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Dec 31, 2020
Service Properties Trust Q4 2020 Earnings Report
Announced fourth quarter 2020 results, completed the sale of 24 properties raising $104.3 million and rebranded 112 hotels to Sonesta.
Key Takeaways
Service Properties Trust announced its financial results for the quarter ended December 31, 2020, which reflect the continuing impact of the COVID-19 pandemic. The company transitioned 112 hotels to Sonesta brands and management, and rent collections from retail net lease tenants were stable at 95.3%.
Net loss for the quarter ended December 31, 2020 was $137.7 million, or $0.84 per diluted common share.
Normalized FFO for the quarter ended December 31, 2020 was negative $22.5 million, or $(0.14) per diluted common share.
Adjusted EBITDAre for the quarter ended December 31, 2020 decreased 71.4% to $65.0 million.
During the quarter ended December 31, 2020, SVC collected 95.3% of rents from its net lease tenants.
Forward Guidance
SVC expects lodging trends to improve in the latter half of 2021 and continues to take proactive steps to fortify its liquidity.
Positive Outlook
- Rebranding of hotels to Sonesta will benefit SVC.
- TA continues to benefit from healthy trucking activity.
- Proactive steps to fortify liquidity.
- Preserve financial flexibility.
- Lodging trends expected to improve in the latter half of 2021.
Challenges Ahead
- Sonesta may not operate hotels profitably.
- Trucking activity may slow down.
- COVID-19 pandemic may continue.
- Economic conditions may worsen.
- Actions may not be adequate to ensure sufficient liquidity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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