Service Properties Trust (Nasdaq: SVC) advances hotel sales up to $870.7M

Rhea-AI Filing Summary

Service Properties Trust sold five hotels with a total of 679 keys on December 10, 2025 for a combined sales price of $47.2 million, excluding closing costs. This transaction is part of previously agreed sales of 113 hotels, or the Sale Hotels, for a combined $913.3 million, excluding closing costs.

Since January 1, 2025 the company has sold 98 of the Sale Hotels with 12,755 keys for $722.7 million and eight other hotels with 1,006 keys for $45.6 million, all excluding closing costs. It remains under agreement to sell eight Sale Hotels with 1,158 keys for $102.4 million, which are expected to close in phases, with seven hotels by the end of 2025 and one in early 2026.

SVC has terminated the agreement to sell seven Sale Hotels representing $88.2 million of the aggregate Sale Hotels price and is evaluating alternative buyers or potential remarketing. Upon completion of the remaining eight sales, aggregate proceeds from hotel dispositions would total $870.7 million, excluding closing costs, which SVC expects to use to repay debt. The company also provided unaudited pro forma financial statements reflecting these significant hotel dispositions.

Insights

Real estate investment analyst

SVC advances a large hotel disposition program tied to debt repayment, while some planned sales fall through and others remain conditional.

Service Properties Trust reports continued execution on its hotel sale strategy. It sold five hotels with 679 keys for $47.2 million, excluding closing costs, as part of a broader plan to dispose of 113 Sale Hotels for $913.3 million. Since January 1, 2025, it has sold 98 Sale Hotels for $722.7 million and eight additional hotels for $45.6 million, showing substantial progress in shrinking this part of the portfolio.

The company remains under agreement to sell eight Sale Hotels with 1,158 keys for $102.4 million, with seven expected to close by the end of 2025 and one in early 2026. However, it terminated the agreement to sell seven Sale Hotels representing $88.2 million and is evaluating alternative buyers or remarketing, highlighting execution risk around the remaining transactions.

If the pending eight sales close as described, aggregate proceeds from hotel dispositions would total $870.7 million, excluding closing costs, which SVC expects to use to repay debt. The company also furnished unaudited pro forma condensed consolidated financial statements for the 45 Hotel Sale Portfolio, illustrating how sales of 26 hotels through December 10, 2025 and 38 hotels year-to-date would have affected past balance sheet and loss figures. Actual future results may differ due to portfolio changes, operating performance, and interest rates, as noted in the forward-looking statements and risk factor references.

8-K Event Classification

2 items: 2.01, 9.01

2 items

Item 2.01 Completion of Acquisition or Disposition of Assets Financial

The company completed a significant acquisition or sale of business assets.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

0000945394false00009453942025-12-102025-12-10

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): December 10, 2025

SERVICE PROPERTIES TRUST

(Exact Name of Registrant as Specified in Its Charter)

Maryland

(State or Other Jurisdiction of Incorporation)

1-11527						04-3262075
(Commission File Number)						(IRS Employer Identification No.)

Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634

(Address of Principal Executive Offices) (Zip Code)

617-964-8389

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐                               Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐                                   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐                                   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐                                   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of each Exchange on which Registered

Common Shares of Beneficial Interest

SVC

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

In this Current Report on Form 8-K, the term "SVC" refers to Service Properties Trust and its consolidated subsidiaries, unless otherwise noted.

Item 2.01. Completion of Acquisition or Disposition of Assets.

On December 10, 2025, SVC sold five hotels with a total of 679 keys located in four states for a combined sales price of $47.2 million, excluding closing costs, pursuant to one of the agreements, or the 45 Hotel Sale Portfolio, that SVC previously entered into to sell 113 hotels with a total of 14,803 keys for a combined sales price of $913.3 million, excluding closing costs, or the Sale Hotels. Since January 1, 2025, SVC has sold 98 of the Sale Hotels with a total of 12,755 keys for a combined sales price of $722.7 million, excluding closing costs, and eight other hotels with a total of 1,006 keys for a combined sales price of $45.6 million, excluding closing costs. SVC has terminated the agreement to sell seven Sale Hotels, which represent $88.2 million, excluding closing costs, of the aggregate sales price of the Sale Hotels, and is evaluating alternative buyers or a potential remarketing of those seven Sale Hotels in early 2026. SVC remains under agreement to sell eight Sale Hotels with a total of 1,158 keys for a combined sales price of $102.4 million, excluding closing costs. These eight Sale Hotels will be sold in phases, with seven hotels expected to be completed by the end of 2025 and one hotel expected to be completed in early 2026. Upon completion of the sale of the remaining eight Sale Hotels, aggregate proceeds from hotel dispositions would total $870.7 million, excluding closing costs. As previously disclosed, SVC expects to use the proceeds from the sales of the Sale Hotels to repay debt.

