Xenia Hotels & Resorts, Inc.

Thank you for your patience, everyone. The Senior Hotels and Resorts Inc. Q4 2025 earnings conference call will begin shortly. In the meantime, you can register to ask questions by pressing star followed by one on your telephone keypad. Hello and welcome to the Xenia Hotels and Resorts. Inc. Q4 2025 Earnings Conference Call. My name is Carla and I will be coordinating your call today. During presentation, 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 Xenia Hotels and Resorts 4th Quarter 2025 Earnings Call and Webcast. I'm here with Marcel Verbas, our Chair and Chief Executive Officer, Barry Bloom, our President and 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 up 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 10-K 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, February 24th, 2026, 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 fourth 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 a 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, Alda, and good afternoon, everyone. As we reflect back on 2025, we are proud of the performance that our portfolio of high-quality hotels and resorts achieved during the year. Adjusted EBITRE exceeded our expectations set at the beginning of the year, as well as our more recent outlook. Significant growth in food and beverage and other revenues contributed to total REFAR growth of 8% for the year. This was driven by strong group demand throughout the portfolio and bolstered by encouraging results at the recently transformed and up-branded Grand Hyatt Scottsdale, which ramped up in line with our underwriting expectations in 2025. Our operating results for the year together with over $120 million in share repurchases at meaningful discounts to NAV and our current share price, allowed us to deliver a double-digit percentage growth in adjusted FFO per share as compared to 2024. In 2025, we continued to build on our track record of continuous portfolio improvement. We sold Fairmont Dallas at an attractive price, resulting in a strong, unlevered IRR during our ownership period. and allowing us to avoid an estimated $80 million of required capital expenditures over the next several years. We also acquired the land under High Regency Santa Clara, removing future uncertainty regarding lease renewal and rent escalations. Additionally, we invested approximately $87 million in our portfolio during 2025 to further improve our assets. These capital expenditures consisted of both guest-facing enhancements as well as substantial investments in property infrastructure that have enhanced the resiliency and efficiency of many of our hotels and resorts. Now turning to our fourth quarter results. This morning we reported net income of $6.1 million for the quarter. Adjusted EBITRE was $63.6 million, and adjusted FFO per share was 45 cents. With both results, either meeting or exceeding the top end of the implied fourth quarter guidance range was provided, when we announced our third quarter results. Strong group and transient demand drove a same-property REFAR increase of 4.5%. Building on the 5.6% growth, our same-property portfolio achieved in the fourth quarter of 2024. Continued substantial growth in non-roamed revenues contributed to a 6.7% increase in same-property total REFAR for the quarter. The continued successful ramp at Grand Hyatt Scottsdale as well as strong performance by our properties in Santa Barbara, Orlando, San Diego, and Santa Clara, were the most significant components of our same property ref bar and total ref bar growth for the quarter. Encouragingly, our hotels in the Houston market also experienced growth in ref bar and total ref bar, as market performance improved after facing difficult year-over-year comparisons in the third quarter. On the same property basis, fourth quarter hotel EBITDA of $68.8 million was 16.3% above 2024 levels, and hotel EBITDA margin was 214 basis points higher as compared to 2024, as revenue growth meaningfully outpaced increases in hotel operating expenses. For the full year 2025, net income was $63.1 million. Adjusted EBITRE was $258.3 million, and adjusted FFO per share was $1.76. With both measures meeting or exceeding the top end of the guidance ranges we provided after our third quarter results, as well as the midpoint of the initial guidance we provided at the beginning of the year. Our same property portfolio achieved a breadth bar increase of 3.9% in 2025, which was just shy of the midpoint of our last issued guidance. growth in food and beverage and other revenues contributed to total Ref Bar growth of 8 percent for the year. Food and beverage revenue for the full year was up a considerable 13.4 percent when compared to 2024, driven by significant increases in banquet and catering revenues, while all other revenues were also up 13.8 percent. In 2025, about half of our 30 hotels and resorts achieved Ref Bar growth as compared to 2024, Our properties in Scottsdale, Denver, Santa Clara, Orlando, San Diego, Santa Barbara, and San Francisco delivered the most substantial increases in total rent per year in the year. And we believe that these markets remain poised for continued growth in the years ahead. On the same property basis, 2025 hotel EBITDA of $274.3 million was 13.5% above 2024 levels. An hotel EBITDA margin was 129 basis points higher as compared