Xenia Hotels & Resorts: Strong Forward Bookings Signal Promising Year Ahead

Investor attention is turning to Xenia Hotels & Resorts as the real estate investment trust (REIT) prepares to unveil its fourth-quarter and full-year 2025 financial results. The upcoming report, scheduled for February 24, 2026, follows an encouraging business update provided by the company in December. Current indicators, particularly within the group bookings segment, point toward robust growth potential for the 2026 fiscal period.

Operational data released late last year revealed significant gains in a critical industry metric. Through November, revenue per available room (RevPAR) demonstrated considerable strength in the fourth quarter. The company’s same-property RevPAR increased by 5.6%, while its total RevPAR saw an even more substantial advance of 8.1%. These figures highlight the continued resilience and recovery within the luxury hospitality sector, which is Xenia’s core focus.

Group Business Emerges as Primary Growth Engine

A major strategic emphasis for Xenia is its group travel segment, where forward-looking data appears exceptionally positive. As of the October 31, 2025, snapshot, the booked revenue on the books for 2026 events was approximately 15% higher than the comparable level seen at the same point last year. Management is prioritizing this segment to drive future profitability.

Furthermore, the company anticipates that growth in ancillary revenues—generated from areas like food and beverage services and event spaces—could outpace the growth from room bookings alone. A key question for analysts is whether this revenue advantage will be sufficient to offset industry-wide increases in operational expenses.

Should investors sell immediately? Or is it worth buying Xenia Hotels, Resorts?

Luxury Market Outperformance Amid Broader Divergence

The market landscape projected for 2026 is characterized by a notable split. The luxury segment, where Xenia operates, continues to experience solid demand and remains attractive to investors. In contrast, other hotel market segments are facing greater economic pressure. Industry researchers forecast that the global hotel market will expand at an annual rate of about 5.3%.

Despite these favorable revenue trends, rising labor and operational costs present an ongoing challenge to margin expansion. With demand patterns in many markets now normalizing post-pandemic, effective cost management has become an increasingly important focus for hotel operators.

The detailed financial statements and comprehensive guidance for fiscal 2026 will be released on February 24, 2026. This report will provide clarity on whether the strong forward bookings in the group business are translating into the expected earnings contributions as the new year gets underway.