SVC has sold 38 of the hotels in the 45 Hotel Sale Portfolio, with the pool of properties sold constituting significant dispositions for purposes of Item 2.01 of Form 8-K. Accordingly, pro forma financial information required by Item 9.01 of Form 8-K with respect to the 45 Hotel Sale Portfolio is included as Exhibit 99.1, to this Current Report on Form 8-K.

For further information regarding SVC's completed hotel sales, please see its Current Reports on Form 8-K filed with the Securities and Exchange Commission, or the SEC, on September 10, 2025, September 18, 2025, September 24, 2025 (filed with Item 2.01), September 29, 2025, October 1, 2025, October 6, 2025, October 21, 2025, October 28, 2025, November 4, 2025, November 18, 2025, November 24, 2025 and December 9, 2025.

Warning Concerning Forward-Looking Statements

This Current Report on Form 8-K contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. 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 as a result of various factors. For example, the pending sales of the remaining Sale Hotels are subject to conditions; accordingly, SVC cannot be sure that it will complete these sales, that these sales will not be delayed, that the terms will not change or, if the sales are completed, that it will use the proceeds as currently expected.

The information contained in SVC’s filings with the SEC, including under the caption “Risk Factors” in SVC’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, or incorporated herein or therein, identifies other important factors that could cause differences from 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 SVC’s 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.

Item 9.01. Financial Statements and Exhibits.

(b) Pro Forma Financial Information.

SVC's unaudited pro forma condensed consolidated balance sheet as of September 30, 2025 and SVC's unaudited pro forma condensed consolidated statements of loss for the year ended December 31, 2024 and for the nine months ended September 30, 2025, and the notes related thereto with respect to the 45 Hotel Sale Portfolio, are filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

2

These unaudited pro forma condensed consolidated financial statements reflect SVC's financial position as if the sales of 26 hotels in the 45 Hotel Sale Portfolio sold from October 1, 2025 through December 10, 2025 were completed as of September 30, 2025 and SVC's results of operations as if the sales of 38 hotels in the 45 Hotel Sale Portfolio sold from January 1, 2025 through December 10, 2025 were completed as of January 1, 2024. These unaudited pro forma condensed consolidated financial statements are not necessarily indicative of SVC's expected financial position or results of operations for any future period. Differences could result from numerous factors, including future changes in SVC's portfolio of investments, capital structure, property level operating expenses and revenues, including returns received from SVC's hotels or rents expected to be received pursuant to SVC's existing leases or leases SVC may enter into, changes in interest rates and other reasons. Actual future results are likely to be different from amounts presented in these unaudited pro forma condensed consolidated financial statements and such differences may be significant.

(d) Exhibits.

99.1						Unaudited Pro Forma Condensed Consolidated Financial Statements with respect to the 45 Hotel Sale Portfolio. (Filed herewith.)
104						Cover Page Interactive Data File. (Embedded within the Inline XBRL document.)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SERVICE PROPERTIES TRUST

By:

/s/ Brian E. Donley

Name:

Brian E. Donley

Title:

Chief Financial Officer and Treasurer

Dated:

December 16, 2025

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FAQ

What hotel assets did Service Properties Trust (SVC) just sell?

On December 10, 2025, Service Properties Trust sold five hotels with a total of 679 keys for a combined sales price of $47.2 million, excluding closing costs.

How many hotels from the Sale Hotels portfolio has SVC sold in 2025 and for how much?

Since January 1, 2025, SVC has sold 98 of the Sale Hotels with 12,755 keys for a combined sales price of $722.7 million, excluding closing costs.

What additional hotels has SVC sold outside the Sale Hotels portfolio?

In addition to the Sale Hotels, SVC has sold eight other hotels with a total of 1,006 keys for a combined sales price of $45.6 million, excluding closing costs.

What hotel sales remain under contract for SVC and when are they expected to close?

SVC remains under agreement to sell eight Sale Hotels with 1,158 keys for a combined sales price of $102.4 million, excluding closing costs. These are scheduled in phases, with seven hotels expected to close by the end of 2025 and one hotel in early 2026.

What is the total expected proceeds from SVC's hotel dispositions if remaining sales are completed?

Upon completion of the remaining eight Sale Hotels, aggregate proceeds from SVC's hotel dispositions would total $870.7 million, excluding closing costs.

How does Service Properties Trust plan to use the hotel sale proceeds?

SVC states that it expects to use the proceeds from the sales of the Sale Hotels to repay debt, aligning the disposition program with balance sheet objectives.

What pro forma financial information did SVC provide regarding the 45 Hotel Sale Portfolio?

SVC filed unaudited pro forma condensed consolidated financial statements as Exhibit 99.1, including a balance sheet as of September 30, 2025 and statements of loss for the year ended December 31, 2024 and the nine months ended September 30, 2025. These reflect sales of 26 hotels in the 45 Hotel Sale Portfolio as if completed by September 30, 2025 and sales of 38 hotels as if completed by January 1, 2024.