Service Properties (SVC) Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 26, 2026
AI-Generated Deep Dive Summary
Service Properties (SVC) recently released its earnings call transcript, highlighting key developments that underscore its strategic focus on debt reduction and portfolio optimization. The company reported the sale of 112 hotels, totaling approximately 14,600 keys, generating $860 million in gross proceeds. These proceeds were utilized to redeem $800 million in 2026 maturity notes and $300 million in 2027 notes, significantly reducing its debt burden. Additionally, SVC announced the sale of seven Sonesta-managed hotels, expected to fetch between $175 million and $200 million, which could enhance annual EBITDA by $13 million upon completion.
The company also emphasized strong performance in its retained portfolio, with 77 hotels achieving a 170 basis point increase in RevPAR year over year. However, hotel EBITDA declined by 35% due to elevated labor and overhead costs, as well as the absence of prior-year business interruption insurance gains. Despite this challenge, SVC's net lease portfolio continued to grow, with $1
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Originally published on The Motley Fool on 2/26/2026