{"id":1020972,"date":"2026-11-13T11:03:05","date_gmt":"2026-11-13T16:03:05","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/"},"modified":"2026-11-13T11:03:05","modified_gmt":"2026-11-13T16:03:05","slug":"service-properties-trust-board-sends-response-letter-to-blackwells-capital","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/","title":{"rendered":"Service Properties Trust Board Sends Response Letter to Blackwells Capital"},"content":{"rendered":"<p>        <!--.bwalignc { text-align: center; list-style-position: inside }body {font:normal small Arial,Helvetica,sans-serif;color:#000;background-color:#fff;padding:24px;margin:0;} a img {border:0;} h3 {font-size:medium;color:#000;margin:0 0 1em 0; text-align:center;}-->  <\/p>\n<p class=\"bwalignc\"><b>Service Properties Trust Board Sends Response Letter to Blackwells Capital<\/b><\/p>\n<p class=\"bwalignc\"><i>Board Reaffirms Strategy to Grow Retained Hotel EBITDA Before Beginning Sales in 2027, Completing SVC\u2019s Transition to a Deleveraged Pure-Play Triple Net Lease REIT<\/i><\/p>\n<p>NEWTON, Mass.&#8211;(<a href=\"http:\/\/www.businesswire.com\">BUSINESS WIRE<\/a>)&#8211;<a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.svcreit.com%2F&amp;esheet=54640899&amp;newsitemid=20261113755438&amp;lan=en-US&amp;anchor=Service+Properties+Trust+%28Nasdaq%3A+SVC%29&amp;index=1&amp;md5=4e624527f46961045c958b5f47705a0f\">Service Properties Trust (Nasdaq: SVC)<\/a> (\u201cSVC\u201d or the \u201cCompany\u201d) today announced that its Board of Trustees (the \u201cBoard\u201d) sent a formal response letter to Blackwells Capital LLC (\u201cBlackwells\u201d) regarding Blackwells&#8217; public letter dated November 5, 2026. A copy of the Board&#8217;s letter to Blackwells is available through the multimedia link accompanying this press release.<\/p>\n<p id=\"news-body-cta\">This press release features multimedia. View the full release here: <a href=\"https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/<\/a><\/p>\n<p>\nThe Board, including all six Independent Trustees, reviewed Blackwells\u2019 letter and unanimously concluded that its requests are not in the best interests of SVC\u2019s shareholders. Instead, the Board reaffirmed SVC\u2019s ongoing strategy of growing EBITDA at its portfolio of 77 retained hotels (the \u201cRetained Hotels\u201d) before selling them, as allowing this growth to take hold offers the opportunity to realize significantly higher proceeds than selling the hotels today. With significant capital invested in the Retained Hotels and the operating initiatives SVC has identified, SVC believes the hotels are well positioned to grow EBITDA by approximately $109 million within 12 to 24 months.<\/p>\n<p>\nAs outlined in the Board\u2019s letter, SVC expects to begin selling the Retained Hotels in 2027, with the goal of selling substantially all of them by the end of 2028. Proceeds from these sales are expected to reduce SVC\u2019s leverage from the current nine times net debt to Adjusted EBITDA to no more than five times, positioning SVC to complete its transition to a deleveraged pure-play triple net lease REIT.<\/p>\n<p>\nThe Board remains fully committed to executing this strategy and delivering value for SVC shareholders.<\/p>\n<p><b>About Service Properties Trust<\/b><\/p>\n<p>\nSVC is a real estate investment trust with $9.6 billion invested in two asset categories: service-focused retail net lease properties and hotels. As of September 30, 2026, SVC owned 740 service-focused retail net lease properties with over 13.5 million square feet throughout the United States and 87 hotels with approximately 20,000 guest rooms throughout the United States, including Puerto Rico, and Canada. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $37 billion in assets under management as of September 30, 2026, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.svcreit.com&amp;esheet=54640899&amp;newsitemid=20261113755438&amp;lan=en-US&amp;anchor=www.svcreit.com&amp;index=2&amp;md5=4f67c9ac318e30b7e44890268965350f\">www.svcreit.com<\/a>.