Significant Recovery in Maui Driven by Marketing Campaigns and Airline Capacity Restoration
Maui's RevPAR grew 19% in the quarter, driven by leisure transient demand and outlet growth.
The recovery is supported by a $6.3 million marketing campaign endorsed by the Hawaii governor and a collaborative marketing effort among hotel owners.
Airline capacity to Maui is down about 20% from pre-wildfire levels, impacting group bookings but expected to improve over time.
The company now projects Maui's contribution to EBITDA to increase from $100 million to $110 million for 2025, indicating strong momentum.
Strategic Acquisition of JW Marriott Desert Ridge in Phoenix
Completed the acquisition, long on the top of the company's list, with a focus on leisure demand and group rotation opportunities.
Expected to be accretive to FY 2026 results, with an estimated contribution of $18-$22 million in adjusted EBITDAre for 2025.
Renovations and capital enhancements underway, including meeting space upgrades and potential resort expansion to accommodate large groups over 1,000 rooms.
Market dynamics in Phoenix support future resort expansion, with the only larger hotel being a 1,000-room Sheraton in downtown Phoenix.
Excluding Grand Hyatt Scottsdale, hotel EBITDA increased 11.5% and hotel EBITDA margin increased 148 basis points.
Food and beverage revenues from groups grew significantly, contributing to an 11% increase in same-property total RevPAR.
Group room revenues increased 15.6% year-over-year, or 7.6% excluding Grand Hyatt Scottsdale.
Property tax refunds of approximately $1.5 million positively impacted EBITDA margin by about 60 basis points.
Rooms department expenses increased just over 3% on 0.4% RevPAR growth; food and beverage revenue growth was 12.7%, banquet revenue growth nearly 20%.
Same-property hotel EBITDA was $84 million, 22.2% above 2024 levels, with a hotel EBITDA margin increase of 269 basis points.
Same-property RevPAR increased 4% driven by a 140 basis point increase in occupancy and a 2% increase in average daily rate.
Second quarter same-property total revenue increased 11% compared to Q2 2024.
Xenia Hotels & Resorts reported net income of $55.2 million for Q2 2025, with adjusted EBITDAre of $79.5 million and adjusted FFO per share of $0.57, a 9.6% increase year-over-year.
Food and beverage revenues increased 9% and other revenues increased 3% in the second quarter.
Occupancy declined less than 0.5% to 78%, representing the second highest nominal occupancy in the past five years.
Operating expenses increased only 1.5% year-over-year or 2% on a per occupied room basis, limiting EBITDA margin contraction to 160 basis points year-over-year.
Same-store RevPAR declined 3.6% year-over-year, driven by a 3.3% decline in average daily rate and a 125 basis point headwind from special events in the prior year.
Second quarter adjusted EBITDA was $50.9 million and adjusted FFO was $32.7 million or $0.27 per share, benefiting from lower interest expense and accretive share repurchases.
Dafinchi