Analyst Dori Kesten of Wells Fargo maintained a Buy rating on Xenia Hotels & Resorts (XHR – Research Report), retaining the price target of $12.00.
Dori Kesten has given his Buy rating due to a combination of factors related to Xenia Hotels & Resorts’ strategic decisions and financial outlook. The company recently completed the sale of the Fairmont Dallas for $111 million, which has improved the overall quality of its portfolio and enhanced its EBITDA growth trajectory. This transaction also reduces the company’s near-term capital expenditure needs, providing additional financial flexibility in an uncertain market environment.
Moreover, the sale helps Xenia Hotels & Resorts sidestep potential disruptions from ongoing renovations and expansions at the Dallas convention center, which could have significantly impacted demand. The proceeds from the sale are expected to be used for share repurchases or held as cash, further strengthening the company’s financial position. With limited debt maturities in the near future and no immediate competitive supply growth until 2027, Xenia is well-positioned for medium-term growth, justifying the Buy rating.