Service Properties Trust (SVC)
NASDAQ:SVC
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Service Properties
(NASDAQ:SVC)
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Rating:46Neutral
Price Target:
$1.00
▼(-24.81% Downside)
Action:ReiteratedDate:04/03/26
The score is held down primarily by weak financial quality (persistent losses and historically high leverage) and a pronounced bearish technical setup (price far below major moving averages with very weak momentum). Earnings call guidance and recent balance sheet actions provide some offset via a clearer path to liquidity/interest savings, while valuation support is limited because losses drive a negative P/E.
Positive Factors
Net-lease portfolio durability and scale
A large, 760-property net-lease platform with ~$390M of base rent, ~97% occupancy and a 7.4-year weighted average lease term provides predictable, contract-driven cash flow. The long WALE and high lease occupancy reduce cash-flow volatility versus hotels and support refinancing and coverage stability over months.
Negative Factors
Historically elevated leverage and weakened equity cushion
A multi-year pattern of very high debt-to-equity and declining equity leaves a thin capital buffer. That structural leverage magnifies downside risk, increases sensitivity to interest-rate moves and refinancing shocks, and constrains strategic flexibility during cyclical hotel weakness over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Net-lease portfolio durability and scale
A large, 760-property net-lease platform with ~$390M of base rent, ~97% occupancy and a 7.4-year weighted average lease term provides predictable, contract-driven cash flow. The long WALE and high lease occupancy reduce cash-flow volatility versus hotels and support refinancing and coverage stability over months.
Read all positive factors
Service Properties (SVC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$783.53M
Dividend Yield2.31%
Average Volume (3M)10.76M
Price to Earnings (P/E)―
Beta (1Y)1.02
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 Outstanding584,721,250
10 Day Avg. Volume29,297,138
30 Day Avg. Volume10,762,743
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 Cap6.84
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit-74.83
Enterprise Value/Ebitda10.73
Forecast
1Y Price Target
$2.00Price Target Upside50.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.16
Revenue Forecast (FY)$1.50B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
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.Positive Updates
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.
Negative Updates
Significant Hotel EBITDA Decline
Adjusted hotel EBITDA for the quarter was $21.3M, down 35% YoY. The retained 77 hotels produced adjusted hotel EBITDA of $25M in the quarter, an $8M YoY decline, driven by elevated labor costs and higher hotel overhead.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
SVC’s full‑year 2026 guidance includes segment and consolidated targets: for the 94 hotels owned at year‑end RevPAR of $108–$113 (midpoint ≈ $110, ~3% RevPAR growth) and hotel EBITDA of $124M–$144M (including roughly $12M of renovation/displacement), net‑lease NOI of $380M–$386M, consolidated adjusted EBITDA of $500M–$520M and normalized FFO per share of $0.65–$0.77 (weighted average share count 169M). The outlook assumes midpoint interest expense of $378M (cash interest $300M; non‑cash interest amortization $78M), G&A of $40M, ~$25M of net‑lease capital recycling/acquisitions, total CapEx of $120M–$140M, does not reflect the impact of 17 Sonesta hotel dispositions, and projects generation of free cash flow after CapEx in 2026.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
1.33
Price Trends
1.95
Negative
1.91
Negative
2.21
Negative
Market Momentum
-0.21
Positive
31.48
Neutral
47.25
Neutral
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 1.33 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.95, and below the 200-day MA of 2.21, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 31.48 is Neutral, neither overbought nor oversold. The STOCH value of 47.25 is Neutral, 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 | $407.33M | 22.07 | 1.13% | 5.00% | -3.79% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $579.81M | -65.40 | -0.63% | 6.61% | -1.20% | -328.23% | |
46 Neutral | $783.53M | -1.51 | -29.70% | 2.31% | -0.56% | -14.18% | |
45 Neutral | $171.01M | -8.70 | -4.39% | 7.17% | -2.84% | -11.92% | |
42 Neutral | $18.39M | -0.14 | 56.27% | ― | -7.89% | -833.99% |
* Real Estate Sector Average
SVC
Service Properties
1.33
-0.50
-27.52%
INN
Summit Hotel Properties
4.87
1.18
31.91%
CLDT
Chatham Lodging
8.67
2.20
34.09%
AHT
Ashford Hospitality
2.88
-2.83
-49.56%
BHR
Braemar Hotels & Resorts
2.52
0.62
32.84%
Service Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Service Properties Announces Major Equity Offering and Note Redemption
Neutral
Apr 2, 2026
On March 31, 2026, Service Properties entered into an underwriting agreement with Yorkville Securities for a $500 million underwritten public offering of 416,666,667 common shares at $1.20 per share, with an option for underwriters to buy an addit...
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.