Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (June 2026)
44 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, Jun 1, 2026
Slide 1: Investor Presentation June 2026
Investor Presentation June 2026 | Nasdaq: SVC
Slide 2: Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures
Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures Warning Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are
Slide 3: SVC At a Glance
SVC At a Glance Total Portfolio (1) 3 854 Properties 46 States, Washington, D.C., Puerto Rico & Canada 22 Industries 149 Brands 189 Tenants / Operators $1.7B Total Revenues LTM (1) Portfolio as of and for the LTM ended March 31, 2026. Defensively Positioned Service-Focused Retail Net Lease Portfolio
Slide 4: SVC: Investment Highlights
SVC: Investment Highlights 1 Net lease retail portfolio provides stable cash flow, supported by high-quality tenants, long-term leases and contractual rent growth, with proven value through recent secured financings 2 Financial profile materially strengthened by ~$1.6 billion of capital markets acti
Slide 5: SVC: Recent Developments
SVC: Recent Developments 5 • RevPAR year to date through April increased 6.8% year over year compared to industry growth of 4.0% – 78 retained hotels RevPAR increased 7.5% • Issued $745 million of new five-year net lease mortgage notes at 5.96%, validating the value and attractiveness of 34 TravelCe
Slide 6: SVC: Continued Transition to a Majority Net Lease REIT
SVC: Continued Transition to a Majority Net Lease REIT FY 2019 1Q26 LTM $542 Million Adj. EBITDAre (1) $851 Million Adj. EBITDAre (1) 6(1) This is a Non-GAAP financial measure. See Appendix herein for Non-GAAP reconciliations. Lodging Number of Hotels 329 Rooms 51,349 Average Hotel Size (Rooms) 156
Slide 7: Attractive Relative Valuation
Attractive Relative Valuation 7 SVC trades at a multiple in-line with Hotel REITs, despite 70% of its 1Q26 LTM Adjusted EBITDAre coming from retail net lease assets (1) 18.4x 16.1x 16.0x 15.9x 15.4x 15.1x 14.9x 13.3x 14.9x 11.1x 11.1x 10.9x 10.8x 10.7x 10.6x 10.0x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0
Slide 8: Full Year 2026 Guidance
Full Year 2026 Guidance 8 (1) SVC does not provide a reconciliation of non-GAAP measures that it discloses as part of its full year guidance or long term outlook because certain significant information required for such reconciliation is not available without unreasonable efforts, or at all, includi
Slide 9: SVC: Debt Maturities and Financial Ratios
Required Actual Total unencumbered assets / unsecured debt 150% 283.8% Total debt / adjusted total assets 60% 53.1% Secured debt / adjusted total assets 40% 33.6% Consolidated income available for debt service / debt service 1.5x 1.75x Total unencumbered assets in guarantor subsidiaries / senior gua
Slide 10: Cash Available for Distribution (CAD)
Cash Available for Distribution (CAD) 10 SVC expects to generate free cash flow in 2026, a significant milestone in its turnaround following three years of elevated capital investment to enhance its retained hotel portfolio (1) Represents amortization of debt issuance costs, discounts and premiums,
Slide 11: Net Lease Portfolio
Net Lease Portfolio 11
Slide 12: Triple Net Lease Portfolio: Strategic Priorities & Benefits
Strategic Priorities Potential Benefits Triple Net Lease Portfolio: Strategic Priorities & Benefits • Current portfolio anchored by travel center properties backed by corporate investment grade credit • Diversified tenant base and geographic footprint mitigates risk • Efficient in-place debt structu
Slide 13: Net Lease Portfolio: Built with Properties in E-Commerce Resistant, Necessity Based Industries
(1) By annualized minimum rent. Net Lease Portfolio: Built with Properties in E-Commerce Resistant, Necessity Based Industries 761 $392M Properties Annualized Minimum Rent 13.6M 7.3 years Rentable Square Feet Weighted Average Lease Term 96.6% 2.01x Occupancy Rent Coverage % of Annualized Minimum Ren
Slide 14: Net Lease Portfolio: High Quality Tenant Base
Net Lease Portfolio: High Quality Tenant Base 14 Brand Industry Group # of Properties Total Square Feet Annualized Minimum Rents ($M) % of SVC Annualized Minimum Rents Weighted Average Remaining Term (years) (1) Weighted Average Rent Coverage (1) % Master Leased (2) TravelCenters of America Gasoline
Slide 15: TA's Competitive Advantage
TA’s Competitive Advantage 15 Typical TA travel center spans ~25 acres with key infrastructure, facilities and amenities TA’s Competitive Advantage Sample TA Travel Centers Larger • Sites average ~25 acres of land and offer parking for ~182 trucks and cars, as well as ~9 fueling positions • The larg
Slide 16: Net Lease Portfolio: Long-term Leases with Embedded Rent Growth
84% 10% 4% 2% Fixed / Scheduled CPI Flat Percentage Rent Net Lease Portfolio: Long-term Leases with Embedded Rent Growth Well-Laddered Lease Expirations (1) ~96% Leases with Contractual Increases or Percentage Rent Lease Structures (1) $392M 1.7% 3.1% 2.5% 2.7% 1.9% 2.0% 1.1% 85.0% 2026 2027 2028 20
