# Service Properties Trust (SVC) Informational only - not investment advice. CIK: 0000945394 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=945394 Filing source: https://www.sec.gov/Archives/edgar/data/945394/000094539426000012/svc-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0000945394-26-000012 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000945394.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,814,838,000 USD | 2025 | verified | | Net income | -202,321,000 USD | 2025 | verified | | Assets | 6,491,580,000 USD | 2025 | verified | | Free cash flow | -107,025,000 USD | 2025 | computed | | Net margin | -11.15% | 2025 | computed | | Revenue YoY | -4.33% | 2025 | computed | | ROE | -31.31% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | SVC | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -11.1% | 16.8% | 11 | 149 | | Revenue growth | -4.3% | 3.7% | 19 | 149 | | FCF margin | -5.9% | 21.8% | 10 | 70 | | ROE | -31.3% | 5.7% | 1 | 151 | | ROA | -3.1% | 1.5% | 7 | 155 | | Liabilities / equity | 9.05 | 1.48 | 95 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1814838000 | USD | 2025 | 2026-02-25 | | Net income | -202321000 | USD | 2025 | 2026-02-25 | | Assets | 6491580000 | USD | 2025 | 2026-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000945394.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2010 | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | 2,047,211,000 | 2,171,935,000 | 2,294,536,000 | 2,316,148,000 | 1,265,254,000 | 1,495,580,000 | 1,863,011,000 | 1,873,863,000 | 1,896,928,000 | 1,814,838,000 | | Net income | | | | 223,110,000 | 215,143,000 | 185,734,000 | 259,750,000 | -311,382,000 | -544,603,000 | -132,381,000 | -32,779,000 | -275,526,000 | -202,321,000 | | Diluted EPS | -0.07 | 1.30 | 0.84 | | | | 1.58 | -1.89 | -3.31 | -0.80 | -0.20 | -1.67 | -1.22 | | Operating cash flow | | | | 607,396,000 | 628,495,000 | 596,953,000 | 617,722,000 | 37,604,000 | 49,904,000 | 243,127,000 | 485,549,000 | 139,391,000 | 117,808,000 | | Capital expenditures | | | | 187,652,000 | 131,120,000 | 182,862,000 | 150,531,000 | 69,082,000 | 95,017,000 | 103,646,000 | 200,894,000 | 303,600,000 | 224,833,000 | | Dividends paid | | | | 314,135,000 | 340,084,000 | 346,832,000 | 353,619,000 | 93,804,000 | 6,596,000 | 38,044,000 | 132,430,000 | 101,150,000 | 6,683,000 | | Share buybacks | | | | 613,000 | 533,000 | 606,000 | 800,000 | 346,000 | 790,000 | 470,000 | 802,000 | 751,000 | 660,000 | | Assets | | | | 6,634,228,000 | 7,150,385,000 | 7,177,079,000 | 9,033,967,000 | 8,687,319,000 | 9,153,315,000 | 7,488,191,000 | 7,356,116,000 | 7,119,558,000 | 6,491,580,000 | | Liabilities | | | | 3,504,839,000 | 4,394,963,000 | 4,579,648,000 | 6,528,089,000 | 6,584,529,000 | 7,598,009,000 | 6,099,399,000 | 6,129,983,000 | 6,267,685,000 | 5,845,456,000 | | Stockholders' equity | | | | 3,129,389,000 | 2,755,422,000 | 2,597,431,000 | 2,505,878,000 | 2,102,790,000 | 1,555,306,000 | 1,388,792,000 | 1,226,133,000 | 851,873,000 | 646,124,000 | | Cash and cash equivalents | | | | 10,896,000 | 24,139,000 | 25,966,000 | 27,633,000 | 73,332,000 | 944,043,000 | 38,369,000 | 180,119,000 | 143,482,000 | 346,813,000 | | Free cash flow | | | | 419,744,000 | 497,375,000 | 414,091,000 | 467,191,000 | -31,478,000 | -45,113,000 | 139,481,000 | 284,655,000 | -164,209,000 | -107,025,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2010 | 2011 | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | 10.90% | 9.91% | 8.09% | 11.21% | -24.61% | -36.41% | -7.11% | -1.75% | -14.52% | -11.15% | | Return on equity | | | | 7.13% | 7.81% | 7.15% | 10.37% | -14.81% | -35.02% | -9.53% | -2.67% | -32.34% | -31.31% | | Return on assets | | | | 3.36% | 3.01% | 2.59% | 2.88% | -3.58% | -5.95% | -1.77% | -0.45% | -3.87% | -3.12% | | Liabilities / equity | | | | 1.12 | 1.60 | 1.76 | 2.61 | 3.13 | 4.89 | 4.39 | 5.00 | 7.36 | 9.05 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/SVC/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000945394.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.05 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.16 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.07 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -11,278,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 496,825,000 | | -0.03 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 444,050,000 | -43,323,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 436,250,000 | -78,383,000 | -0.48 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -78,383,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 512,948,000 | | -0.45 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -73,850,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 491,171,000 | | -0.28 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 