Abstract
Xenia Hotels & Resorts, Inc. is scheduled to release its quarterly results on February 24, 2026 Pre-Market; this comprehensive preview combines the latest reported figures with current-quarter expectations for revenue, margins, and adjusted EPS, and details the company’s segment-level dynamics and near-term stock price drivers.Market Forecast
Consensus projections for Xenia Hotels & Resorts, Inc. indicate current-quarter revenue of $265.81 million, implying a 0.86% year-over-year increase; adjusted EPS is forecast at $0.03, representing an estimated 200.00% year-over-year improvement from a depressed base, while EBIT is projected at $25.15 million, up 9.87% year-over-year. Forecast gross profit margin and net profit margin are not available in the dataset and are therefore omitted.The main business highlight centers on room revenue sensitivity to rate and occupancy across the portfolio, with group and leisure mix shaping the quarter’s revenue-per-available-room dynamics; Food & Beverage is positioned to complement lodging performance via banquet and in-house catering tied to group activity. Among segments, Rooms remains the largest economic contributor and primary lever for upside, with last quarter revenue of $134.22 million; Food & Beverage contributed $77.77 million and Other contributed $24.43 million, with year-over-year segment-level figures not available.
Last Quarter Review
In the prior quarter, Xenia Hotels & Resorts, Inc. reported revenue of $236.42 million, a gross profit margin of 19.43%, a GAAP net loss attributable to shareholders of $13.74 million, a net profit margin of -5.81%, and adjusted EPS of -$0.15; year-over-year, revenue declined by 0.16% while adjusted EPS decreased by 114.29%. A key financial highlight was the quarter-on-quarter change in net profit, which deteriorated by 124.91%, underscoring the pressure from seasonal headwinds and cost mix during the reported period.The company’s business mix remained anchored by Rooms at $134.22 million (approximately 56.77% of total revenue), supported by Food & Beverage at $77.77 million (approximately 32.89%) and Other at $24.43 million (approximately 10.33%); year-over-year performance by segment was not provided in the dataset.
Current Quarter Outlook (with major analytical insights)
Rooms: rate, occupancy, and earnings sensitivity
Rooms revenue is the core driver for Xenia Hotels & Resorts, Inc., shaping both the top line and profitability. With consensus revenue at $265.81 million, up 0.86% year-over-year, the implied trajectory points to incremental contribution from room nights and/or average daily rate needed to overcome prior-quarter softness. Given last quarter’s gross profit margin of 19.43% and net profit margin of -5.81%, even modest sequential improvement in occupancy and rate can have an outsized impact on EBIT, which is forecast to rise to $25.15 million, up 9.87% year-over-year. The translation of revenue to earnings remains sensitive to labor and property-level operating costs that are relatively fixed in the short run, so occupancy lift and improved mix are avenues for margin recovery.Segment data show Rooms at $134.22 million last quarter (56.77% of revenue), positioning it as the key lever to deliver the projected EPS inflection to $0.03. The prior quarter’s adjusted EPS of -$0.15 declined by 114.29% year-over-year, illustrating a tough base period that sets the stage for a larger percentage rebound in the forecast period; this is consistent with the 200.00% year-over-year growth implied by the current-quarter EPS estimate. The economic implication is that operating leverage can reassert itself if room demand normalizes and rate integrity holds through the end of the quarter. Execution risks concentrate around event calendars and booking windows: if in-quarter booking pace strengthens for corporate transient and group activity, conversion to revenue is typically rapid, while any late cancellations or short booking windows would compress rate opportunity and strain margin conversion.
Rate discipline alongside occupancy management is a determining factor for margin. While Rooms tends to carry higher incremental margins compared with Food & Beverage, revenue growth that relies excessively on discounted channels dilutes that benefit. The current forecast does not include gross margin guidance, but the combination of revenue growth and a targeted EPS return to positive territory suggests management efforts to contain variable expenses and optimize rate and occupancy may be gaining traction into the quarter. The net of these factors sets a more constructive backdrop, with the understanding that Rooms performance is the central determinant of whether EBIT achieves the forecasted $25.15 million level.
Food & Beverage and Other: demand capture and cost mix
Food & Beverage generated $77.77 million last quarter (32.89% of total revenue), and it often correlates with Rooms via group and banquet activity. In periods with stronger group calendars—including meetings, events, and holiday functions—F&B sees incremental demand that complements room nights. This dynamic helps lift total revenue even if Rooms growth is modest, but F&B typically operates at lower incremental margins than Rooms due to food costs, labor intensity, and event setup expenses. The balance for the current quarter is that a steady F&B performance can augment overall revenue as Rooms normalizes, while significant outperformance by F&B would depend on the timing and scale of in-house events tied to occupancy levels.Other revenue, at $24.43 million (10.33% of last quarter’s total), encompasses ancillary streams that may include resort fees, parking, and other services. Performance here tends to track overall property utilization and ancillary spending, providing a cushion to total revenue with limited incremental costs, though the absolute contribution remains smaller than Rooms and F&B. As the quarter progresses, ancillary growth hinges on the mix of leisure versus group customers and the extent to which on-property consumption increases with occupancy. While we lack year-over-year segment comparables for the quarter, the structural relationship between segments suggests that if Rooms inches higher as forecast, Other should move in tandem, enhancing revenue capture beyond the headline room rate.
From a cost perspective, F&B and Other segments can either dilute or broaden margin depending on mix and pricing power. With the current-quarter EPS expected at $0.03 and EBIT forecast at $25.15 million, efficient staffing, food cost controls, and upsell strategies will be pivotal. If F&B and Other expand proportionally alongside Rooms without commensurate cost creep, the aggregate margin profile should benefit, supporting the forecast of a positive EPS. Conversely, if volume uplift concentrates in lower-margin F&B events without robust Rooms growth, margin progression would moderate and place the earnings inflection at risk.
What could swing the stock around the print
The stock’s near-term reaction is likely to hinge on the degree of beat or miss versus the revenue estimate of $265.81 million and the EPS estimate of $0.03. Given last quarter’s net loss margin of -5.81% and gross profit margin of 19.43%, investors will parse the relationship between revenue growth and margin conversion closely. A credible path to sustainable margin recovery—evidenced by stable or rising gross profit and a return to positive net earnings—would validate the 9.87% year-over-year EBIT growth expectation and support the notion that operating leverage is re-emerging as occupancy and rate normalize.Management commentary around expense containment, property-level operations, and group/banquet demand will serve as key signposts. Even without a formal gross margin forecast in the dataset, color on labor efficiency, vendor contracts, and operating initiatives can help investors gauge how a 0.86% revenue increase could translate to earnings quality. The portfolio’s mix—particularly the balance of group, corporate transient, and leisure—can alter both the revenue base and cost intensity, leading to a different margin outcome versus a simple linear extrapolation from revenue growth.
Guidance for the subsequent quarter and any qualitative commentary on booking pace, event calendars, or renovation impacts could also influence the equity narrative. If management accompanies the results with indications of stable forward bookings or favorable group pace, the market could read the current-quarter EPS forecast of $0.03 as a stepping stone rather than an isolated improvement. On the other hand, if commentary suggests reliance on low-yield channels or cost pressures that cap gross margin expansion, investors may discount the headline revenue growth and look for more conclusive signs of earnings durability.