Service Properties Trust sells three hotels for $22.5 million as part of larger portfolio sale

Published 29/09/2025, 12:34
Service Properties Trust sells three hotels for $22.5 million as part of larger portfolio sale

Service Properties Trust (NASDAQ:SVC), currently valued at $458 million in market capitalization, sold three hotels totaling 399 rooms in three states for $22.5 million, excluding closing costs, according to a press release statement based on a filing Monday with the Securities and Exchange Commission.

The transaction is part of a previously announced agreement by Service Properties Trust to sell a portfolio of 113 hotels, comprising 14,803 rooms, for a total of $913.3 million, excluding closing costs. With this latest sale, the company has completed the sale of 23 hotels with 3,166 rooms for a combined $158.2 million. Service Properties Trust remains under agreement to sell the remaining 90 hotels, which have 11,637 rooms, for $755.1 million. The company said the remaining hotel sales are expected to be completed in phases by the end of 2025.

According to the filing, Service Properties Trust expects to use proceeds from the hotel sales to repay debt, including a portion of the outstanding borrowings under its revolving credit facility. The company currently maintains a healthy liquidity position with a current ratio of 2.42, though it carries total debt of $5.7 billion.

Service Properties Trust, based in Newton, Massachusetts, is a real estate investment trust incorporated in Maryland. The company’s common shares are listed on the Nasdaq Stock Market under the symbol SVC.

This information is based on a press release statement and a filing with the Securities and Exchange Commission.

In other recent news, Service Properties Trust reported its second-quarter 2025 earnings, which showed a larger-than-expected loss per share of -$0.23, missing the forecast of -$0.20. However, the company did see a slight revenue beat, with revenues coming in at $503.44 million compared to the expected $497.76 million. Additionally, Service Properties Trust completed the sale of two hotels for $25 million, part of a broader agreement to sell a portfolio of 113 hotels. To date, the company has sold nine hotels for a total of $88.9 million and remains under contract to sell the remaining 104 hotels for $824.4 million. Wells Fargo recently downgraded the stock from Overweight to Equal Weight, citing balance sheet concerns and noting that the planned hotel sales are already reflected in the stock price. In another development, Service Properties Trust announced new management agreements with Sonesta International Hotels Corporation for 59 hotels it plans to retain, effective August 1, 2025. These agreements include various fees such as a base management fee and an incentive fee starting in 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.