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Dec 31, 2021
Service Properties Trust Q4 2021 Earnings Report
Announced fourth quarter 2021 results, with a net loss of $(1.21) per common share, normalized FFO of $0.17 per common share, and adjusted EBITDAre of $119.0 million, while also progressing on the hotel disposition plan.
Key Takeaways
Service Properties Trust reported a net loss of $198.8 million, or $1.21 per diluted common share, for the quarter ended December 31, 2021. Normalized FFO was $27.9 million, or $0.17 per diluted common share. Adjusted EBITDAre increased 83.2% to $119.0 million.
Fourth Quarter Net Loss of $(1.21) Per Common Share
Fourth Quarter Normalized FFO of $0.17 Per Common Share
Fourth Quarter Adjusted EBITDAre of $119.0 million
Progress on Hotel Disposition Plan Continues
Forward Guidance
SVC expects to benefit from a rebound in business travel in the coming quarters, particularly at full service hotels as urban centers re-open. The company also anticipates that approximately 72.1% of the sale hotels will be sold encumbered by Sonesta branding, maintaining Sonesta’s distribution and jump-starting franchising of the Sonesta brands, which SVC believes it will benefit from through its 34% ownership of Sonesta.
Positive Outlook
- Rebound in business travel expected to benefit full service hotels.
- Sonesta branding to be maintained in approximately 72.1% of sale hotels.
- Sonesta's franchising activities expected to benefit SVC through its 34% ownership.
- Sufficient liquidity and financial flexibility to address upcoming debt maturities.
- Improved hotel portfolio well positioned to benefit SVC as lodging trends continue to rebound.
Challenges Ahead
- Continued impact of the COVID-19 pandemic poses risks.
- Net lease tenants may become unable or unwilling to pay rents.
Historical Earnings Impact
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