HPT Announces 2005 First Quarter Operating Results

May 4, 2005

NEWTON, Mass.--Hospitality Properties Trust (NYSE: HPT) today announced its results of operations for the quarter ended March 31, 2005, as follows:

                                                       Quarter Ended
                                                         March 31,
                                                     -----------------
                                                        2005     2004
                                                     -------- --------

Net income available for common shareholders         $26,792  $23,054
Funds from operations ("FFO")                        $60,883  $57,023
Common distributions declared                        $48,386  $48,375
Per common share amounts:
   Net income available for common shareholders        $0.40    $0.36
   Funds from operations ("FFO")                       $0.91    $0.89
   Common distributions declared                       $0.72    $0.72
   Weighted average common shares outstanding         67,203   64,416

Hospitality Properties Trust is a real estate investment trust, or REIT, which owns 297 hotels located in 38 states, Puerto Rico and Canada. HPT is headquartered in Newton, Massachusetts.

                     Hospitality Properties Trust
      CONSOLIDATED STATEMENT OF INCOME AND FUNDS FROM OPERATIONS
             (amounts in thousands, except per share data)

                                               Quarter Ended March 31,
                                               -----------------------
                                                   2005        2004
                                               ------------ ----------
Revenues:
     Hotel operating revenues (1)                 $145,047   $116,073
     Rental income                                  31,065     32,636
     FF&E reserve income (2)                         4,399      4,458
     Interest income                                   236        144
                                               ------------ ----------
        Total revenues                             180,747    153,311
                                               ------------ ----------
Expenses:
     Hotel operating expenses (1)                  100,425     77,834
     Interest (including amortization of
      deferred financing costs of $734 and
      $686, respectively)                           15,429     12,839
     Depreciation and amortization                  30,823     28,696
     General and administrative                      5,364      4,400
                                               ------------ ----------
        Total expenses                             152,041    123,769
                                               ------------ ----------
Net income                                          28,706     29,542
Preferred distributions                             (1,914)    (3,695)
Excess of liquidation preference over carrying
 value of preferred shares (3)                          --     (2,793)
                                               ------------ ----------
Net income available for common shareholders       $26,792    $23,054
                                               ============ ==========

Calculation of FFO (4):
Net income available for common shareholders       $26,792    $23,054
Add: FF&E deposits not in net income (2)               499        430
     Depreciation and amortization                  30,823     28,696
     Excess of liquidation preference over
      carrying value of preferred shares (3)            --      2,793
     Deferred percentage rent (5)                      920        600
     Deferred hotel operating income (6)             1,849      1,450
                                               ------------ ----------
Funds from operations ("FFO")                      $60,883    $57,023
                                               ============ ==========

Weighted average common shares outstanding          67,203     64,416
                                               ============ ==========
Per common share amounts:
     Net income available for common
      shareholders                                   $0.40      $0.36
     FFO (4)                                         $0.91      $0.89
     Common distributions declared                   $0.72      $0.72

See Notes on page 3.


                     Hospitality Properties Trust
  NOTES TO CONSOLIDATED STATEMENT OF INCOME AND FUNDS FROM OPERATIONS
             (amounts in thousands, except per share data)

(1) At March 31, 2005, each of our 297 hotels was included in one of nine combinations of hotels of which 188 are leased to one of our taxable REIT subsidiaries and managed by an independent hotel operating company, and 109 are leased to third parties. Our consolidated statement of income includes hotel operating revenues and expenses of managed hotels and rental income from our leased hotels. The pro forma operating results for all 188 of our managed hotels assuming acquisition of the hotels and commencement of the management agreements as of January 1, 2004, are as follows (includes amounts for periods prior to our ownership of some of these hotels and for periods when some of these hotels were leased by us to third parties):

                                                 Pro forma
                                           Quarter Ended March 31,
                                            2005           2004

    Hotel operating revenues              $160,761       $152,968
    Hotel operating expenses               119,298        117,818

Certain of our managed hotels had net operating results that were less than the minimum returns due to us by $2,609 and $2,712 in the first quarter of 2005 and 2004, respectively. These amounts are included in our consolidated statement of income as a net reduction to hotel operating expenses in each period because the minimum returns were funded by our managers.

