Service Properties Trust Provides Business Update

Completes 40 Hotel Sales for Approximately $292 Million During the Third Quarter

Remains on Track for $959 Million of Expected Total Hotel Sales Proceeds in 2025

Enhances Financial Profile with Debt Repayments

NEWTON, Mass.--(BUSINESS WIRE)-- Service Properties Trust (Nasdaq: SVC) (“SVC”) today provided an update on its previously disclosed hotel disposition program and recent actions to strengthen its balance sheet.

Hotel Disposition Activity

SVC 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 “Sale Hotels”). 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.

Including 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.

Financing Activities

SVC 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.

Chris Bilotto, President and Chief Executive Officer of SVC, made the following statement:

“We are making significant progress executing SVC’s 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’s portfolio composition, improve operating performance and further strengthen SVC’s financial profile.”

About Service Properties Trust

Service 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.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This 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 “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC’s 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’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC’s control. For example:

• SVC has entered agreements for the sale of the balance of the Sale Hotels for gross proceeds of approximately $634 million and expects to complete these sales during the fourth quarter of 2025. The sales of SVC’s hotels are subject to conditions; accordingly, SVC cannot provide any assurance that it will sell any of these hotels and the sales may be delayed, may not occur or their terms may change.
• Mr. Bilotto states that SVC remains on track to generate approximately $959 million in total proceeds in 2025 and continues to reduce its debt maturities, and that SVC remains focused on evaluating further hotels for sale to enhance SVC’s portfolio composition, improve operating performance and further strengthen SVC’s financial profile. However, SVC may not succeed in selling properties and any sales may be delayed or may not occur or, if sales do occur, the proceeds from the sales of such properties may not be sufficient to allow SVC to reduce its leverage, enhance its portfolio composition, improve operating performance or strengthen its financial profile.

The information contained in SVC’s filings with the Securities and Exchange Commission (the “SEC”), including under “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause SVC’s actual results to differ materially from those stated in or implied by SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC's website at www.sec.gov.

You 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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251005861030/en/

Kevin Barry, Senior Director, Investor Relations
(617) 796-8232

Source: Service Properties Trust