Xenia Hotels & Resorts, Inc. (XHR): Business Model Canvas [Dec-2025 Updated]

You're looking to see the mechanics behind a top-tier lodging REIT, and Xenia Hotels & Resorts, Inc.'s model is built on owning premium assets and running them leanly. As of late 2025, this strategy is clear: they manage 30 luxury hotels, generating roughly $\mathbf{\$1.07}$ billion in trailing twelve months revenue, with a healthy $\mathbf{44\%}$ of that coming from high-margin non-rooms revenue, not just rooms. They back this up with $\mathbf{\$688}$ million in liquidity as of Q3 2025 and are actively managing capital, even buying back $\mathbf{9.4}$ million shares year-to-date. To really grasp how they translate this into $\mathbf{\$1.31}$ in Adjusted FFO per share for the nine months ended September 30, 2025, you need to see the full picture-the nine building blocks are detailed below.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Key Partnerships

The Key Partnerships for Xenia Hotels & Resorts, Inc. are centered on brand affiliation, operational expertise, capital structure, and investor alignment.

Major hotel brand licensors provide the necessary brand recognition and operational standards across the portfolio. As of late 2025, Xenia Hotels & Resorts, Inc.'s hotels are operated and/or licensed by industry leaders.

The company owns 30 hotels and resorts comprising 8,868 rooms across 14 states as of December 4, 2025. 100% of the portfolio is branded.

Third-party hotel management companies are crucial for daily operations, as Xenia Hotels & Resorts, Inc. believes property-level results help evaluate the effectiveness of these operators. No specific company names were publicly detailed in the required context.

Strategic food and beverage partners are not explicitly detailed with specific names like Jose Andres Group in the latest public updates, though the company's revenue mix shows 44% derived from non-rooms revenues (which includes food and beverage) year-to-date through the third quarter of 2025.

Financial institutions provide the necessary debt financing to support the portfolio. As of September 30, 2025, Xenia Hotels & Resorts, Inc. had total outstanding debt of approximately $1.4 billion. The corporate credit facility, which includes term loans, was put in place through an agreement with a syndicate of banks led by JPMorgan Chase (NYSE:JPM) Bank, N.A.. In January 2025, the company borrowed $100 million under its delayed draw term loan commitment, increasing total outstanding term loans to $325 million.

Institutional investors hold a significant portion of the equity. Institutional investors own about 92.43% of Xenia Hotels & Resorts, Inc. stock. Arrowstreet Capital Limited Partnership is a notable institutional partner, having increased its stake by 76.6% in the second quarter to hold 2,070,540 shares valued at approximately $26.03 million as of that filing.

Other major institutional holders include Vanguard Group Inc, with holdings valued at approximately $236.22 million, and Blackrock Inc, with holdings valued at approximately $235.42 million.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Key Activities

You're looking at the core actions Xenia Hotels & Resorts, Inc. (XHR) takes to run its business, focusing on the hard numbers we see as of late 2025. These aren't abstract goals; they are concrete financial and operational activities that drive the REIT.

Active Asset Management and Capital Recycling of Premium Real Estate

Active asset management involves constantly evaluating the portfolio, which is currently comprised of 30 hotels and resorts with 8,868 rooms across 14 states as of late 2025. Xenia Hotels & Resorts focuses exclusively on the luxury and upper upscale segments, with the portfolio being 100% branded. Capital recycling means buying and selling to optimize the portfolio's quality and returns. For instance, in April 2025, the Company sold the 545-room Fairmont Dallas for $111.0 million, which translated to approximately $203,670 per key. Conversely, the Company acquired the fee simple interest in the land underlying Hyatt Regency Santa Clara in March 2025 for $25 million. This constant repositioning is key to maintaining a premium asset base.

Strategic Capital Expenditure Projects for Property Enhancement

Capital expenditure projects are used to enhance existing assets and drive future performance. A major recent focus was the transformative renovation and up-branding of the Grand Hyatt Scottsdale Resort, which is now reported as Complete. This project included adding five newly created rooms to inventory at that resort in the first quarter of 2025. For portfolio improvements overall, Xenia Hotels & Resorts invested $19.9 million during the three months ended September 30, 2025, and $70.7 million year-to-date. These CapEx figures are inclusive of the work done at the Grand Hyatt Scottsdale.

