Service Properties Trust (SVC)
NASDAQ:SVC
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Service Properties
(NASDAQ:SVC)
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Rating:46Neutral
Price Target:
$2.00
▼(-5.66% Downside)
Action:ReiteratedDate:03/21/26
The score is held down primarily by weak financial quality (ongoing losses, historically high leverage, and 2025 operating deterioration) and bearish technicals (downtrend with negative MACD). Partially offsetting these are positive free cash flow and management actions to improve the debt maturity profile, while valuation support is limited because earnings are negative.
Positive Factors
Consistent positive cash generation
SVC generates positive operating and free cash flow across the multi-year period, with free cash flow rebounding in 2023 and improving again in 2025 (up 36% YoY). Durable FCF supports liquidity, debt repayment and operational stability despite accounting losses.
Negative Factors
Persistent net losses and negative EBITDA
Sustained net losses and a sharp 2025 EBITDA deterioration indicate underlying operating weakness. Persistent negative profitability erodes equity, constrains retention of earnings, and limits ability to consistently fund distributions or invest without continued asset dispositions.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive cash generation
SVC generates positive operating and free cash flow across the multi-year period, with free cash flow rebounding in 2023 and improving again in 2025 (up 36% YoY). Durable FCF supports liquidity, debt repayment and operational stability despite accounting losses.
Read all positive factors
Service Properties (SVC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$299.15M
Dividend Yield2.31%
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-0.56%
EPS Growth-14.18%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.00
Shares Outstanding168,061,040
10 Day Avg. Volume1,519,472
30 Day Avg. Volume1,498,845
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.47
Price to Sales (P/S)0.17
P/FCF Ratio2.59
Enterprise Value/Market Cap18.17
Enterprise Value/Revenue2.99
Enterprise Value/Gross Profit-75.89
Enterprise Value/Ebitda10.88
Forecast
1Y Price Target
$2.00Price Target Upside-5.66% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-1.16
Revenue Forecast (FY)$1.60B
Service Properties Business Overview & Revenue Model
Company Description
Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 149 distinct bran...
How the Company Makes Money
SVC primarily makes money by collecting rent and related property income from long-term leases on its real estate portfolio. Its key revenue streams are (1) lease income from hotel properties, where the underlying hotels are operated by third-part...
Service Properties Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call reflected a mix of strategic progress, particularly in capital market activities and debt management, alongside challenges in the hotel segment due to market headwinds and increased expenses. While there are significant achievements in asset sales and net lease performance, the decline in hotel EBITDA and other disruptions indicate a balanced sentiment.Positive Updates
Successful Capital Market Activities
Raised over $850 million in proceeds, including $295 million from asset sales during the quarter, $67 million in asset sales in October and November, and approximately $490 million from the issuance of new zero-coupon bonds.
Negative Updates
Decline in Hotel EBITDA
Hotel EBITDA declined 18.9% from the prior year due to softer demand and expense pressures, including elevated labor costs and insurance expenses.
Read all updates
Q3-2025 Updates
Positive
Negative
Successful Capital Market Activities
Raised over $850 million in proceeds, including $295 million from asset sales during the quarter, $67 million in asset sales in October and November, and approximately $490 million from the issuance of new zero-coupon bonds.
