[PART I Financial Information](index=3&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's balance sheet expanded significantly due to real estate acquisitions financed by debt, while net income declined year-over-year [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total real estate properties, net** | $8,213,852 | $6,549,589 | | Assets held for sale | $604,989 | $144,008 | | **Total assets** | **$9,515,503** | **$7,177,079** | | Unsecured revolving credit facility | $790,000 | $177,000 | | Senior unsecured notes, net | $5,284,933 | $3,598,295 | | **Total liabilities** | **$6,906,517** | **$4,579,648** | | **Total shareholders' equity** | **$2,608,986** | **$2,597,431** | - The significant increase in **total assets and liabilities** is primarily due to the acquisition of real estate properties, financed through increased borrowings[9](index=9&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Statement of Comprehensive Income Highlights (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Total revenues | $1,735,242 | $1,743,737 | | Total expenses | $1,419,057 | $1,394,645 | | Gain on sale of real estate | $159,535 | $0 | | Unrealized (losses) gains on equity securities, net | ($43,761) | $89,348 | | **Net income** | **$274,643** | **$294,594** | | **Net income per common share (diluted)** | **$1.67** | **$1.79** | - **Net income decreased to $274.6 million** for the nine-month period, driven by unrealized losses on equity securities that offset a large gain on real estate sales[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $432,530 | $403,404 | | Net cash used in investing activities | ($2,457,485) | ($277,857) | | Net cash provided by (used in) financing activities | $2,019,461 | ($137,550) | - A **$2.46 billion cash outflow from investing activities** for property acquisitions was funded by a **$2.02 billion cash inflow from financing activities**, mainly new debt[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company adopted a new lease standard, recording **right-of-use assets and lease liabilities of $77.0 million**[24](index=24&type=chunk)[26](index=26&type=chunk) - Significant acquisitions included the **$2.48 billion SMTA Transaction** for 767 net lease properties and two hotels for approximately $174 million[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - The company **sold 20 travel centers for $308.2 million**, resulting in a **gain of $159.5 million**[59](index=59&type=chunk) - The company **issued $1.7 billion in senior unsecured notes** to fund the SMTA Transaction, incurring an $8.5 million loss on early debt extinguishment[49](index=49&type=chunk)[50](index=50&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of the transformative SMTA acquisition, financed by new debt, on financial results and portfolio performance [Overview and Portfolio Performance](index=32&type=section&id=Overview%20and%20Portfolio%20Performance) - The company completed a **$2.48 billion acquisition** of a 767-property net lease portfolio, significantly expanding its retail holdings[147](index=147&type=chunk) - As of September 30, 2019, the company owned **328 hotels and 946 service-oriented retail properties**[146](index=146&type=chunk)[155](index=155&type=chunk) Hotel Performance vs. Prior Year | Period | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | :--- | | **Q3 (322 Comparable Hotels)** | RevPAR | $98.78 | - | -0.3% | | | ADR | $126.80 | - | -1.6% | | | Occupancy | 77.9% | - | +1.0 p.p. | | **Nine Months (320 Comparable Hotels)** | RevPAR | $94.52 | - | -1.9% | | | ADR | $127.39 | - | -0.7% | | | Occupancy | 74.2% | - | -0.9 p.p. | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q3 2019 vs Q3 2018 Financial Comparison (in thousands) | Metric | Q3 2019 | Q3 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $599,772 | $603,153 | (0.6%) | | Hotel Operating Revenues | $525,290 | $520,618 | 0.9% | | Rental Income | $73,619 | $81,322 | (9.5%) | | Net Income | $40,074 | $117,099 | (65.8%) | | Net Income per Share | $0.24 | $0.71 | (66.2%) | - The **sharp decrease in Q3 2019 net income** was primarily due to unrealized losses on equity securities and a loss on early debt extinguishment[157](index=157&type=chunk) Nine Months 2019 vs 2018 Financial Comparison (in thousands) | Metric | Nine Months 2019 | Nine Months 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $1,735,242 | $1,743,737 | (0.5%) | | Gain on sale of real estate | $159,535 | $0 | N/A | | Net Income | $274,643 | $294,594 | (6.8%) | | Net Income per Share | $1.67 | $1.79 | (6.7%) | - For the first nine months, **net income decreased despite a $159.5 million gain on real estate sales**, due to unrealized losses and higher interest expense[175](index=175&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) - Principal funding sources are property returns and credit facility borrowings, which management believes are sufficient for the next year[201](index=201&type=chunk) - The company plans to **sell approximately $300,000 of hotels** to reduce leverage and is exiting its relationship with Wyndham[197](index=197&type=chunk)[219](index=219&type=chunk) - The company **funded $123.2 million for capital improvements** to its hotels during the first nine months of 2019[206](index=206&type=chunk) - As of November 7, 2019, the company had **$700 million outstanding** and **$300 million available** under its $1 billion revolving credit facility[46](index=46&type=chunk) [Non-GAAP Financial Measures](index=58&type=section&id=Non-GAAP%20Financial%20Measures) FFO and Normalized FFO Reconciliation (in thousands, except per share) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $40,074 | $117,099 | $274,643 | $294,594 | | FFO | $147,184 | $174,653 | $460,590 | $505,554 | | **Normalized FFO** | **$155,635** | **$174,653** | **$469,041** | **$505,714** | | FFO per share | $0.90 | $1.06 | $2.80 | $3.08 | | **Normalized FFO per share** | **$0.95** | **$1.06** | **$2.85** | **$3.08** | - **Normalized FFO for Q3 2019 was $155.6 million**, or $0.95 per share, down from $174.7 million, or $1.06 per share, in the prior year[282](index=282&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate volatility affecting its $1.19 billion in floating-rate debt - As of September 30, 2019, the company had **$5.35 billion in fixed-rate senior notes**, whose fair value is sensitive to interest rate changes[287](index=287&type=chunk) - The company had **$1.19 billion in floating-rate debt**; a **1% increase in interest rates would increase annual interest expense by approximately $11.9 million**[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - The company acknowledges the **expected phase-out of LIBOR** and anticipates amending its credit agreements to use an alternative benchmark rate[294](index=294&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[296](index=296&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that have materially affected, or are likely to affect, internal controls[297](index=297&type=chunk) [PART II Other Information](index=67&type=section&id=PART%20II%20Other%20Information) [Item 1A. Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) The company faces new risks from the SMTA acquisition, including integration challenges, increased debt, and potential dividend unsustainability - The **SMTA Transaction has introduced new risks**, including integration difficulties and the possibility it may not be accretive to Normalized FFO per share[313](index=313&type=chunk)[314](index=314&type=chunk) - The company **incurred significant additional indebtedness** to fund the acquisition, increasing financial vulnerability and leading to negative rating agency actions[317](index=317&type=chunk)[318](index=318&type=chunk) - There is a risk the company **may not achieve its plan to sell approximately $800 million of assets** to reduce debt levels[317](index=317&type=chunk) - The company cautions it **may not be able to continue paying distributions at its current rate** due to increased debt and other business risks[320](index=320&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 29,334 common shares to satisfy tax withholding obligations related to vested employee share awards Issuer Purchases of Equity Securities (Q3 2019) | Month | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2019 | 5,041 | $25.20 | | September 2019 | 24,293 | $25.64 | | **Total** | **29,334** | **$25.56** | [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists key legal documents filed with the report, including debt indentures and amended lease agreements - Key exhibits filed include **supplemental indentures for the new notes issued in September 2019**[324](index=324&type=chunk) - The filing includes multiple **amended and restated lease and guaranty agreements with TravelCenters of America Inc**[324](index=324&type=chunk) - An **amendment to the management agreement with InterContinental Hotels Group** and an updated pooling agreement with Sonesta were also filed[324](index=324&type=chunk)

