Xenia Hotels & Resorts (NYSE: XHR) stock plummeted 5.81% in pre-market trading on Friday following the release of its third-quarter 2025 financial results. The company reported a net loss of $13.7 million, or $0.14 per share, raising concerns among investors about its performance and future prospects.

While Xenia's adjusted funds from operations (FFO) per share of $0.23 met analyst expectations, it represented an 8% decrease compared to the same period last year. The company's quarterly revenue of $236.417 million slightly missed estimates and showed a marginal decline from the previous year. The disappointing results were partly attributed to weaker performance in the Houston market, which acted as a drag on the overall portfolio.

Adding to investor concerns, Xenia Hotels provided a cautious near-term outlook and slightly reduced expectations for the fourth quarter. The company updated its full-year 2025 adjusted FFO guidance to a range of $1.68 to $1.76 per share, compared to the previous forecast of $1.66 to $1.80 per share. This adjustment, coupled with the company's comments on limited visibility due to macroeconomic uncertainty, likely contributed to the sharp decline in stock price as investors reassessed the company's growth prospects in the face of challenging market conditions.