Service Properties Trust

REIT - Hotel & Motel • Real Estate • Newton, MA, United States • SVC (NMS)

617 964 8389 Two Newton Place, Newton, MA 02458-1634, United States

Quarter: Q4 2025 Reported: December 22, 2025 Sentiment: Positive

SVC is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of June 30, 2025, SVC owned 200 hotels with over 35,000 guest rooms throughout the United States and in Puerto Rico and Canada. As of June 30, 2025, SVC also owned 742 service-focused retail net lease properties with over 13.1 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $40 billion in assets under management as of June 30, 2025, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

Analysis Summary

Service Properties Trust (SVC) reported substantial advancements in its asset disposition program during Q4 2025, as detailed in its Form 8-K filing. The company completed the sale of five hotels, encompassing 679 keys, for a combined price of $47.2 million, excluding closing costs. This transaction is part of a larger, ongoing divestiture strategy. Since January 1, 2025, SVC has successfully sold 98 hotels from its 'Sale Hotels' portfolio, generating $722.7 million, and an additional eight hotels for $45.6 million, bringing the cumulative year-to-date proceeds from hotel dispositions to $768.3 million. The explicit strategic intent behind these divestitures is to repay debt, thereby enhancing SVC's financial stability and capital structure.

Despite the overall success, SVC disclosed the termination of agreements for seven 'Sale Hotels' previously valued at $88.2 million. The company is proactively evaluating alternative buyers or considering remarketing these properties in early 2026. Looking forward, SVC has eight more 'Sale Hotels' (1,158 keys) under agreement for sale, expected to yield $102.4 million. Seven of these sales are anticipated to close by the end of 2025, with the final one projected for early 2026. Upon the successful completion of these remaining sales, the aggregate proceeds from the 'Sale Hotels' portfolio are expected to reach $870.7 million.

The filing also references the inclusion of unaudited pro forma condensed consolidated financial statements as Exhibit 99.1. These statements illustrate SVC's financial position and results of operations as if the significant hotel sales had been completed earlier, providing investors with a forward-looking view of the company's financial profile post-disposition. While specific Q4 2025 revenue, earnings, or EPS figures were not provided in this 8-K, the focus remains firmly on strategic portfolio rebalancing and debt reduction. Key risks highlighted include the inherent uncertainties surrounding the completion of pending sales, potential delays, changes in terms, and the ultimate use of proceeds, as well as the need to secure new buyers for the terminated agreements.

Key Highlights

• SVC sold five hotels for $47.2 million in Q4 2025.
• Year-to-date (since Jan 1, 2025) asset sales total $768.3 million from 106 hotels.
• Proceeds from hotel dispositions are explicitly intended for debt repayment.
• Eight additional hotels are under agreement for sale, expected to yield $102.4 million by early 2026.
• Agreements for seven hotels ($88.2 million) were terminated; SVC is evaluating remarketing or alternative buyers.
• Pro forma financial information for the 45 Hotel Sale Portfolio is included as an exhibit.

Financial Metrics

eps

Not disclosed in this filing

revenue

Not disclosed in this filing

guidance

net income

Not disclosed in this filing

Stock Performance (90 Days)

Data through Dec 30, 2025

Layoff Events

Earnings Calls

Positive Signals

• Successful execution of significant asset dispositions totaling over $768 million year-to-date.
• Clear strategic objective to use proceeds for debt repayment, strengthening the balance sheet.
• Defined pipeline of remaining sales ($102.4 million) with expected completion timelines.
• Proactive approach to terminated agreements by evaluating alternative buyers or remarketing.

Risks & Concerns

— Uncertainty regarding the completion of pending hotel sales due to various conditions.
— Potential for delays in closing the remaining eight hotel sales.
— Risk that the terms of pending sales may change prior to completion.
— Uncertainty regarding the exact use of proceeds if sales terms or completion are altered.
— Need to find alternative buyers or remarket seven hotels for which sale agreements were terminated.