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Service Properties Trust (NASDAQ:SVC) reported Monday the completion of sales involving 34 hotels as part of two previously announced agreements. The transactions, finalized on November 18 and November 19, involved the sale of 31 hotels with 3,734 rooms across 18 states for a total of $198.7 million, and an additional three hotels with 357 rooms in three states for $26.0 million. These figures exclude closing costs. The sales represent significant progress for the company, which currently has a market capitalization of $272.3 million and is considered undervalued according to InvestingPro analysis.
The sales are part of broader agreements to sell a total of 113 hotels with 14,803 rooms for $913.3 million. To date, Service Properties Trust has sold 85 of these hotels, representing 11,038 rooms, for a combined $618.5 million. The company remains under agreement to sell the remaining 28 hotels, which have 3,765 rooms, for $294.8 million. According to the company, the remaining sales are expected to be completed in phases by the end of 2025.
Service Properties Trust stated that proceeds from the sales are intended for debt repayment. The company has filed unaudited pro forma condensed consolidated financial statements related to these transactions as exhibits to its current report.
This information is based on a statement in a press release filed with the Securities and Exchange Commission.
In other recent news, Service Properties Trust reported its third-quarter earnings for 2025, which showed a slight miss on earnings per share (EPS) compared to analyst forecasts. The company posted an EPS of -$0.28, falling short of the expected -$0.25. However, revenue surpassed expectations, coming in at $478.77 million against a projected $477.97 million. In addition to their earnings report, Service Properties Trust announced the sale of seven hotels for a combined $48 million, excluding closing costs. This transaction is part of a broader plan to sell 113 hotels for a total of $913.3 million. So far, 51 hotels have been sold, generating $393.8 million in gross proceeds. The company is still under agreement to sell the remaining 62 hotels for $519.5 million, with plans to complete these sales by the end of 2025. These recent developments reflect ongoing efforts by Service Properties Trust to restructure its portfolio and address its financial goals.
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