Core Viewpoint - Service Properties Trust (SVC) is undergoing a transformation from a hotel-focused business model, which presents potential investment opportunities [1] Group 1 - The company was previously rated as a "buy" indicating positive sentiment towards its future performance [1]

Financial Data and Key Metrics Changes - For Q4 2025, normalized FFO was $27.5 million or $0.17 per share, flat compared to the prior year quarter [20] - Adjusted EBITDAre decreased by $5 million year-over-year to $125.6 million, primarily impacted by an $11.8 million decline in hotel EBITDA [20] - RevPAR for 94 comparable hotels increased by 70 basis points year-over-year, while gross operating profit margin percentage declined by 370 basis points to 20.5% [21] Business Line Data and Key Metrics Changes - The hotel portfolio generated adjusted hotel EBITDA of $21.3 million, a decline of 35% from the prior year due to elevated labor costs and higher overhead costs [21] - The remaining 77 hotels delivered RevPAR of $106, an increase of 170 basis points year-over-year, with adjusted hotel EBITDA of $25 million during the quarter [21] - Annualized base rent for the net lease portfolio increased by 2.4%, largely due to recent acquisition activity, with a portfolio consisting of 760 properties across 42 states [18] Market Data and Key Metrics Changes - The U.S. lodging industry experienced a RevPAR decline of 1.1% year-over-year, with SVC's portfolio outpacing the industry by 180 basis points [11] - The luxury and upper upscale segments were the only segments to post growth, while the business transient segment remained muted due to a prolonged government shutdown [11] Company Strategy and Development Direction - The company is focused on optimizing its portfolio, strengthening its financial profile, and repositioning for long-term growth, including selling additional hotels and improving cash flows [5][7] - In 2026, the company plans to reduce net lease acquisition activity to approximately $25 million, funded through sales of select net lease assets [10][16] - The company is targeting staggered closings for hotel sales in the back half of 2026, estimating total proceeds of $175 million-$200 million for debt reduction [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating improvements in lodging market conditions and stabilization of demand, particularly with large events like the World Cup [14] - The company expects continued improvement in its net lease portfolio through ongoing leasing and sales of non-core assets [15] - Management noted that the new leadership at Sonesta is expected to drive operational discipline and efficiencies across the SVC-owned portfolio [14] Other Important Information - The company completed the sale of 66 hotels for $534 million in Q4 2025, increasing total dispositions for the year to 112 hotels for nearly $860 million [6][7] - The company has $5.2 billion of debt outstanding with a weighted average interest rate of 5.95% [22] - Capital expenditures for Q4 2025 totaled $106 million, bringing the full-year spend to $238 million [24] Q&A Session Summary Question: Can you share how RevPAR has trended in the first quarter to date? - Management indicated that RevPAR is tracking in line with or exceeding projections for the full year guidance [29] Question: Can you walk through the strategy shift regarding net lease acquisition guidance? - Management explained that the $25 million guidance will be supported by sales of net lease properties, reflecting a healthy outlook based on performance [31] Question: What does your guidance assume for expense growth at the midpoint? - Management noted an expectation of over 4% top-line growth, with labor costs being a significant factor impacting margins [32] Question: How might the changes at Sonesta impact SVC? - Management views the new management team at Sonesta positively, expecting incremental benefits but noted that 2026 guidance is based on existing forecasts [33] Question: Can you provide details on the hotel dispositions for 2026? - Management confirmed that the dispositions reflect previously communicated assets and expect a total drag of about $10 million from the sales [55]

