Food and beverage was the star of the show for Xenia Hotels & Resorts in 2025.
While reporting the hotel real estate investment trust's full-year and fourth-quarter 2025 earnings results, Chairman and CEO Marcel Verbaas noted the company saw food and beverage revenue was up 13.4% year over year for the full year across its 30 properties and total revenue per available room was up 8%.
President and Chief Operating Officer Barry Bloom added the majority of that growth came from Xenia's strength in banquets.
"While we're seeing some growth in the restaurant business, it's really been the growth in banquet and catering food and beverage that's been the star performer in those hotels and across the portfolio," he told analysts during Tuesday's earnings conference call. "I think some of it is driven by our conscious decision to group up across the portfolio. ... It's been largely in corporate business as opposed to association business, which has shown a great willingness right now to spend on food and beverage."
He said this has borne out in more on-property functions — particularly evening events — at the REIT's resorts properties including the Hyatt Regency Grand Cypress, the Grand Hyatt Scottsdale Resort and the Park Hyatt Aviara Resort, Golf Club & Spa.
Xenia is currently investing in re-concepting its food-and-beverage outlets at the W Nashville. The multiple new outlets there will be operated by the José Andrés Group and will be fully open and operating by the end of April.
"We are extremely excited about the quality and appeal of the new spaces, and believe the collaboration with José Andrés Group will be highly beneficial for the hotel," Verbaas said.
Xenia executives expect between $3 million and $5 million in earnings before interest, taxes, depreciation and amortization growth from that F&B relaunch.
The company's total RevPAR — which includes spending other than on room rates — increased 8%, which was significantly higher than its 3.9% of traditional RevPAR growth. Bloom said Xenia's hotels are poised to continue to have outsize out-of-room spend.
"A lot of it is related to our continued growth and success in group business," he said.
That expectation bears out in Xenia's official outlook for 2026, which projects RevPAR growth between 1.5% and 4.5% with total RevPAR growth between 2.75% and 5.75%, according to its earnings release.
The company expects net income between $21 million and $41 million for the full year.
Earnings performance
Xenia officials reported $258.3 million in adjusted EBITDA for real estate in 2025, an 8.9% increase over the prior year, with $63.1 million in net income.
Total revenue for the year came in slightly under $1.1 billion, up marginally from 2024.
The final quarter of 2025 was an overall strong one for the REIT, with 4.5% RevPAR growth and 6.7% total RevPAR growth.
As of press time, Xenia's stock was trading at $15.78 a share, up 13% year over year. The NYSE Composite was up 17.7% for the same period.