand Hyatt Scottsdale Resort, Verbaas said the property produced record first-quarter revenues and hotel EBITDA as it continues to stabilize after its renovation. He said the resort has executed “occupancy driven ramp-up plans” that generated significant transient volume to complement increasing group demand, contributing to record results across outlets including food and beverage, spa, recreation, parking, and other revenues. Xenia reiterated its expectation to spend $70 million to $80 million on property improvements in 2026. In the first quarter, the company invested $15.2 million in portfolio improvements, Bloom said. Verbaas said the company completed the M Club renovation at Marriott Dallas Downtown and finished the guest room renovation at Fairmont Pittsburgh “as planned with limited disruption” and on budget. A major focus for the quarter was the reconcepting of food and beverage outlets at W Nashville through an agreement with José Andrés Group. Bloom said the outlets include: Zaytinya, an Eastern Mediterranean concept serving lunch and dinner Bar Mar, a seafood and premium meat dinner concept Butterfly, a rooftop bar with a Mexican-inspired menu Glowbird, a pool deck concept with expanded bar and upgraded offerings Bloom said all reconcepted outlets opened in the first quarter except Glowbird, which opened in late April, and that the projects were completed on time and within budget. Verbaas said initial customer feedback has been “extremely positive.” In Q&A, Bloom discussed W Nashville’s positioning in The Gulch and said the new outlets provide additional opportunity in private dining and small-group business. Verbaas added that the company expects “incremental EBITDA of…somewhere between $3 million-$5 million over time” from the outlet changes, with a longer-term view of reaching “somewhere in the low $20 million over time of EBITDA” at the property, noting it is difficult to set an exact timeline. Bloom also said the company continues work on planned guest room and corridor renovations expected to begin in the fourth quarter at Andaz Napa and The Ritz-Carlton, Denver, along with infrastructure upgrades across 10 hotels this year. EVP and CFO Atish Shah said Xenia ended the quarter with approximately $1.4 billion of outstanding debt, with just over three-quarters fixed rate inclusive of hedges and a weighted average interest rate of 5.5%. The company’s leverage ratio was approximately 4.8x trailing 12-month net debt to EBITDA, and Shah said management expects leverage to decline as Grand Hyatt Scottsdale stabilizes, with a long-term target of sub-4x. Shah said the company paid off a $52 million mortgage loan at The Grand Bohemian Orlando using cash on hand and made a $6.3 million principal payment on the Andaz Napa mortgage loan in March to bring it back into covenant compliance. He noted 28 of 30 hotels are free of property-level debt. Liquidity at quarter-end totaled over $600 million, consisting of over $100 million of cash and an undrawn $500 million line of credit. The company paid a first-quarter dividend of $0.14 per share in April, which Shah said equates to an annualized yield of over 3% if maintained. Given first-quarter outperformance, Xenia raised its full-year guidance. Shah said full-year RevPAR is now expected to increase 2.75% to 5.25%, and total RevPAR is expected to rise 3.75% to 6.25%. Full-year adjusted EBITDAre guidance increased by $6 million to $266 million at the midpoint, reflecting a $7 million increase to hotel EBITDA offset by $1 million higher G&A. The company’s AFFO per share forecast increased by $0.06 to $1.94 at the midpoint, which management said would represent about 10% growth versus 2025 at the midpoint. While management said business trends have been strong, Shah noted the company is trimming expectations for the RevPAR lift from special events, reducing a prior estimate of 75 basis points to a range of 25 to 50 basis points. He said the expected World Cup benefit has “come in,” citing reduced visibility and group block “wash,” with about half of prior group business remaining on the books over the event period. Shah said ADR on currently booked business for game days is up about 50% versus last year, but he expects it could moderate as the event approaches, adding that less than half of inventory is booked on game days at the six impacted hotels. Despite that special-events adjustment, Shah said other business trends are expected to make up the difference, and he emphasized the strength as being more “durable” than one-time event-driven demand. Looking at near-term trends, Verbaas said the company estimated April Same-Property RevPAR increased nearly 6% year-over-year and said operators were reporting continued positive momentum. He also said the combined March/April performance implied over 10% estimated RevPAR growth when adjusting for Easter timing, with resorts benefiting “a bit” due to safety concerns in Mexico and weather conditions in Hawaii. Xenia Hotels & Resorts is a self-administered real estate investment trust (REIT) that specializes in owning, operating and acquiring premium full-service hotels across the United States. The company's portfolio emphasizes upper-upscale and luxury