Head-To-Head Analysis: Xenia Hotels & Resorts (NYSE:XHR) and CDL Hospitality Trusts (OTCMKTS:CDHSF)

CDL Hospitality Trusts (OTCMKTS:CDHSF) and Xenia Hotels & Resorts (NYSE:XHR) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CDL Hospitality Trusts and Xenia Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDL Hospitality Trusts	0	0	0	0	N/A
Xenia Hotels & Resorts	1	3	2	0	2.17

Xenia Hotels & Resorts has a consensus price target of $15.70, suggesting a potential upside of 4.88%. Given Xenia Hotels & Resorts’ higher possible upside, analysts plainly believe Xenia Hotels & Resorts is more favorable than CDL Hospitality Trusts.

Insider & Institutional Ownership

16.5% of CDL Hospitality Trusts shares are owned by institutional investors. Comparatively, 92.4% of Xenia Hotels & Resorts shares are owned by institutional investors. 2.8% of Xenia Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares CDL Hospitality Trusts and Xenia Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CDL Hospitality Trusts	N/A	N/A	N/A
Xenia Hotels & Resorts	2.09%	1.57%	0.72%

Valuation and Earnings

This table compares CDL Hospitality Trusts and Xenia Hotels & Resorts’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDL Hospitality Trusts	N/A	N/A	N/A	$0.13	6.51
Xenia Hotels & Resorts	$1.02 billion	1.49	$19.14 million	$0.19	78.79

Xenia Hotels & Resorts has higher revenue and earnings than CDL Hospitality Trusts. CDL Hospitality Trusts is trading at a lower price-to-earnings ratio than Xenia Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Dividends

CDL Hospitality Trusts pays an annual dividend of $0.11 per share and has a dividend yield of 13.3%. Xenia Hotels & Resorts pays an annual dividend of $0.48 per share and has a dividend yield of 3.2%. CDL Hospitality Trusts pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Xenia Hotels & Resorts pays out 252.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Xenia Hotels & Resorts has raised its dividend for 1 consecutive years. CDL Hospitality Trusts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Xenia Hotels & Resorts beats CDL Hospitality Trusts on 11 of the 13 factors compared between the two stocks.

About CDL Hospitality Trusts

CDL Hospitality Trusts (CDLHT) is one of Asia's leading hospitality trusts with assets under management of about S$3.3 billion as at 31 December 2023. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT.

About Xenia Hotels & Resorts

Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts with a focus on the top 25 lodging markets as well as key leisure destinations in the United States. The Company owns 32 hotels and resorts comprising 9,511 rooms across 14 states. Xenia's hotels are in the luxury and upper upscale segments, and are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, The Kessler Collection, and Davidson.