Financial Data and Key Metrics Changes - The company reported normalized funds from operations (FFO) of $28.6 million or $0.17 per share, down from $0.30 per share in the prior year quarter [28] - Adjusted EBITDAre declined 7.4% year over year to $130.6 million [28] - Gross operating profit (GOP) margin percentage declined by 160 basis points to 25.3%, with GOP flat compared to the prior year period [29] Business Line Data and Key Metrics Changes - Comparable hotel RevPAR grew 4.2% year over year, with a 6.8% increase when excluding 14 hotels under renovation [9] - Full-service hotels reported a RevPAR increase of 4.3%, while select service portfolio RevPAR increased by 9.6% year over year [10][12] - The extended stay portfolio saw a RevPAR growth of 1.2%, with increased occupancy offsetting a decline in average daily rate (ADR) [13] Market Data and Key Metrics Changes - The company is marketing the sale of 114 Sonesta hotels, expecting to net sales proceeds of at least $1 billion [15][16] - The retained portfolio of 83 hotels experienced a RevPAR increase of 6.3% to approximately $101, with adjusted hotel EBITDA increasing by 10% year over year to $30.6 million [18] Company Strategy and Development Direction - The company aims to strengthen its balance sheet through asset sales and reinvest in hotels with the highest potential for upside [19] - The focus is on acquiring net leased assets and evolving the strategy to grow this portfolio through well-vetted acquisitions [25][80] - The company plans to address 2026 debt maturities with proceeds from hotel sales, followed by capital expenditures to enhance the hotel portfolio [75][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the current renovation program and portfolio rationalization efforts will lead to meaningful occupancy and rate gains in the upcoming year [20] - The company anticipates continued disruption in 2025 at hotels under renovation and expects softer seasonal results through the winter months [33] Other Important Information - The company completed renovations at 28 hotels in 2024, with a total capital expenditure of $303 million for the year [34] - Full-year 2025 capital expenditures are expected to be approximately $250 million, with a focus on maintenance capital and renovation initiatives [35] Q&A Session Summary Question: How would return expectations change for the remaining assets after not spending CapEx for the 115 assets to be sold? - Management indicated that return expectations remain the same, with high single-digit returns expected, but specific projects may yield higher returns [40][41] Question: Can you provide context around the acquisition volume for net leased assets? - Management stated that initial acquisition volumes would be small, with a focus on building out the pipeline in the first half of the year [44] Question: How much of the $150 million borrowed on the line in Q4 has been paid back in Q1? - Management confirmed that $50 million is currently outstanding from the draw made for liquidity management purposes [46] Question: What are the expectations for the debt service coverage ratio throughout this year? - Management expects to maintain a ratio close to 1.5%, indicating a precautionary measure to ensure stability [51] Question: Can you elaborate on the performance of the retained hotels in Q1? - Management noted that the retained hotels are expected to see a year-over-year decline in margins due to seasonal patterns and ongoing renovations [57][58] Question: How is the asset sale process going compared to expectations? - Management reported that the process has gone well, with strong interest from buyers and competitive bidding [64][65] Question: Will any of the $250 million capital expenditures be spent on hotels that are going to be sold this year? - Management indicated that a small percentage, approximately $20 to $25 million, may be spent on exiting properties for necessary maintenance [71] Question: What are the capital priorities for 2025? - Management outlined priorities as addressing 2026 debt maturities, capital expenditures for hotel enhancements, and potentially acquiring more net lease assets [75][80]

Service Properties Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 26, 2025 Sonesta Fort Lauderdale Beach Fort Lauderdale, FL | Service Properties Trust Announces Fourth Quarter 2024 Financial Results | 4 | | --- | --- | | Fourth Quarter 2024 Highlights | 5 | | Key Financial Data 7 | | --- | | Consolidated Statements of Income (Loss) 8 | | Consolidated Balance Sheets 9 | | Debt Summary 10 | | Debt Maturity Schedule 11 | | Leverage Ratios, Coverage Ratios and Debt Covenants ...

Service Properties (SVC) came out with quarterly funds from operations (FFO) of $0.17 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to FFO of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 13.33%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.37 per share when it actually produced FFO of $0.32, delivering a surprise of -13.51%.Over the last four ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-11527 SERVICE PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) Maryland 04-3262075 (I.R.S. Emp ...

ES TRUST Service Properties Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 26, 2025 Table of Contents | QUARTERLY RESULTS | | | | | --- | --- | --- | --- | | | Service Properties Trust Announces Fourth Quarter 2024 Financial Results . | 4 | | | | Fourth Quarter 2024 Highlights | 5 | | | FINANCIALS | | | | | | Key Financial Data | Z | | | | Consolidated Statements of Income (Loss) . | 8 | | | | Consolidated Balance Sheets. | ol | | | | Debt Summary. | 10 | Tr | | | Debt Mat ...

Service Properties Trust (NASDAQ: SVC ), a REIT that specializes in the ownership of hotels and triple net lease retail properties has seen its shares take a nosedive in recent weeks. Back in October, the companyAbout My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publicati ...

Time to venture back to a seldom discussed corner of the REIT equation, REIT management. There are a wide variety of strategies for REITs giving investors an opportunity to target asset classes, strategies, geographies, and more with over 100REITer's Digest is a discussion forum for my thoughts on investments. I spent more than ten years working in the real estate industry, including an S&P500 REIT and a Big Four consulting group. I am light-hearted, open-minded, and a student of the game. Investing is not ...

Financial Performance - Revenue for the quarter ended September 2024 was $491.17 million, a decrease of 1.1% compared to the same period last year [1] - EPS for the quarter was $0.32, compared to -$0.03 in the year-ago quarter [1] - The reported revenue missed the Zacks Consensus Estimate of $497.97 million by -1.36% [1] - The EPS surprise was -13.51%, with the consensus EPS estimate being $0.37 [1] Key Metrics - Hotel operating revenues were $390.94 million, missing the two-analyst average estimate of $397.33 million and representing a -1.2% year-over-year change [3] - Rental income was $100.24 million, slightly below the two-analyst average estimate of $100.69 million and showing a -1.1% year-over-year change [3] - Net Earnings Per Share (Diluted) was -$0.28, compared to the two-analyst average estimate of -$0.21 [3] Stock Performance - Shares of Service Properties have returned -37.3% over the past month, underperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently has a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Service Properties (SVC) came out with quarterly funds from operations (FFO) of $0.32 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to FFO of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -13.51%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.49 per share when it actually produced FFO of $0.45, delivering a surprise of -8.16%.Over the last four ...

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------|--------------------------------------|-------|-------| | | 24225 W. Lorenzo Road /ilmington, IL | | | | IES TRUST | | | | | Service Properties Trust Third Quarter 2024 Financial Results and Supplemental Information | | | | | November 6, 2024 | | | | Table of Contents | --- | --- | --- | --- | --- | |------------|----------------------------------------------------------------------------- ...