Xenia Hotels & Resorts Q4 2024: Contradictions Unfold on Scottsdale's Recovery, Group Trends, and Leisure Demand

These are the key contradictions discussed in Xenia Hotels & Resorts' latest 2024Q4 earnings call, specifically including: Scottsdale's Stabilization Timeline and Expectations, Group Business Trends, and Leisure Segment Normalization:



RevPAR and Occupancy Growth:
- Xenia Hotels & Resorts reported a same-property RevPAR increase of 5.1% in Q4 2024 compared to the previous year.
- Growth was driven by strong performance at Grand Hyatt Scottsdale and double-digit RevPAR growth in markets like Nashville, Santa Barbara, and Phoenix.

Group Segment Performance:
- For the full year 2024, the company's same-property group room revenues increased by 5% compared to 2023.
- This growth was supported by enhanced group booking pace and a rebound in corporate transient demand.

Capital Expenditure and Renovation Impact:
- Xenia completed significant capital improvement projects, including the transformative renovation of Grand Hyatt Scottsdale with an approximate investment of $150 million.
- The projects are expected to deliver meaningful returns over the upcoming quarters and years.

Leisure Demand Moderation:
- The company experienced a moderation in leisure demand, particularly in markets like Savannah and Phoenix.
- This trend is attributed to a post-COVID normalization in leisure travel behavior, which is expected to stabilize in the future.