Corporate Finance and REIT Compliance Management

Managing the balance sheet and meeting REIT requirements are non-negotiable activities. As of the end of the third quarter of 2025, Xenia Hotels & Resorts reported total outstanding debt of approximately $1.4 billion, carrying a weighted-average interest rate of 5.63%. Total liquidity stood at approximately $688 million, which included $188 million in cash and cash equivalents. For the nine months ended September 30, 2025, the Company reported a Net Income of $57 million. The Company declared a third quarter dividend of $0.14 per share for stockholders of record on September 30, 2025. Here's a quick look at some key financial metrics from the third quarter and nine months ended September 30, 2025:

Share Repurchase Program

A significant activity is returning capital to shareholders through buying back stock, which Xenia Hotels & Resorts views as reflecting confidence in its valuation. Year-to-date 2025, the Company has repurchased approximately 9.4 million shares. This volume represents 9.2% of the shares outstanding as of December 31, 2024. Specifically in the third quarter, Xenia repurchased 974,645 shares at a weighted-average price of $12.66 per share, totaling approximately $12.3 million. More recently, through December 4, 2025, the pace accelerated, with approximately 2.7 million shares bought back at a weighted average price of $13.56 per share. As of that date, approximately $97.5 million remained authorized for future repurchases.

Maximizing Non-Rooms Revenue Performance

Xenia Hotels & Resorts actively manages its revenue mix to rely less on just room rates. Year-to-date through the third quarter of 2025, the revenue split was 56% from rooms and 44% from non-rooms sources. This 44% weighting in non-rooms revenue was greater than that of its lodging REIT peers during the period. The performance of this segment has been strong; year-to-date through Q3 2025, the Same-Property non-rooms revenues growth rate was 14.9%, compared to Same-Property rooms revenue growth of 3.4%. Honestly, the non-rooms growth rate was over four times greater than the rooms revenue growth rate. The Company expects this trend to continue, anticipating non-rooms revenue growth to outpace rooms revenue growth again in 2026.

Finance: draft 13-week cash view by Friday.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Key Resources

Xenia Hotels & Resorts, Inc. operates with a foundation built upon tangible assets and a specific corporate structure.

The physical portfolio as of September 30, 2025, consisted of 30 hotels and resorts across 14 states, totaling 8,868 rooms.

Financially, the company maintained total liquidity of approximately $688 million as of September 30, 2025.

The corporate structure is that of a self-advised and self-administered Real Estate Investment Trust (REIT).

The Key Resources can be summarized in the following structure:

The operational strength is heavily reliant on affiliations with major global brands, ensuring access to premium clientele and loyalty programs.

• The portfolio is 100% branded.
• Brand affiliations include Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection.
• The portfolio is focused on the luxury and upper upscale segments.
• The properties are located in the top 25 U.S. lodging markets and key leisure destinations.

The self-advised REIT status is a key structural resource, meaning Xenia Hotels & Resorts, Inc. manages its own investment and asset management functions internally.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Xenia Hotels & Resorts, Inc. (XHR) attracts its customers and commands premium pricing. The value proposition centers on exclusivity, quality, and a superior operational mix.

Premium lodging experience in the luxury and upper upscale segments.

Xenia Hotels & Resorts, Inc. focuses exclusively on high-end assets. As of late 2025, the entire real estate portfolio is classified as 100% luxury and upper upscale, as defined by STR metrics. This focus is deliberate; the company has strategically increased its luxury segment exposure from 26% in 2018 to 37% by 2025. This positioning means you are getting a product that sits at the top tier of the hospitality market, which directly supports higher Average Daily Rates (ADR) and better operational resilience.

Access to high-quality, full-service properties in key urban and leisure markets.

The portfolio is curated for quality and location. As of December 4, 2025, Xenia Hotels & Resorts, Inc. owned 30 hotels and resorts, totaling 8,868 rooms, spread across 14 states. These properties are situated in top U.S. markets and key leisure destinations. The commitment to quality is further evidenced by the fact that 100% of the portfolio is affiliated with premier lodging brands. For instance, Q1 2025 saw a Same-Property ADR of $272.41 and an occupancy rate of 69.3%.

