CDL Hospitality Trusts (OTCMKTS:CDHSF) & Xenia Hotels & Resorts (NYSE:XHR) Financial Comparison

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

Dividends

Xenia Hotels & Resorts pays an annual dividend of $0.48 per share and has a dividend yield of 3.5%. CDL Hospitality Trusts pays an annual dividend of $0.11 per share and has a dividend yield of 13.3%. Xenia Hotels & Resorts pays out 282.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenia Hotels & Resorts	$1.03 billion	1.38	$19.14 million	$0.17	81.65
CDL Hospitality Trusts	N/A	N/A	N/A	$0.13	6.51

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	1.87%	1.75%	0.81%
CDL Hospitality Trusts	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Xenia Hotels & Resorts and CDL Hospitality Trusts, as reported by MarketBeat.

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

Xenia Hotels & Resorts currently has a consensus target price of $15.70, suggesting a potential upside of 13.11%. Given Xenia Hotels & Resorts’ higher possible upside, research analysts clearly believe Xenia Hotels & Resorts is more favorable than CDL Hospitality Trusts.

Institutional & Insider Ownership

92.4% of Xenia Hotels & Resorts shares are held by institutional investors. Comparatively, 16.5% of CDL Hospitality Trusts shares are held by institutional investors. 2.8% of Xenia Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

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

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.

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.