SVC
Investor Presentation
November 2024 | Nasdaq: SVC
Investment Highlights
1 Diversified net lease necessity-based retail and hotel portfolio with national scale creates resilience through market cycles.
2 Retail assets with quality tenants position SVC to generate consistent cash flows.
3 Transforming hotel portfolio to focus on full-service hotels and high performing focused service hotels in key markets.
4 Capex investment in hotel portfolio to improve asset quality and operating performance.
5 Strong financial position with no near-term debt maturities and ample liquidity for portfolio optimization initiatives.
33
SVC: A Diversified Portfolio
SVC is a publicly traded REIT with over $11 billion invested in two asset categories, hotels and service- focused retail net lease properties, significantly diversifying its cash flows.
Hotel PortfolioService-Focused Retail Net Lease Portfolio
214
36,875
$6.4B
745
13.3M
$5.0B
Properties
Keys
Investment
Properties
Rentable
Investment
Square Feet
Total Company
959
46
22
146
Properties
States, Washington, D.C.,
Industries
Brands
Puerto Rico & Canada
180
$11.4B
$1.9B
$699M
Tenants / Operators
Total Investment
Total Revenues
Liquidity
Trailing Twelve Months
4
Complementary Portfolios Create Stability Through Market Cycles with Significant Upside
Diverse portfolio of hotel assets with
Defensively positioned service-focused
national brands
retail net lease portfolio
5
Hotel Portfolio
66
Hotel Portfolio: At a Glance
Portfolio Statistics
Geographic Diversification
Top MSAs(1)
214
36,875
California
18.6%
Properties
Number of Keys
Florida
7.5%
Illinois
6.5%
172
CA, FL, TX
Georgia
6.5%
Texas
5.7%
Average Keys Per Hotel
Top States by Revenue
Louisiana
4.0%
Arizona
3.7%
$6.4B
$173K
Puerto Rico: 1 hotel
Missouri
2.5%
Canada: 2 hotels
Pennsylvania
2.1%
Investment
Investment Per Key
SVC owns more than one hotel in this state
Ohio
2.0%
Portfolio Segmentation Highlights
Service Level(1)
27%
57%
16%
Full Service
Extended Stay
Select Service
Chain Scale(2)
Location(2)
Customer Mix(3)
25%
20%
38%
7%
47%
48%
1%
18%
72%
15%
8%
1%
Transient
Upscale
Suburban
Urban
Group
Upper Midscale/Midscale
Airport
Resort
Contract
Upper Upscale
Other
Other
7
Hotel Portfolio: 213 Comparable Property Operating Trends
Monthly Operating Metrics
80%
70%
60%
50%
40%
30%
20%
10%
0%
$35
$30
$25
$20
$15
$10
$5
$0
($5)
71.2%
$250
69.9%
65.3%
66.9%
66.4%
63.0%
66.0%
68.5%
69.3%
66.8%
65.8%
57.6%
$200
56.5%
49.8%
50.5%
$150
$144
$136
$143
$147
$131
$137
$139
$144
$141
$143
$147
$143
$138
$141
$134
$104
$100
$100
$89
$96
$97
$91
$93
$98
$99
$92
$93
$79
$77
$65
$69
$50
$0
Jul '23 Aug'23
Sep '23
Oct '23 Nov '23
Dec '23
Jan '24
Feb '24 Mar '24
Apr '24
May '24
Jun '24
Jul '24
Aug'24
Sep '24
Occupancy
ADR
RevPAR
Monthly Hotel EBITDA
$31.7
$32.2
($ in millions)
$31.7
$29.1
$28.6
$23.0
$22.3
$23.1
$20.4
$15.8
$16.7
$9.1
$7.8
$2.7
($0.5)
Jul '23
Aug '23 Sep '23 Oct ' 23 Nov '23 Dec '23 Jan '24 Feb'24 Mar '24
Apr '24 May '24 Jun '24
Jul '24 Aug '24 Sep '24
See Financial Information for a reconciliation of non-GAAP financial metrics to the closest GAAP metrics.
8
Hotel Portfolio: Sonesta at a Glance
Sonesta Portfolio Highlights
Sonesta Brands
Source: Sonesta International Hotels, Inc.
9
Hotel Portfolio: Announced Plan in October 2024 to Sell 114 Sonesta Hotels and Use Proceeds to Reduce Leverage
October 2024 Hotel Disposition Announcement
Sonesta Exit Hotels Announced in October 2024
Number of
Number of
Number of
Net Carrying
Brand
Hotels
Keys
States
Value ($M)
Sonesta Select
31
4,564
14
$239.8
Sonesta ES Suites
44
5,611
22
$440.6
Sonesta Simply
39
4,750
23
$182.8
Suites
Total
114
14,925
28
$863.2
Sonesta Retained Hotels
Number of
Number of
Number of
Net Carrying
Service Level
Hotels
Keys
States1
Value ($M)
Full Service
39
12,868
21
$2,270.9
Extended Stay
14
2,102
7
$159.0
Select Service
6
873
3
$46.6
Total
59
15,843
25
$2,476.5
1. Includes two hotels in Toronto, Ontario, one hotel in Puerto Rico and one hotel in Washington, D.C.
10
Disclaimer
Service Properties Trust published this content on November 18, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 18, 2024 at 21:03:09.131.