The brands Xenia Hotels & Resorts, Inc. partners with are a key part of this value:

• Marriott
• Hyatt
• Kimpton
• Fairmont
• Loews
• Hilton
• The Kessler Collection

Diverse revenue mix with 44% from high-margin non-rooms sources.

This is a significant differentiator for Xenia Hotels & Resorts, Inc. compared to its lodging REIT peers. Year-to-date through the third quarter of 2025, the revenue split was 56% from rooms and 44% from non-rooms sources, which include food, beverage, and meeting space revenue. This high weighting in non-rooms revenue is structurally important, as its growth rate significantly outpaced rooms revenue growth.

Here's the quick math on the year-to-date performance through Q3 2025, which shows where the high-margin revenue is coming from:

Honestly, the non-rooms revenue growth rate was over four times greater than the rooms revenue growth rate during this period.

High-touch service quality delivered through top-tier brand standards.

The value proposition is intrinsically linked to the operational excellence dictated by the brand affiliations. While specific service scores aren't always public, the commitment is demonstrated through capital investment, such as the W Nashville Food & Beverage reconcepting mentioned in late 2025 guidance updates. The focus on full-service properties inherently means a higher level of on-site amenities and service delivery compared to select-service competitors. For example, Same-Property Total RevPAR increased 8.1% for the fourth quarter through November 30, 2025, versus the comparable period in 2024, suggesting strong overall guest spending.

Strong group demand appeal due to property quality and location.

The luxury and upper upscale portfolio, combined with Sunbelt-oriented locations, makes Xenia Hotels & Resorts, Inc.'s properties highly attractive for group business. Group bookings represent approximately 35% of the company's room night demand. This segment provides excellent visibility for future revenue. As of October 31, 2025, the group rooms revenue pace for 2026 was up approximately 15% compared to the 2025 pace at the same time last year. That forward visibility is a concrete value point for stakeholders.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Customer Relationships

Automated and standardized guest service via brand loyalty programs is supported by Xenia Hotels & Resorts, Inc.'s portfolio structure. The Company owns 30 hotels and resorts comprising 8,868 rooms across 14 states. The entire portfolio is branded, with operations and/or licenses held by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, and Hilton.

Dedicated sales teams focus on high-volume group and convention business, which represents a significant portion of demand. Approximately 35% of Xenia Hotels & Resorts, Inc.'s room night demand is derived from the group segment. The 2026 group rooms revenue pace showed a strong commitment, up approximately 15% as of October 31, 2025, compared to the same time last year. For the second quarter of 2025, group room revenues increased 15.6% (or 7.6% excluding Grand Hyatt Scottsdale Resort & Spa).

Investor relations focus centers on consistent shareholder returns. Xenia Hotels & Resorts, Inc.'s Board of Directors authorized a cash dividend of $0.14 per share for the fourth quarter of 2025. This results in an annual dividend of $0.56 per share, representing a dividend yield of 4.07% as of late 2025. The dividend cover is approximately 1.0.

Performance-driven oversight of third-party management teams is inherent in the structure, as Xenia Hotels & Resorts, Inc. operates as a self-advised and self-administered Real Estate Investment Trust (REIT). The focus on driving diversified revenue streams reflects management's performance mandate. Year-to-date through the third quarter of 2025, the Company's revenues were split 56% from rooms and 44% from non-rooms revenue. The non-rooms revenue growth rate year-to-date through Q3 2025 was over four times greater than the rooms revenue growth rate.

• Hotels operated by industry leaders: Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection.
• Portfolio is 100% luxury and upper upscale segments.
• Q4 through November 30th Same-Property RevPAR increased 5.6% versus the comparable period in 2024.
• Total liquidity was approximately $688 million as of September 30, 2025.
• The Company repurchased approximately 2.7 million shares of common stock quarter-to-date (Q4 update).

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Channels

You're looking at how Xenia Hotels & Resorts, Inc. (XHR) gets its rooms and services in front of customers as of late 2025. It's a mix of high-touch sales and reliance on major booking platforms, which is typical for a portfolio focused on the luxury and upper upscale segments.

