What caused XHR's EPS decline in Q2 2024?

Xenia Hotels & Resorts Inc.'s (XHR) EPS declined by 6.84% in Q2 2024 compared to Q2 2023, primarily due to several strategic initiatives and external factors impacting revenue and expenses: 1. **Strategic Initiatives Impact**: Xenia's EPS decline can be attributed to strategic acquisitions and renovations at properties like the Grand Bohemian Hotel Orlando and Canary Hotel Santa Barbara. These projects, although expected to yield positive results in the long term, may have temporarily strained financial performance due to increased costs associated with renovations and the initial setup of new properties. 2. **Market Conditions**: The hospitality industry, including luxury and upper-upscale hotels like Xenia's portfolio, is sensitive to economic conditions and consumer sentiment. In Q2 2024, the lodging demand may have been influenced by broader economic factors, such as inflation, which could have affected occupancy rates and average daily rates, thereby impacting revenue and, consequently, EPS. In summary, XHR's EPS decline in Q2 2024 was likely a result of strategic initiatives and challenging market conditions, despite the company's robust balance sheet and positive long-term growth expectations.