Is Xenia Hotels & Resorts, Inc. overvalued or undervalued?

As of 1 August 2025, the valuation grade for Xenia Hotels & Resorts, Inc. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 48, which, while high, is offset by a Price to Book Value of 0.99 and an EV to EBITDA of 4.57. These ratios suggest that the stock is trading at a reasonable price relative to its earnings and assets, especially when compared to peers like InvenTrust Properties Corp., which has a P/E of 19.73, and Acadia Realty Trust, which has a much higher P/E of 57.50.
In terms of performance, Xenia Hotels & Resorts has shown mixed returns, with a 1-year return of 4.22% compared to the S&P 500's 17.14%, and a notable 5-year return of 57.93%, although this is still below the S&P 500's 96.61%. This performance context reinforces the notion that the stock may be undervalued, given its strong long-term growth potential despite recent underperformance relative to the broader market.