Global Distribution Systems (GDS) and major brand reservation systems (Marriott, Hyatt).

Since Xenia Hotels & Resorts, Inc.'s entire portfolio is affiliated with major brands, a significant portion of transient and some group bookings flow through these established electronic channels. The properties are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection. These affiliations provide direct access to the brand's proprietary reservation systems and the broader Global Distribution Systems (GDS) used by travel agents worldwide. Xenia Hotels & Resorts, Inc. owns 30 hotels and resorts comprising 8,868 rooms across 14 states, all within these luxury and upper upscale tiers, making brand system integration a critical channel.

Direct sales channels for corporate and group bookings (accounts for 35% of room nights).

The direct sales effort targets the corporate and group segment, which is a substantial part of the business. As of late 2025, approximately 35% of Xenia Hotels & Resorts, Inc.'s room night demand is derived from the group segment. The forward-looking pace for this channel is strong; group rooms revenue pace was up approximately 15% as of October 31, 2025, compared to the same time last year. This indicates successful direct engagement with meeting organizers and corporate travel planners for Xenia Hotels & Resorts, Inc.'s premium lodging portfolio.

Online Travel Agencies (OTAs) for transient leisure and business travelers.

While the specific commission expense or percentage of room nights from Online Travel Agencies (OTAs) isn't explicitly broken out, revenues from online channels are generally recognized net of commission fees, as noted in Xenia Hotels & Resorts, Inc.'s filings. Given the focus on luxury and upper upscale, OTAs serve as a vital source for transient leisure and business travelers, complementing the direct and brand-system bookings. The overall room revenue for the portfolio in Q3 2025 was 56% of total revenue, which is the pool these transient bookings draw from.

Property-level sales and marketing for local food and beverage/banquet events.

This channel is where Xenia Hotels & Resorts, Inc. sees significant upside, as evidenced by its revenue mix. The focus on property-level sales drives the non-rooms revenue component, which is a strategic differentiator. As of the third quarter of 2025, non-rooms revenues made up 44% of total revenues, a weighting greater than any of its lodging REIT peers. The growth in this area has been exceptional; year-to-date through Q3 2025, the non-rooms revenues growth rate was over four times greater than its rooms revenues growth rate. For instance, same-property non-rooms revenues grew by +14.9% year-to-date, compared to same-property rooms revenue growth of +3.4%. Banquet revenues are specifically mentioned as strengthening this trend.

Here's a quick look at the key 2025 operational metrics that reflect the performance across these channels:

The success of the property-level sales is clearly driving the outperformance in the non-rooms segment. Finance: draft 13-week cash view by Friday.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Customer Segments

High-end group business (corporate meetings, conventions, social events).

Group bookings account for approximately 35% of Xenia Hotels & Resorts, Inc.'s room night demand as of October 31, 2025. The 2026 group rooms revenue pace was up approximately 15% as of October 31, 2025, compared to the 2025 pace at the same time last year. Food and beverage revenue from banquets declined slightly during the third quarter of 2025 compared to the prior year as a result of the mix of group business.

Affluent transient leisure travelers seeking luxury and upper upscale experiences.

Xenia Hotels & Resorts, Inc.'s premium lodging real estate portfolio is 100% luxury and upper upscale as defined by STR. The strategic shift in the portfolio increased luxury segment exposure from 26% in 2018 to 37% by 2025. The company operates hotels in key leisure destinations across 14 states.

Corporate business travelers in major US urban centers.

Xenia Hotels & Resorts, Inc. operates 31 hotels with 9,413 rooms as of March 31, 2025, strategically located in top 25 lodging markets. Corporate demand recovery, particularly in tech markets, remains gradual as of the third quarter of 2025. The company maintains a Sunbelt-oriented footprint.

Shareholders seeking yield from a lodging Real Estate Investment Trust (REIT).

The company declared its third quarter dividend of $0.14 per share for stockholders of record on September 30, 2025. The first quarter dividend was increased by 17% to $0.14 per share. Xenia repurchased approximately 9.4 million shares year-to-date (as of December 4, 2025 update), representing 9.2% of its outstanding shares. The company still has about $97.5 million available for further share repurchases as of December 4th. Institutional ownership is high at 98.32%.

