Xenia Hotels & Resorts, Inc. (NYSE:XHR) has declared a quarterly dividend of $0.14 per share, set to be distributed on January 15, 2024. Shareholders who are on record as of December 31, 2023 will be eligible to receive this dividend, which reflects an annualized yield of 3.8%. The ex-dividend date is also noted as December 31, 2023.
This announcement comes as the company has experienced fluctuations in its dividend policy over recent years. Over the past three years, Xenia has averaged a dividend decrease of 0.2% annually. However, it has managed to increase its dividend consistently for the last three years, a positive sign for investors. Currently, the company’s payout ratio stands at 254.5%, indicating that it is relying on its balance sheet to meet dividend obligations, as earnings alone are insufficient to cover these payments.
Analysts forecast that Xenia Hotels & Resorts will earn $1.59 per share in the upcoming year, suggesting that the company will be able to sustain its $0.56 annual dividend with a projected future payout ratio of 35.2%.
Xenia’s Market Performance and Analyst Insights
As of the latest trading session, shares of Xenia Hotels & Resorts opened at $14.76. The firm boasts a market capitalization of $1.40 billion, with a price-to-earnings ratio of 26.35 and a beta of 1.24. The company’s performance is also reflected in its moving averages, with a 50-day simple moving average of $13.80 and a 200-day simple moving average of $13.49.
In terms of financial health, Xenia Hotels & Resorts maintains a quick ratio of 2.51 and a current ratio of 2.51. Its debt-to-equity ratio is measured at 1.16, while the stock has seen a 52-week low of $8.55 and a high of $15.47.
Recent reports from equity research analysts have provided varied perspectives on the stock. On December 1, 2023, Wells Fargo & Company raised their price target for Xenia from $15.00 to $16.00, assigning an “overweight” rating. Conversely, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on November 9, 2023. Weiss Ratings reaffirmed a “hold” rating on December 22, 2023. Overall, three analysts rate the stock as a “buy,” two as a “hold,” and one as a “sell,” with an average target price of $13.40, according to data from MarketBeat.com.
Company Overview
Founded as a spin-off from Marriott International in September 2016, Xenia Hotels & Resorts is a self-administered real estate investment trust (REIT) that focuses on owning and operating premium full-service hotels across the United States. The company’s portfolio targets upper-upscale and luxury properties, partnering with leading hotel brands to create exceptional guest experiences. Xenia’s strategic approach positions it well in markets with robust leisure and corporate demand.
As investors await the forthcoming dividend payment, Xenia Hotels & Resorts continues to navigate a complex landscape, balancing dividend commitments with operational growth and investor expectations.