Financial Data and Key Metrics Changes - For Q4 2025, normalized FFO was $27.5 million or $0.17 per share, flat compared to the prior year quarter [20] - Adjusted EBITDAre decreased by $5 million year-over-year to $125.6 million [20] - Hotel EBITDA declined by $11.8 million or $0.07 per share, primarily due to elevated labor costs and operational pressures [20] Business Line Data and Key Metrics Changes - SVC's hotel portfolio outperformed the broader U.S. lodging industry, with RevPAR increasing by 70 basis points year-over-year, compared to a 1.1% decline in the industry [11] - The remaining 77 hotels delivered RevPAR of $106, an increase of 170 basis points year-over-year, driven by occupancy gains [21] - The net lease portfolio consisted of 760 properties across 42 states, with annual base rents of $390 million, and was approximately 97% leased [18] Market Data and Key Metrics Changes - The U.S. lodging industry remained soft amid uneven demand trends, with luxury and upper upscale segments showing growth, while the business transient segment was muted [11] - SVC's portfolio continued to deliver steady top-line growth, outpacing the broader industry by 180 basis points [11] Company Strategy and Development Direction - The company is focused on optimizing its portfolio, strengthening its financial profile, and repositioning for long-term growth [5] - In 2026, SVC plans to continue selling additional hotels and executing strategies to improve cash flows and debt maturity profile [7] - The company aims to reduce capital expenditures and limit net lease acquisition activity to approximately $25 million [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating improvements in lodging market conditions and demand stabilization [14] - The company expects to benefit from large events, including the World Cup, which will take place in SVC markets [14] Other Important Information - The company completed the sale of 66 hotels for $534 million in Q4 2025, increasing total dispositions for the year to 112 hotels for nearly $860 million [6][7] - SVC announced a new $745 million five-year mortgage financing secured by its net lease master trust [9] Q&A Session Summary Question: Can you share how RevPAR has trended in the first quarter to date? - Management indicated that RevPAR is tracking in line with or exceeding projections for the full year guidance [29] Question: Can you walk through the strategy shift regarding net lease acquisition guidance? - The company is decreasing capital spend at hotels and adjusting overall acquisition trajectory, with $25 million guidance supported by sales of net lease properties [31] Question: What does your guidance assume for expense growth at the midpoint? - The guidance assumes a little over 4% top-line growth, with labor costs being a significant factor impacting margins [32] Question: How might changes at Sonesta with the new management team impact SVC? - The 2026 guidance is based on budgeted hotel performance, but management views the new leadership as a positive change [33] Question: How much of your RevPAR growth is driven by a higher quality portfolio versus market factors? - Growth is expected from both higher quality hotels and market factors such as the World Cup and other events [39] Question: What is the outlook for capital expenditures in 2026? - The company plans for a significant step down in CapEx, focusing on the Nautilus project and spacing out other renovations [42] Question: How are you thinking about handling upcoming debt maturities? - Management is focused on addressing upcoming maturities through asset sales and refinancing options [48]

Financial Data and Key Metrics Changes - For Q4 2025, normalized FFO was $27.5 million or $0.17 per share, flat compared to the prior year quarter [20] - Adjusted EBITDA decreased by $5 million year-over-year to $125.6 million [20] - Hotel EBITDA declined by $11.8 million or $0.07 per share, primarily due to elevated labor costs and operational pressures [20] Business Line Data and Key Metrics Changes - The hotel portfolio's RevPAR increased by 70 basis points year-over-year, outperforming the broader industry by 180 basis points [11] - For the retained portfolio of 77 hotels, RevPAR increased by 170 basis points year-over-year, driven by occupancy gains [12] - The net lease portfolio consisted of 760 properties across 42 states, with annual base rents of $390 million, approximately 97% leased [18] Market Data and Key Metrics Changes - The U.S. lodging industry saw a RevPAR decline of 1.1% year-over-year, with only luxury and upper upscale segments posting growth [11] - The company expects lodging market conditions to improve in 2026, benefiting from large events like the World Cup [13] Company Strategy and Development Direction - The company completed the sale of 66 hotels for $534 million in Q4 2025, increasing total dispositions for the year to 112 hotels for nearly $860 million [5][6] - Focus will remain on selling additional hotels and improving cash flows, debt maturity profile, and overall cost of capital [6] - The company plans to reduce capital expenditures and limit net lease acquisition activity to approximately $25 million in 2026 [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating stabilization in demand and improved lodging market conditions [13] - The company is focused on optimizing its portfolio and strengthening cash flows, supported by capital market transactions and asset sales [27] Other Important Information - The company announced a new five-year mortgage financing of $745 million, secured by its net lease master trust, to improve its debt maturity profile [9] - The company expects annual cash interest savings of approximately $14 million from recent refinancing efforts [10] Q&A Session Summary Question: How has RevPAR trended in Q1 to date? - Management indicated that RevPAR is tracking in line with or exceeding projections for the full year guidance [30] Question: Can you explain the strategy shift in net lease acquisitions? - The company is decreasing capital spend at hotels and limiting net lease acquisitions to $25 million, supported by sales of net lease properties [32][33] Question: What are the expectations for expense growth? - The midpoint guidance assumes a little over 4% top-line growth, with labor costs being a significant factor affecting margins [34] Question: How will the new management team at Sonesta impact SVC? - The 2026 guidance does not include benefits from the new management team, but management views it positively for future performance [35] Question: What is the outlook for hotel dispositions in 2026? - The company confirmed that the dispositions reflect previously communicated assets and expects strong activity in the market [56][58]

