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Service Properties Trust (NASDAQ:SVC), a real estate investment trust with a market capitalization of $485 million and strong liquidity position as indicated by its current ratio of 2.42, announced the sale of two hotels totaling 318 keys for a combined sales price of $25 million, excluding closing costs. The transaction was completed Tuesday as part of a previously disclosed agreement to sell a portfolio of 113 hotels with a total of 14,803 keys.
According to the company’s statement, with this latest sale, Service Properties Trust has now sold nine of the hotels in the portfolio, representing 1,313 keys, for a total of $88.9 million, excluding closing costs. The company remains under agreement to sell the remaining 104 hotels, which comprise 13,490 keys, for a combined sales price of $824.4 million, excluding closing costs.
The remaining hotel sales are expected to occur in phases and be completed by the end of 2025. Service Properties Trust previously stated that proceeds from these asset sales are intended to be used to repay debt, including a portion of outstanding borrowings under its revolving credit facility.
This information is based on a press release statement contained in a recent SEC filing.
In other recent news, Service Properties Trust reported its second-quarter 2025 earnings, showing a larger-than-expected loss per share. The company posted an earnings per share (EPS) of -$0.23, falling short of analysts’ forecast of -$0.20. However, revenue slightly exceeded expectations, coming in at $503.44 million compared to the anticipated $497.76 million. Additionally, Service Properties Trust has entered new management agreements with Sonesta International Hotels Corporation for 59 hotels it plans to retain. These agreements, effective August 1, 2025, have an initial 15-year term with options for renewal. In terms of analyst activity, Wells Fargo downgraded Service Properties Trust from Overweight to Equal Weight, citing balance sheet concerns. The firm also adjusted its price target for the stock from $3.00 to $2.50. Wells Fargo’s downgrade followed the company’s announcement that all planned hotel dispositions are now under contract.
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