Loading...
•
Dec 31, 2025
Service Properties Trust Q4 2025 Earnings Report
Service Properties Trust Q4 2025 Earnings Report
Key Takeaways
Service Properties Trust reported a net loss of $0.8 million for Q4 2025, a significant improvement from the $76.4 million loss in the prior year. The company made substantial progress in its portfolio optimization strategy, selling 66 hotels during the quarter for $533.9 million and using proceeds to aggressively deleverage its balance sheet.
Sold 66 hotels in Q4 for $533.9 million, bringing total 2025 hotel sales to $858.8 million.
Redeemed $450.0 million of 4.75% senior unsecured notes due 2026 using cash on hand and credit facility borrowings.
Hotel RevPAR grew to $99.24, with remaining hotels outpacing industry benchmarks for the fifth consecutive quarter.
Retail net lease portfolio remained stable with 96.6% occupancy and a 1.98x rent coverage ratio.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
SVC provided full year 2026 guidance reflecting continued portfolio transition and deleveraging efforts.
Positive Outlook
- Expected Total RevPAR between $108.00 and $113.00.
- Projected Hotel EBITDA between $124.0 million and $144.0 million.
- Net Lease NOI expected to be stable between $380.0 million and $386.0 million.
- Planned net lease acquisitions of approximately $25.0 million.
- Priced $745.0 million of net lease mortgage notes at a 5.96% coupon in Feb 2026.
Challenges Ahead
- Estimated displacement from hotel renovations of approximately $12.0 million.
- Interest expense projected at a mid-point of $377.5 million.
- Normalized FFO per share expected to be between $0.65 and $0.77.
- No hotel acquisitions planned for the full year 2026.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...