Wilmington, IL Financial Results and Supplemental Information FOURTH QUARTER 2025 February 25, 2026 24225 W. Lorenzo Road | Key Financial Data 9 | | --- | | Consolidated Statements of Income (Loss) 10 | | Consolidated Balance Sheets 11 | | Debt Summary 12 | | Debt Maturity Schedule 13 | | Leverage Ratios, Coverage Ratios and Debt Covenants 14 | | Capital Expenditures Summary 15 | | Property Acquisitions 16 | | Property Dispositions 17 | | Portfolio Summary 19 | | --- | | Consolidated Portfolio Diversificati ...

Debt and Financial Obligations - The company has no limitations on the amount of indebtedness it may incur, but its debt agreements contain financial covenants that restrict additional indebtedness and require maintaining certain financial ratios[56]. - As of December 31, 2025, the company has outstanding fixed rate debt totaling $5,459,809, with an annual interest expense of $321,999[416]. - The company’s fixed rate debt includes senior unsecured notes of $400,000 at 4.950% and senior guaranteed unsecured notes of $700,000 at 8.375%, maturing in 2029[416]. - A hypothetical one percentage point increase in interest rates would increase the annual interest cost by approximately $48,797, excluding $580,155 of senior secured notes due 2027[416]. - The company has no amounts outstanding under its revolving credit facility and $45,000 outstanding under the VFN as of December 31, 2025[418]. - A one percentage point increase in interest rates would raise the total interest expense on the VFN from $2,529 to $2,979 per year[420]. - If fully drawn on the revolving credit facility and the VFN, a one percentage point increase in interest rates would increase annual interest expense from $43,924 to $50,874[421]. - The company is exposed to fluctuations in floating interest rates, particularly SOFR, which could impact operating results[419]. - The company may enter into hedge arrangements in the future to mitigate exposure to changes in interest rates[423]. - The maturity date of the revolving credit facility is June 29, 2027, with options to extend under certain conditions[418]. - The company’s fixed rate debt arrangements may allow for early repayments, potentially mitigating refinancing risks[417]. Business Segments and Competition - As of December 31, 2025, the company had two operating segments: net lease investments and hotel investments[76]. - The company competes in the multi-billion dollar commercial real estate market, facing competition from entities with greater financial resources, which may reduce suitable property acquisition opportunities[63][66]. - The hotel industry is highly competitive, with the company’s hotels facing competition from larger hotel companies and alternative lodging options[65]. - The company has a significant concentration of net lease properties in the travel center industry, competing with major players like Pilot Flying J Inc. and Love's Travel Stops & Country Stores[64]. Corporate Governance and Diversity - RMR, the company's manager, had nearly 900 full-time employees as of December 31, 2025[62]. - The company’s Board of Trustees includes 29% women and 29% members of marginalized communities, reflecting its commitment to diversity and inclusion[72]. - The company recognizes the importance of corporate citizenship and encourages engagement in charitable and community programs[71]. Sustainability Practices - The company emphasizes corporate sustainability as a strategic focus, aligning with RMR's initiatives to minimize environmental impact and enhance operational efficiency[68][69]. - The company’s sustainability practices include reducing energy and water consumption and implementing recycling initiatives[71]. REIT Status and Taxation - The company has elected to be taxed as a REIT under Sections 856 through 860 of the IRC since its 1995 taxable year, and it believes it will continue to qualify as a REIT[84]. - As a REIT, the company generally is not subject to federal income tax on net income distributed as dividends to shareholders, which are included in shareholders' income as dividends[85]. - The company must distribute at least 85% of its REIT ordinary income and 95% of its REIT capital gain net income to avoid a 4% nondeductible excise tax on the excess of required distributions[88]. - If the company fails to qualify as a REIT in any year, it will be subject to federal income tax as a regular C corporation, which could significantly reduce cash available for distribution to shareholders[90]. - The company is subject to various qualification tests under the IRC, and failure to meet these tests could result in significant tax liabilities[87]. - The company’s subsidiaries that are C corporations will be required to pay federal corporate income tax on their earnings, and a 100% tax may be imposed on non-arm's length transactions[88]. - The company has not received a ruling from the IRS regarding its REIT status, and future legislative or administrative actions could affect its tax treatment[84]. - The company’s dividends are not generally entitled to preferential tax rates on qualified dividend income, but a portion may be treated as capital gain dividends[85]. - The company may be subject to tax on undistributed REIT taxable income, including ordinary income and net capital gains[88]. - The company urges shareholders to consult with tax advisors regarding the federal income tax consequences of acquiring, owning, and disposing of its shares[84]. - The company believes it has met all REIT qualification conditions during the requisite periods and will continue to do so in the future[91]. - The company restricts share transfers to comply with ownership requirements, but cannot guarantee that these restrictions will always be effective[91]. - A TRS must not operate or manage health care or lodging facilities, and must comply with specific ownership and operational requirements[99][102]. - At least 75% of the company's gross income must derive from real property investments to maintain REIT status[104]. - The company intends to ensure that all rents and related service charges qualify as "rents from real property" under the IRC[107]. - The company has invested in real estate through partnerships, which affects its qualification requirements[97]. - The company may face penalties of $50,000 for failing to meet certain REIT conditions, rather than disqualification[95]. - The company believes