Revenue during the quarter dropped 5.84 percent to $233.95 million from $248.45 million in the previous year period.

Cost of revenue dropped 8.06 percent or $12.55 million during the quarter to $143.14 million. Gross margin for the quarter expanded 148 basis points over the previous year period to 38.81 percent.

Total expenses were $201.82 million for the quarter, down 7.81 percent or $17.10 million from year-ago period. Operating margin for the quarter expanded 185 basis points over the previous year period to 13.73 percent.

Operating income for the quarter was $32.12 million, compared with $29.53 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $72.90 million compared with $74.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 109 basis points in the quarter to 31.16 percent from 30.07 percent in the last year period.

For fiscal year 2016, Xenia Hotels & Resorts expects net income to be in the range of $45 million to $52 million.

Occupancy revenue was $167.07 million for the quarter, down 5.01 percent or $8.81 million. Food and beverage revenue was $55.69 million during the quarter, down 4.81 percent or $2.81 million from year-ago period. Revenue from other hotel operating activities was $11.19 million for the quarter, down 20.51 percent or $2.89 million from year-ago period.

“As anticipated, our third quarter operating results were a reflection of the challenging operating environment in the lodging industry in general and the Houston market in particular," said Marcel Verbaas, President and Chief Executive Officer of Xenia. ”Despite these challenges, we were able to drive continued strong margin performance and improve our competitive positioning in our hotels’ respective markets. These efforts resulted in a 33% Hotel EBITDA margin for our Same-Property portfolio. Excluding our assets in the Houston area, our Same-Property RevPAR increased 2.3% . While the current Houston lodging market is a difficult one, our expense focus continues to be successful and we look forward to the completion of our upcoming renovation of the Westin Galleria in the second quarter of 2017 as an additional driver for future growth for our well-located hotels in the market.”

Total assets declined 5.31 percent or $165.13 million to $2,946.81 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,323.93 million as on Sep. 30, 2016, down 6.18 percent or $87.27 million from year-ago.

Return on assets moved up 14 basis points to 1.11 percent in the quarter. At the same time, return on equity moved up 18 basis points to 1.25 percent in the quarter.

Shareholders equity stood at $1,622.88 million as on Sep. 30, 2016, down 4.58 percent or $77.86 million from year-ago.