Slide 17: SVC's Master Trust Provides Efficient and Cost-Effective Net Lease Financing
SVC’s Master Trust Provides Efficient and Cost-Effective Net Lease Financing (1) 17 Master Trust Collateral Pool Snapshot Master Trust Overview Most recent issuance date March 2026 Outstanding series 2023-1, 2025-1 VFN, 2026-1 Ratings AAA / AA / A / BBB Current LTV 65% Current debt service coverage
Slide 18: SVC's Unencumbered Net Lease Properties May Unlock Incremental Liquidity
SVC’s Unencumbered Net Lease Properties May Unlock Incremental Liquidity 18 Leasing opportunities and capital recycling strategies may drive added value and liquidity Properties 143 Occupancy 86.7% WALT 4.6 years Square Footage 2.7M SF Annualized Minimum Rent $26.9M Rent Coverage 2.9x Unencumbered N
Slide 19: Hotel Portfolio
Hotel Portfolio 19
Slide 20: Hotel Portfolio: Strategic Priorities & Benefits
Benefits Strategic Priorities Hotel Portfolio: Strategic Priorities & Benefits • SVC has invested significant amounts of CapEx into hotel renovations over the last several years • Divesting non-core hotels that require significant CapEx with limited earnings upside potential • Focused on driving mar
Slide 21: Retained Hotel Portfolio: Strong Presence in Top Markets
Retained Hotel Portfolio: Strong Prescence in Top Markets Phoenix 82% 8% 10% Full Service Extended Stay Select Service 60% 13% 27% Upper Midscale/ Midscale Upper Upscale Chain Scale (3) 40% 23% 21% 16% Urban Suburban Airport Resort Location (3) 64% 24% 10% 2% Transient Group Contract Other Customer
Slide 22: Retained Hotel Portfolio: Operating Trends and Demand Drivers
56.6% 69.4% 67.4% 61.7% 58.5% 70.3% 69.2% 63.0% 63.0% $177 $179 $173 $169 $180 $179 $171 $169 $179 $100 $124 $117 $105 $105 $126 $118 $106 $113 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 0% 10% 20% 30% 40% 50% 60% 70% 80% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Occupancy ADR RevPAR Retain
Slide 23: Retained Hotel Renovation and Redevelopment Initiatives
Retained Hotel Renovation and Redevelopment Initiatives 2024 2025 2026 Completions (2) Sonesta Simply Suites • Las Vegas, NV Sonesta ES Suites • Orlando Lake Buena Vista, FL Completions (27) Hyatt Place • Hendersonville, TN • Dallas Galleria, TX • El Paso, TX • San Antonio, TX • Charlotte, NC • Ster
Slide 24: Hotel CapEx Spend and Percentage of Revenue
$243M $136M $102M $110M $232M $297M $234M $130M 0% 5% 10% 15% 20% 25% $0M $50M $100M $150M $200M $250M $300M $350M 2019 2020 2021 2022 2023 2024 2025 2026 Projected Sp en d a s a % o f R ev en u e To ta l H o te l S p en d Total Hotel Spend Spend as a % of Revenue Industry Average Hotel CapEx SVC Ho
Slide 25: Near Term Drivers of Hotel EBITDA Margin Expansion
Near Term Drivers of Hotel EBITDA Margin Expansion 25 SVC anticipates Hotel EBITDA Margin expansion will be driven by sales of underperforming assets, revenue flow-through, cost efficiency, and operating leverage as demand normalizes Asset Sales Revenue Mix Labor & Operating Efficiency Operating Lev
Slide 26: Recent Performance of Retained & Exit Hotels
Recent Performance of Retained & Exit Hotels 26(1) Results of all hotels owned as of March 31, 2026. (1) Occupancy ADR RevPAR LTM as of March 31, 2026 No. of No. of Rooms LTM LTM LTM Operating EBITDA EBITDA Brand Service Level Hotels or Suites March 31, 2026 March 31, 2026 March 31, 2026 Revenues ($
Slide 27: Appendix
Appendix 27
Slide 28: Retained Hotel Portfolio: Urban
Royal Sonesta Cambridge, MA (400 Keys) Retained Hotel Portfolio: Urban 28 Well-located urban hotel properties in major gateway and business-friendly markets supported by diversified demand drivers and limited reliance on inbound international travel. Royal Sonesta New Orleans (483 Keys) Royal Sonest
Slide 29: Retained Hotel Portfolio: Resort
Retained Hotel Portfolio: Resort 29 Sonesta Hilton Head (340 Keys)Royal Sonesta Kauai (356 Keys)Nautilus Sonesta Miami Beach (250 Keys) Royal Sonesta San Juan (402 Keys) Number of Hotels 12 Number of Keys 2,861 SVC Resort Properties (1) Sonesta Fort Lauderdale (240 Keys) (1) As of March 31, 2026. Pr
Slide 30: Retained Hotel Portfolio: Suburban
Retained Hotel Portfolio: Suburban 30 Sonesta Silicon Valley (238 Keys)Sonesta Simply Suites Jersey City (214 Keys)Sonesta White Plains (131 Keys) Number of Hotels 25 Number of Keys 4,153 SVC Suburban Properties (1) Sonesta Redondo Beach & Marina (346 Keys)Sonesta Select Laguna Hills (136 Keys) (1)
Slide 31: Retained Hotel Portfolio: Airport
Hyatt Place Chantilly Dulles (123 Keys) Sonesta Miami Airport (309 Keys) Retained Hotel Portfolio: Airport 31 Sonesta Los Angeles (614 Keys) Radisson Seattle Airport (204 Keys) Sonesta Nashville (392 Keys) Number of Hotels 18 Number of Keys 3,820 SVC Airport Properties (1) (1) As of March 31, 2026.
