Service Properties Trust (SVC)
NASDAQ:SVC
Earnings Data
Report Date
May 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.37Last Year’s EPS
-0.7Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call outlined meaningful strategic progress: sizable asset dispositions, proactive debt reduction, a securitization that lowers interest costs (~$14M annually), net-lease portfolio strength and detailed 2026 guidance that targets free cash flow after CapEx. These positives were tempered by significant hotel operating pressure — hotel EBITDA down sharply (35% YoY), GOP margin compression (‑370 bps), temporary disruption from dispositions/renovations (≈$12M displacement) and concentrated near-term maturities that still require management action. Overall, the company presents a credible path to improved liquidity and lower interest expense, while near-term hotel operating results remain the primary risk to execution.Company Guidance
Material Asset Dispositions and Balance Sheet Action
Sold 66 hotels in Q4 (≈8,300 keys) for $534M; total 2025 dispositions of 112 hotels (~14,600 keys) for nearly $860M. Proceeds used to proactively redeem all $800M of 2026 debt maturities and $300M of February 2027 notes, materially reducing near-term maturities.
Refinancing Generates Meaningful Interest Savings
Priced $745M of 5-year mortgage financing secured by net lease trust (weighted coupon 5.96%) after contributing 158 properties appraised at ≈$1.1B. Proceeds fully redeemed $700M of 8.375% notes due 2029, expected annual cash interest savings of ≈$14M (≈$0.08 per share).
RevPAR Outperformance vs. Industry
SVC RevPAR increased 70 basis points YoY in Q4, outperforming the U.S. lodging industry (RevPAR -1.1% YoY) by ~180 bps. Excluding hotels being exited, 77 retained hotels posted RevPAR up 170 bps YoY with occupancy gains of 140 bps.
Net Lease Portfolio Growth and Strong Metrics
Net lease platform ended year with 760 properties across 42 states and annual base rents of $390M, ~97% leased and weighted average lease term of 7.4 years. Annualized base rent rose 2.4% YoY. Recent acquisitions ($101M in 2025) had a weighted avg lease term of 14.3 years, avg rent coverage 2.7x, going-in cash cap rate 7.5% and GAAP cap rate 8.3%.
2026 Financial Guidance and FCF Outlook
Introduced 2026 guidance: RevPAR $108–$113 for 94 hotels, hotel EBITDA $124M–$144M, net lease NOI $380M–$386M, consolidated adjusted EBITDA $500M–$520M, and normalized FFO per share $0.65–$0.77. Company expects to generate free cash flow after CapEx in 2026.
Capital Expenditure Reduction and Projected Wind-Down
Full year CapEx fell to $238M in 2025; Q4 CapEx $106M. For 2026 management projects CapEx of $120M–$140M as large renovation activity winds down (notably Nautilus project ~ $30M–$35M in H1 2026).
Operational and Management Enhancements
Sonesta (manager of majority of owned hotels; SVC owns 34% of Sonesta) appointed new Co-CEOs (Keith Pierce and Jeff Leer) with management experience expected to drive RevPAR market share and operational efficiencies. Management also launched targeted hotel remarketing (9 focused-service and 7 full-service Sonesta hotels) expected to generate proceeds of $175M–$200M and reduce annual EBITDA drag.
SVC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SVC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 25, 2026 | $2.21 | $2.37 | +7.24% |
Nov 05, 2025 | $2.17 | $2.04 | -5.99% |
Aug 05, 2025 | $2.73 | $2.45 | -10.33% |
May 06, 2025 | $2.04 | $1.98 | -2.89% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Service Properties Trust (SVC) report earnings?
Service Properties Trust (SVC) is schdueled to report earning on May 06, 2026, Before Open (Confirmed).
What is Service Properties Trust (SVC) earnings time?
Service Properties Trust (SVC) earnings time is at May 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SVC EPS forecast?
SVC EPS forecast for the fiscal quarter 2026 (Q1) is -0.37.