456,559,000 | -76,392,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 435,179,000 | -116,435,000 | -0.70 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | -116,435,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 503,436,000 | | -0.23 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -38,159,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 478,770,000 | | -0.28 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 397,453,000 | -782,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 364,451,000 | -151,178,000 | -0.91 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | -151,178,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 420,974,000 | | -1.75 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from SVC's latest 10-K: [/company/SVC/business/](/company/SVC/business/). ## Risk Factors Verbatim Item 1A Risk Factors from SVC's latest 10-K: [/company/SVC/risk-factors/](/company/SVC/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/945394/000094539426000049/svc-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-05 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with our condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q and with our 2025 Annual Report. Overview (dollars in thousands, except per share amounts and per room hotel data) We are a REIT organized under the laws of the State of Maryland. As of June 30, 2026, we owned 838 properties in 46 states, the District of Columbia, Canada and Puerto Rico. Our strategy continues to focus on reducing debt, transitioning to a company with the majority of our properties being service-focused retail net lease properties through the growth of our net lease portfolio and improving the performance of the hotels we expect to retain. Leases and Management Agreements. At June 30, 2026, we owned 745 service-focused retail properties with an aggregate of 13,553,509 square feet leased to 185 tenants subject to “triple net” leases, where the tenants are generally responsible for the payment of operating expenses and capital expenditures. At June 30, 2026, we also owned 93 hotels managed by four operators. We leased all of these hotels to our wholly owned TRSs that are managed by hotel operating companies as of that date. Our condensed consolidated statements of comprehensive income (loss) include rental income and net lease operating expenses from our net lease properties and hotel operating revenues and hotel operating expenses of our managed hotels. Market Outlook. Consumer confidence, corporate travel and lodging demand will continue to be affected by economic and market conditions, inflationary pressures and potential impacts from tariffs, uncertainties surrounding interest rates, unemployment levels, work from home policies, use of technologies, geopolitical events and broader economic trends. Increased labor costs and other price inflation may continue to negatively impact our hotel operations and the operations of our tenants. An economic recession or continued or intensified disruptions in the financial markets could adversely affect our financial condition, operations at our hotels, our tenants and their ability or willingness to renew our leases or pay rent to us, may restrict our ability to obtain new or replacement financing, would likely increase our cost of capital, and may cause the values of our properties to decline. Significant Events. During 2025, we sold 112 hotels containing a total of 14,631 keys for a combined sales price of $858,752, excluding closing costs. During the six months ended June 30, 2026, we sold one hotel containing 133 keys for gross proceeds of $7,100, excluding closing costs. We sold one additional hotel containing 133 keys for gross proceeds of $18,350 in July 2026. As of August 3, 2026, we were under agreement to sell 12 hotels with a total of 2,328 keys for a combined sales price of $77,350, excluding closing costs. We are also at various stages of negotiating or marketing the sale of two additional hotels containing a total of 561 keys. In March 2026, we issued $745,000 of net lease mortgage notes. In April 2026, we raised net proceeds of $541,798 in an underwritten public offering of common shares. The proceeds from these transactions along with cash on hand were used to redeem an aggregate of $1,550,000 principal amount of outstanding indebtedness. See below for further details on these transactions. Net Lease Portfolio. Our net lease properties were 96.6% occupied as of June 30, 2026 with a weighted (by annual minimum rent) average lease term of 7.1 years, operating under 140 brands in 21 distinct industries. TA is our largest tenant and as of June 30, 2026, leased 175 of our travel centers under five master leases that expire in 2033 and