Service Properties (SVC) AI Stock Analysis

• Market Cap: $321.04M
• Dividend Yield: 2.09%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -0.56%
• EPS Growth: -14.18%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.24
• Shares Outstanding: 168,086,200
• 10 Day Avg. Volume: 1,168,395
• 30 Day Avg. Volume: 1,200,820
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 3.01
• Enterprise Value/Market Cap: 17.99
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 10.01
• Enterprise Value/Ebitda: 13.51
• 1Y Price Target: $2.75
• Price Target Upside: 43.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.49
• Revenue Forecast (FY): $1.84B

• Rating: 42 Neutral
• Price Target: $1.50 ▼(-21.47% Downside)

The overall stock score of 42 reflects significant financial challenges and bearish technical indicators. The company's high leverage, negative profitability, and poor cash flow stability are major concerns. While there are some positive developments in debt management and asset sales, these are insufficient to offset the broader financial and operational risks.

Positive Factors

Debt Management

Improved debt maturity profile enhances financial flexibility and reduces interest burden, positively impacting long-term stability.

Net Lease Segment Performance

Strong performance in net lease segment provides a stable revenue base, supporting overall financial health and resilience.

RevPAR Growth

RevPAR growth indicates improved property performance and competitive positioning, contributing to revenue stability.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, posing long-term financial risks.

Decline in Hotel EBITDA

Declining EBITDA in the hotel segment indicates operational challenges and impacts profitability, requiring strategic adjustments.

Negative Profitability Margins

Negative profitability margins highlight ongoing financial distress, affecting the company's ability to generate sustainable earnings.

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 brands across 23 industries. SVC's properties are primarily operated under long-term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., an alternative asset management company that is headquartered in Newton, Massachusetts.

How the Company Makes Money

Service Properties Trust generates revenue primarily through rental income from its hotel and service properties. The company leases its properties to various hotel operators, who manage the day-to-day operations and pay rent based on fixed terms or a percentage of revenues. Key revenue streams include base rent from long-term leases, percentage rents tied to property performance, and income from management fees associated with its properties. Additionally, SVC may benefit from strategic partnerships with leading hotel brands, which can enhance its occupancy rates and overall profitability. The company also explores opportunities for capital appreciation through property acquisitions and developments, further contributing to its revenue.

Service Properties Financial Statement Overview

Summary

Service Properties is facing financial challenges with negative profitability margins and high leverage. The company's declining equity ratio and inconsistent cash flows highlight significant risks. While there are efforts to manage debt, the overall financial health remains precarious, necessitating strategic interventions to stabilize operations and improve financial outcomes.

Income Statement

The income statement shows a concerning trend with negative net income in recent periods and a declining gross profit margin from 33.5% in 2024 to 28.5% TTM (Trailing-Twelve-Months). The revenue growth rate is minimal at 1.7% from 2023 to 2024, with a slight decrease in 2025 TTM. Negative EBIT and Net Profit Margins indicate financial distress, affecting profitability.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 7.71 TTM, reflecting significant financial risk. The equity ratio has been declining from 16.7% in 2021 to 10.5% TTM, indicating reduced financial stability. However, the decrease in total liabilities suggests some effort in managing debt, albeit not sufficient to offset overall risks.

Cash Flow

Cash flow analysis shows inconsistent free cash flow with a drastic decline from 2023 to the TTM period. The operating cash flow to net income ratio indicates challenges in converting income to cash, exacerbated by negative net income. This instability in cash flows raises concerns about liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.90B	1.87B	1.86B	1.50B	1.27B
Gross Profit	576.90M	602.96M	632.29M	622.48M	469.19M	582.45M
EBITDA	427.49M	462.63M	664.80M	588.09M	286.05M	506.27M
Net Income	-277.93M	-275.53M	-32.78M	-132.38M	-544.60M	-311.38M
Balance Sheet
Total Assets	6.98B	7.12B	7.36B	7.49B	9.15B	8.69B
Cash, Cash Equivalents and Short-Term Investments	417.42M	143.48M	180.12M	38.37M	944.04M	73.33M
Total Debt	5.77B	5.71B	5.52B	5.66B	7.14B	6.21B
Total Liabilities	6.33B	6.27B	6.13B	6.10B	7.60B	6.58B
Stockholders Equity	647.91M	851.87M	1.23B	1.39B	1.56B	2.10B
Cash Flow
Free Cash Flow	28.54M	139.39M	485.55M	243.13M	49.90M	37.60M
Operating Cash Flow	28.54M	139.39M	485.55M	243.13M	49.90M	37.60M
Investing Cash Flow	-137.04M	-222.86M	-29.58M	397.25M	-101.31M	-51.81M
Financing Cash Flow	131.69M	43.02M	-303.56M	-1.54B	907.37M	24.40M

Service Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVC, the sentiment is Neutral. The current price of 1.91 is above the 20-day moving average (MA) of 1.81, below the 50-day MA of 1.96, and below the 200-day MA of 2.33, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 67.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SVC.

