Welcome to our dedicated page for Service Properties Trust news (Ticker: SVC), a resource for investors and traders seeking the latest updates and insights on Service Properties Trust stock.
Service Properties Trust (Nasdaq: SVC) is a Maryland real estate investment trust focused on hotels and service-focused retail net lease properties. This news page aggregates company announcements, press releases and related updates so readers can follow how SVC’s portfolio, capital structure and distributions evolve over time.
Recent news emphasizes SVC’s hotel disposition program and balance sheet actions. The trust has entered agreements to sell 113 hotels with 14,803 keys for a combined sales price of approximately $913.3 million, excluding closing costs, and has reported the completion of numerous hotel sales across multiple states through a series of Form 8-K filings and Business Wire releases. SVC has stated that it expects to use proceeds from these sales to repay debt, and has provided unaudited pro forma financial information to show the impact of these significant dispositions.
Investors following SVC news will also see updates on financing and debt management, such as the pricing of zero coupon senior secured notes due 2027, early redemptions of senior unsecured notes, and related changes to its revolving credit facility borrowings. Regular quarterly cash distribution announcements on common shares are another recurring news theme, with the company outlining its distribution rate and explaining that future distributions may be adjusted at the discretion of its Board of Trustees.
In addition, SVC’s news flow includes quarterly earnings announcements and conference call details, along with information about hotel management relationships, including hotels managed by Sonesta International Hotels. Bookmark this page to review SVC’s historical and ongoing news items, from asset sales and capital markets transactions to dividend declarations and operating updates.
Service Properties Trust (Nasdaq: SVC) has successfully transitioned the management of 99 hotels to Sonesta International Hotels Corporation from InterContinental Hotels Group. This shift includes short-term agreements that will last until December 31, 2021. Sonesta has launched a new brand, Sonesta Simply Suites, marking a significant launch in the U.S. hotel sector. While SVC anticipates benefits from this transition and its 34% ownership in Sonesta, potential risks include service quality concerns and uncertainties around the ongoing COVID-19 pandemic's impact on the hotel industry.
Service Properties Trust (Nasdaq:SVC) has completed the sale of eight TownePlace Suites hotels, totaling 834 rooms, for $45.3 million, against a net carrying value of $35.0 million. The proceeds will be allocated for debt repayment. John Murray, President and CEO, expressed satisfaction with achieving pricing reflective of pre-pandemic valuations, highlighting the resilience of extended stay lodging compared to other hospitality segments during the pandemic.
Service Properties Trust (Nasdaq: SVC) has priced an underwritten public offering of $450 million in 5.50% unsecured senior notes due 2027, guaranteed by certain subsidiaries. The settlement of this offering is anticipated on November 20, 2020, pending customary closing conditions. Proceeds from the offering will be used to pay down amounts outstanding on its revolving credit facility. The offering is led by major financial institutions including BofA Securities and Wells Fargo Securities, with the registration statement filed with the SEC to provide more details.
Service Properties Trust (Nasdaq: SVC) announced that CEO John Murray, CFO Brian Donley, and CIO Todd Hargreaves will present at Nareit’s REITworld: 2020 Virtual Investor Conference on November 18, 2020, at 9:30 a.m. Eastern Time. To join the live presentation, registration is required via Nareit’s REITworld Registration link. An on-demand recording will be available for the duration of the conference. SVC owns hotels and retail properties across the U.S., Puerto Rico, and Canada, with 149 brands across 23 industries, primarily under long-term management agreements.
Service Properties Trust (SVC) reported a net loss of $102.6 million for Q3 2020, compared to a profit of $40.1 million in Q3 2019. Its nine-month net loss reached $173.6 million, down from $274.6 million profit last year. Normalized FFO dropped significantly, totaling $23.2 million in Q3 2020, a decline from $155.6 million in Q3 2019. SVC is transitioning hotel management from IHG and Marriott to Sonesta due to unpaid returns, while hotel occupancy improved from 21% in April to 45.8% in September. Rent collections from retail tenants increased to 89.3% in September.
Service Properties Trust (SVC) has amended its credit agreement governing a $1 billion revolving credit facility and a $400 million term loan. The amendment waives all existing financial covenants until July 15, 2022, allowing continued access to undrawn amounts. SVC repaid the $400 million term loan on November 5, 2020. Key terms include the pledge of additional equity interests worth $1.8 billion, an increased interest rate premium by 30 basis points, and restrictions on distributions and share repurchases. The amendment aims to enhance financial flexibility amid challenging economic conditions.
Service Properties Trust (Nasdaq: SVC) announced a quarterly cash distribution of $0.01 per common share, equating to $0.04 per share annually. This distribution will benefit shareholders of record as of October 26, 2020, with payments scheduled on or about November 19, 2020. SVC is a real estate investment trust managing a diverse portfolio of hotels and retail properties across the US, Puerto Rico, and Canada, encompassing 149 brands in 23 industries.
Service Properties Trust (Nasdaq: SVC) has announced that it will release its third quarter 2020 results before trading begins on November 9, 2020. A conference call hosted by CEO John Murray, CFO Brian Donley, and CIO Todd Hargreaves will take place at 10:00 a.m. ET on the same day. Participants can join the call by dialing (877) 329-3720 or (412) 317-5434 for international calls. A replay will be available until November 16, 2020. The Trust is a REIT owning diverse properties across the U.S., Puerto Rico, and Canada, managed by The RMR Group.
Service Properties Trust (SVC) plans to transfer management of 98 hotels to Sonesta International Hotels Corporation, enhancing its brand presence. The transition includes 2 full-service, 56 select-service, and 40 extended-stay hotels across the U.S. Management of 9 hotels will begin on December 15, 2020, with the remaining 89 on January 31, 2021. This latest transfer follows previous transactions, contributing to a 350% increase in Sonesta's national portfolio, which will exceed 250 properties in the U.S. by the end of Q1 2021.
Service Properties Trust (SVC) has terminated management agreements for 122 hotels with Marriott International due to non-payment of an $11 million shortfall. SVC plans to transfer management of 98 hotels to Sonesta, with 24 hotels being sold for a total of $153.1 million. The termination is effective January 31, 2021. The 122 hotels generated $2.6 million in cash flow during the first eight months of 2020. SVC owns approximately 34% of Sonesta, which could potentially enhance its performance moving forward.
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