Service Properties Trust (SVC) Q1 2026 earnings summary

Executive summary

• Strengthened financial position through $1.5 billion in capital markets activity, including a $745 million asset-backed securitization and $575 million equity raise, improving leverage and free cash flow.

• Reported a net loss of $151.2 million for Q1 2026, compared to $116.4 million in Q1 2025, driven by lower hotel revenues and higher impairment and debt extinguishment costs.

• Portfolio consists of 761 net lease properties and 93 hotels, totaling $9.9 billion in investments across the U.S., Puerto Rico, and Canada.

• Strategic focus on debt reduction, expanding the net lease portfolio, and improving retained hotel performance.

• Quarterly distribution of $0.01 per share declared, payable in May 2026.

Financial highlights

• Q1 2026 Normalized FFO was $7.4 million ($0.04/share), down from $10.8 million in Q1 2025.

• Net loss of $151.2 million ($0.91/share) for Q1 2026; Adjusted EBITDAre of $107.5 million.

• Hotel EBITDA for 93 hotels declined 9.2% year-over-year to $18.4 million; retained 78 hotels saw EBITDA rise 2.1% to $26.2 million.

• Net lease NOI was $92.4 million, with occupancy at 96.6% and rent coverage at 2.01x.

• Interest expense declined by $5 million due to capital markets activity.

Outlook and guidance

• Full-year 2026 guidance: Hotel EBITDA $124–$144 million, Net Lease NOI $380–$386 million, Adjusted EBITDAre $500–$520 million, Normalized FFO $124–$144 million ($0.24–$0.27/share).

• Guidance assumes $360 million interest expense, $40 million G&A, $120–$140 million capital expenditures, and no hotel acquisitions or dispositions.

• Sufficient liquidity is anticipated for operating needs and distributions over the next 12 months.