Xenia Hotels & Resorts, Inc.

Good afternoon, everyone, and thank you for joining the Xenia Hotels and Resorts Inc. Q1 2026 earnings conference call. My name is Regan, and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. And if you'd like to ask a question, you may do so by pressing star 1 or your telephone keypad. I would now like to pass the conference over to our host, Adel Martinez, Director of Finance. Please proceed.

Thank you, Regan. And welcome to Xenia Hotels and Resorts first quarter 2026 earnings call and webcast. I'm here with Marcel Verbaas, 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, May 1st, 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 first 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, Alo, and good afternoon, everyone. We are pleased to report strong first quarter 2026 results that exceeded our expectations across all key metrics. Our portfolio delivered exceptional first quarter performance driven by strength in both the group and transient demand segments, especially in the month of March. We also saw highly encouraging results at Grand Hyatt Scottsdale Resort as it continues on its path towards stabilization following the completion of its transformative renovation. For the first quarter of 2026, we reported net income of $19.8 million, adjusted the EBITRE of $81.4 million, an increase of nearly 12% to last year, and adjusted FFO per share of 63 cents. which was 23.5% higher than the first quarter of 2025. For the first quarter, our same property ref bar grew 7.4%, with occupancy increasing 180 basis points and average daily rate increasing 4.8% compared to the first quarter of 2025. Additionally, we continue to benefit from strong growth in non-rooms revenues, as evidenced by our same property total ref bar for the quarter growing to $370.13, reflecting an increase of 7.2% as compared to the same quarter last year. Food and beverage revenues increased 6.2% on the same property basis, reflecting continued growth in banquet and catering revenues, as well as our ongoing focus on outlet optimization efforts, while other revenues were up nearly 11% for the quarter. Same property hotel EBITDA for the quarter was $87.8 million, an increase of almost 18% compared to the same period last year. Significant growth in rooms revenues, a large portion of which consisted of rate growth, combined with disciplined expense management, drove an improvement in same property hotel EBITDA margin from 27% in the first quarter of 2025 to 29.7% this year, an expansion of 270 basis points. At Grand Hyatt Scottsdale Resort, Record revenues in hotel EBITDA were achieved for the first quarter, as ramp-up of the overall resort continues. The resort has seen successful execution of occupancy-driven ramp-up plans that have produced significant transient business volumes to supplement the growing base of group demand. These improvements have translated throughout the operation into record food and beverage outlets, spa, recreation, parking, and miscellaneous revenues. Expenses have grown at a slower pace, as much of the occupancy gains have required relatively limited incremental costs. As a result, the resort's hotel EBITDA margin improved significantly during the first quarter. While Grand Hyatt Scottsdale was a significant driver of our first quarter outperformance, we experienced broad-based strength across our portfolio of luxury and upper upscale hotels and resorts. Increased group and transient demand group contributed to Ref Bar and total Ref Bar increases in 15 of our 22 markets. In addition to the Phoenix-Scottsdale market, we experienced double-digit percentage total Ref Bar growth in Salt Lake City, Birmingham, Portland, Santa Clara, Santa Barbara, and Houston, which is indicative of the range of markets and demand segments that contributed to our strong performance for the quarter. Our weakest performance quarter-to-quarter on a year-over-year basis were as anticipated, as these properties either benefited from one-time events last year, such as the Super Bowl in New Orleans and the presidential inauguration in Washington, D.C., or experienced some disruption due to capital projects, specifically Fairmont, Pittsburgh, and W. Nashville. W. Nashville also was impacted by several weather events that negatively impacted performance quarter-to-quarter. We continue to benefit from our portfolio's favorable positioning and diversification as it relates to the various demand segments. Group rooms revenues increased in excess of 7% for the quarter as compared to the same period last year. Bolstering our performance, transient rooms revenues also grew approximately 7% for the quarter, primarily driven by extremely strong performance in March as the timing of Easter and early April appeared to compress high levels of corporate transient leisure demands into the month of March. Now turning to capital expenditures, we continue to expect to spend between $70 and $80 million on property improvements during the year. During the first quarter, we completed the renovation of the M Club at Marriott Dallas downtown and the guest room renovation at Fairmont Pittsburgh, which was completed as planned with limited disruption on budget and in advance of the NFL draft that took place in Pittsburgh last week with record attendance. On our last couple of earnings calls, we expressed our excitement about the reconcepting of the food and beverage outlets at W Nashville. We are pleased to report that all outlets have opened for business and were completed on time and within budget. The new outlets are tremendous new amenities for the hotel, and initial feedback from customers has been extremely positive. Barry will provide additional details on our capital projects, including the Nashville Food and Beverage Reconcepting during his remarks. Looking ahead to the second quarter, we are encouraged by the continuation of the positive momentum our operators are reporting for April. While calendar shifts related to Easter timing and spring breaks contributed to our outstanding results in the month of March, we estimate that April same property REFAR increased nearly 6% as compared to April 2025. The estimated REFAR growth of over 10% that our portfolio experienced during the combined months of March and April is a reflection of strong demand in our markets when eliminating the impact of the timing of Easter compared to last year, with our largest resource benefiting a bit due to safety concerns in Mexico and weather conditions in Hawaii. Turning to our outlook for the remainder of the year, given the stronger than projected first quarter results, we have raised our full year 2026 adjusted EBITRE guidance by $6 million to $266 million at the midpoint. Our guidance for adjusted FFO per share for full year 2026 is now $1.94 at the midpoint. This would represent an increase of approximately 10% over 2025. While we are encouraged by our first quarter performance, as well as demand trends in April, a significant amount of overall market and geopolitical uncertainty continues to exist as we look ahead to the remainder of the year. As such, we have not changed our outlook for the balance of the year when compared to our previously issued guidance. The teacher will walk through all of our current 2026 guidance items in more detail, including our updated views of the anticipated demand list, from one-time events such as the FIFA World Cup and America 250. Although we have not completed any transactions since the sale of Fairmont Dallas last year, we have significantly improved our portfolio through robust acquisition and disposition activities since our listing in 2015. We continue to evaluate potential transactions with an eye toward further portfolio improvements and sustainable earnings growth in the years ahead. the transaction markets and opportunity sets appear to be a bit more robust than they have been in the last couple of years. And we will continue to evaluate these opportunities while being mindful of our balance sheets and other capital allocation priorities. While the macroeconomic environment remains fluid and uncertain, we continue to believe our portfolio is very well positioned for continued earnings growth. The quality of our luxury and upper upscale hotels and resorts in top 25 and key leisure markets combined with our experienced operating partners and a favorable supply backdrop for the next several years, provide a solid platform for continued outperformance in 2026 and in the years ahead. I want to turn the call over to Barry to provide more details on our first quarter operating results and our capital projects.