Key metrics relevant to these customer segments for Xenia Hotels & Resorts, Inc. as of late 2025 include:

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Xenia Hotels & Resorts, Inc.'s operations, which is critical for a Real Estate Investment Trust (REIT) heavily reliant on property performance and debt management. The cost structure is dominated by financing costs and the variable nature of hotel operations run by others.

Significant interest expense on approximately $1.4 billion in debt forms a major fixed cost component. As of September 30, 2025, Xenia Hotels & Resorts, Inc. reported total outstanding debt of approximately $1.4 billion. This debt load results in substantial interest outlays that directly impact net income. For the full year 2025, the projected interest expense, excluding non-cash loan related costs, was approximately $81 million. Quarterly interest expense for Q3 2025 was reported at $21.8 million. The structure of this debt is important; about one quarter was at variable rates, and three quarters were at fixed rates at the end of Q3 2025.

The weighted-average interest rate on debt is 5.63% as of Q3 2025. This rate, combined with the principal amount, dictates the recurring financing cost you see on the income statement. Honestly, this interest burden is a primary lever that interest rate movements will affect, even if the company has no preferred equity.

Hotel operating expenses (labor, utilities, maintenance) managed by third parties represent the largest variable cost. Xenia Hotels & Resorts relies on its operator teams to control these property-level expenses. Total operating expenses for the entire portfolio increased to $231.4 million in Q3 2025, up from $228.7 million in Q3 2024. While the company is pleased with operator efforts to control costs in an inflationary environment, these expenses are tied directly to hotel revenue streams.

Capital expenditures for property renovations and upgrades are a necessary, cyclical cost to maintain asset value and competitiveness. For the full year 2025, Xenia Hotels & Resorts projected spending approximately $90 million on property improvements. Year-to-date through Q3 2025, the company had already invested $70.7 million in portfolio improvements. A specific, near-term CapEx is the approximately $9 million investment for the food and beverage reconcepting at W Nashville.

Corporate overhead and REIT administrative costs are relatively fixed and represent the cost of running the corporate entity. The projection for General and administrative expense for the full year 2025, excluding non-cash share-based compensation, was approximately $24 million. This overhead supports asset management, corporate functions, and compliance for the 30-hotel portfolio.

Here's a quick look at the key cost-related financial figures from the Q3 2025 reporting period and full-year guidance:

The management team remains pleased with their operators' efforts to control expenses, even as they invest heavily in property upgrades. The cost structure is definitely influenced by the need to service that $1.4 billion debt load.

Xenia Hotels & Resorts, Inc. (XHR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Xenia Hotels & Resorts, Inc. brings in money, which is key to understanding its financial health right now. The mix of revenue sources shows a deliberate strategy to move beyond just selling beds.

The overall revenue generation for the trailing twelve months (TTM) ended September 30, 2025, was approximately $1.07 billion USD, specifically reported as $1,074.77 million.

The breakdown of revenue streams year-to-date through the third quarter of 2025 highlights a significant contribution from non-room operations, a ratio that sets Xenia Hotels & Resorts, Inc. apart from many of its lodging Real Estate Investment Trust (REIT) peers.

Here's how the revenue was split as of YTD Q3 2025:

The non-rooms revenue component, which makes up 44% of the total, is driven by several operational areas within the hotel properties. For the three months ended September 30, 2025, specific components were:

• Food and Beverage Revenue: $77.8 million.
• Other Revenue: $24.4 million.

The growth rate for non-rooms revenues year-to-date through Q3 2025 was over four times greater than the rooms revenue growth rate. While the prompt mentions rental income from commercial leases within hotel properties as a revenue stream, the specific dollar amount for this component was not found in the latest reports, so we focus on the reported operational revenue segments.

On a profitability metric basis, the Adjusted FFO per diluted share (Funds From Operations) for the nine months ended September 30, 2025, was $1.31, showing a 9.2% increase compared to the same period in 2024.

You can see the quarterly revenue detail for Q3 2025 below, which helps contextualize the percentages: