Xenia Hotels & Resorts (XHR): What Recent Earnings Reveal About Valuation and Growth Prospects

Xenia Hotels & Resorts (XHR) just released its third quarter results. The company reported funds from operations that met expectations, while revenue fell a bit short of forecasts. Management struck a careful tone for the months ahead and lowered expectations for Q4 performance.

See our latest analysis for Xenia Hotels & Resorts.

Xenia Hotels & Resorts’ share price has staged a solid recovery over the past month, climbing nearly 10%. However, it is still trailing for the year with a -5% total shareholder return. This recent bounce reflects growing optimism about next year’s growth drivers, even as some near-term caution lingers from management’s latest update.

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With shares still down year-to-date but optimism building for 2026, the key question is whether Xenia Hotels & Resorts is undervalued at current levels or if the market has already accounted for its next phase of growth.

Most Popular Narrative: 6.8% Undervalued

At a current price of $13.98, Xenia Hotels & Resorts is trading notably under the most widely followed narrative’s fair value estimate of $15. This positions the stock for modest upside if the narrative’s assumptions play out.

The company's exposure to high-growth urban and tech-centric markets such as Northern California is starting to pay off, with strong weekday corporate demand linked to the AI and tech sectors boosting occupancy and rates. As business travel continues its gradual rebound, this should drive sustained improvements in RevPAR and EBITDA in these strategically positioned assets.

Read the complete narrative.

Why are analysts expecting such a premium? The answer lies in some bold forecasts about how competitive positioning in tech hubs might shift future earnings, revenue trends, and profit margins. Craving the breakdown behind this valuation leap? Discover which core business levers make this view more optimistic than the market’s and which pivotal figures analysts are betting on.

Result: Fair Value of $15 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer leisure demand and rising labor costs, especially in core markets, could challenge revenue growth and put pressure on Xenia’s operating margins going forward.

Find out about the key risks to this Xenia Hotels & Resorts narrative.

Another View: What Do Market Ratios Say?

Looking from a different angle, Xenia Hotels & Resorts is trading at a price-to-earnings ratio of 23.7x. This is higher than the global industry average of 15.6x and well above its fair ratio of 13.5x. Compared to similar peers, it still looks relatively cheaper. Does the market see growth that the usual metrics are missing, or is there valuation risk building under the surface?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Xenia Hotels & Resorts Narrative

Prefer a hands-on approach? You can review the data and shape your own perspective in just a few minutes. Why not Do it your way

A great starting point for your Xenia Hotels & Resorts research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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