(2) Various percentages of total sales at most of our hotels are escrowed as reserves for future renovations or refurbishment, or FF&E Reserve escrows. We own the FF&E Reserve escrows for all the hotels leased to our taxable REIT subsidiary and for most of the hotels leased to third parties. We have a security and remainder interest in the FF&E Reserve escrows for the remaining hotels leased to third parties. When we own the FF&E Reserve escrows at hotels leased to third parties we report payments into the escrow as additional rent. When we have a security and remainder interest in the FF&E Reserve escrows, deposits are not included in revenue but are included in FFO. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income in our consolidated statement of income.

(3) On April 12, 2004, we redeemed all of our outstanding 9 1/2% Series A Preferred Shares at their liquidation preference of $25 per share, plus accumulated and unpaid dividends. We deducted the $2,793 excess of the liquidation preference of the redeemed shares over their carrying amount from net income in determining net income available to common shareholders in the calculation of earnings per share in the 2004 first quarter when the redemption was approved by our board of trustees.

(4) We compute FFO as shown. Our calculation of FFO differs from the NAREIT definition because we include FF&E deposits not included in net income (see note 2), deferred percentage rent (see note 5) and deferred hotel operating income (see note 6) and exclude the excess of liquidation preference over carrying value of redeemed preferred shares (see note 3). We consider FFO to be an appropriate measure of performance for a REIT, along with net income and cash flow from operating, investing and financing activities. We believe that FFO provides useful information to investors because by excluding the effects of certain historical costs, such as depreciation expense and losses on early extinguishment of debt, it may facilitate comparison of current operating performance among REITs. FFO does not represent cash generated by operating activities in accordance with GAAP and should not be considered an alternative to net income or cash flow from operating activities as a measure of financial performance or liquidity. FFO is among the important factors considered by our board of trustees when determining the amount of distributions to shareholders. Other important factors include, but are not limited to, requirements to maintain our status as a REIT, limitations in our revolving bank credit facility and public debt covenants, the availability of debt and equity capital to us and our expectation of our future performance.

(5) In calculating net income we recognize percentage rental income received for the first, second and third quarters in the fourth quarter when all contingencies are met and the income is earned. Although we defer recognition of this revenue for purposes of calculating net income, we include these amounts in the calculation of FFO during the first three quarters of the year.

(6) Our rights to share in the operating results of our managed hotels in excess of the minimum returns due to us are generally determined based upon annual calculations. Our managed hotels generated net operating results that were $1,849 and $1,450, in the first quarter of 2005 and 2004, respectively, more than the minimum returns due to us. We recognize income in excess of our minimum returns in the fourth quarter when all contingencies are met and the income is earned. Although we defer recognition of this revenue for purposes of calculating net income, we include these amounts in the calculation of FFO during the first three quarters of the year.

                     Hospitality Properties Trust
                        Key Balance Sheet Data
                            (in thousands)
----------------------------------------------------------------------
                                  March 31, 2005     December 31, 2004
                                  ----------------   -----------------

Cash                                       $2,750             $15,894
                                  ================   =================

Restricted cash (FF&E Reserve
 escrow)                                  $39,810             $38,511
                                  ================   =================

Real estate, at cost                   $3,569,977          $3,180,990
                                  ================   =================
Debt, net of discounts
     Floating rate (4.2% at March
      31, 2005) - Credit
      Facility, due 2005                 $175,000             $72,000
     Fixed rate - 7.00% Senior
      Notes, due 2008                     149,921             149,914
     Fixed rate - 9.125% Senior
      Notes, due 2010                      49,968              49,966
     Fixed rate - 8.3% Mortgage
      payable, due 2011                     3,810               3,826
     Fixed rate - 6.85% Senior
      Notes, due 2012                     124,352             124,330
     Fixed rate - 6.75% Senior
      Notes, due 2013                     297,547             297,469
     Fixed rate - 5.125% Senior
      Notes, due 2015                     299,451                  --
                                  ----------------   -----------------
     Total Debt                        $1,100,049            $697,505
                                  ================   =================

