Segment Reporting

9 Months Ended

Sep. 30, 2025

The Company invests in uniquely positioned luxury and upper upscale hotels and resorts with a focus on the top 25 lodging markets as well as key leisure destinations in the United States and manages its business activities on a consolidated basis. The Company has identified its Chief Executive Officer as its Chief Operating Decision Maker ("CODM"). The CODM evaluates performance, allocates capital resources and manages the overall investing strategy of each hotel individually. Further, the Company considers each hotel to be an operating segment and aggregates each operating segment into one reportable segment. Each hotel in this reportable segment derives revenues from the sale of room nights at hotel properties, food and beverage revenues and ancillary revenue such as parking, resort or destination amenity fees, golf, spa services and other guest services and tenant leases. Further, each operating segment follows the same accounting policies as those described in Note 2. The measure of segment assets is reported on the balance sheet as total consolidated assets.

The CODM uses Hotel Earnings Before Interest, Taxes, Depreciation and Amortization (“Hotel EBITDA”) to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the reportable segment or into other areas, such as for acquisitions, share repurchases, payment of dividends and other corporate expenditures. The CODM also uses Hotel EBITDA to monitor budgeted versus actual operating results and to facilitate comparisons of operating performance between periods and between competitors.

The following table presents Segment Hotel EBITDA for three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Revenues:
Rooms revenues	$	134,217		$	139,577		$	452,580		$	453,487
Food and beverage revenues	77,768			74,790			284,653			256,643
Other revenues	24,432			22,439			75,690			67,068
Total revenues	$	236,417		$	236,806		$	812,923		$	777,198
Expenses:
Rooms expenses	37,499			37,535			115,977			114,756
Food and beverage expenses	58,103			56,473			190,256			177,587
Other direct expenses	6,860			5,980			20,919			18,824
Undistributed expenses(1)	64,914			66,009			199,707			199,032
Management and franchise fees	7,382			7,362			29,502			27,646
Real estate taxes, personal property taxes and insurance	13,108			13,112			38,765			39,945
Lease/rent expense	299			282			890			866
Ground lease expense	235			802			1,611			2,451
Owner repairs & maintenance	36			37			73			65
Other fixed expenses	1,561			1,171			4,805			3,318
Gain on business interruption insurance	(510)			—			(510)			(745)
Segment Hotel EBITDA	$	46,930		$	48,043		$	210,928		$	193,453
Segment Hotel EBITDA Margin	19.9		%	20.3		%	25.9		%	24.9		%

(1)Primarily includes costs related to general and administrative, sales and marketing, repairs and maintenance, utilities and information technology.

The following table presents Segment Hotel EBITDA reconciled to net income (loss) before income taxes for three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Segment Hotel EBITDA	$	46,930	$	48,043	$	210,928	$	193,453
Adjustments and reconciling items:
Depreciation and amortization	(32,583)		(31,839)		(98,406)		(95,626)
General and administrative expenses	(8,793)		(7,817)		(28,526)		(28,416)
Other operating expenses	(835)		(209)		(2,903)		(2,305)
Impairment and other losses	—		(121)		(279)		(471)
Gain on sale of investment properties	—		1,628		39,953		1,628
Other income	1,887		2,417		6,133		6,104
Interest expense	(21,818)		(20,144)		(64,795)		(60,747)

Net income (loss) before income taxes	$	(15,212)	$	(8,042)	$	62,105	$	13,620

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Xenia Hotels & Resorts, Inc. 10-Q