its subsidiaries will qualify as REITs, but acknowledges potential risks if they fail to meet requirements[98]. - The company must ensure that no more than 20% of its total assets are comprised of investments in TRS securities[99]. - The company has implemented restrictions to avoid jeopardizing its REIT status due to ownership rules related to affiliated tenants[106]. - The company believes it has satisfied the 75% and 95% gross income tests since its first taxable year as a REIT[114]. - The company expects rental income from TA and its subsidiaries to continue qualifying as "rents from real property" under Section 856(d) of the IRC[122]. - The company currently owns less than 35% of the outstanding common shares of Sonesta, allowing continued engagement of a corporate subsidiary of Sonesta to manage qualified lodging facilities[123]. - The company maintains records of asset values to document compliance with REIT asset tests and intends to take actions to cure any failures within specified timeframes[120]. - The company’s investments in TRS equity or debt may be treated as real estate assets for REIT asset tests during qualifying periods[114]. - The company must ensure that not more than 25% of total assets are represented by non-qualifying securities[118]. - The company is subject to a 100% penalty tax on dealer gains, but gains from property held through a TRS are exempt from this tax[110]. - The company believes that any recognized gains from asset dispositions will generally qualify as income satisfying the 75% and 95% gross income tests[111]. - The company can qualify for REIT taxation even if it fails the gross income tests due to reasonable cause and timely filing of required schedules[112]. - The company’s rental income from TRS must be comparable to rents paid by non-affiliated tenants to avoid disqualification under the 10% affiliated tenant rule[1]. - The company owns hotels leased to its Taxable REIT Subsidiaries (TRSs) due to lease modifications or expirations, with plans to potentially lease additional hotels to TRSs[124]. - Rents paid by TRSs are intended to qualify as "rents from real property" under REIT gross income tests, requiring the manager to be an "eligible independent contractor" and the hotels to be "qualified lodging facilities"[125]. - The company has engaged a corporate subsidiary of Sonesta as an intended eligible independent contractor, which may impact rental income qualification if IRS opinions are incorrect[127]. - The company expects rental income from current and future TRSs to qualify as "rents from real property," avoiding a potential 100% tax on excessive rents[129]. - To maintain REIT status, the company must make annual distributions equal to at least 90% of its "real estate investment trust taxable income"[130]. - The company may need to arrange new debt or equity financing to meet distribution requirements if liquid assets are insufficient[135]. - Following corporate acquisitions, the company must distribute all inherited C corporation earnings and profits by the end of the taxable year to preserve REIT qualification[141]. - The company depreciates real property on a straight-line basis over forty years, affecting tax treatment and financial reporting[142]. - The classification of leases as true leases for federal income tax purposes is crucial for the company to claim depreciation deductions[143]. - The company expects to make distributions to shareholders, which may include cash and property distributions, with tax treatment varying based on shareholder status[144]. - For noncorporate U.S. shareholders, the maximum federal income tax rate for long-term capital gains and most corporate dividends is generally 15% or 20% depending on income thresholds[145]. - Ordinary dividends are generally taxed at higher federal income tax rates applicable to ordinary income, with some exceptions for qualified REIT dividends[146]. - If capital gain dividends are designated, they will be allocated proportionately among all classes of shares based on total dividends paid[147]. - Distributions in excess of current or accumulated earnings and profits will not be taxable to U.S. shareholders up to their adjusted tax basis in shares[148]. - Non-U.S. shareholders will generally face a 30% withholding tax on ordinary income dividends unless a lower treaty rate applies[159]. - Distributions exceeding a non-U.S. shareholder's adjusted basis in shares may result in U.S. federal income tax liability only if the shareholder is subject to tax on gains from the sale of shares[160]. - Capital gain dividends paid to non-U.S. shareholders will not be subject to withholding if the shares are listed on a U.S. national securities exchange[161]. - Tax treaties may reduce withholding obligations on distributions, but specific conditions may apply for REITs[162]. - Non-U.S. shareholders may be subject to up to 21% withholding tax on distributions designated as capital gain dividends[163]. - If shares are not classified as U.S. Real Property Interests (USRPI), non-U.S. shareholders' gains on sales of these shares will generally not be subject to U.S. federal income taxation[165]. - The company expects to maintain its status as a "domestically controlled" REIT, with less than 50% of share value held by non-U.S. shareholders over the past five years[166]. - Non-U.S. shareholders may offset U.S. federal income tax liability with their proportionate share of tax paid by the company on undistributed capital gains[164]. - Backup withholding may apply to distributions or proceeds paid to shareholders, with the potential for refunds if timely filed[170]. Regulatory Compliance - The company is not an investment company registered under the Investment Company Act of 1940, which affects the treatment of plan assets[182]. - Each class of equity must be analyzed separately to determine if it qualifies as a publicly offered security, which is defined by being widely held and freely transferable[183]. - The company believes its common shares have been and will remain widely held, meeting the requirement of having 100 or more independent investors[184]. - Legislative changes could impact the company's ability to qualify as a REIT and affect tax consequences for shareholders[175]. - Non-U.S. financial institutions must comply with diligence and reporting requirements to avoid a 30% U.S. withholding tax on applicable payments[172].