Equity
     8.875% Series B Preferred
      (3,450,000 shares
      outstanding)                         83,306              83,306
     Common (67,203,228 shares
      outstanding)                      1,629,359           1,602,567
                                  ----------------   -----------------
     Total Equity                      $1,712,665          $1,685,873
                                  ================   =================

======================================================================
                           Additional Data
                  (in thousands except percentages)
----------------------------------------------------------------------
                                  March 31, 2005     December 31, 2004
                                  ----------------   -----------------
Leverage Ratios
---------------------------------

Total Debt / Total Assets                    35.8%               25.9%
Total Debt / Real Estate, at cost            30.8%               21.9%
Total Debt / Total Book
 Capitalization                              39.1%               29.3%
Total Debt / Total Market
 Capitalization (1)                          28.2%               18.0%
Variable Rate Debt / Total Book
 Capitalization                               6.2%                3.0%


                                   Three Months        Three Months
                                        Ended              Ended
                                   March 31, 2005     March 31, 2004
                                  ----------------   -----------------
Cash Flow Data

Cash flow provided by (used in):
     Operating activities             $38,058             $54,763
     Investing activities           $(400,950)            $(2,402)
     Financing activities            $349,748            $(49,074)

(1) Market capitalization is the book value of our debt plus the market value of equity based upon the closing price of our common and preferred shares ($40.38 per common share and $26.73 per preferred share on March 31, 2005, and $46.00 per common share and $27.00 per preferred share on December 31, 2004).

======================================================================

                     Hospitality Properties Trust

                          Hotel Revenue Data

                                    No. of    Quarter Ended March 31,
Lease/                      No. of  Rooms/ ---------------------------
Management Agreement        Hotels  Suites  2005(1)  2004(1)   Change
--------------------------- ------ ------- -------- -------- ---------
ADR
---------------------------
Host (no. 1)                   53   7,610  $108.13   $99.87       8.3%
Host (no. 2)                   18   2,178    96.35    93.92       2.6%
Marriott                       35   5,382    99.03    94.09       5.3%
Barcelo Crestline              19   2,756   105.69    95.00      11.3%
InterContinental (no. 1)       30   3,694    94.58    88.55       6.8%
InterContinental (no. 2)       76   9,220    59.24    55.65       6.5%
InterContinental (no. 3)(2)    12   3,757   117.40   113.66       3.3%
Hyatt (3) (4)                  24   2,929    74.54    68.30       9.1%
Carlson (3) (4)                12   2,321    81.73    83.07      -1.6%
Homestead                      18   2,399    57.61    49.41      16.6%
                            ------ ------- -------- -------- ---------
Total/Average (2) (3)         297  42,246   $87.84   $82.99       5.8%

OCCUPANCY
---------------------------
Host (no. 1)                   53   7,610     66.4%    68.0%  -1.6 pt
Host (no. 2)                   18   2,178     78.2%    74.8%   3.4 pt
Marriott                       35   5,382     73.7%    72.0%   1.7 pt
Barcelo Crestline              19   2,756     69.7%    72.3%  -2.6 pt
InterContinental (no. 1)       30   3,694     74.0%    72.1%   1.9 pt
InterContinental (no. 2)       76   9,220     72.4%    65.2%   7.2 pt
InterContinental (no. 3)(2)    12   3,757     70.8%    69.2%   1.6 pt
Hyatt (3) (4)                  24   2,929     65.2%    60.8%   4.4 pt
Carlson (3) (4)                12   2,321     51.7%    68.2% -16.5 pt
Homestead                      18   2,399     77.5%    78.2%  -0.7 pt
                            ------ ------- -------- -------- ---------
Total/Average (2) (3)         297  42,246     70.3%    69.0%   1.3 pt