Service Properties Trust (NASDAQ:SVC) Q3 2019 Earnings Conference Call November 8, 2019 10:00 AM ET Company Participants Kristin Brown - Investor Relations John Murray - President & Chief Executive Officer Brian Donley - Chief Financial Officer Todd Hargreaves - Vice President Conference Call Participants Bryan Maher - B. Riley, FBR Operator Good day and welcome to the Service Properties Trust Third Quarter 2019 Financial Results Conference Call and Webcast. All participants will be in listen-only mode. [Op ...

SVC Nasdaq Listed Service Properties Trust Third Quarter 2019 Supplemental Operating and Financial Data Sonesta Suites Scottsdale Gainey Ranch Scottsdale, AZ Operator: Sonesta International Hotels Corporation Guest Rooms: 164 All amounts in this report are unaudited. TABLE OF CONTENTS TABLE OF CONTENTS PAGE CORPORATE INFORMATION 3 Company Profile 4,5 Investor Information 6 Research Coverage 7 FINANCIALS Key Financial Data 9 Condensed Consolidated Balance Sheets 10 Condensed Consolidated Statements of Income ...

Hospitality Properties Trust (HPT) Q2 2019 Earnings Conference Call August 9, 2019 10:00 AM ET Company Participants Katie Strohacker - Senior Director of Investor Relations John Murray - President and Chief Executive Officer Brian Donley - Chief Financial Officer Todd Hargreaves - Vice President Conference Call Participants Bryan Maher - B. Riley FBR Michael Bellisario - Baird Dori Kesten - Wells Fargo Operator Good day, and welcome to Hospitality Properties Trust Second Quarter 2019 Financial Results Confe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-11527 HOSPITALITY PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) Marylan ...

