{"id":892565,"date":"2025-10-06T09:22:07","date_gmt":"2025-10-06T13:22:07","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-provides-business-update\/"},"modified":"2025-10-06T09:22:07","modified_gmt":"2025-10-06T13:22:07","slug":"service-properties-trust-provides-business-update","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-provides-business-update\/","title":{"rendered":"Service Properties Trust Provides Business Update"},"content":{"rendered":"

<\/p>\n

Service Properties Trust Provides Business Update<\/b><\/p>\n

Completes 40 Hotel Sales for Approximately $292 Million During the Third Quarter<\/i><\/p>\n

Remains on Track for $959 Million of Expected Total Hotel Sales Proceeds in 2025<\/i><\/p>\n

Enhances Financial Profile with Debt Repayments<\/i><\/p>\n

NEWTON, Mass.–(BUSINESS WIRE<\/a>)–Service Properties Trust (Nasdaq: SVC)<\/a> (\u201cSVC\u201d) today provided an update on its previously disclosed hotel disposition program and recent actions to strengthen its balance sheet.<\/p>\n

Hotel Disposition Activity<\/b><\/p>\n

\nSVC continues to advance its previously disclosed plan to sell 113 Sonesta branded hotels that include 14,803 keys, for gross proceeds of approximately $913 million (the \u201cSale Hotels\u201d). During the third quarter of 2025, SVC completed the sales of 38 Sale Hotels totaling 5,331 keys and generating gross proceeds of approximately $279 million. SVC remains on track to close the sales of the balance of the Sale Hotels in the fourth quarter of 2025, for gross proceeds of approximately $634 million.<\/p>\n

\nIncluding the sale of eight non-Sale Hotels, two of which closed in the third quarter, SVC has sold 46 hotels through the third quarter of 2025, totaling 6,337 keys, for gross proceeds of approximately $325 million. For the full year, SVC is on track to sell 121 hotels, totaling 15,809 keys, for gross proceeds of approximately $959 million.<\/p>\n

Financing Activities<\/b><\/p>\n

\nSVC has taken several steps to strengthen its balance sheet during 2025. In September, SVC redeemed all $350 million of its 5.25% senior unsecured notes due February 2026 and issued $580 million of zero-coupon senior secured notes due September 2027, raising net proceeds of approximately $490 million, which it used to repay all amounts outstanding on its revolving credit facility. SVC expects to complete the early redemption of all $450 million of its 4.75% senior unsecured notes due October 2026 on October 16, 2025, using a combination of cash on hand and borrowings under its revolving credit facility.<\/p>\n

\nChris Bilotto, President and Chief Executive Officer of SVC, made the following statement:<\/p>\n

\n\u201cWe are making significant progress executing SVC\u2019s strategic transformation, the primary prongs of which are the disposition of a substantial portion of our hotel portfolio, and the taking of other actions to strengthen our balance sheet. With 46 hotel sales completed through September and an additional 75 expected to close in the fourth quarter, we remain on track to generate approximately $959 million in total gross proceeds in 2025, which will allow us to continue to reduce our debt maturities. Looking ahead, we remain focused on evaluating further hotels for sale to enhance SVC\u2019s portfolio composition, improve operating performance and further strengthen SVC\u2019s financial profile.\u201d<\/p>\n

About Service Properties Trust<\/b><\/p>\n

\nService Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of June 30, 2025, SVC owned 200 hotels with over 35,000 guest rooms throughout the United States and in Puerto Rico and Canada. As of June 30, 2025, SVC also owned 742 service-focused retail net lease properties with over 13.1 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $40 billion in assets under management as of June 30, 2025, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.<\/p>\n

WARNING CONCERNING FORWARD-LOOKING STATEMENTS<\/span><\/b><\/p>\n

\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. For example:<\/p>\n