Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (December 2025)
42 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, Dec 9, 2025
Slide 1: Investor Presentation December 2025
Investor Presentation December 2025 | Nasdaq: SVC Exhibit 99.1
Slide 2: Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures
Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These sta
Slide 3: SVC: Investment Highlights
SVC: Investment Highlights 33 1 Net lease retail and hotel portfolio with national scale 2 Transforming to become a majority net lease REIT through the sale of a significant portion of hotel assets 3 Executing on hotel sales to strengthen the balance sheet and reduce leverage 4 Retail assets anchore
Slide 4: SVC: At a Glance
Service-Focused Retail Net Lease Portfolio Hotel Portfolio SVC: At a Glance Today SVC is a publicly traded REIT primarily invested in two asset categories, service-focused retail net lease properties and hotels, significantly diversifying its cash flows. Total Company 4 912 Properties 46 States, Was
Slide 5: Recent & Near-Term Highlights
Recent & Near-Term Highlights 5 • Closed the sale of 101 hotels for $721 million, excluding closing costs • Redeemed all $800 million of 2026 senior notes • Full availability of $650 million revolving credit facility • Reduced capital expenditure guidance: – 2025 full-year CapEx: ~$200 million ($250
Slide 6: Hotel Portfolio: Update on 2025 Dispositions
Sold as of 3Q25 Sold since 3Q25 Under Contract Total Hotels 46 55 21 122 Rooms / Suites 6,337 6,745 2,849 15,931 Sales Price $325M $396M $238M $959M Avg. Sales Price per Room / Suite $51.3K $58.7K $83.5K $60.2K Hotel Portfolio: Update on 2025 Dispositions 6 (1) Status as of December 5, 2025. (2) Inc
Slide 7: Pro Forma Hotel Portfolio 9/30/25
Under Contract (2)(3) 2025 Active Hotel Sales Pro Forma 7 Hotels 160 55 21 84 Keys 29,536 6,745 2,849 19,942 ADR $147.86 $95.26 $120.43 $171.04 Occupancy 64.8% 67.9% 67.0% 63.5% RevPAR $95.85 $64.72 $80.64 $108.56 Operating Revenues $1,324M $166M $87M $1,071M EBITDA $168M $26M $8M $135M EBITDA Margi
Slide 8: SVC Strategic Transformation: Majority Net Lease REIT
SVC Strategic Transformation: Majority Net Lease REIT 8 Strategic Transformation Benefits • Stable cash flows from necessity-based retail net lease assets – National scale and diversified portfolio – Embedded growth through contractual rent escalators with 96% of net leases – TravelCenters of Americ
Slide 9: Attractive Relative Valuation
Attractive Relative Valuation 9 SVC trades at a multiple in-line with Hotel REITs, despite transforming to a majority net lease REIT, with nearly 70% of its Adjusted EBITDAre coming from retail net lease assets (1) 20.2x 17.4x 17.1x 16.4x 15.7x 14.6x 14.5x 12.9x 11.7x 10.7x 10.3x 10.0x 9.8x 9.7x 9.6
Slide 10: Financial Update
Financial Update 10
Slide 11: Current Financial Position (3Q25)
Current Financial Position (3Q25) (1) Net Debt / Total Gross Assets (2) 57.9% Net Debt / Gross Book Value of Real Estate Assets (2) and Cash and Cash Equivalents 61.6% LTM Adjusted EBITDAre / LTM Interest Expense 1.4x Net Debt / LTM Adjusted EBITDAre (2) 10.0x (1) Adjusted for the redemption of all
Slide 12: Debt Maturity Schedule
Debt Maturity Schedule Debt Maturities $850 $400 $1,125 $400 $500 $580 $45 $2 $2 $601 $1,000 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2025 2026 2027 2028 2029 2030 2031 2032 $ (M ill io n s) Unsecured Fixed Rate Debt Zero Coupon Senior Secured Notes Secured Floating Rate Debt Secured Fixed
Slide 13: Net Lease Portfolio
Net Lease Portfolio 13
Slide 14: Triple Net Leased Portfolio: Strategic Priorities & Benefits
Strategic Priorities Potential Benefits Triple Net Leased Portfolio: Strategic Priorities & Benefits • Build on existing platform focusing on properties in e-commerce resistant, necessity-based industries • Current portfolio anchored by travel center properties backed by corporate IG credit • Divers
Slide 15: Net Lease Portfolio: Built with Properties in E-Commerce Resistant, Necessity Based Industries
