Xenia Hotels Reports Strong Resort Performance Despite Urban Weakness

Published on November 1, 2025

Xenia Hotels and Resorts, Inc, the extraordinary hospitality REIT has released its Quarter 3, 2025 fiscal performance, which has displayed uneven results of the hotel industry on its hospitality segment. Owning 30 luxury and upmarket hotels in the USA, Xenia, Inc. has reported a quarter loss of around 13.7 million dollars, or 0.14 dollars per share for Q3 2025, primarily for the shortcomings in Houston and other similar regions. Still, it’s the evolution in tourism for the post-pandemic times which keeps places like Scottsdale, Arizona thriving, which keeps the performance of the company at offset.

Xenia highlighted the Increasing post-pandemic tourism demand on hospitality performance across the regions, where in Houston, the demand slumped even with craze around the noted Hurricane Beryl of 2024. Outside Houston, the Xenia Inc. Same-Property RevPAR jumped 2.9 percent, spearheaded by the Grand Hyatt Scottsdale and other resorts which have been recording newly observed renovations and growth.

Resilience in Leisure and Resort Destinations

Xenia Hotels & Resorts has shown resilience in key leisure destinations. The Grand Hyatt Scottsdale, a property located in a premier Arizona tourism area, is continuing its recovery from renovations. With significant year-over-year growth, the property’s performance is a bright spot in Xenia’s portfolio. The company’s focus on high-quality, well-located resorts is evident as its portfolio in these leisure destinations shows robust growth, especially in comparison to more urban, business-heavy markets like Houston.

The hospitality sector has faced a variety of challenges in 2025, particularly in cities with heavy business travel demand, but Xenia has strategically invested in properties that appeal to both leisure and group travel markets, which are seeing stronger performance. Despite challenges, Same-Property Total RevPAR for Q3 2025 increased by 3.7 percent compared to the previous year, marking a positive sign of recovery and growth within the leisure travel segment.

Diversification and Capital Expenditures Drive Growth

As part of its strategic expansion, Xenia Hotels and Resorts has made significant capital investments to enhance its portfolio, focusing on renovations that improve guest experiences and bolster long-term performance. The company has invested nearly 71 million dollars in capital expenditures year-to-date 2025, with a particular focus on transformative projects at high-performing resorts like Grand Hyatt Scottsdale.

Xenia’s decision to modernise its properties is in line with the broader industry trend of improving the guest experience to cater to growing expectations, especially in the luxury and upscale market segments. With investments in both room renovations and food and beverage offerings, Xenia is enhancing its ability to meet the demands of today’s high-end travellers, especially those seeking experiences in sought-after leisure destinations.

Outlook for 2025 and Beyond

Looking ahead, Xenia Hotels and Resorts has revised its full-year 2025 outlook, with expectations of a 4 dollars increase in Same-Property RevPAR and Adjusted EBITDAre of approximately 254 million dollars. Although the company remains cautious due to macroeconomic uncertainty, it is optimistic about the future growth prospects for its luxury portfolio, particularly as destinations like Scottsdale continue to see rising demand.

Xenia’s commitment to investing in its portfolio and expanding its offerings in both the leisure and group travel markets is expected to position the company well for continued growth. With strong fundamentals in key markets, Xenia remains confident that its diversified approach will allow it to navigate ongoing challenges in the broader hospitality sector.

Tourism Trends and Market Dynamics

The third-quarter performance highlights the ongoing challenges in some urban markets, where business travel has not fully recovered to pre-pandemic levels. However, the tourism industry is showing promising signs of recovery in leisure markets, especially those in regions with a strong resort presence. Xenia’s properties in high-demand leisure destinations are capitalising on this trend, with sustained growth in RevPAR and hotel EBITDA margins in markets like Scottsdale, Florida, and Nashville.

The increased focus on food and beverage offerings, such as the recent relaunch at W Nashville with Jose Andrés Group, reflects the growing importance of non-room revenues in driving profitability in luxury hotels. With an expansion of high-quality dining experiences, Xenia is tapping into a broader market segment, enhancing the appeal of its properties to both leisure and business travellers.

Overview

The results presented by Xenia Hotels and Resorts for the Third Quarter of 2025 further exemplify the company’s ability to adjust to evolving market conditions, demonstrating more subdued results in primary cities but exhibiting explosive growth in leisure and resort locations. As the Tourism continues to recover in the United States especially in resort markets Xenia’s calculated capital investments to the portfolio makes the company poised for growth in the future. Along with the strong results from the Grand Hyatt Scottsdale and other sought aft-er resorts, Xenia continues to Harbron with the bright outlook for the company in the luxury hotel industry.