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SVC

Service Properties Trust

SVC

Service Properties Trust • NASDAQ
$1.75 ▲ 0.87% (+0.01)
Market Cap $289.26 M
52w High $3.08
52w Low $1.55
Dividend Yield 0.04%
P/E -1.04
Volume 413.99K
Outstanding Shares 165.76M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $478.77M ▼ $85.51M ▲ $-46.945M ▼ -9.805% ▼ $-0.28 ▼ $124.845M ▼
Q2-2025 $503.436M ▲ $85.248M ▼ $-38.159M ▲ -7.58% ▲ $-0.23 ▲ $130.633M ▲
Q1-2025 $435.179M ▼ $98.656M ▼ $-116.435M ▼ -26.756% ▼ $-0.7 ▼ $78.972M ▼
Q4-2024 $456.559M ▼ $102.58M ▼ $-76.392M ▼ -16.732% ▼ $-0.46 ▼ $93.039M ▼
Q3-2024 $491.171M $283.396M $-46.901M -9.549% $-0.28 $138.19M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $417.415M ▲ $6.98B ▲ $6.332B ▲ $647.908M ▼
Q2-2025 $63.176M ▼ $6.933B ▼ $6.237B ▼ $695.944M ▼
Q1-2025 $80.147M ▼ $6.976B ▼ $6.242B ▼ $734.573M ▼
Q4-2024 $143.482M ▲ $7.12B ▲ $6.268B ▲ $851.873M ▼
Q3-2024 $48.588M $7.087B $6.158B $929.019M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-46.945M ▼ $0 ▲ $0 ▲ $0 ▼ $0 ▲ $0 ▲
Q2-2025 $-38.159M ▲ $-7K ▼ $-52.115M ▼ $44.059M ▲ $-8.063M ▲ $-7K ▼
Q1-2025 $-116.435M ▼ $38.2M ▲ $-42.192M ▲ $-59.3M ▼ $-63.292M ▼ $38.2M ▲
Q4-2024 $-76.392M ▼ $-9.652M ▼ $-42.738M ▼ $146.93M ▲ $94.54M ▲ $-9.652M ▼
Q3-2024 $-46.901M $106.15M $-37.322M $-35.438M $33.39M $248.532M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Hotel Segment
Hotel Segment
 $390.00M ▲$770.00M ▲$330.00M ▼$400.00M ▲
Net Lease Segment
Net Lease Segment
 $100.00M ▲$200.00M ▲$100.00M ▼$100.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Service Properties Trust has mostly stabilized its revenues after the pandemic shock, with sales now steady rather than growing rapidly. Operating performance has improved compared with the worst period in 2020–2021, and the core business is again generating positive operating profit and healthy EBITDA. However, after interest costs and other non‑operating items, the company is still reporting net losses, and those losses widened again in the most recent year after nearly reaching breakeven. In plain terms, the properties are covering day‑to‑day running costs, but overall earnings remain in the red, which limits flexibility and keeps pressure on the ongoing restructuring plan.

Balance Sheet

Balance Sheet The balance sheet is heavy with property and debt, which is typical for a REIT, but leverage is on the high side. Total assets have been shrinking as the company sells hotels and reshapes the portfolio, while equity has trended down, reflecting past losses and write‑downs. Debt has been cut from earlier peaks but still represents the bulk of the capital structure. Cash on hand is quite modest relative to the size of the business, so there is not a large liquidity cushion. Overall, the balance sheet is moving in the right direction through asset sales and debt reduction, but it remains a key area of risk and a central focus of management’s strategy.

Cash Flow

Cash Flow Cash generation from operations has been inconsistent. It improved meaningfully as travel recovered, then slipped again in the most recent year, showing that the business is still sensitive to conditions and transition costs. Free cash flow has generally been positive, helped by low capital spending, but it is not yet strong or steady enough to comfortably offset the high debt load and fully fund all strategic goals. The transformation depends heavily on executing property sales and recycling capital rather than relying purely on internally generated cash, so ongoing discipline in managing cash and debt maturities is crucial.

Competitive Edge

Competitive Edge SVC’s edge is more about portfolio design and partnerships than about unique assets. It combines hotels with a large and growing net‑lease retail portfolio focused on everyday, service‑based tenants like quick‑service restaurants, grocery stores, and car washes. These businesses tend to be less vulnerable to e‑commerce and can provide steadier rent streams. Long‑term leases and relationships with established hotel and retail brands add another layer of stability. At the same time, SVC competes with many other lodging and net‑lease REITs for both tenants and acquisitions, and it operates under an external management structure, which can create perceived conflicts and fee sensitivities. The competitive position is solid but not unassailable, and execution quality will largely determine how its advantages play out.

Innovation and R&D

Innovation and R&D This is not a technology‑driven company; its “innovation” is strategic rather than scientific. SVC is actively reshaping itself by selling a large block of hotels and redeploying capital into more stable, service‑oriented net‑lease properties. It also uses distinctive hotel management agreements that prioritize a minimum return to SVC, which can soften the blow of downturns in hotel performance. The focus on necessity‑based retail tenants and targeted acquisitions in specific categories reflects a deliberate attempt to build a more defensive, predictable income stream. Key things to watch are the pace and pricing of hotel sales, the quality of new net‑lease acquisitions, the resulting debt reduction, and any future moves in the dividend that might signal management’s confidence in the new model.

Summary

Service Properties Trust is in the middle of a major transition: moving from a hotel‑heavy, cyclical profile toward a more balanced, net‑lease‑oriented portfolio aimed at stability. Operating results have recovered from the pandemic lows, but the company is still loss‑making at the bottom line and carries substantial debt with limited cash reserves. The strategy—selling hotels, paying down debt, and reinvesting in everyday service properties—has the potential to make earnings smoother and less volatile, but it also introduces execution risk and depends on continued access to buyers and attractive acquisitions. In essence, SVC is a turnaround and reshaping story in the REIT space: the direction of travel is clear and arguably sensible, yet the financials show that the journey is not complete and outcomes remain sensitive to both management decisions and broader economic conditions.

NEWS

November 5, 2025 · 4:15 PM UTC

Service Properties Trust Announces Third Quarter 2025 Results

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October 9, 2025 · 8:00 AM UTC

Service Properties Trust Announces Quarterly Dividend on Common Shares

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October 8, 2025 · 4:15 PM UTC

Service Properties Trust Third Quarter 2025 Conference Call Scheduled for Thursday, November 6th

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October 6, 2025 · 8:00 AM UTC

Service Properties Trust Provides Business Update

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September 16, 2025 · 8:30 AM UTC

Service Properties Trust Prices $580 Million Zero Coupon Senior Secured Notes Due September 2027 with a 12-Month Extension Option

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