require annual minimum rents of $269,547. In addition, TA receives an annual credit of $25,000 as a result of prepaid rent. BP Corporation North America Inc. guarantees payment under the TA leases, subject to a cap. We use a variety of operating and other information to evaluate the financial condition and operating performance of our net lease portfolio, including the lease structure, credit evaluations, tenants’ payment history and net lease rent coverage metrics as defined below. Our net lease portfolio is diverse geographically in service-focused and necessity-based industries, by brand concepts and tenants. We believe this diversification may help mitigate the impact of macroeconomic factors. Hotel Portfolio. During the six months ended June 30, 2026, the U.S. hotel industry generally realized increases in average daily rate, or ADR, and in revenue per available room, or RevPAR, compared to the corresponding 2025 period. Our comparable hotels produced increases in ADR and RevPAR, which we believe is partially a result of renovation disruption in the 2025 period. In addition to the macroeconomic factors noted above, ADR, occupancy and RevPAR performance are dependent on the continued success of our hotels' brands and our hotel operators. While we do not operate our hotel properties, our asset management team and our executive management team monitor and work with our hotel managers by conducting regular revenue, sales, and financial performance reviews and also perform in-depth on-site reviews focused on ongoing operating margin improvement initiatives. 26 Table of Contents The following table provides a summary for all of our hotels with these revenue metrics for the periods presented, which we believe are key indicators of performance at our hotels. [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,","","Six Months Ended June 30,"],["","","2026","","2025","","Change","","2026","","2025","","Change"],["Retained Hotels"],["No. of hotels","","78","","","84","","","(6)","","","78","","","84","","","(6)"],["No. of rooms or suites","","18,088","","","19,942","","","(1,854)","","","18,088","","","19,942","","","(1,854)"],["Occupancy","","72.7","%","","69.0","%","","3.7","pts","","67.9","%","","62.9","%","","5.0","pts"],["ADR","","$","184.96","","","$","175.89","","","5.2","%","","$","182.39","","","$","175.02","","","4.2","%"],["RevPAR","","$","134.53","","","$","121.30","","","10.9","%","","$","123.83","","","$","110.15","","","12.4","%"],["Exit Hotels (1)"],["No. of hotels","","15","","","116","","","(101)","","","15","","","116","","","(101)"],["No. of rooms or suites","","3,022","","","15,159","","","(12,137)","","","3,022","","","15,159","","","(12,137)"],["Occupancy","","64.7","%","","69.5","%","","(4.8)","pts","","56.7","%","","63.6","%","","(6.9)","pts"],["ADR","","$","124.33","","","$","107.75","","","15.4","%","","$","114.65","","","$","145.67","","","(21.3)","%"],["RevPAR","","$","80.43","","","$","74.94","","","7.3","%","","$","65.01","","","$","92.63","","","(29.8)","%"],["All Hotels"],["No. of hotels","","93","","","200","","","(107)","","","93","","","200","","","(107)"],["No. of rooms or suites","","21,110","","","35,101","","","(13,991)","","","21,110","","","35,101","","","(13,991)"],["Occupancy","","71.6","%","","69.2","%","","2.4","pts","","66.3","%","","63.6","%","","2.7","pts"],["ADR","","$","177.11","","","$","146.32","","","21.0","%","","$","174.09","","","$","145.67","","","19.5","%"],["RevPAR","","$","126.78","","","$","101.27","","","25.2","%","","$","115.40","","","$","92.63","","","24.6","%"]] [[/GREPCENT_TABLE]] (1) Exit Hotels represents one hotel sold in July 2026 and 14 hotels managed by Sonesta that are currently under agreement or being marketed for sale. Comparable Hotels Data. We present occupancy, ADR and RevPAR for the periods presented on a comparable basis to facilitate comparisons between periods. We define comparable hotels as those that were owned by us and were open and operating for the entirety of the periods being compared. The following table provides a summary of these revenue metrics for the periods presented. [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,","","Six Months Ended June 30,"],["","","2026","","2025","","Change","","2026","","2025","","Change"],["Retained Hotels"],["No. of hotels","","78","","","78","","","\u2014","","","78","","","78","","","\u2014"],["No. of rooms or suites","","18,088","","","18,088","","","\u2014","","","18,088","","","18,088","","","\u2014"],["Occupancy","","72.7","%","","70.3","%","","2.4","pts","","67.9","%","","64.5","%","","3.4","pts"],["ADR","","$","184.96","","","$","179.38","","","3.1","%","","$","182.39","","","$","179.47","","","1.6","%"],["RevPAR","","$","134.53","","","$","126.16","","","6.6","%","","$","123.83","","","$","115.69","","","7.0","%"],["Exit