Service Properties Trust Board Sends Response Letter to Blackwells Capital

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11/13/2026 - 11:00 AM EST

Board Reaffirms Strategy to Grow Retained Hotel EBITDA Before Beginning Sales in 2027, Completing SVC’s Transition to a Deleveraged Pure-Play Triple Net Lease REIT

NEWTON, Mass.--(BUSINESS WIRE)-- Service Properties Trust (Nasdaq: SVC) (“SVC” or the “Company”) today announced that its Board of Trustees (the “Board”) sent a formal response letter to Blackwells Capital LLC (“Blackwells”) regarding Blackwells' public letter dated November 5, 2026. A copy of the Board's letter to Blackwells is available through the multimedia link accompanying this press release.

The Board, including all six Independent Trustees, reviewed Blackwells’ letter and unanimously concluded that its requests are not in the best interests of SVC’s shareholders. Instead, the Board reaffirmed SVC’s ongoing strategy of growing EBITDA at its portfolio of 77 retained hotels (the “Retained Hotels”) before selling them, as allowing this growth to take hold offers the opportunity to realize significantly higher proceeds than selling the hotels today. With significant capital invested in the Retained Hotels and the operating initiatives SVC has identified, SVC believes the hotels are well positioned to grow EBITDA by approximately $109 million within 12 to 24 months.

As outlined in the Board’s letter, SVC expects to begin selling the Retained Hotels in 2027, with the goal of selling substantially all of them by the end of 2028. Proceeds from these sales are expected to reduce SVC’s leverage from the current nine times net debt to Adjusted EBITDA to no more than five times, positioning SVC to complete its transition to a deleveraged pure-play triple net lease REIT.

The Board remains fully committed to executing this strategy and delivering value for SVC shareholders.

About Service Properties Trust

SVC is a real estate investment trust with $9.6 billion invested in two asset categories: service-focused retail net lease properties and hotels. As of September 30, 2026, SVC owned 740 service-focused retail net lease properties with over 13.5 million square feet throughout the United States and 87 hotels with approximately 20,000 guest rooms throughout the United States, including Puerto Rico, and Canada. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $37 billion in assets under management as of September 30, 2026, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit www.svcreit.com.

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. Forward-looking statements in this press release, including those referencing the Board’s plan and formal response letter, include statements regarding: SVC’s plan to transition into a deleveraged pure-play triple net lease REIT; the expected timing, pace, execution, and proceeds of sales of the 77 Retained Hotels across 2027 and 2028; the potential value of the Retained Hotels, including the illustrated values described in the Board’s letter; the potential to add approximately $109 million of EBITDA at the Retained Hotels over the next 12 to 24 months; and SVC’s targeted reduction of leverage to no more than five times net debt to Adjusted EBITDA. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. For example: SVC’s ability to successfully execute operational initiatives and achieve its incremental hotel EBITDA targets depends on, among other things, market conditions, hotel industry trends, and the Company’s ability to control costs and drive performance; SVC’s ability to sell the Retained Hotels when, and on the terms, it expects depends on, among other things, market conditions, hotel industry trends, buyer demand, and the availability and cost of debt financing to prospective buyers; SVC may not realize the value or pace of monetization it expects for the Retained Hotels, and the illustrated values of the Retained Hotels are not appraisals or estimates of fair value and are based on assumptions that may prove incorrect; SVC may not reduce its leverage to the level it expects, when expected or at all; and SVC may not successfully complete its transition to a pure-play triple net lease REIT when expected or at all.

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.

NON-GAAP FINANCIAL MEASURES

This press release and the Board’s letter refer to EBITDA, Adjusted Hotel EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Definitions of these measures, and reconciliations of historical amounts to the most directly comparable financial measures calculated in accordance with U.S. generally accepted accounting principles, are included in SVC’s third quarter 2026 earnings release and supplemental operating and financial data, available on SVC’s website. SVC has not provided a reconciliation of the forward-looking EBITDA amounts or leverage target to the most directly comparable GAAP measures because it is unable to do so without unreasonable efforts, as certain items necessary for such a reconciliation, including the timing and amount of hotel sales, gains or losses on sales and impairment charges, are uncertain and outside SVC’s control.

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.