Note: Data as of 3Q25. (1) By annualized minimum rent. Travel Centers, 68.8% Restaurants - Quick Service, 5.3% Health and Fitness, 3.2% Restaurants - Casual Dining, 3.1% Grocery Stores, 2.4% Medical, Dental Office, 2.1% Movie Theaters, 2.1% Automotive Equipment and Services, 2.0% Home Goods and Leis
Slide 16: Net Lease Portfolio: Top Tenant Brands
Net Lease Portfolio: Top Tenant Brands Top Ten Tenants by Brand Brand % of Annualized Minimum Rent Rent Coverage TravelCenters of America / Petro Stopping Centers 68.0% 1.27x The Great Escape 2.0% 4.75x Life Time Fitness 1.6% 2.59x Buehler's Fresh Foods 1.5% 2.72x Heartland Dental 1.2% 4.79x Express
Slide 17: Net Lease Portfolio: Long-term Leases with Embedded Rent Growth
83% 11% 4% 2% Fixed / Scheduled CPI Flat Percentage Rent Net Lease Portfolio: Long-term Leases with Embedded Rent Growth Well-Laddered Lease Expirations (1) ~96% of Leases Have Contractual Increases or Percentage Rent Lease Structures $389M 0.6% 3.4% 3.3% 2.5% 2.6% 1.7% 1.4% 0.7% 83.8% 2025 2026 202
Slide 18: Net Lease Portfolio: Underwriting Criteria & Deal Closings
Net Lease Portfolio: Underwriting Criteria & Deal Closings SVC’s 2025 Acquisitions To Date • Net leases / ground leases with minimal landlord responsibilities for operating or capital expenses • Long remaining lease term (>7 years) • Annual rent increases • Strong unit level EBITDAR coverage (> 2.0x
Slide 19: Hotel Portfolio
Hotel Portfolio 19
Slide 20: Hotel Portfolio: Strategic Priorities & Benefits
Benefits Strategic Priorities Hotel Portfolio: Strategic Priorities & Benefits • SVC has invested significant amounts of capital into hotel renovations over the last several years • Exiting non-core hotels that require significant CapEx with limited earnings upside potential • Focused on driving mar
Slide 21: Hotel Portfolio: 2026 Growth Catalysts
2026 FIFA World Cup Matches in SVC Markets2026 Demand Drivers Hotel Portfolio: 2026 Growth Catalysts 21 • World Cup – Strong international and domestic demand – SVC hotel footprint positioned to benefit from 75 matches in key markets – Over 40% of SVC’s retained hotel keys located in host markets •
Slide 22: Hotel Portfolio: Pro Forma FY2025 Hotel Dispositions
Hotel Portfolio: Pro Forma FY2025 Hotel Dispositions (1) (1) Excludes 122 hotels included in 2025 disposition plan. Includes seven hotels to be re-marketed for sale in 2026. (2) Based on hotel percentage of investments. (3) Based on number of keys. (4) Based on LTM room revenue. 22 83% 7% 10% Full S
Slide 23: Retained Hotels by Brand and Service Level
Occupancy ADR RevPAR LTM as of September 30, 2025 No. of No. of Rooms LTM LTM LTM Operating EBITDA EBITDA Brand Service Level Hotels or Suites September 30, 2025 September 30, 2025 September 30, 2025 Revenues ($M) ($M) Margin Retained Hotels: Sonesta Hotels & Resorts® Full Service 22 7,207 60.1% $16
Slide 24: SVC Hotel Capital Expenditures
$243M $136M $102M $110M $232M $297M $200M $138M 0% 5% 10% 15% 20% 25% $0M $50M $100M $150M $200M $250M $300M $350M 2019 2020 2021 2022 2023 2024 2025 Projected 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 SVC Hote
Slide 25: Retained Hotel Renovation and Redevelopment Initiatives
Retained Hotel Renovation and Redevelopment Initiatives 2024 2025 2026 Targeted Completions (5) Sonesta Hotels & Resorts • Atlanta Airport, GA (Phase 1) Royal Sonesta • Miami Nautilus, FL (Redevelopment) • Washington, D.C. (DuPont) (Redevelopment – F&B) Sonesta ES Suites • Orlando Lake Buena Vista,
Slide 26: Hotel Renovations: Recent Completions
• Completion: Jan. 2025 • Total Project Cost: $90.0M • Comprehensive renovations to interior and exterior spaces, including public areas and guestrooms, to provide an elevated, spacious, and self- sufficient stay experience. Hotel Renovations: Recent Completions Hyatt Place Portfolio (17 Hotels) • C
Slide 27: Hotel Renovation Recent Completion: Sonesta Los Angeles Airport
