Service Properties Trust sells 66 hotels, plans $300 million debt redemption

Service Properties Trust (NASDAQ: SVC) completed sales of 66 hotels for approximately $534 million in gross proceeds during the fourth quarter to date, according to a company statement.

The real estate investment trust sold 112 hotels with 14,631 keys for aggregate gross proceeds of approximately $859 million year to date. SVC remains under agreement to sell two additional hotels for approximately $12 million total, expecting to complete one sale by year end and another in January 2026.

An agreement for seven focused-service hotels totaling 890 keys with a $88 million sales price was terminated. SVC said it is evaluating sale alternatives for these properties. The company plans to begin marketing seven full-service hotels with 2,010 keys in early 2026 for projected gross proceeds of $90 million to $110 million.

SVC announced the early redemption of $300 million of its $400 million outstanding unsecured senior notes due February 2027. The redemption is scheduled for January 16, 2026, at a price equal to principal amount plus accrued interest and applicable make-whole premium. The company expects to fund the redemption with proceeds from completed hotel sales.

"In 2025, we made strong progress on our strategic priorities, successfully selling non-core, focused-service hotel assets and reallocating capital to strengthen our balance sheet," said Chris Bilotto, President and Chief Executive Officer.

As of September 30, 2025, SVC owned 752 service-focused retail net lease properties and 160 hotels with over 29,000 guest rooms in the United States, Puerto Rico and Canada. The company is managed by The RMR Group (NASDAQ: RMR).

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