Hotels (1)"],["No. of hotels","","15","","","15","","","\u2014","","","15","","","15","","","\u2014"],["No. of rooms or suites","","3,022","","","3,022","","","\u2014","","","3,022","","","3,022","","","\u2014"],["Occupancy","","64.7","%","","62.7","%","","2.0","pts","","56.7","%","","56.3","%","","0.4","pts"],["ADR","","$","124.33","","","$","121.83","","","2.1","%","","$","114.65","","","$","113.15","","","1.3","%"],["RevPAR","","$","80.43","","","$","76.38","","","5.3","%","","$","65.01","","","$","63.73","","","2.0","%"],["Comparable Hotels"],["No. of hotels","","93","","","93","","","\u2014","","","93","","","93","","","\u2014"],["No. of rooms or suites","","21,110","","","21,110","","","\u2014","","","21,110","","","21,110","","","\u2014"],["Occupancy","","71.6","%","","69.2","%","","2.4","pts","","66.3","%","","63.3","%","","3.0","pts"],["ADR","","$","177.11","","","$","171.92","","","3.0","%","","$","174.09","","","$","171.02","","","1.8","%"],["RevPAR","","$","126.78","","","$","119.03","","","6.5","%","","$","115.40","","","$","108.25","","","6.6","%"]] [[/GREPCENT_TABLE]] (1) Exit Hotels represents one hotel sold in July 2026 and 14 hotels managed by Sonesta that are currently under agreement or being marketed for sale. 27 Table of Contents Additional details of our net lease agreements and our hotel operating agreements are set forth in Note 6 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Results of Operations (amounts in thousands, except per share data) Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025 [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/945394/000094539426000012/svc-20251231.htm Complete FY 2025 MD&A: /company/SVC/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-25 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included in Part IV, Item 15 of this Annual Report on Form 10-K. Overview (dollars in thousands, except per share amounts and per room hotel data) We are a REIT organized under the laws of the State of Maryland. As of December 31, 2025, we owned 854 properties in 46 states, the District of Columbia, Canada and Puerto Rico. Consumer confidence, corporate travel and lodging demand will continue to be affected by economic and market conditions, inflationary pressures, uncertainties surrounding interest rates, unemployment levels, work from home policies, use of technologies and broader economic trends. Increased labor costs and other price inflation may continue to negatively impact our hotel operations and the operations of our tenants. Further, recent announcements regarding tariffs on a wide variety of imports could impact the cost of products our operators use, such as furniture, equipment, materials and supplies sourced from outside the United States. An economic recession or continued or intensified disruptions in the financial markets could adversely affect our financial condition, operations at our hotels, our tenants and their ability or willingness to renew our leases or pay rent to us, may restrict our ability to obtain new or replacement financing, would likely increase our cost of capital, and may cause the values of our properties to decline. We previously identified 122 hotels with a total of 15,931 keys managed by Sonesta as of December 31, 2024 for disposition in 2025. As of December 31, 2025, we have sold 112 of these hotels with a total of 14,631 keys for a combined sales price of $858,752, excluding closing costs. From January 1, 2026 through February 23, 2026, we sold one hotel with 133 keys for a sales price of $7,100, excluding closing costs. We are at various stages of selling the remaining nine hotels with a total of 1,167 keys. Additionally, in January 2026 we began the marketing for sale of seven full service Sonesta hotels with a total of 2,010 keys. Following completion of the hotel sales, we expect to retain 52 hotels managed by Sonesta, or the Retained Hotels. In August 2025, we and Sonesta amended and restated our management agreements for the Retained Hotels and certain other hotels managed by Sonesta and waived any termination fees under the existing Sonesta management agreement associated with the sale of the 122 hotels. Our current strategy is focused on reducing debt, transitioning to a company with the majority of its properties being service-focused retail net lease properties through the growth of our net lease portfolio and improving the performance of the hotels we expect to retain after completing the sale of our previously announced dispositions. Leases and Management Agreements. At December 31, 2025, we owned 760 service-focused retail properties leased to 181 tenants subject to “triple net” leases, where the tenants are generally