Xenia Hotels & Resorts (XHR)

Xenia is a REIT that engages in the investment in premium services, lifestyle, and urban upscale hotels. It also owns a diversified portfolio of lodging properties operated by industry leaders such as Marriott, Kimpton, Hyatt, Hilton, Fairmont, and Loews. The company owns 34 hotels comprising 9,814 rooms across 14 states in key leisure destinations in the U.S.

The XHR stock closed up 2.9% at $19.39 on April 19. Year to date, the stock has gained 4.9%, and has gained 8.1% over the past year.

Recently, according to CoStar Group, XHR bought the W Nashville hotel for a whopping $328.7 million in cash, the highest-paid hotel price in the city at $950,000 per room.

In its Q4FY21 results, XHR reported revenue that topped analysts’ expectations, and adjusted funds from operations (FFO) of $0.25 per share came in much better than the prior year’s loss of $0.24 per share. Notably, XHR’s total RevPAR for FY21 grew 173.3% annually to $128.67 but was 18.7% lower than the 2019 figure. Xenia is scheduled to report its Q1FY22 results before the market opens on May 3, 2022.

Based on the limited near-term impact from higher borrowing costs, an uptick in travel demand, and attractive valuations, BMO Capital analyst Ari Klein recently maintained a Buy rating on the XHR stock with a price target of $22, which implies 13.5% upside potential to current levels.

With three unanimous Buys, the XHR stock commands a Strong Buy consensus rating. The average Xenia Hotels & Resorts price forecast of $21.33 implies 10% upside potential to current levels.