Read all positive updates
Company Guidance
During the Service Properties Trust Third Quarter 2025 Earnings Conference Call, the company provided guidance that includes adjusted hotel EBITDA, although they did not provide a reconciliation of this non-GAAP measure due to the unavailability of certain required information. The call highlighted a sequential decline in fourth-quarter RevPAR, projected to be between $86 and $89, and adjusted hotel EBITDA anticipated to range from $20 million to $25 million. This guidance reflects seasonal declines and industry headwinds. Additionally, the company has raised over $850 million in proceeds, including $295 million from asset sales, $67 million from sales in October and November, and about $490 million from zero-coupon bonds. The proceeds improved SVC's debt maturity profile by repaying the revolving credit facility and retiring all 2026 senior notes. The company plans to use proceeds from remaining hotel sales, projected to bring in $567.5 million, to repay February 2027 senior unsecured notes.Service Properties Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.81B | 1.90B | 1.87B | 1.86B | 1.50B |
| Gross Profit | -71.61M | 602.96M | 632.29M | 622.48M | 469.19M |
| EBITDA | 379.06M | 462.63M | 664.80M | 588.09M | 286.05M |
| Net Income | -202.32M | -275.53M | -32.78M | -132.38M | -544.60M |
Balance Sheet | |||||
| Total Assets | 6.49B | 7.12B | 7.36B | 7.49B | 9.15B |
| Cash, Cash Equivalents and Short-Term Investments | 346.81M | 143.48M | 180.12M | 38.37M | 944.04M |
| Total Debt | 5.48B | 5.71B | 5.52B | 5.66B | 7.14B |
| Total Liabilities | 5.85B | 6.27B | 6.13B | 6.10B | 7.60B |
| Stockholders Equity | 646.12M | 851.87M | 1.23B | 1.39B | 1.56B |
Cash Flow | |||||
| Free Cash Flow | 117.81M | 139.39M | 485.55M | 243.13M | 49.90M |
| Operating Cash Flow | 117.81M | 139.39M | 485.55M | 243.13M | 49.90M |
| Investing Cash Flow | 528.71M | -222.86M | -29.58M | 397.25M | -101.31M |
| Financing Cash Flow | -431.82M | 43.02M | -303.56M | -1.54B | 907.37M |
Service Properties Technical Analysis
Negative
2.12
Price Trends
2.12
Negative
1.99
Negative
2.28
Negative
Market Momentum
-0.08
Positive
29.98
Positive
6.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVC, the sentiment is Negative. The current price of 2.12 is below the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.12, and below the 200-day MA of 2.28, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 29.98 is Positive, neither overbought nor oversold. The STOCH value of 6.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SVC.
Service Properties Risk Analysis
Service Properties disclosed 60 risk factors in its most recent earnings report. Service Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Service Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $374.25M | 22.07 | 1.13% | 5.00% | -3.79% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $522.56M | -65.40 | -0.56% | 6.61% | -1.20% | -328.23% | |
46 Neutral | $299.15M | -1.51 | -29.70% | 2.31% | -0.56% | -14.18% | |
45 Neutral | $18.46M | -0.10 | 56.27% | ― | -7.89% | -833.99% | |
44 Neutral | $157.96M | -8.70 | -4.39% | 7.17% | -2.84% | -11.92% |
* Real Estate Sector Average
SVC
Service Properties
1.78
-0.94
-34.53%
INN
Summit Hotel Properties
4.29
-0.95
-18.11%
CLDT
Chatham Lodging
7.92
0.81
11.39%
AHT
Ashford Hospitality
2.85
-4.48
-61.12%
BHR
Braemar Hotels & Resorts
2.30
-0.28
-10.82%
Service Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Service Properties Announces Major ABS Issuance and Debt Redemption
Positive
Feb 23, 2026
On February 20, 2026, Service Properties’ special purpose subsidiaries agreed to sell $745 million of non-recourse Net-Lease Mortgage Notes Series 2026-1 to qualified institutional investors, backed by 472 net lease retail properties and spl...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Service Properties Trust completes major hotel portfolio sale
Positive
Jan 27, 2026
On January 22, 2026, Service Properties Trust completed the sale of one 133-key hotel for $7.1 million, finalizing a previously arranged 35-hotel, 4,247-key portfolio sale totaling $230.3 million, excluding closing costs. In the broader dispositio...
Business Operations and Strategy
Service Properties Trust Updates Management Fee Benchmark Index
Neutral
Jan 5, 2026
On January 1, 2026, Service Properties Trust and its external manager, The RMR Group LLC, amended their long-standing business management agreement to change the benchmark index used to calculate incentive management fees and assess termination fo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.