to 2024. Our operators continue to do a good job controlling expenses in a continued inflationary environment. Additionally, our corporate initiatives related to real estate taxes, property insurance, and infrastructure ROI projects contributed to our margin improvement in 2025. From a demand segment perspective, 2025 largely played out as we had anticipated at the beginning of the year, with group bringing the leading growth segment, corporate transients showing steady improvements, and leisure demand stabilizing. Group demand was a bright spot for us in 2025, as same property group room revenues increased by 12.8% as compared to 2024. While Grand Hyatt Scottsdale was a significant driver of this increase, We saw strength in group demand throughout the portfolio. Strong group demand is particularly positive for our high-end portfolio, as significant ancillary revenues generally accompany room revenues. As a result, our banquet and catering revenues increased by 17.2% in 2025, as compared to the prior year. And this increase was a significant contributor to our impressive total red bar increase for the year. We continue to reap the benefits from our investments into upgrades and expansions of meeting spaces in our portfolio in recent years. Most notably, the additional ballroom at Hyatt Regency Grand Cypress and the meeting space expansion and upgrades at Grand Hyatt Scottsdale. After a stellar group year in 2025, we are expecting to build on this in 2026 as our group room revenue base continues to be a positive data point for the year. Atish will provide details on our forward group base during his remarks. In 2025, we invested approximately $87 million in capital projects, which included expenditures related to the completion of the final components of the Grand Hyatt Scottsdale renovation. We completed a number of meaningful infrastructure projects throughout the portfolio, as well as minor guest room renovations at seven of our properties with minimal disruptions to operations. While these renovations were limited in scope, we expected the refreshed rooms product of these seven hotels will positively impact the guest experience and the competitive positioning of these properties. We are currently completing a limited guest room and corridor renovation at Fairmont Pittsburgh, which after renovating the meeting space and lobby and adding a Starbucks in recent years will further cement the hotel status as the preeminent luxury hotel on the market. This renovation will be completed in the next few weeks. well in advance of the NFL draft taking place in Pittsburgh in April. We are also nearing completion of the construction of the enhanced food and beverage outlets at WNashville. We are extremely excited about the quality and appeal of the new spaces and believe the collaboration with Jose and Gray's group will be highly beneficial for the hotel, as Barry will discuss in more detail during his remarks. As we turn to 2026, we project that we will invest between 70 and 80 million dollars in total capital expenditures this year. We anticipate that we will incur approximately 1 million dollars of adjusted EBITRE and adjusted FFO displacement in 2026, as our renovation projects are expected to cause limited disruption to guests, given their scope and timing. In addition to the completion of the Nashville and Pittsburgh projects, The most significant projects will be the commencement of the guest room renovations at Condos Napa and the Red Cross in Denver that we postponed last year. These renovations are scheduled to commence late in the year during a time when disruption is expected to be minimal. Turning to our outlook for 2026, our initial guidance is based on a range of 1.5% to 4.5% same-property RFR growth, or 3% at the midpoint. and 2.75% to 5.75% total RFR growth, or 4.25% at the midpoint. Most importantly, our guidance on adjusted FFO per share reflects a 7% increase over 2025 at the midpoint, building on the almost 11% growth we delivered last year. Embedded in this outlook is the expectation of a continued ramp-up in revenues at Grand Hyatt Scottsdale and an expectation of modest REFAR growth for the remainder of the portfolio. Atish will provide more detailed information on our guidance assumptions during his remarks. Looking ahead, we are optimistic about our future growth prospects as lodging demand remains resilient, despite continued uncertainty in the broader overall economic and political climate. We believe that the continued strength in group business, the ongoing recovery in corporate transient demand, And the potential incremental leisure demands from large events such as the FIFA World Cup, the NFL Draft, and America 250 will be positive for a high-quality and well-located portfolio in 2026. We estimate the same property retrofit for the first quarter through February 19th grew approximately 4.6% versus the comparable period in 2025, which is a positive start to the year. We continue to believe that Xenia is primed for meaningful revenue growth in the future, and that we will be able to continue to deliver FFL growth in the years ahead as we build on the positive momentum we experienced in 2025. Barry will now provide more details on our fourth quarter and full-year operating results, the WNashville food and beverage relaunch, and our recently completed and upcoming capital projects.