Service Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
INN	59 Neutral	$621.24M	-27.04	0.16%	6.27%	-1.20%	-328.23%
CLDT	59 Neutral	$339.13M	629.73	1.13%	5.00%	-3.79%	―
BHR	57 Neutral	$197.84M	-3.35	-1.09%	6.90%	-2.84%	-11.92%
SOHO	54 Neutral	$43.92M	-5.26	-0.68%	―	-0.57%	-24.28%
SVC	42 Neutral	$321.04M	-1.14	-35.25%	2.09%	-0.56%	-14.18%
AHT	41 Neutral	$24.30M	-0.08	―	―	-7.89%	-833.99%

Service Properties Corporate Events

Service Properties Sells 34 Hotels for $224.7M

On November 18 and 19, 2025, Service Properties Trust (SVC) sold a total of 34 hotels across 21 states for a combined sales price of $224.7 million, excluding closing costs. These sales are part of a larger agreement to sell 113 hotels for $913.3 million. To date, SVC has sold 85 hotels for $618.5 million and plans to complete the sale of the remaining 28 hotels by the end of 2025. The proceeds from these sales are expected to be used to repay debt, marking a significant shift in SVC’s asset portfolio.

Service Properties Sells Seven Hotels for $48 Million

On November 13, 2025, Service Properties Trust (SVC) sold seven hotels with a total of 839 keys across five states for $48 million, as part of a larger plan to sell 113 hotels for $913.3 million. To date, 51 hotels have been sold for $393.8 million, and 62 more are under agreement to be sold by the end of 2025. The proceeds from these sales are intended to repay debt, and the sales are significant enough to require pro forma financial information under regulatory guidelines.

Service Properties Sells Three Hotels for $29 Million

On October 29, 2025, Service Properties Trust (SVC) sold three hotels totaling 390 keys for $29.0 million as part of a larger agreement to sell 113 hotels. To date, SVC has sold 44 hotels for $345.8 million and plans to sell the remaining 69 hotels by the end of 2025. The proceeds from these sales are expected to be used to repay debt, impacting SVC’s financial strategy and potentially improving its debt position.

Service Properties Sells California Hotel for $27.5M

On October 22, 2025, Service Properties Trust (SVC) sold a hotel in California for $27.5 million as part of a larger agreement to sell 113 hotels for a total of $913.3 million. To date, SVC has sold 41 hotels for $316.8 million and plans to sell the remaining 72 hotels by the end of 2025. The proceeds from these sales are expected to be used to repay debt. The sales of 15 hotels in the 45 Hotel Sale Portfolio have been significant enough to require pro forma financial information, reflecting the company’s financial position as of June 30, 2025.

Service Properties Sells Two Hotels for $10 Million

Service Properties Trust (SVC) announced the sale of two hotels, totaling 235 keys, for $10 million on October 15, 2025, as part of a larger agreement to sell 113 hotels for $913.3 million. To date, SVC has sold 40 hotels, generating $289.3 million, and plans to complete the sale of the remaining 73 hotels by the end of 2025. The proceeds from these sales are intended to repay debt, which could impact the company’s financial stability and market position.

Service Properties Sells Five Hotels for $50 Million

On September 30, 2025, Service Properties Trust (SVC) sold five hotels with a total of 640 keys for $50 million as part of a larger agreement to sell 113 hotels. To date, SVC has sold 38 hotels for $279.3 million and plans to complete the sale of the remaining 75 hotels by the end of 2025, using the proceeds to repay debt.

Service Properties Sells Three Hotels for $22.5 Million

On September 23, 2025, Service Properties sold three hotels with a total of 399 keys across three states for $22.5 million, as part of a larger agreement to sell 113 hotels. To date, the company has sold 23 hotels for $158.2 million and plans to sell the remaining 90 hotels by the end of 2025, using the proceeds to repay debt.

Service Properties Sells Hotels to Repay Debt

On September 18, 2025, Service Properties Trust (SVC) sold three hotels with a total of 413 keys for $26.5 million and eight hotels with 1,041 keys for $20.3 million as part of a larger plan to sell 113 hotels for $913.3 million. To date, SVC has sold 20 hotels for $135.7 million and plans to sell the remaining 93 hotels by the end of 2025. The proceeds from these sales are intended to repay debt, including outstanding borrowings under its revolving credit facility.

Service Properties Completes $490M Private Offering

On September 23, 2025, Service Properties completed a private offering of zero coupon senior secured notes due 2027, raising approximately $490 million in net proceeds. The company plans to use these funds to redeem its outstanding 4.750% senior notes due 2026 and reduce its revolving credit facility. The notes are secured by first-priority liens on the equity interests of certain subsidiaries and are subject to restrictive covenants. The redemption of the 2026 notes is expected to occur on October 16, 2025.

Service Properties Sells Two Hotels for $25M

On September 16, 2025, Service Properties sold two hotels with a total of 318 keys for $25.0 million as part of a larger agreement to sell 113 hotels. To date, nine hotels have been sold for $88.9 million, with 104 hotels remaining to be sold by the end of 2025. The proceeds from these sales are intended to repay debt, including outstanding borrowings under its revolving credit facility.

Service Properties Sells Five Hotels for $44.9 Million

On September 9, 2025, Service Properties Trust (SVC) sold five hotels with a total of 690 keys for $44.9 million as part of a larger agreement to sell 114 hotels. To date, seven hotels have been sold for $63.9 million, with 106 hotels remaining under agreement to be sold by the end of 2025. SVC plans to use the proceeds to repay debt and is exploring additional property sales and refinancing options to address its financial needs.