Service Properties Trust Announces Changes to the Benchmark Index for its Business Management Agreement with The RMR Group LLC

October 1, 2021

MSCI U.S. REIT/Hotel & Resort Index to Replace Discontinued SNL U.S. REIT Hotel Index

NEWTON, Mass.--(BUSINESS WIRE)-- Service Properties Trust (Nasdaq: SVC), or SVC, announced today that it has amended its business management agreement with The RMR Group LLC, or RMR LLC, a majority-owned subsidiary of The RMR Group Inc. (Nasdaq RMR), to replace the benchmark index used in the calculation of incentive management fees. Pursuant to the amendment, for periods beginning on and after August 1, 2021, the MSCI U.S. REIT/Hotel & Resort REIT Index will replace the discontinued SNL U.S. REIT Hotel Index and be used to calculate benchmark returns per share for purposes of determining any incentive management fee payable by SVC to RMR LLC. For periods prior to August 1, 2021, the SNL U.S. REIT Hotel Index will continue to be used.

For purposes of calculating any incentive fees, the following lists the historical returns used to calculate incentive fees under the applicable SNL indices for the two years and stub period ending July 31, 2021:

	Total Return for the Period
Benchmark Return (cumulative % return of SNL Index) at 7/31/2021⁽¹⁾	12/31/2018 to 7/31/2021	12/31/2019 to 7/31/2021	12/31/2020 to 7/31/2021
SNL U.S. REIT Hotel Index	-6.56%	-19.07%	10.06%
⁽¹⁾ Adjusted for common share issuances during the measurement period.

The calculation of incentive management fees for the next three measurement periods will continue to use the SNL U.S. REIT Hotel Index in calculating the benchmark returns for periods through July 31, 2021. Following the announcement that the SNL U.S. REIT Hotel Index would be discontinued, SVC and RMR sought to replace the expiring index with a comparable, publicly accessible and widely-used index that most closely matched its composition and historical performance. The MSCI U.S. REIT/Hotel & Resort REIT Index is a well-known REIT benchmark and the historical returns are comparable to the SNL U.S. REIT Hotel Index it will be replacing.

About Service Properties Trust

Service Properties Trust is a real estate investment trust which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada. SVC is managed by the majority owned operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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Kristin Brown, Director, Investor Relations
(617) 796-8232

Source: Service Properties Trust

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