Slide 32: RMR Platform
More than $37 Billion in AUM RMR Platform (1) Approximately 1,800 Properties More than 30 Offices Nationwide National Multi-Sector Investment Platform Industrial Residential Senior Living Medical Office Life Science Hotels Retail Office Over 800 Real Estate Professionals Institutional Infrastructure
Slide 33: Fees that SVC Pays to RMR are Primarily Performance Based
Fees that SVC Pays to RMR are Primarily Performance Based which Aligns Interests with Shareholders RMR base management fee tied to SVC’s share price performance • Consists of an annual fee equal to generally 50 bps multiplied by the lower of: (1) SVC’s historical cost of real estate, or (2) SVC’s to
Slide 34: Condensed Consolidated Statements of Income (Loss)
Full Year Full Year Full Year LTM 12/31/2019 12/31/2024 12/31/2025 1Q 2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Revenues: Hotel operating revenues (1) 1,989,173$ 1,496,705$ 1,413,403$ 1,343,015$ 264,575$ 296,459$ 377,576$ 404,405$ Rental income 326,975 400,223 401,435 401,095 99,876 100,994 101,
Slide 35: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 35 (amounts in thousands, except per share data) March 31, 2026 December 31, 2025 $ 1,747,312 $ 1,750,799 6,184,443 6,198,233 Total real estate properties, gross 7,931,755 7,949,032 (2,488,252) (2,442,966) Total real estate properties, net 5,443,503 5,506,066 96
Slide 36: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD 36 (amounts in thousands, except per share data) Full Year Full Year LTM 12/31/2024 12/31/2025 1Q 2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Net loss (275,526)$ (202,321)$ (237,064)$ (151,178)$ (782)$ (46,945)$ (38,159)$ Add (Less): Depreciation and amor
Slide 37: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre 37 (amounts in thousands) Full Year LTM 12/31/2019 1Q 2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Net income (loss) 259,750$ (237,064)$ (151,178)$ (782)$ (46,945)$ (38,159)$ Add (Less): Interest expense 225,126 408,644 96,547 101,642 107,776 10
Slide 38: Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA – All Hotels
Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA – All Hotels* * Results of all hotels as owned during the periods presented, including the results of hotels sold by SVC for the periods owned by SVC. 38 (dollars in thousands) LTM 1Q 2026 3/31/2026 12/31/2025 9/30/2025 6/30/20
Slide 39: Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties
Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties 39 (dollars in thousands) LTM 1Q 2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Calculation of NOI: Rental income (GAAP) (1) 401,095$ 99,876$ 100,994$ 101,194$ 99,031$ Net lease operating expenses (GAAP) 23,409 7,440 5,
Slide 40: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA, Adjusted Hotel EBITDA, NOI and Cash Basis NOI 1. SVC increased rental income by $8,775 for the twelve months ended March 31, 2026 to record sch
Slide 41: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions Non-GAAP Financial Measures SVC presents certain “non-GAAP financial measures” within the meaning of the applicable Securities and Exchange Commission, or SEC, rules, including FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cas
Slide 42: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Adjusted Hotel EBITDA Margin: Adjusted Hotel EBITDA as a percentage of hotel operating revenues. Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include the original cost of real
Slide 43: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) LTM: LTM means last twelve months ended March 31, 2026. Non-Cash Expenses: Non-cash expenses represent general and administrative expense paid in common shares and amortization of liabilities relating to SVC’s initial investment in Sone
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Investor Presentation June 2026 | Nasdaq: SVC Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 SVCREIT.COM
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