RevPAR
---------------------------
Host (no. 1)                   53   7,610   $71.80   $67.91       5.7%
Host (no. 2)                   18   2,178    75.35    70.25       7.3%
Marriott                       35   5,382    72.99    67.74       7.7%
Barcelo Crestline              19   2,756    73.67    68.69       7.3%
InterContinental (no. 1)       30   3,694    69.99    63.84       9.6%
InterContinental (no. 2)       76   9,220    42.89    36.28      18.2%
InterContinental (no. 3)(2)    12   3,757    83.12    78.65       5.7%
Hyatt (3) (4)                  24   2,929    48.60    41.53      17.0%
Carlson (3) (4)                12   2,321    42.25    56.65     -25.4%
Homestead                      18   2,399    44.65    38.64      15.6%
                            ------ ------- -------- -------- ---------
Total/Average (2) (3)         297  42,246   $61.75   $57.26       7.8%

(1) Includes data for the calendar periods indicated, except for our Courtyard by Marriott®, Residence Inn by Marriott®, Marriott Hotels Resorts and Suites®, TownePlace Suites by Marriott®, and SpringHill Suites by Marriott® branded hotels, which include data for comparable fiscal periods.

(2) Includes data for periods prior to our ownership of some hotels.

(3) Includes data for periods some hotels were not operated by the current manager.

(4) On April 4, 2005, we entered new management agreements with subsidiaries of Hyatt Corporation, or Hyatt, and Carlson Hotels Worldwide, or Carlson, which replaced the management agreement we had with Prime Hospitality Corporation. The new management agreements divide the previous management agreement we had with Prime into two management agreements; one with Hyatt for 24 limited service AmeriSuites® and one with Carlson for the 12 Prime Hotels(SM), which are expected to be rebranded with Carlson brands, including Radisson® Hotels and Resorts, Country Inn & Suites(SM), and Park Plaza(SM) Hotels & Resorts, by year end 2005.

                     Hospitality Properties Trust
                     Return/Rent Coverage Data(1)

Lease/Management Agreement    Quarter ended   Year ended  Year ended
                                  03/31/05      3/31/05     12/31/04
----------------------------- --------------- ----------- ------------
Host (no. 1)                       1.2x          1.3x         1.3x
Host (no. 2)                       0.9x          1.0x         1.0x
Marriott                           0.8x          0.9x         0.9x
Barcelo Crestline                  1.0x          0.9x         0.9x
InterContinental (no. 1)           0.8x          0.8x         0.8x
InterContinental (no. 2)           0.9x          0.9x         0.8x
InterContinental (no. 3)           1.3x          1.1x         1.0x
Hyatt (2)                          1.0x          1.0x         0.9x
Carlson (2)                        1.5x          1.2x         1.4x
Homestead                          1.4x          1.3x         1.2x
                              --------------- ----------- ------------
Range (all agreements)           0.8x-1.5x     0.8x-1.3x   0.8x-1.4x

(1) We define coverage as combined total hotel sales minus all expenses which are not subordinated to minimum payments to us and the required FF&E Reserve contributions (which data is provided to us by our tenants or operators), divided by the return payments or minimum rent due to us. For some combinations, amounts have been calculated using data for periods prior to our ownership of some hotels and prior to commencement of current management agreements.

(2) On April 4, 2005, we entered new management agreements with subsidiaries of Hyatt and Carlson, which replaced the management agreement we had with Prime. The new management agreements divide the previous management agreement we had with Prime into two management agreements; one with Hyatt for 24 limited service AmeriSuites® and one with Carlson for the 12 Prime Hotels(SM), which are expected to be rebranded with Carlson brands, including Radisson® Hotels and Resorts, Country Inn & Suites(SM), and Park Plaza(SM) Hotels & Resorts, by year end 2005.

Hospitality Properties Trust
Timothy A. Bonang
617-964-8389
www.hptreit.com

Cautionary Language

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