Service Properties Trust : Investor Presentation March 2025

Published: 2025-03-12 08:11:06 ET SVC

Investor Presentation

March 2025 | Nasdaq: SVC

Investment Highlights

1 Diversified net lease necessity-based retail and hotel portfolio with national scale creates resilience through market cycles.

2

Hotel repositioning strategy to focus on full-service hotels and

high performing focused service hotels in key markets.

3 Retail assets with quality tenants position SVC to generate consistent cash flows with embedded growth.

4 Capex investment in hotel portfolio to improve asset quality, market share and operating performance.

5 Strong financial position with no near-term debt maturities and ample liquidity for portfolio optimization initiatives.

33

SVC: At a Glance

SVC is a publicly traded REIT primarily invested in two asset categories, hotels and service-focusedretail net lease properties, significantly diversifying its cash flows.

Hotel PortfolioService-Focused Retail Net Lease Portfolio

206

35,871

$1.5B

742

13.3M

$380.9M

Properties

Keys

Revenues

Properties

Rentable Square Feet

Annualized

Minimum Rent

Total Company

948

46

22

145

181

$1.9B

Properties

States, Washington, D.C.,

Industries

Brands

Tenants / Operators

Total Revenues

Puerto Rico & Canada

in 2024

4

Recent Company Highlights

a Managing Trustee.

Chicago, IL

5

Hotel Portfolio

66

Hotel Portfolio: At a Glance

Portfolio Statistics

Geographic Diversification

Top MSAs(1)

206

35,871

California

18.9%

Properties

Number of Keys

Florida

7.6%

Illinois

6.6%

174

CA, FL, TX

Georgia

6.3%

Texas

5.0%

Average Keys Per Hotel

Top States by Revenue

Massachusetts

4.3%

Louisiana

4.0%

$6.4B

$178K

Puerto Rico: 1 hotel

Arizona

3.7%

Canada: 2 hotels

Washington

3.1%

Investment

Investment Per Key

SVC owns more than one hotel in this state

New Jersey

2.7%

Portfolio Segmentation Highlights

Service Level(1)

26%

58%

16%

Full Service

Extended Stay

Select Service

Chain Scale(2)

Location(2)

Customer Mix(3)

25%

20%

36%

7%

48%

47%

1%

19%

72%

16%

8%

1%

Transient

Upscale

Suburban

Urban

Group

Upper Midscale/Midscale

Airport

Resort

Contract

Upper Upscale

Other

Other

7

Hotel Portfolio: Comparable Property Operating Metrics(1)

Monthly Operating Metrics

80%

71.2%

$250

70%

66.4%

66.1%

68.8%

69.3%

66.9%

66.0%

68.9%

63.1%

60.9%

57.7%

$200

60%

56.6%

50.5%

52.9%

49.9%

50%

$150

40%

$148

$132

$139

$141

$146

$143

$145

$148

$145

$139

$142

$148

$131

$135

$134

$100

30%

$106

$99

$100

$100

$102

20%

$92

$94

$93

$94

$78

$80

$81

$66

$70

$69

$50

10%

0%

$0

Oct '23 Nov '23

Dec '23

Jan '24 Feb '24

Mar '24

Apr '24

May '24

Jun '24

Jul '24 Aug '24

Sep '24

Oct' 24 Nov '24

Dec '24

Occupancy

ADR

RevPAR

Monthly Hotel EBITDA

$35

$32.0

($ in millions)

$31.8

$30

$28.8

$27.7

$25

$23.1

$22.4

$23.4

$20.8

$20

$17.0

$15

$10

$9.4

$8.3

$7.9

$5

$3.0

$2.2

$0

($0.0)

($5)

Oct ' 23 Nov '23

Dec '23 Jan '24 Feb '24 Mar '24 Apr '24 May '24

Jun '24 Jul '24 Aug '24 Sep '24 Oct '24 Nov '24 Dec '24

1.

For SVC's 205 comparable hotels.

8

2.

See Appendix for a reconciliation of non-GAAP financial metrics to the closest GAAP metric.

Hotel Portfolio: 2025 Repositioning Strategy

123

16,426

~$1.1 Billion

~17.2x

Total Hotels Marketed

Total Rooms Marketed

Estimated Proceeds

Implied Adjusted EBITDA

For Sale

For Sale

Multiple

Repositioning Thesis

9

Recent Performance of Retained & Exit Hotels

Number of

Three Months Ended

LTM as of

Hotels

Keys

March 31, 2024

June 30, 2024

September 30, 2024 December 31, 2024

December 31, 2024

Total Retained Hotels

83

19,445

Occupancy

55.1%

68.2%

66.4%

60.3%

62.5%

ADR

$172.27

$176.01

$171.51

$167.07

$171.82

RevPar

$94.87

$120.00

$113.96

$100.68

$107.38

Hotel Operating Revenues

$227.4M

$283.5M

$264.9M

$249.2M

$1,025.0M

Hotel EBITDA

$22.0M

$59.0M

$41.9M

$26.9M

$149.8M

Hotel EBITDA Margin

9.7%

20.8%

15.8%

10.8%

14.6%

Total Exit Hotels

123

16,426

Occupancy

58.5%

69.1%

68.3%

61.4%

64.3%

ADR

$108.71

$109.27

$108.43

$104.99

$107.89

RevPar

$63.54

$75.50

$74.09

$64.49

$69.41

Hotel Operating Revenues

$101.2M

$119.4M

$118.3M

$106.4M

$445.3M

Hotel EBITDA

$8.8M

$23.7M

$19.0M

$10.7M

$62.1M

Hotel EBITDA Margin

8.7%

19.8%

16.0%

10.1%

13.9%

Total SVC Hotels

206

35,871

Occupancy

56.6%

68.6%

67.3%

60.8%

63.3%

ADR

$142.25

$145.26

$142.22

$138.38

$142.12

RevPar

$80.54

$99.65

$95.72

$84.13

$90.01

Hotel Operating Revenues

$328.6M

$402.9M

$383.3M

$355.6M

$1,470.3M

Hotel EBITDA

$30.8M

$82.7M

$60.9M

$37.6M

$212.0M

Hotel EBITDA Margin

9.4%

20.5%

15.9%

10.6%

14.4%

10

Disclaimer

Service Properties Trust published this content on March 12, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 12, 2025 at 12:10:06.956.