Xenia’s Completed Buybacks and RevPAR Strength Might Change The Case For Investing In Xenia Hotels & Resorts (XHR)

• Xenia Hotels & Resorts recently completed a long-running share repurchase program launched in 2015, retiring about 28.23 million shares for US$377.5 million, after buying back a further 3.72 million shares between July and early December 2025.
• Alongside these repurchases, the company reported that its hotels delivered solid RevPAR gains and a stronger 2026 group bookings pace, with non-rooms revenue again expected to grow faster than rooms revenue.
• We will now examine how Xenia’s robust RevPAR trends and continued buybacks may influence its existing investment narrative and risk profile.

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Xenia Hotels & Resorts Investment Narrative Recap

To own Xenia Hotels & Resorts, you need to believe its upper-upscale portfolio can convert healthy RevPAR and non-rooms growth into durable cash flows despite softer leisure trends and higher labor costs. The completion of a multi-year buyback, retiring about 26.8% of shares since 2015, modestly reinforces the near term equity story but does not materially change the key catalyst of group-driven revenue momentum or the main risks tied to demand volatility and margin pressure.

The most relevant recent update is Xenia’s report of a roughly 15% year-on-year increase in 2026 group rooms revenue pace, alongside expectations that non-rooms revenue will again grow faster than rooms revenue. This reinforces the idea that elevated group and ancillary spending remain central to the bullish thesis, but it also heightens the risk that any moderation in group or catering demand could expose the portfolio’s sensitivity to weaker leisure trends and high fixed costs.

However, investors should also be aware that if group and catering revenues prove less repeatable than expected, then...

Read the full narrative on Xenia Hotels & Resorts (it's free!)

Xenia Hotels & Resorts' narrative projects $1.1 billion revenue and $4.1 million earnings by 2028.

Uncover how Xenia Hotels & Resorts' forecasts yield a $15.00 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members currently place Xenia’s fair value between US$15 and US$23.04 across 2 individual views, highlighting how differently people can assess the same stock. When you set those opinions against the reliance on strong group demand and non rooms revenue to support RevPAR and margins, it becomes even more important to weigh several perspectives on how resilient that earnings mix might be.

Explore 2 other fair value estimates on Xenia Hotels & Resorts - why the stock might be worth as much as 71% more than the current price!

Build Your Own Xenia Hotels & Resorts Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Xenia Hotels & Resorts research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Xenia Hotels & Resorts' overall financial health at a glance.

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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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