Hotel Renovation Recent Completion: Sonesta Hotels & Resorts Los Angeles Airport $40.6 million full renovation with redesigned guestrooms and upgraded F&B options completed in March 2025 27
Slide 28: Appendix
Appendix 28
Slide 29: Sonesta at a Glance
Sonesta at a Glance • 8th largest hotel company in the U.S. according to Smith Travel Research and growing international footprint spanning eight countries • More than 1,100 hotels totaling over 95,000 rooms across 13 brands, including ~1,000 franchised hotels • Scaled operating platform with deep e
Slide 30: RMR Platform
Approximately $39 Billion in AUM RMR Platform Approximately 1,900 Properties More than 30 Offices Nationwide National Multi-Sector Investment Platform Industrial Residential Senior Living Medical Office Life Science Hotels Retail Office Nearly 900 Real Estate Professionals Institutional Infrastructu
Slide 31: Fees that SVC Pays to RMR are Primarily Performance Based
Fees that SVC Pays to RMR are Primarily Performance Based which Aligns Interests with Shareholders RMR base management fee tied to SVC’s share price performance • Consists of an annual fee equal to generally 50 bps multiplied by the lower of: (1) SVC’s historical cost of real estate, or (2) SVC’s to
Slide 32: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) 32 (amounts in thousands, except per share data) See accompanying notes on page 37. LTM 3Q 2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Revenues: Hotel operating revenues (1) 1,473,992$ 377,576$ 404,405$ 334,963$ 357,048$ Rental income 399,952 101,
Slide 33: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 33 (amounts in thousands, except per share data)
Slide 34: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD 34 (amounts in thousands, except per share data) LTM 3Q 2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Net loss (277,931)$ (46,945)$ (38,159)$ (116,435)$ (76,392)$ Add (Less): Depreciation and amortization 332,583 74,453 75,030 89,100 94,000 Loss on asset im
Slide 35: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre 35 (amounts in thousands) LTM 3Q 2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Net loss (277,931)$ (46,945)$ (38,159)$ (116,435)$ (76,392)$ Add (Less): Interest expense 411,374 107,776 102,679 101,517 99,402 Income tax expense (benefit) 1,501 253
Slide 36: 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. 36 (dollars in thousands) LTM 3Q 2025 9/30/2025 6/30/2025 3/31/2025 12/31/20
Slide 37: Notes to Condensed Consolidated Statements of Income and Calculations
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA 1. SVC increased rental income by $12,783 for the trailing twelve months ended September 30, 2025 to record scheduled
Slide 38: Pro Forma Calculation and Reconciliation of Hotel EBITDA
Pro Forma Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA * 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) See accompanying notes on page 39. LTM Pro Forma LTM 3
Slide 39: Notes to Pro Forma Calculations of Hotel EBITDA
Notes to Pro Forma Calculations of Hotel EBITDA and Adjusted Hotel EBITDA 1. The adjustments represent the historical revenues and expenses for the trailing twelve months ended September 30, 2025 of 122 hotels owned by SVC that were sold or are expected to be sold by SVC. 2. Transaction related cost
Slide 40: 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 SEC rules, including FFO, Normalized FFO, CAD, EBITDA, Hotel EBITDA, Adjusted Hotel EBITDA, EBITDAre and Adjusted EBITDAre. These me
Slide 41: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Other Definitions Adjusted Hotel EBITDA Margin: Adjusted Hotel EBITDA as a percentage of hotel operating revenues. Annualized Minimum Rent: Generally, SVC's lease agreements with its net lease tenants require payment of minimum rent to
Slide 42: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) 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 Sonesta and its former investment in The RMR Group, Inc. Non
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