Many OpenBSD guys tend to like Gentoo Linux, its advantage being rolling updates. If you keep your gentoo regularly updated you'll have no trouble in following new Xen Hypervisor release. My production systems started out at Xen-3.0.x and are now fully up to date to Xen-4.1.2, without ever reinstalling or changing the dom0 operating system.
That's of course possible with each and every distro, but often you'd need to either install Xen by hand, roll your own Xen packages for your distro, or manually back port Xen packages from newer releases of your distro.
Worth of note is also Ubuntu that re-added Xen, so you can find xen-4.1.1 in the recently released Ubuntu 11.10 Oneiric Ocelot.
If jumping to newer Xen releases is not that critical or if you don't mind reinstalling dom0 from time to time, other good choices are the already cited distro of the 'red hat world': RHEL, Fedora, CentOS.