Service Properties Trust (SVC) advances $913.3M hotel sale program

Rhea-AI Filing Summary

Service Properties Trust completed the sale of two hotels with a total of 318 keys on September 16, 2025 for a combined sales price of $25.0 million, excluding closing costs. These properties are part of a broader plan to sell 113 hotels with 14,803 keys for $913.3 million, excluding closing costs. To date, SVC has sold nine of these hotels with 1,313 keys for $88.9 million and remains under agreement to sell 104 hotels with 13,490 keys for $824.4 million, excluding closing costs. The remaining hotels are expected to be sold in phases by the end of 2025, and SVC has previously stated it expects to use the sale proceeds to repay debt, including amounts outstanding under its revolving credit facility.

Insights

REIT and balance sheet analyst

SVC advances large hotel sale program, directing proceeds to debt paydown.

Service Properties Trust reports selling two hotels with 318 keys for $25.0 million, excluding closing costs, as part of a larger plan to dispose of 113 hotels for $913.3 million. So far, it has sold nine hotels with 1,313 keys for $88.9 million and remains under agreement to sell 104 hotels with 13,490 keys for $824.4 million, excluding closing costs.

The company has previously indicated it expects to use proceeds from these hotel sales to repay debt, including borrowings under its revolving credit facility. If executed as described, this would shift assets into lower leverage, which can strengthen the balance sheet for a REIT that relies on access to capital.

The sales of the remaining 104 hotels are expected to occur in phases and be completed by the end of 2025, but the disclosure notes these transactions are subject to conditions and may be delayed, altered, or not close. Future updates on closing progress and debt reduction in subsequent SEC filings will clarify how fully this plan is implemented.

8-K Event Classification

Item 2.01 — Completion of Acquisition or Disposition of Assets

1 item

Item 2.01 Completion of Acquisition or Disposition of Assets Financial

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

Understanding 8-K Material Events →

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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): September 16, 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 September 16, 2025, SVC sold two hotels with a total of 318 keys located in one state for a combined sales price of $25.0 million, excluding closing costs, pursuant to one of the agreements 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. To date, SVC has sold nine of the Sale Hotels with a total of 1,313 keys for a combined sales price of $88.9 million, excluding closing costs, and SVC remains under agreement to sell 104 Sale Hotels with a total of 13,490 keys for a combined sales price of $824.4 million, excluding closing costs. The remaining 104 Sale Hotels will be sold in phases, expected to be completed by the end of 2025. As previously disclosed, SVC expects to use the proceeds from the sales of the Sale Hotels to repay debt, including a portion of the outstanding borrowings under its revolving credit facility.

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 Securities and Exchange Commission, or 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.

2

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:

September 18, 2025

3

FAQ

What transaction did Service Properties Trust (SVC) disclose in this 8-K?

SVC disclosed that on September 16, 2025 it sold two hotels with a total of 318 keys in one state for a combined sales price of $25.0 million, excluding closing costs.

How does this sale fit into Service Properties Trust (SVC)'s broader hotel disposition plan?

The two hotels are part of SVC’s previously announced plan to sell 113 hotels with a total of 14,803 keys for a combined sales price of $913.3 million, excluding closing costs, referred to as the Sale Hotels.

How many of the Sale Hotels has SVC sold so far and for how much?

To date, SVC has sold nine of the Sale Hotels with a total of 1,313 keys for a combined sales price of $88.9 million, excluding closing costs.

What remains to be sold under Service Properties Trust (SVC)'s Sale Hotels agreements?

SVC remains under agreement to sell 104 Sale Hotels with a total of 13,490 keys for a combined sales price of $824.4 million, excluding closing costs, with sales expected to be completed in phases by the end of 2025.

How does Service Properties Trust (SVC) plan to use the proceeds from the hotel sales?

SVC has previously stated that it expects to use the proceeds from the sales of the Sale Hotels to repay debt, including a portion of the outstanding borrowings under its revolving credit facility.

What risks or uncertainties did SVC highlight regarding the remaining hotel sales?

SVC notes that the pending sales of the remaining Sale Hotels are subject to conditions, so it cannot be sure they will be completed on the expected terms, within the expected time frame, or at all, or that the proceeds will be used as currently expected.