<\/p>\n<p class=\"bwalignc\"><b>WARNING CONCERNING FORWARD-LOOKING STATEMENTS<\/b><\/p>\n<p>\nThis press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever SVC uses words such as \u201cbelieve\u201d, \u201cexpect\u201d, \u201canticipate\u201d, \u201cintend\u201d, \u201cplan\u201d, \u201cestimate\u201d, \u201cwill\u201d, \u201cmay\u201d and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC\u2019s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC\u2019s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC\u2019s control. Forward-looking statements in this press release, including those referencing the Board\u2019s plan and formal response letter, include statements regarding: SVC\u2019s plan to transition into a deleveraged pure-play triple net lease REIT; the expected timing, pace, execution, and proceeds of sales of the 77 Retained Hotels across 2027 and 2028; the potential value of the Retained Hotels, including the illustrated values described in the Board\u2019s letter; the potential to add approximately $109 million of EBITDA at the Retained Hotels over the next 12 to 24 months; and SVC\u2019s targeted reduction of leverage to no more than five times net debt to Adjusted EBITDA. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. For example: SVC\u2019s ability to successfully execute operational initiatives and achieve its incremental hotel EBITDA targets depends on, among other things, market conditions, hotel industry trends, and the Company\u2019s ability to control costs and drive performance; SVC\u2019s ability to sell the Retained Hotels when, and on the terms, it expects depends on, among other things, market conditions, hotel industry trends, buyer demand, and the availability and cost of debt financing to prospective buyers; SVC may not realize the value or pace of monetization it expects for the Retained Hotels, and the illustrated values of the Retained Hotels are not appraisals or estimates of fair value and are based on assumptions that may prove incorrect; SVC may not reduce its leverage to the level it expects, when expected or at all; and SVC may not successfully complete its transition to a pure-play triple net lease REIT when expected or at all.<\/p>\n<p>\nThe information contained in SVC\u2019s filings with the Securities and Exchange Commission (the \u201cSEC\u201d), including under \u201cRisk Factors\u201d in SVC\u2019s periodic reports, or incorporated therein, identifies other important factors that could cause SVC\u2019s actual results to differ materially from those stated in or implied by SVC\u2019s forward-looking statements. SVC\u2019s filings with the SEC are available on the SEC&#8217;s website at <a rel=\"nofollow\" href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.sec.gov&amp;esheet=54640899&amp;newsitemid=20261113755438&amp;lan=en-US&amp;anchor=www.sec.gov&amp;index=3&amp;md5=8dd9910aec7b89c4dd154b3e8c261bd2\">www.sec.gov<\/a>.<\/p>\n<p>\nYou should not place undue reliance upon forward-looking statements. Except as required by law, SVC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.<\/p>\n<p><b>NON-GAAP FINANCIAL MEASURES<\/b><\/p>\n<p>\nThis press release and the Board\u2019s letter refer to EBITDA, Adjusted Hotel EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Definitions of these measures, and reconciliations of historical amounts to the most directly comparable financial measures calculated in accordance with U.S. generally accepted accounting principles, are included in SVC\u2019s third quarter 2026 earnings release and supplemental operating and financial data, available on SVC\u2019s website. SVC has not provided a reconciliation of the forward-looking EBITDA amounts or leverage target to the most directly comparable GAAP measures because it is unable to do so without unreasonable efforts, as certain items necessary for such a reconciliation, including the timing and amount of hotel sales, gains or losses on sales and impairment charges, are uncertain and outside SVC\u2019s control.<\/p>\n<p class=\"bwalignc\">\nA Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.<br \/>\n<br \/>No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261113755438r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" style=\"width:0;height:0\" \/><span class=\"bwct31415\" \/><\/p>\n<p id=\"mmgallerylink\"><span id=\"mmgallerylink-phrase\">View source version on businesswire.com: <\/span><span id=\"mmgallerylink-link\"><a href=\"https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/\" rel=\"nofollow\">https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/<\/a><\/span><\/p>\n<p>\nKevin Barry, Senior Director, Investor Relations<br \/>\n<br \/>(617) 796-8232<\/p>\n<p><b>KEYWORDS:<\/b> Massachusetts United States North America<\/p>\n<p><b>INDUSTRY KEYWORDS:<\/b> Professional Services Commercial Building &amp; Real Estate Lodging Finance Construction &amp; Property Travel REIT<\/p>\n<p><b>MEDIA:<\/b><\/p>\n<table cellpadding=\"3\" cellspacing=\"3\">\n<tr>\n<td><font face=\"Arial\" size=\"2\"><b>Logo<\/b><\/font><\/td>\n<\/tr>\n<tr>\n<td><img decoding=\"async\" src=\"https:\/\/mms.businesswire.com\/media\/20261113755438\/en\/750380\/3\/servicepropertiestrust-logo-rgb-highres.jpg\" alt=\"Logo\" \/><\/td>\n<\/tr>\n<tr>\n<td><font face=\"Arial\" size=\"2\"><\/font><\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Service Properties Trust Board Sends Response Letter to Blackwells Capital Board Reaffirms Strategy to Grow Retained Hotel EBITDA Before Beginning Sales in 2027, Completing SVC\u2019s Transition to a Deleveraged Pure-Play Triple Net Lease REIT NEWTON, Mass.