Financial Data and Key Metrics Changes - The company reported first quarter normalized FFO of $0.88 per share, a decrease of 6.4% compared to $0.94 in the first quarter of 2018, primarily due to the sale of 20 travel centers and lease amendments with TravelCenters of America [9][41] - Normalized FFO was $144.6 million in Q1 2019 compared to $154.9 million in Q1 2018, reflecting a decrease of $0.06 per share [41] - Adjusted EBITDAre was $195.9 million in Q1 2019, a 3.5% decrease from the previous year [42] Business Line Data and Key Metrics Changes - Comparable RevPAR for HPT's hotels decreased by 3.2% in Q1 2019, driven by a 2.9 percentage point decline in occupancy, partially offset by a 1% increase in rate [11][29] - The comparable Radisson and Wyndham portfolios had the weakest RevPAR performance with declines of 12.6% and 9.9% respectively [30] - RevPAR for hotels not impacted by renovation increased by 1.6%, while RevPAR for 16 hotels that completed renovations in Q1 2018 increased by 9.2% [14] Market Data and Key Metrics Changes - The company experienced negative weather-related impacts, including the loss of FEMA and hurricane recovery demand from 2018 and disruptions from winter storms in 2019 [13] - Comparable IHG portfolio RevPAR was down 4.9%, primarily due to a decrease in rate and occupancy [20] - Non-fuel travel center revenue increased by 3.1% versus the prior year, driven by growth in store and repair shop revenue [39] Company Strategy and Development Direction - The company plans to continue renovations, with only 15 hotels under renovation in Q2 2019 compared to 22 last year, expecting positive lift from 49 hotels that completed renovations in 2018 [26] - The management is cautious about the acquisition market, focusing on maintaining leverage levels and being mindful of renovation costs [64] - The company aims for RevPAR growth between 2% and 3% for 2019, despite current headwinds [27] Management Comments on Operating Environment and Future Outlook - Management noted that the first quarter is traditionally the weakest, and renovation activities contributed to the decline in performance [36] - There are concerns about margin pressures from wages and benefits, as well as increased operating costs [63] - The company remains optimistic about meeting projections due to active asset management and strong brand presence [27] Other Important Information - The company sold 20 travel centers for $308.2 million and recorded a gain of $159.5 million in Q1 2019 [44] - The company funded $44.7 million of hotel improvements in Q1 2019 and expects to fund approximately $204 million for the rest of the year [43] - The company has $72 million in cash, including $48.2 million escrowed for future improvements [44] Q&A Session Summary Question: Why was there no security deposit added for the Milwaukee acquisition? - The company negotiated for IHG to share 50% of the renovation costs, opting for co-investment instead of a security deposit [51] Question: What is the estimated cap rate of return expectation for the Milwaukee property? - The going-in cap rate was in the mid-7s, with an expected 8% return on investment from IHG [52] Question: What is the status of discussions with Wyndham regarding restructuring? - Discussions are ongoing, with both sides considering the possibility of disposing of weaker-performing properties and potentially adding new ones [55] Question: How does the company view its acquisition appetite for 2019? - The company is cautious about acquisitions due to the late cycle and economic uncertainty but expects to invest a couple of hundred million dollars in hotels [64] Question: Who are the more aggressive buyers in the marketplace? - The company has seen institutional investors, private equity, family offices, and high net worth individuals being more aggressive in the acquisition market [65]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-11527 HOSPITALITY PROPERTIES TRUST Large accelerated filer ☒ Accelerated filer ☐ (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdi ...

Hospitality Properties Trust First Quarter 2019 Supplemental Operating and Financial Data | --- | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Sonesta Suites Scottsdale Gainey Ranch Scottsdale, AZ Operator: Sonesta International Hotels Corporation Guest Rooms: 164 | | | | All amounts in this report are unaudited. TABLE OF CONTENTS | --- | --- | ...

Hospitality Properties Trust (HPT) Q4 2018 Earnings Conference Call February 27, 2019 10:00 AM ET Company Participants Katie Strohacker - Senior Director of Investor Relations John Murray - President and Chief Executive Officer Brian Donley - Treasurer and Chief Financial Officer Conference Call Participants Michael Bellisario - Baird Bryan Maher - B. Riley FBR Operator Good morning, and welcome to the Hospitality Properties Trust Fourth Quarter 2018 Financial Results Conference Call. [Operator Instructions ...

Table of Contents 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, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-11527 HOSPITALITY PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland (State of Organization) 04-3262075 (IRS Employer Identification ...