Jefferies cuts Xenia Hotels stock target to $18, maintains Reduce rating

Published 26/02/2025, 19:14
Jefferies cuts Xenia Hotels stock target to $18, maintains Reduce rating

On Wednesday, Jefferies analyst firm adjusted its outlook on Xenia Hotels & Resorts shares, reducing the price target to $18 from the previous $20 while maintaining a Reduce rating on the stock. The firm’s assessment acknowledges the current economic environment and its impact on the leisure travel sector, which has influenced the company’s conservative guidance despite some positive factors.

Xenia Hotels & Resorts, which trades on the New York Stock Exchange under the ticker (NYSE:XHR), has been navigating through a year with limited disruptions in its portfolio. The company benefits from a tailwind in Scottsdale, a key location in its collection of properties. However, the updated guidance from the company suggests a cautious stance due to broader macroeconomic concerns.

In his commentary, the Jefferies analyst noted that the company’s conservative outlook is not indicative of a long-term shift in the return on investment for its projects. Instead, it reflects a strategic response to the current economic landscape and its effect on leisure travel. Despite the near-term challenges, the analyst reiterated confidence in Xenia Hotels & Resorts’ strategic approach to capital allocation and its potential for long-term growth.

The firm’s Reduce rating remains in place, suggesting that the analysts at Jefferies believe the stock might not perform as well as other securities in the same sector. The price target adjustment to $18 reflects a more measured expectation of the company’s stock performance in the near future.

Xenia Hotels & Resorts is known for its portfolio of luxury hotels and resorts across the United States. The company’s focus on high-quality properties and strategic investments has been a cornerstone of its long-term growth strategy, as recognized by the Jefferies analyst in their comments.

In other recent news, Xenia Hotels & Resorts Inc . reported a net loss of $638,000 for the fourth quarter of 2024, falling short of analysts’ earnings expectations. The company’s revenue for the quarter was $261.85 million, slightly below the forecast of $263.42 million. Despite these results, Xenia’s full-year net income reached $16.1 million, demonstrating some operational resilience. The company has projected Same Property RevPAR growth of 3.5% to 6.5% for 2025, with significant contributions expected from the renovated Grand Hyatt Scottsdale. Analyst firms have not provided any recent upgrades or downgrades for Xenia Hotels. The company has also completed a substantial renovation of its Grand Hyatt Scottsdale property, which is anticipated to drive future earnings growth. Xenia’s management expressed confidence in its strategic positioning, citing strong group booking pace and capital improvements as key factors for future growth. These developments come amid broader challenges in the hospitality sector, including rising operational costs and competitive pressures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.