Xenia Hotels & Resorts (NYSE: XHR) stock plummeted 6.88% in the pre-market session on Tuesday as the company's 2025 outlook fell short of Wall Street expectations.
The Orlando-based hotel REIT reported adjusted funds from operations (AFFO) of $0.39 per share for the fourth quarter of 2024, meeting analysts' estimates. However, the company's guidance for 2025 AFFO of $1.55 to $1.74 per share was below the consensus forecast of $1.78.
Xenia attributed the lower-than-expected 2025 outlook to macroeconomic uncertainties and the lingering impacts of the transformative renovation at its Grand Hyatt Scottsdale Resort property. The company expects same-property revenue per available room (RevPAR) to grow between 3.5% and 6.5% in 2025, driven by the renovation's completion and strong group demand across its portfolio.
Despite the disappointing guidance, Xenia's fourth-quarter performance showed signs of strength. The company reported same-property RevPAR growth of 5.1% and a 24% hotel EBITDA margin, reflecting robust demand in leisure and business travel segments. Additionally, Xenia successfully addressed its near-term debt maturities and strengthened its balance sheet, positioning itself for strategic opportunities in the future.