responsible for the payment of operating expenses and capital expenditures. At December 31, 2025, we also owned 94 hotels managed by four operators. We leased all of these hotels to our wholly owned TRSs that are managed by hotel operating companies as of that date. Our consolidated statements of comprehensive income (loss) include rental income and net lease operating expenses from our net lease properties and hotel operating revenues and hotel operating expenses of our managed hotels. Net Lease Portfolio. As of December 31, 2025, we owned 760 service-focused retail net lease properties with an aggregate of 13,601,902 square feet leased to 181 tenants subject to “triple net” leases (where the tenants are responsible for payments of operating expenses and capital expenditures) requiring annual minimum rents of $390,051. Our net lease properties were 96.6% occupied as of December 31, 2025 with a weighted (by annual minimum rent) average lease term of 7.4 years, operating under 140 brands in 21 distinct industries. TA is our largest tenant and as of December 31, 2025, leased 175 of our travel centers under five master leases that expire in 2033 and require annual minimum rents of $264,262. In addition, TA receives an annual credit of $25,000 as a result of prepaid rent. BP Corporation North America Inc. guarantees payment under the TA leases, subject to a cap. Hotel Portfolio. As of December 31, 2025, we owned 94 hotels. During the year ended December 31, 2025, the U.S. hotel industry generally realized increases in average daily rate, or ADR, and decreases in revenue per available room, or RevPAR, compared to 2024. Our hotels produced increases in ADR and RevPAR, which we believe is partially a result of renovation disruption in 2024. 54 Table of Contents The following table provides a summary for all of our hotels with these revenue metrics for the periods presented, which we believe are key indicators of performance at our hotels. [[GREPCENT_TABLE]] [["","","Year Ended December 31,"],["","","2025","","2024","","Change"],["Retained Hotels"],["No. of hotels","","77","","","84","","","(7)"],["No. of rooms or suites","","17,933","","","19,940","","","(2,007)"],["Occupancy","","65.3","%","","62.5","%","","2.8","pts"],["ADR","","$","174.86","","","$","171.82","","","1.8","%"],["RevPAR","","$","114.17","","","$","107.38","","","6.3","%"],["Exit Hotels (1)"],["No. of hotels","","17","","","122","","","(105)"],["No. of rooms or suites","","3,310","","","15,931","","","(12,621)"],["Occupancy","","57.7","%","","64.4","%","","(6.7)","pts"],["ADR","","$","115.68","","","$","106.84","","","8.3","%"],["RevPAR","","$","66.69","","","$","68.77","","","(3.0)","%"],["All Hotels"],["No. of hotels","","94","","","206","","","(112)"],["No. of rooms or suites","","21,243","","","35,871","","","(14,628)"],["Occupancy","","64.1","%","","63.3","%","","0.8","pts"],["ADR","","$","166.56","","","$","142.12","","","17.2","%"],["RevPAR","","$","106.77","","","$","90.01","","","18.6","%"]] [[/GREPCENT_TABLE]] (1)    Exit Hotels represents 17 hotels managed by Sonesta that we plan to sell. Comparable Hotels Data. We present occupancy, ADR and RevPAR for the periods presented on a comparable basis to facilitate comparisons between periods. We define comparable hotels as those that were owned by us and were open and operating for the entirety of the periods being compared. The following table provides a summary of these revenue metrics for the periods presented. [[GREPCENT_TABLE]] [["","","Year Ended December 31,"],["","","2025","","2024","","Change"],["Retained Hotels"],["No. of hotels","","77","","","77","","","\u2014"],["No. of rooms or suites","","17,933","","","17,933","","","\u2014"],["Occupancy","","65.3","%","","63.7","%","","1.6","pts"],["ADR","","$","174.86","","","$","175.14","","","(0.2)","%"],["RevPAR","","$","114.17","","","$","111.60","","","2.3","%"],["Exit Hotels"],["No. of hotels","","17","","","17","","","\u2014"],["No. of rooms or suites","","3,310","","","3,310","","","\u2014"],["Occupancy","","57.7","%","","59.5","%","","(1.8)","pts"],["ADR","","$","115.68","","","$","118.92","","","(2.7)","%"],["RevPAR","","$","66.69","","","$","70.73","","","(5.7)","%"],["Comparable Hotels"],["No. of hotels","","94","","","94","","","\u2014"],["No. of rooms or suites","","21,243","","","21,243","","","\u2014"],["Occupancy","","64.1","%","","63.1","%","","1.0","pts"],["ADR","","$","166.56","","","$","166.88","","","(0.2)","%"],["RevPAR","","$","106.77","","","$","105.23","","","1.5","%"]] [[/GREPCENT_TABLE]] Additional details of our net lease agreements and our hotel operating agreements are set forth in Note 4 to our consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K. 55 Table of Contents Results of Operations (amounts