Xenia Hotels & Resorts, Inc.XHR

Xenia Hotels & Resorts, Inc. Leases Disclosure

10-KFiled Feb 24, 20262 min read
Leases
The Company leases real property, land and equipment under operating and finance leases.
The following is a summary of the Company's lease related assets and liabilities as of December 31, 2025 and 2024 (dollar amounts in thousands):
Consolidated Balance
Sheet Classification		December 31, 2025December 31, 2024
Assets:
Operating lease assets, net
Other assets
$
12,281 
$
16,807 
Finance leases assets, net(1)
Net investment properties
5,787 
1,267 
Total lease assets
$
18,068 
$
18,074 
Liabilities:
Operating lease liabilities
Other liabilities
$
11,103 
$
17,686 
Finance lease liabilities
Finance lease liabilities
7,606 
1,971 
Total lease liabilities
$
18,709 
$
19,657 
(1)Finance lease assets are net of accumulated amortization of approximately $0.9 million and $0.7 million as of December 31, 2025 and 2024, respectively.
The following is a summary of the Company's weighted-average remaining lease term and weighted-average discount rate as of December 31, 2025:
December 31, 2025
Weighted-average remaining lease term:
Operating leases(1)
24 years
Finance leases
52 years
Weighted-average discount rate:
Operating leases
5.72%
Finance leases
8.44%
(1)     The weighted-average remaining lease term including all available extension options is approximately 55 years.
The following table sets forth the lease costs related to the Company’s operating and finance leases included in the consolidated statements of operations and comprehensive income for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year Ended December 31,
202520242023
Operating lease costs
$1,246 $2,171 $2,148 
Finance lease costs:
Amortization of lease assets
184 
67 
67 
Interest on lease liabilities
544 
228 
210 
Variable lease costs
2,680 
4,402 
4,190 
Total lease costs$4,654 $6,868 $6,615 
Operating lease costs and variable lease costs are primarily included in ground lease expense, real estate taxes, personal property taxes and insurance and general and administrative expenses in the consolidated statements of operations and comprehensive income. Amortization of finance lease right-of-use assets is included in depreciation and amortization and interest on finance lease liabilities is included in interest expense in the consolidated statements of operations and comprehensive income.
The following table sets forth supplemental cash flow information as of December 31, 2025 and 2024 (in thousands):
December 31, 2025December 31, 2024
Right-of-use assets obtained in exchange for new lease liabilities:
Finance leases
$3,016 
— 
The following table shows the remaining lease payments, including reasonably certain extensions for each of the next five years and thereafter reconciled to the operating lease liabilities and finance lease liabilities included in the Company's consolidated balance sheet as of December 31, 2025 (in thousands):
Operating LeasesFinance Leases
2026
$1,444 $659 
2027
1,459 659 
2028
1,342 659 
2029
953 659 
2030
914 659 
Thereafter
15,778 29,280 
Total undiscounted lease payments
$21,890 $32,575 
Less imputed interest(10,787)(24,969)
Lease liability$11,103 $7,606 

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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