Xenia Hotels & Resorts, Inc.

you can register to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I will now hand you over to your host Aldo Martinez, manager of finance to begin. Please go ahead when you're ready.

Thank you Carla and welcome to Zinnia Hotels and Resorts second quarter 2025 earnings call and webcast. I'm here with Marcel Verbaas, our chair and chief executive officer, Barry Bloom, our chief operating officer and Atish Shah, our executive vice president and chief financial officer. Marcel will begin with a discussion on our performance. Barry will follow with more details on operating trends and capital expenditure projects and Atish will conclude today's remarks on our balance sheet and outlook. We will then open the call for Q&A. Before we get started, let me remind everyone that certain statements made on this call are not historical facts and are considered forward-looking statements. These statements are subject to numerous risks and uncertainties as described in our annual report on form 10k and other SEC filings, which could cause our actual results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the earnings release that we issued this morning, along with the comments on this call, are made only as of today, August 1st, 2025, and we undertake no obligation to publicly update any of these forward-looking statements as actual events unfold. You can find the reconciliation of non-GAAP financial measures to net income and definitions of certain items referred to in our remarks in our second quarter earnings release, which is available on the investor relations section of our website. The property level information we'll be speaking about today is on the same property basis for all 30 hotels, unless specified otherwise. An archive of this call will be available on our website for 90 days. I will now turn it over to Marcel to get started.

Thanks, Aalo, and good morning, everyone. We are pleased with our second quarter performance as our portfolio delivered results that meaningfully surpassed our expectations. Both revenues in Hotel Ibiza increased significantly compared to the same period last year, which is especially encouraging during a time when industry performance continues to be choppy in an uncertain microeconomic climate. Performance at our recently renovated and up-branded Grand Hyatt Scottsdale Resort continues to be on track and was the main driver of our 4% same property ref bar increase for our 30 hotel portfolio for the quarter. This 4% increase was driven by 140 basis point increase in occupancy and a 2% increase in average daily rate. As mentioned in our release this morning, we saw very strong group business demand throughout the portfolio during the quarter. Strengthening group business drove substantial food and beverage revenue increases at a number of our properties, which greatly contributed to an 11% increase in same property total ref bar compared to the second quarter of last year. For the second quarter of 2025, we reported net income of $55.2 million, adjusted EBIT RE of $79.5 million, and adjusted FFO per share of $0.57, which was an increase of .6% compared to the same quarter last year. Second quarter same property hotel EBITDA of $84 million was .2% above 2024 levels, and hotel EBITDA margin increased 269 basis points. Excluding Grand Hyatt Scottsdale, second quarter hotel EBITDA increased .5% and hotel EBITDA margin increased 148 basis points. The majority of our second quarter outperformance was the result of outsized gains in highly profitable catering revenues that substantially exceeded our expectations at a majority of our group-oriented hotels. When coupled with lower than expected expense growth across our portfolio, this fueled solid operating margins and hotel EBITDA growth. Additionally, our EBITDA margin benefited from the timing of approximately $1.5 million in property tax refunds that were received during the second quarter. For the second quarter, same property group room revenues increased .6% as compared to the same period last year, and increased by .6% when excluding Grand Hyatt Scottsdale. Corporate transient demand continues to recover slowly, while leisure demand has continued to normalize over the past several months and into the summer season. Performance at the newly up-branded Grand Hyatt Scottsdale Resort has been encouraging, and revenues and bottom-line performance are tracking in line with our underwriting expectations thus far, although leisure demand in the Phoenix Scottsdale market has been a bit softer this year. The trajectory of group demand continues to improve, both in the quarter and for the future. The property saw group market share improve each month during the second quarter, which culminated in the resort exceeding 2019 group room nights and revenue during the quarter, and achieving a buff fair share in its competitive set for the first time post-renovation in June. The group's success translated to extremely strong bank and catering revenues, with the resort producing the highest such revenues on record for the month of June. We are pleased with the progress that has been made thus far, and remain confident in our investment thesis and the earnings growth that we expect this outstanding property to deliver over the next several years. In addition to the strong growth in Scottsdale during the second quarter, we saw outside the red bar growth in Pittsburgh, Orlando, and our California markets. Fairmont, Pittsburgh had an extremely strong quarter, which was aided by the US Open taking place at Oakmont in June. In our California markets, we experienced particularly strong red bar growth in Santa Barbara, San Francisco, and Santa Clara. On the transaction side, on our last earnings call, we discussed the sale of Fairmont Dows, which was completed early in the second quarter. As a reminder, we sold the hotel for $111 million, generating an unlevered IRR of .3% over our approximately 14-year hold period. We estimate that approximately $80 million of near-term capital expenditures would have been required to maintain and improve the hotel's market position, and we believe that the sale of the hotel was a superior capital allocation decision for the company. Now, turning to our capital expenditure projects, we continue to project that we will spend between $75 and $85 million on property improvements during the year, which as you will recall is an approximately $25 million reduction from the amount we projected at the start of the year. We strongly believe we acted prudently to reduce our capital expenditures in an environment in which tariffs on imported goods remain uncertain and could be meaningful. Our project management team has done an outstanding job in evaluating all ongoing and upcoming projects to mitigate any impact to the extent possible, including identifying alternative sources for goods and materials. Barry will provide an update on our ongoing and upcoming capital project during his remarks. Looking ahead, the second half of the year is shaping up in line with our prior expectations. Group business continues to be a bright spot and is expected to be particularly strong in the fourth quarter. Meanwhile, corporate transient demand is continuing to recover slowly, while leisure demand continues to normalize, consistent with our expectations at the start of the year. We estimate that July ref bar growth for our 30 hotel portfolio was slightly negative compared to the same period last year. While this is a slowdown from the ref bar growth we experienced in the second quarter, we had anticipated this as the summer months are more dependent on leisure demand that, as we expected, is a bit weaker than last year. Additionally, ref bar growth was very strong in the Houston market in July of last year in the aftermath of Hurricane Barrel. When we exclude our Houston hotels, we estimate that ref bar for the remainder of the portfolio increased by approximately 3% in July. Given recent trends, we have increased our full year guidance for adjusted EBIT.RE and adjusted FFO to reflect our outperformance in the second quarter and an unchanged outlook for the second half of the year. While we expect revenue growth to be muted in the third quarter, we are anticipating a stronger fourth quarter as our group revenue pace for the quarter continues to be highly encouraging. We believe that owning a portfolio of luxury and upper upscale hotels and resorts that are not heavily dependent on inbound international and government demand is particularly beneficial in the current economic environment. And we saw the benefits of this in our second quarter results. We continue to be optimistic regarding future growth prospects for our high quality portfolio and our ability to drive shareholder value through superior capital allocation decisions, such as the successful disposition of Fairmont Dallas and the repurchase of almost 6 million shares of our common stock a year today at an attractive valuation. I will now turn the call over to Barry to provide more details on our operating results and capital projects.