Exhibit 99.2 Financial Results and Supplemental Information FOURTH QUARTER 2025 February 25, 2026 Table of Contents QUARTERLY RESULTS Service Properties Trust Announces Fourth Quarter 2025 Financial Results ... . . . . . . . . Fourth Quarter 2025 Highlights . 5 Full Year 2026 Guidance FINANCIALS Key Financial Data. Consolidated Statements of Income (Loss) 10 Consolidated Balance Sheets 11 Debt Summary 12 Debt Maturity Schedule 13 Leverage Ratios, Coverage Ratios and Debt Covenants ... 14 Capital Expenditure ...

Core Insights - The upcoming earnings season is expected to reveal negative EPS revisions, indicating potential distress in the near-term performance of several real estate stocks [2] Group 1: EPS Revisions - Negative EPS revisions are prevalent among small and mid-cap REITs, suggesting a challenging outlook for these companies [2] - Service Properties Trust is highlighted as one of the worst-performing REITs based on its EPS revision grades [2]

Core Viewpoint - The article discusses Service Properties Trust (NASDAQ: SVC) and reflects on its previous rating of "Hold" due to concerns despite a high dividend yield of 9.69% [1]. Group 1 - The company has been previously analyzed over two years ago, with a focus on its dividend yield and financial stability [1]. - The author expresses a personal investment strategy aimed at achieving financial independence through dividend stocks, indicating a preference for steady income [1].

Core Viewpoint - The article discusses Service Properties Trust (NASDAQ: SVC) and reflects on its previous rating as a "Hold" due to concerns despite a high dividend yield of 9.69% [1]. Group 1 - The company has been previously analyzed over two years ago, with a focus on its dividend yield and financial stability [1]. - The aim of the analysis is to build a financial portfolio for financial independence, emphasizing the importance of dividend stocks for steady income [1].