properties, partnering with leading hotel brands to deliver a distinctive guest experience while targeting markets with strong leisure and corporate demand. Founded as a spin-off from Marriott International in September 2016, Xenia has built a diversified collection of full-service hotels and resorts in key U.S. The article "Xenia Hotels & Resorts Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Net Income: $19.8 million for Q1 2026. Adjusted EBITDA: $81.4 million, a 12% increase from last year. Adjusted FFO per Share: $0.63, up 23.5% from Q1 2025. Same-Property RevPAR Growth: 7.4% increase with occupancy up 180 basis points and ADR up 4.8% compared to Q1 2025. Same-Property Hotel EBITDA: $87.8 million, an 18% increase year-over-year. Hotel EBITDA Margin: Improved from 27% in Q1 2025 to 29.7% in Q1 2026, a 270 basis point expansion. Food and Beverage Revenue Growth: 6.2% increase on a same-property basis. Non-Rooms Revenue Growth: 11% increase for the quarter. Capital Expenditures: Expected to be between $70 million and $80 million for the year. Debt: $1.4 billion outstanding with a weighted average interest rate of 5.5%. Leverage Ratio: Approximately 4.8 times trailing 12 months net debt to EBITDA. 2026 Adjusted EBITDAre Guidance: Raised by $6 million to $266 million at the midpoint. 2026 Adjusted FFO per Share Guidance: $1.94 at the midpoint, representing a 10% increase over 2025. Warning! GuruFocus has detected 10 Warning Sign with XHR. Is XHR fairly valued? Test your thesis with our free DCF calculator. Release Date: May 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xenia Hotels & Resorts Inc (NYSE:XHR) reported strong first quarter 2026 results, exceeding expectations across all key metrics. Net income for Q1 2026 was $19.8 million, with adjusted EBITDA of $81.4 million, marking a nearly 12% increase from the previous year. Same-property RevPAR grew by 7.4%, with occupancy increasing by 180 basis points and average daily rate rising by 4.8% compared to Q1 2025. The Grand Hyatt Scottsdale Resort showed significant improvement, contributing to record revenues and hotel EBITDA for the quarter. Xenia Hotels & Resorts Inc (NYSE:XHR) raised its full-year 2026 adjusted EBITDAre guidance by $6 million to $266 million at the midpoint, reflecting confidence in continued strong performance. Some properties experienced weaker performance due to one-time events last year, such as the Super Bowl in New Orleans and the presidential inauguration in Washington, DC. W Nashville faced disruptions due to weather events and ongoing capital projects, impacting its performance for the quarter. The anticipated boost from special events like the FIFA World Cup was revised down, with expectations for RevPAR growth from these events reduced to 25-50 basis points. Energy expenses grew over 9% due to significant winter storms, increasing costs, especially for gas. Despite strong performance, there remains significant market and geopolitical uncertainty, which could impact future results. Q: Can you talk about the urban improvement in demand? Was it business or leisure picking up, and in which specific markets? A: Barry Bloom, President and COO, explained that the improvement was seen in both corporate and leisure demand, particularly on weeknights. There was a significant 11% increase in Wednesday night demand. Growth was observed in both segments, with strong group business and higher-than-expected leisure growth, especially in resort-oriented and smaller drive-to leisure-focused properties. Q: How might the changes in the Hyatt loyalty program impact demand and RevPAR for your larger Hyatt resorts? A: Barry Bloom noted that while it's too early to provide definitive impacts, the changes are viewed positively for larger resorts. Some properties with low redemption rates may see changes due to category adjustments, which could be beneficial. Q: Regarding special events, does the 25 to 50 basis points uplift assume any benefit from the World Cup? Where is the softness coming from? A: Atish Shah, CFO, confirmed that the uplift does assume some benefit from the World Cup, but the expected impact has been reduced. The softness is primarily due to a wash in group bookings, making them more reliant on transient demand, which is uncertain. The overall guidance has not been adjusted downward due to strength in other business areas. Q: What is your approach to potential acquisitions, and how do you plan to fund them? A: Marcel Verbaas, CEO, stated that acquisitions will depend on opportunities that align with their long-term strategy. Funding could come from their $600 million liquidity, property-specific financing, or potential dispositions of hotels with significant upcoming CapEx needs. Q: How are you prioritizing the use of incremental capital given your current share price? A: Atish Shah emphasized a balanced approach, considering internal growth, external growth, share repurchases, and debt reduction. The portfolio is in good condition, and while debt reduction is not an immediate priority, they are open to share repurchases given the current trading below NAV. For the complete transcript of the earnings call, please refer to the full earnings call transcript.