Service Properties Trust appoints new CEO and Managing Trustee

Service Properties Trust (NASDAQ:SVC), a real estate investment trust specializing in hospitality and senior living properties, announced today the appointment of Christopher J. Bilotto as the new President and Chief Executive Officer, effective immediately. Bilotto, 47, also joins the company’s Board of Trustees as a Managing Trustee. The appointment comes at a crucial time for the $441.59 million market cap company, which InvestingPro analysis suggests is currently undervalued. Despite challenging market conditions reflected in its share price of $2.64, the company has maintained dividend payments for 31 consecutive years.

The transition follows the resignations of John G. Murray and Todd W. Hargreaves (LON:HRGV) on Sunday. Both former executives confirmed their departures were not due to any disagreements regarding the company’s operations, policies, or practices.

Bilotto brings extensive experience in property development and asset management to his new roles. Since October 2023, he has served as an executive vice president at The RMR Group (NASDAQ:RMR) LLC, the company’s manager. His responsibilities at RMR included overseeing the acquisition platform and managing hotel and senior living properties across the United States. Prior to his tenure at RMR, Bilotto held various management positions at General Growth Properties.

Additionally, since January 2024, Bilotto has been serving as the president and chief executive officer of Diversified Healthcare Trust (NASDAQ:DHC). His qualifications align with the standards set by The Nasdaq Stock Market LLC and the Securities and Exchange Commission.

In his capacity as a Managing Trustee, Bilotto will receive the standard compensation provided to other trustees. Furthermore, Service Properties Trust will enter into an indemnification agreement with Bilotto, similar to those with other trustees and executive officers, ensuring legal protection in his official capacity with the company.

This strategic appointment aims to leverage Bilotto’s industry expertise to guide Service Properties Trust forward. The company has not disclosed any familial relationships between Bilotto and other board members or executive officers, nor any transactions requiring disclosure under SEC regulations. According to InvestingPro data, the company faces significant challenges, with the stock down over 34% in the past six months and trading at 0.57 times book value. For deeper insights into SVC’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

Investors and stakeholders can expect Bilotto’s leadership to continue the company’s focus on growth and value creation within the real estate investment trust sector. With current EBITDA of $555.83 million and a beta of 2.2 indicating higher market volatility, the company presents both challenges and opportunities. The details of these changes are based on the latest 8-K filing with the Securities and Exchange Commission. InvestingPro subscribers can access additional insights, including 8 more exclusive ProTips and detailed valuation metrics to make more informed investment decisions.

In other recent news, Service Properties Trust announced its fourth-quarter 2024 earnings, reporting a notable miss on earnings per share (EPS) but a slight beat on revenue expectations. The company reported an EPS of -$0.46, which was below the forecasted -$0.32, while revenue exceeded expectations, reaching $456.53 million compared to the anticipated $441.3 million. Despite the EPS shortfall, the revenue beat was well-received, and the company continues to focus on strategic initiatives such as hotel renovations and asset sales. Service Properties Trust is also planning to sell 114 Sonesta hotels, with expectations to net at least $1 billion from these sales. The company is prioritizing debt repayment and capital expenditures for hotel renovations, aiming to address its 2026 debt maturities. Analysts have been closely monitoring these developments, with firms like Wells Fargo (NYSE:WFC) and Oppenheimer engaging in discussions about the company’s strategic direction and asset management. These recent developments highlight Service Properties Trust’s ongoing efforts to strengthen its financial position and optimize its asset portfolio.

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