Xenia Hotels & Resorts (XHR – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Buy rating on the stock and has a $17.00 price target.
Ari Klein has given his Buy rating due to a combination of factors including the recent completion of renovations, which are expected to turn previous challenges into growth opportunities for Xenia Hotels & Resorts. The company has shown promising RevPAR growth, with a year-to-date increase of 7.3% and a projected 5.0% growth for 2025, indicating a positive trend despite a slightly weaker EBITDA forecast.
Additionally, the anticipated ramp-up at the Grand Hyatt Scottsdale is expected to contribute significantly to the company’s performance, with stabilized EBITDA projections showing substantial improvement. While the 2025 guidance for EBITDA and FFO is below consensus, the overall outlook remains optimistic as the company benefits from reduced general and administrative expenses, interest, and taxes, which have positively impacted its financial results.
In another report released on February 18, Wells Fargo also maintained a Buy rating on the stock with a $17.00 price target.