Xenia Hotels & Resorts, Inc.

Hello everyone. Thank you for joining us and welcome to Xenia Hotels & Resorts Q2 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Aldo Martinez, Director of Finance. Aldo, please go ahead.

Thank you, Jen. And welcome to Xenia Hotels & Resorts second quarter 2026 earnings call and webcast. I'm here with Marcel Verbaas, our chairman 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 the call up for Q&A. Before we get started, let me remind everyone that certain statements made on this call are not historical facts and were 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 or 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, July 30th, 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 second quarter earnings release, which is available on the investor relations section of our website. The property level information we will 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, Aldo, and good afternoon, everyone. We are pleased to report another quarter of solid operating performance, with Refbar, adjusted EBITRE, and adjusted FFO per share modestly exceeding our expectations from when we last reported in May. Same property Refbar for the quarter was $206.54, an increase of 5.6% compared to the same period last year, driven entirely by rate. Same property ADR was up 5.7% year over year, while occupancy held essentially flat. On a gap basis, we reported a net loss attributable to common stockholders for the quarter of $19.3 million as a result of a non-cash impairment charge related to the sale of Kimpton Riverblaze Hotel, which I will touch on later in my remarks. Adjusted EBIT IRA for the quarter was $78.1 million, about $1 million ahead of the expectations we set when we reported first quarter results. Adjusted FFO per share for the second quarter was $0.61, a 7% increase compared to the second quarter of last year, due to our positive operating results and a lower share count after significant share repurchases at a very attractive price in 2025. Our same property total REF BAR grew 3.3% in the quarter, trailing our same property REF BAR growth of 5.6%. Food and beverage and other revenues grew only modestly in the second quarter. This modest growth in non-rooms revenues was largely a result of more subdued group demand in the quarter, which faced a tough comparison to last year, and our REVPAR growth for a quarter consisting entirely of ADR growth. We expect to see more robust growth in non-rooms revenues again for the remainder of the year. Both our group rooms revenue pace and our banquets and catering pace are quite strong for the third and fourth quarters. The transient segments led ref bar growth in the quarter, bolstered by the unique demand dynamics from the FIFA World Cup. Transient same-property ref bar growth of 6.9% outpaced group ref bar growth of 3.4% for the quarter. We had anticipated that the second quarter would be our weakest from a group perspective on a year-over-year basis. particularly after FIFA released a number of large room blocks as the World Cup approached. Despite the slower growth in group ref bar in the second quarter, it is worth noting that group business continued to build on the 15.6% group room revenue growth we experienced in the second quarter of 2025. Group base for the second half of the year strengthened during the quarter, and we continued to see no signs of pullback from the higher-end consumer, which gives us continued confidence in the health of demand across our portfolio. June was the strongest Ref Bar growth month of the quarter, somewhat bolstered by the FIFA World Cup, as games were played in six of our markets. Our same property portfolio achieved nearly 9% growth in average daily rate in June versus the same month last year. While the World Cup certainly provided compression and rate growth around game days, the overall positive impact on our portfolio was limited, Group business in most of our World Cup markets was weaker, not only because of the FIFA room blocks issue, but also hesitancy from other potential customers to book in those markets during and around the time of the event. While transient demand filled the gap, this came at the expense of out-of-room spend that had been very strong in private quarters. As a result, most of our large group-focused hotels in World Cup markets relatively underperformed, while some of our transient-focused smaller hotels, with exposure to the games, boasted strong results. RefR's strength for the quarter as a whole was broad-based from a market perspective, with Philadelphia leading our portfolio with same-property RefR growth of 22%, followed by Salt Lake City at 13.1%, Phoenix at 12.7%, and Birmingham at 12.2%. We also saw healthy high single-digit to double-digit percentage ref bar increases in several other markets, including Santa Clara, Washington, D.C., and San Diego. Performance in Phoenix continues to be aided by the successful ramp at Grand Hyatt Scottsdale Resort, which is tracking favorably towards stabilization. The year is shaping up to be the strongest group year in the resort's history, while group pays for future periods remains encouraging as well. Turning to margins, Shane Property Hotel EBITDA margin was 28.7% in the second quarter, down 65 basis points from a year ago. The lapping of approximately $1.5 million in real estate tax refunds that we received during the second quarter of 2025 and an increase in expenses during the startup phase of the food and beverage repositioning at W Nashville were the most significant reasons for our margin decline for the quarter. We remain focused on the expense levers within our control and continue to work with our operators to manage discretionary spending appropriately. Turning to capital projects, we continue to reinvest in our portfolio during the quarter, and we have two significant renovations set to begin in the fourth quarter. The first phase of a two-phase comprehensive renovation of guest rooms and corridors at Andaz Napa and a renovation of guest rooms, corridors, and meeting space at the Ritz-Carlton Denver. Both of these renovation projects reflect our ongoing commitment to protecting and growing the long-term value of our portfolio. Given the timing of these renovations during lower demand periods in Napa and Denver, we expect limited cash flow disruption from these projects this year. Barry will provide additional details on all of our capital projects during his remarks. On the transaction front, last week we completed the sale of the 85-room Kimpton River Place Hotel in Portland, Oregon for $11 million, or approximately $129,000 per key. The $11 million sale price represented a 19.4 times multiple on Hotel EBITDA and a 2% capitalization rate on net operating income for the trailing 12 months ended June 30, 2026. River Place was an asset that we acquired in 2015 in a three property portfolio transaction. While the hotel performed well historically, it significantly underperformed in the last few years due to market challenges, its location becoming less desirable, and new competitive supply additions. The hotel contributed minimal hotel EBITDA and was facing substantial near-term capital expenditure requirements and a challenging outlook over the next several years. We continue to maintain exposure to the recovering Portland market through the ownership of our 600-room Hyatt Regency Portland, which benefits from its location adjacent to the Oregon Convention Center and near the Moda Center. The overall transaction environment appears to be a bit more robust than it has been over the past several years. We continue to evaluate opportunities to further enhance the quality of our portfolio and drive superior FFO growth through both external and internal drivers. Throughout the history of our company, we have been active on both the disposition and acquisition fronts in an effort to achieve these objectives, and we expect to take advantage of similar opportunities when they arise in the years ahead. We will remain prudent in our evaluation of these opportunities and we'll continue to focus on maintaining a strong and flexible balance sheet to support our capital allocation decisions. Looking ahead, given the strength of our performance in the first half of the year, continued favorable market conditions and a very strong group demand outlook for the second half of the year, we are raising the midpoint of our current full year 2026 adjusted EBIT IRE guidance by $7 million. Atish will walk through all of our updated 2026 guidance items in more detail during his remarks. We continue to see encouraging trends into the third quarter, which gives us confidence in our improved outlook for the remainder of the year. The third quarter is off to a very strong start, as we estimate that July REF PAR growth for our same property portfolio, which now excludes Kimpton River Place, will be approximately 10% compared to the same period last year. with both leisure and group demand contributing to this increase. We believe that our high quality portfolio continues to be well positioned to take advantage of a low supply growth environment and a positive backdrop in all segments of hotel demand, especially on the higher end. We have experienced strength in both transient and group demand this year, and Future Indicators continue to support our expectation that our portfolio is poised for meaningful growth during the remainder of this year and the years ahead. With that, I'll turn the call over to Barry to walk through our operating results and capital expenditure projects in more detail.