Group and corporate transient demand lifted Xenia Hotels & Resorts to a 12.5% same-property RevPAR gain in the third quarter of 2026, well ahead of the company's own projections and setting the stage for a meaningful guidance upgrade heading into year-end.

Same-property RevPAR reached $184.75 for the three months ended September 30, up from $164.15 in the same period of 2025. Occupancy climbed 380 basis points to 70.0%, while average daily rate rose 6.4% to $264.00. Total RevPAR — which captures rooms, food and beverage, and ancillary revenue — jumped 12.7% to $325.71, underscoring how non-rooms revenue streams amplified the top-line recovery. For operators tracking hospitality industry performance benchmarks, those figures represent some of the strongest broad-based gains the upper-upscale segment has posted in recent quarters.

Margin & Earnings Momentum

Disciplined cost management translated the revenue surge into outsized profit improvement. Same-property hotel EBITDA reached $60.2 million, up 29.3% year-over-year, while the same-property hotel EBITDA margin expanded 295 basis points to 22.9%. Adjusted EBITDAre for the quarter hit $53.2 million, a 26.0% increase, and Adjusted FFO per diluted share rose 56.5% to $0.36. Marcel Verbaas, Chairman and Chief Executive Officer of Xenia, credited the results to simultaneous strength in ADR growth, occupancy recovery, and what he described as disciplined expense management. Markets including Philadelphia, New Orleans, San Diego, Santa Clara, Pittsburgh, Houston, Key West, and Orlando led portfolio performance. The momentum carried into October, with management estimating same-property RevPAR up approximately 8% versus October 2025.

Raised Outlook and Capital Activity

On the strength of Q3 and early Q4 outperformance, Xenia raised its full-year 2026 guidance midpoint: Adjusted EBITDAre guidance now stands at $278–$284 million (up $8 million at the midpoint), and Adjusted FFO per diluted share guidance moves to $2.08–$2.14 (up $0.09 at the midpoint). Full-year same-property RevPAR growth is now expected at 7.75%–8.25% versus the prior range of 4.75%–6.25%. The REIT also advanced its renovation pipeline during the quarter, completing a guest room and corridor refresh in the 68-room Monte Vista Building and the T. Cook's restaurant at Royal Palms Resort & Spa. Two significant renovations — at Andaz Napa and The Ritz-Carlton, Denver — remain on track to begin in early December. On the transactions front, Xenia sold the 85-room Kimpton RiverPlace Hotel in Portland, Oregon, in July for $11 million, or approximately $129,400 per key. For food and beverage revenue trends inside hotel properties, Xenia's same-property F&B revenues climbed 15.0% in Q3 to $88.3 million, outpacing rooms revenue growth and reflecting elevated group banquet and meeting activity. As of September 30, 2026, the company held approximately $661 million in total liquidity, including $161 million in cash and full availability on its $500 million revolving credit facility, with total outstanding debt of approximately $1.4 billion at a weighted-average interest rate of 5.55%.

Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.