Service Properties Trust
NASDAQ:SVC
Service Properties Trust
Service Properties Trust is a real estate investment trust, which engages in the provision of hospitality and travel services. The company is headquartered in Newton, Massachusetts and currently employs 0 full-time employees. The firm operates through two segments: hotel investments and net lease investments. The company owns a portfolio of hotels and net lease service and necessity-based retail properties. The firm owns over 303 hotels with approximately 48,346 rooms or suites located in over 38 states, Washington District of Columbia (D.C.), Ontario, Canada and Puerto Rico. Its net lease portfolio owned approximately 788 service-oriented retail properties with over 13,522,060 square feet located in approximately 42 states. The Company’s net lease portfolio is occupied by over 174 tenants, which is operating approximately 134 brands in over 21 distinct industries. The Company’s net lease portfolio is leased to tenants that include travel centers, quick service and casual dining restaurants, movie theaters, health and fitness centers, grocery stores, automotive parts and services and other businesses in service-oriented and necessity-based industries.
Service Properties Trust is a real estate investment trust, which engages in the provision of hospitality and travel services. The company is headquartered in Newton, Massachusetts and currently employs 0 full-time employees. The firm operates through two segments: hotel investments and net lease investments. The company owns a portfolio of hotels and net lease service and necessity-based retail properties. The firm owns over 303 hotels with approximately 48,346 rooms or suites located in over 38 states, Washington District of Columbia (D.C.), Ontario, Canada and Puerto Rico. Its net lease portfolio owned approximately 788 service-oriented retail properties with over 13,522,060 square feet located in approximately 42 states. The Company’s net lease portfolio is occupied by over 174 tenants, which is operating approximately 134 brands in over 21 distinct industries. The Company’s net lease portfolio is leased to tenants that include travel centers, quick service and casual dining restaurants, movie theaters, health and fitness centers, grocery stores, automotive parts and services and other businesses in service-oriented and necessity-based industries.
Hotel Sales Progress: SVC remains on track to close sales of 69 hotels by year-end, with 40%–50% expected to close in November and the remainder in December, supporting further deleveraging.
Financial Results: Q3 normalized FFO was $33.9 million ($0.20 per share), down from $0.32 per share last year, with adjusted EBITDAre of $145 million, reflecting lower hotel EBITDA and higher interest expense.
Hotel Performance: RevPAR increased 20 basis points year-over-year, outpacing the industry, but overall hotel EBITDA declined 18.9% due to expense pressures and operational disruption from dispositions.
Net Lease Portfolio: Net lease segment continues to perform steadily, with annual minimum rents of $389 million, over 97% occupancy, and annualized base rent up 2.3% year-over-year.
Balance Sheet Actions: Over $850 million was raised through asset sales and new debt issuance, allowing SVC to fully repay its revolver and retire 2026 notes, improving the debt maturity profile.
Guidance Update: Q4 hotel EBITDA is projected at $20–$25 million with RevPAR of $86–$89; full-year 2025 CapEx guidance was lowered from $250 million to $200 million.
