NEWTON, Mass., October 07, 2025 — Service Properties Trust (Nasdaq: SVC) (“SVC”) today provided an update on its previously disclosed hotel disposition program and recent actions to strengthen its balance sheet.
Hotel Disposition Activity
SVC continues to advance its previously disclosed plan to sell 113 Sonesta branded hotels that include 14,803 keys, for gross proceeds of approximately $913 million (the “Sale Hotels”). During the third quarter of 2025, SVC completed the sales of 38 Sale Hotels totaling 5,331 keys and generating gross proceeds of approximately $279 million. SVC remains on track to close the sales of the balance of the Sale Hotels in the fourth quarter of 2025, for gross proceeds of approximately $634 million.
Including the sale of eight non-Sale Hotels, two of which closed in the third quarter, SVC has sold 46 hotels through the third quarter of 2025, totaling 6,337 keys, for gross proceeds of approximately $325 million. For the full year, SVC is on track to sell 121 hotels, totaling 15,809 keys, for gross proceeds of approximately $959 million.
Financing Activities
SVC has taken several steps to strengthen its balance sheet during 2025. In September, SVC redeemed all $350 million of its 5.25% senior unsecured notes due February 2026 and issued $580 million of zero-coupon senior secured notes due September 2027, raising net proceeds of approximately $490 million, which it used to repay all amounts outstanding on its revolving credit facility. SVC expects to complete the early redemption of all $450 million of its 4.75% senior unsecured notes due October 2026 on October 16, 2025, using a combination of cash on hand and borrowings under its revolving credit facility.
Chris Bilotto, President and Chief Executive Officer of SVC, made the following statement:
“We are making significant progress executing SVC’s strategic transformation, the primary prongs of which are the disposition of a substantial portion of our hotel portfolio, and the taking of other actions to strengthen our balance sheet. With 46 hotel sales completed through September and an additional 75 expected to close in the fourth quarter, we remain on track to generate approximately $959 million in total gross proceeds in 2025, which will allow us to continue to reduce our debt maturities. Looking ahead, we remain focused on evaluating further hotels for sale to enhance SVC’s portfolio composition, improve operating performance and further strengthen SVC’s financial profile.”