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Service Properties Trust Completes Sale of Two Hotels and Provides Updates on Sale of Remaining Properties

Strategic Insights

— 1 min read

Service Properties Trust (SVC) has announced the completion of the sale of two hotels with a total of 318 keys, valued at $25.0 million, excluding closing costs. This sale brings the total number of properties sold by SVC to nine, with a combined value of $88.9 million, excluding closing costs. The remaining 104 hotels, with a total of 13,490 keys, are expected to be sold in phases and will contribute significantly to SVC's goal of repaying debt, including a portion of the outstanding borrowings under its revolving credit facility.

Key Takeaways:

  • SVC has sold two hotels with a total of 318 keys for a combined sales price of $25.0 million, excluding closing costs.
  • The sale brings the total number of properties sold by SVC to nine, with a combined value of $88.9 million, excluding closing costs.
  • SVC remains under agreement to sell 104 hotels with a total of 13,490 keys for a combined sales price of $824.4 million, excluding closing costs.
  • The remaining hotels will be sold in phases, expected to be completed by the end of 2025.
  • Proceeds from the sales will be used to repay debt, including a portion of the outstanding borrowings under SVC's revolving credit facility.
  • SVC's forward-looking statements indicate that the pending sales of remaining hotels are subject to conditions, and actual results may differ materially from those contained in or implied by SVC's forward-looking statements.

Statistics:

  • Number of hotels sold: 9
  • Total keys sold: 1,313
  • Combined sales price (excluding closing costs): $88.9 million
  • Number of hotels remaining under agreement to sell: 104
  • Total keys remaining under agreement: 13,490
  • Combined sales price expected (excluding closing costs): $824.4 million
  • Date for completion of remaining sales: Expected to be completed by the end of 2025

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  • SERVICE PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland (State or Other Jurisdiction of Incorporation) 1-11527 04-3262075 (Commission File Number) (IRS Employer Identification No.)
  • SEC website: www.sec.gov
  • SVC's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

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