&#8211;(BUSINESS WIRE)&#8211;Service Properties Trust (Nasdaq: SVC) (\u201cSVC\u201d or the \u201cCompany\u201d) today announced that its Board of Trustees (the \u201cBoard\u201d) sent a formal response letter to Blackwells Capital LLC (\u201cBlackwells\u201d) regarding Blackwells&#8217; public letter dated November 5, 2026. A copy of the Board&#8217;s letter to Blackwells is available through the multimedia link accompanying this press release. This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/ The Board, including all six Independent Trustees, reviewed Blackwells\u2019 letter and unanimously concluded that its requests are not in &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Service Properties Trust Board Sends Response Letter to Blackwells Capital&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-1020972","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Service Properties Trust Board Sends Response Letter to Blackwells Capital - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Service Properties Trust Board Sends Response Letter to Blackwells Capital - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Service Properties Trust Board Sends Response Letter to Blackwells Capital Board Reaffirms Strategy to Grow Retained Hotel EBITDA Before Beginning Sales in 2027, Completing SVC\u2019s Transition to a Deleveraged Pure-Play Triple Net Lease REIT NEWTON, Mass.&#8211;(BUSINESS WIRE)&#8211;Service Properties Trust (Nasdaq: SVC) (\u201cSVC\u201d or the \u201cCompany\u201d) today announced that its Board of Trustees (the \u201cBoard\u201d) sent a formal response letter to Blackwells Capital LLC (\u201cBlackwells\u201d) regarding Blackwells&#8217; public letter dated November 5, 2026. A copy of the Board&#8217;s letter to Blackwells is available through the multimedia link accompanying this press release. This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/ The Board, including all six Independent Trustees, reviewed Blackwells\u2019 letter and unanimously concluded that its requests are not in &hellip; Continue reading &quot;Service Properties Trust Board Sends Response Letter to Blackwells Capital&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2026-11-13T16:03:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261113755438r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Service Properties Trust Board Sends Response Letter to Blackwells Capital\",\"datePublished\":\"2026-11-13T16:03:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\\\/\"},\"wordCount\":1124,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cts.businesswire.com\\\/ct\\\/CT?id=bwnews&amp;sty=20261113755438r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\\\/\",\"name\":\"Service Properties Trust Board Sends Response Letter to Blackwells Capital - 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A copy of the Board&#8217;s letter to Blackwells is available through the multimedia link accompanying this press release. This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20261113755438\/en\/ The Board, including all six Independent Trustees, reviewed Blackwells\u2019 letter and unanimously concluded that its requests are not in &hellip; Continue reading \"Service Properties Trust Board Sends Response Letter to Blackwells Capital\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/","og_site_name":"Market Newsdesk","article_published_time":"2026-11-13T16:03:05+00:00","og_image":[{"url":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261113755438r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Service Properties Trust Board Sends Response Letter to Blackwells Capital","datePublished":"2026-11-13T16:03:05+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/"},"wordCount":1124,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/#primaryimage"},"thumbnailUrl":"https:\/\/cts.businesswire.com\/ct\/CT?id=bwnews&amp;sty=20261113755438r1&amp;sid=flmnd&amp;distro=nx&amp;lang=en","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-board-sends-response-letter-to-blackwells-capital\/","name":"Service Properties Trust Board Sends Response Letter to Blackwells Capital - 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