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Service Properties Trust (SVC)
NASDAQ:SVC
Earnings Data
Report Date
May 01, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
-0.54Last Year’s EPS
-0.48Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 26, 2025
|% Change Since: -1.13%
|Next Earnings Date:May 01, 2025
Earnings Call Sentiment|Neutral
The earnings call reflects a balanced outlook with strong revenue growth and successful asset sales marking significant highlights. However, challenges such as declining adjusted hotel EBITDA and increased interest expenses offer some counterpoints. The positive aspects, including robust select service portfolio growth and strategic asset sales, provide a strong positive narrative, while the lowlights highlight areas for improvement.Company Guidance
During the Service Properties Trust Q4 2024 earnings call, guidance was provided on several financial metrics and strategic initiatives. The company reported a 4.2% year-over-year increase in comparable hotel RevPAR, with a more substantial 6.8% rise excluding hotels under renovation. Adjusted hotel EBITDA declined by 2.4% due to renovation and expense pressures, while full-service hotel RevPAR grew by 4.3%. The select service portfolio achieved a notable 9.6% RevPAR growth, driven by occupancy increases. The company is executing a sale of 114 Sonesta hotels, expecting at least $1 billion in proceeds, and aims to reduce leverage. The net lease portfolio, comprising 742 properties with annual rents of $381 million, was 97.6% leased, with a weighted average lease term of eight years. For Q1 2025, the company projects RevPAR between $82 and $84 and adjusted hotel EBITDA between $20 million and $24 million. Capital expenditure for 2025 is expected to be around $250 million, focusing on renovations and maintenance. The company prioritized addressing 2026 debt maturities, investing in remaining hotels, and expanding the net lease portfolio.Strong Hotel Revenue Growth
SBC reported its strongest hotel revenue growth in nearly two years, with comparable hotel RevPAR growing 4.2% year over year, outperforming the industry by 60 basis points.
Successful Asset Sales and Strong Buyer Interest
SBC is marketing the sale of 114 Sonesta hotels, with a buyer pool that is deep and well-capitalized, resulting in more than fifty sub-portfolio bids. The expected net sales proceeds are at least $1 billion.
Exceptional Select Service Portfolio Growth
The select service portfolio saw RevPAR growth of 9.6% year over year, driven by occupancy growth in Hyatt Place and Sonesta Select portfolios.
Stable Net Lease Portfolio Performance
The net lease portfolio had a 97.6% lease rate with a weighted average lease term of eight years, generating stable cash flows with annual minimum rents of $381 million.
Growth in Retained Hotel Portfolio
The 83 retained hotels experienced a RevPAR increase of 6.3% to approximately $101 and adjusted hotel EBITDA increase of 10% year over year to $30.6 million.
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SVC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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SVC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 26, 2025 | $2.66 | $2.90 | +9.02% |
| Nov 06, 2024 | $3.30 | $3.15 | -4.55% |
| Aug 06, 2024 | $5.15 | $4.80 | -6.80% |
| May 07, 2024 | $5.82 | $5.45 | -6.36% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Service Properties Trust (SVC) report earnings?
Service Properties Trust (SVC) is schdueled to report earning on May 01, 2025, TBA Not Confirmed.
What is Service Properties Trust (SVC) earnings time?
Service Properties Trust (SVC) earnings time is at May 01, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SVC EPS forecast?
SVC EPS forecast for the fiscal quarter 2025 (Q1) is -0.54.
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