in thousands, except per share data) Year Ended December 31, 2025, Compared to Year Ended December 31, 2024 [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","$ Change","","% Change"],["Revenues:"],["Hotel operating revenues","$","1,413,403","","","$","1,496,705","","","$","(83,302)","","","(5.6)","%"],["Rental income","401,435","","","400,223","","","1,212","","","0.3","%"],["Total revenues","1,814,838","","","1,896,928","","","(82,090)","","","(4.3)","%"],["Expenses:"],["Hotel operating expenses","1,226,542","","","1,274,153","","","(47,611)","","","(3.7)","%"],["Net lease operating expenses","21,597","","","19,817","","","1,780","","","9.0","%"],["Depreciation and amortization - hotels","174,263","","","221,299","","","(47,036)","","","(21.3)","%"],["Depreciation and amortization - net lease properties","140,700","","","150,487","","","(9,787)","","","(6.5)","%"],["Total depreciation and amortization","314,963","","","371,786","","","(56,823)","","","(15.3)","%"],["General and administrative","40,667","","","40,239","","","428","","","1.1","%"],["Transaction related costs","14,698","","","6,894","","","7,804","","","113.2","%"],["Loss on asset impairment","81,889","","","56,212","","","25,677","","","45.7","%"],["Total expenses","1,700,356","","","1,769,101","","","(68,745)","","","(3.9)","%"],["Gain on sale of real estate, net","84,218","","","6,269","","","77,949","","","n/m"],["Interest income","8,998","","","4,052","","","4,946","","","122.1","%"],["Interest expense","(413,614)","","","(383,792)","","","(29,822)","","","7.8","%"],["Loss on early extinguishment of debt, net","(2,897)","","","(16,181)","","","13,284","","","(82.1)","%"],["Loss before income tax benefit (expense) and equity in losses of an investee","(208,813)","","","(261,825)","","","53,012","","","(20.2)","%"],["Income tax benefit (expense)","10,717","","","(1,402)","","","12,119","","","n/m"],["Equity in losses of an investee","(4,225)","","","(12,299)","","","8,074","","","(65.6)","%"],["Net loss","$","(202,321)","","","$","(275,526)","","","$","73,205","","","(26.6)","%"],["Weighted average common shares outstanding (basic and diluted)","165,951","","","165,338","","","613","","","0.4","%"],["Net loss per common share (basic and diluted)","$","(1.22)","","","$","(1.67)","","","$","0.45","","","(26.9)","%"]] [[/GREPCENT_TABLE]] References to changes in the income and expense categories below relate to the comparison of consolidated results for the year ended December 31, 2025, compared to the year ended December 31, 2024. For a comparison of consolidated results for the year ended December 31, 2024, compared to the year ended December 31, 2023, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. Hotel operating revenues. The decrease in hotel operating revenues is primarily a result of our sales of certain hotels since January 1, 2024 ($99,857), partially offset by increases in occupancy and average rates at certain hotels in 2025 ($16,555). Additional operating statistics of our hotels are included in the tables beginning on page 66. Rental income. The increase in rental income is primarily a result of our acquisitions of certain net lease properties in 2025 ($2,775), partially offset by decreases in rental income resulting from our sales of certain net lease properties since January 1, 2024 ($1,154) and lower rental income recognized at certain of our net lease properties in 2025 ($409). Hotel operating expenses. The decrease in hotel operating expenses is primarily a result of our sales of certain hotels since January 1, 2024 ($92,047), partially offset by increases in room expenses ($16,381), food and beverage expenses ($7,216) and other operating expenses ($20,839) in 2025. Net lease operating expenses. The increase in net lease operating expenses is primarily the result of increased property [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SVC/mda/fy2025/ All MD&A years: /company/SVC/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SVC/mda/fy2024/): filed 2025-02-26; accession 0000945394-25-000014 (https://www.sec.gov/Archives/edgar/data/945394/000094539425000014/svc-20241231.htm) - [FY 2023 MD&A](/company/SVC/mda/fy2023/): filed 2024-02-28; accession 0000945394-24-000015 (https://www.sec.gov/Archives/edgar/data/945394/000094539424000015/svc-20231231.htm) - [FY 2022 MD&A](/company/SVC/mda/fy2022/): filed 2023-02-28; accession 0000945394-23-000015 (https://www.sec.gov/Archives/edgar/data/945394/000094539423000015/svc-20221231.htm) - [FY 2021 MD&A](/company/SVC/mda/fy2021/): filed 2022-02-24; accession 0000945394-22-000015 (https://www.sec.gov/Archives/edgar/data/945394/000094539422000015/svc-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. 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