Xenia Hotels & Resorts (NYSE:XHR) saw its stock price plummet 5.81% in pre-market trading on Friday following the release of its third-quarter earnings report and updated guidance. The hospitality REIT's financial results and cautious outlook have raised concerns among investors about the company's near-term performance.

For the third quarter, Xenia reported adjusted funds from operations (FFO) of $0.23 per share, meeting analyst expectations but marking an 8% decrease from the same period last year. The company's quarterly sales of $236.417 million narrowly missed the consensus estimate of $238.589 million, representing a slight year-over-year decline. More worryingly, Xenia posted a net loss of $13.7 million for the quarter, translating to -$0.14 per share.

Adding to investor concerns, Xenia updated its full-year 2025 guidance, now expecting adjusted FFO in the range of $1.68 to $1.76 per share. This adjustment, which narrows the previous range of $1.66 to $1.80, reflects the company's limited visibility and caution due to macroeconomic uncertainty. Management explicitly stated they remain cautious in their near-term outlook, as evidenced by slightly reduced expectations for the fourth quarter. Despite projecting a 4% increase in Same-Property RevPAR for 2025, the market appears to be focusing on the immediate challenges facing the company.