(SVC) Service Properties Trust - Overview
Sector: Real Estate | Industry: REIT - Hotel & Motel | Exchange: NASDAQ (USA) | Market Cap: 1.107m USD | Total Return: -19.9% in 12m
Avg Turnover: 13.2M
Qual. Beats: 0
Rev. Trend: -60.6%
Qual. Beats: 1
Warnings
High Debt/EBITDA (11.9) with thin interest coverage (0.3)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.3 is critical
Altman Z'' -2.82 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Service Properties Trust (SVC) is a diversified Real Estate Investment Trust (REIT) focused on two primary asset classes: service-oriented retail net lease properties and hotels. As of late 2025, the portfolio comprises 760 retail properties totaling over 13.6 million square feet and 219 hotels with more than 37,000 guest rooms across the United States, Puerto Rico, and Canada. The company utilizes a net lease structure for its retail assets, which typically requires tenants to cover property taxes, insurance, and maintenance, providing a predictable revenue stream for the landlord.
The trust is externally managed by The RMR Group, an alternative asset management firm with extensive experience in commercial real estate operations and financing. Diversified REITs like SVC often mitigate sector-specific volatility by balancing income between long-term retail leases and shorter-term hospitality stays. Reviewing the latest valuation metrics on ValueRay can provide further insight into the companys current market position. Established in 1995 and headquartered in Newton, Massachusetts, SVC maintains a total investment basis of approximately $10 billion.
- Variable hotel occupancy rates directly impact quarterly revenue and cash flow volatility
- Long-term net lease renewals stabilize predictable income from service-focused retail tenants
- High interest rates increase refinancing costs for significant debt obligations and capital
- Strategic hotel renovations and brand conversions drive future average daily rate growth
- Consumer discretionary spending shifts dictate demand across hospitality and retail property portfolios
| Net Income: -237.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA 0.53 > 1.0 |
| NWC/Revenue: 0.16% < 20% (prev 21.43%; Δ -21.27% < -1%) |
| CFO/TA 0.02 > 3% & CFO 115.2m > Net Income -237.1m |
| Net Debt (5.07b) to EBITDA (425.5m): 11.91 < 3 |
| Current Ratio: 1.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (166.4m) vs 12m ago 0.47% < -2% |
| Gross Margin: 23.23% > 18% (prev 0.47%; Δ 2.28k% > 0.5%) |
| Asset Turnover: 26.68% > 50% (prev 27.18%; Δ -0.50% > 0%) |
| Interest Coverage Ratio: 0.33 > 6 (EBITDA TTM 425.5m / Interest Expense TTM 380.1m) |
| A: 0.00 (Total Current Assets 19.3m - Total Current Liabilities 16.4m) / Total Assets 6.08b |
| B: -0.67 (Retained Earnings -4.07b / Total Assets 6.08b) |
| C: 0.02 (EBIT TTM 123.8m / Avg Total Assets 6.53b) |
| D: -0.73 (Book Value of Equity -4.07b / Total Liabilities 5.59b) |
| Altman-Z'' = -2.82 = D |
As of June 01, 2026, the stock is trading at USD 1.79 with a total of 23,311,374 shares traded.
Over the past week, the price has changed by +4.07%,
over one month by +15.48%,
over three months by -19.92% and
over the past year by -19.94%.
Service Properties Trust has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold SVC.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 2.3 | 30.2% |
P/E Forward = 21.3675
P/S = 0.6345
P/B = 2.2415
P/EG = 2.2727
Revenue TTM = 1.74b USD
EBIT TTM = 123.8m USD
EBITDA TTM = 425.5m USD
Long Term Debt = 5.09b USD (from longTermDebt, last quarter)
Short Term Debt = 3.00m USD (from shortTermDebt, last quarter)
Debt = 5.09b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.07b USD (calculated: Debt 5.09b - CCE 19.3m)
Enterprise Value = 6.17b USD (1.11b + Debt 5.09b - CCE 19.3m)
Interest Coverage Ratio = 0.33 (Ebit TTM 123.8m / Interest Expense TTM 380.1m)
EV/FCF = -60.48x (Enterprise Value 6.17b / FCF TTM -102.1m)
FCF Yield = -1.65% (FCF TTM -102.1m / Enterprise Value 6.17b)
FCF Margin = -5.86% (FCF TTM -102.1m / Revenue TTM 1.74b)
Net Margin = -13.61% (Net Income TTM -237.1m / Revenue TTM 1.74b)
Gross Margin = 23.23% ((Revenue TTM 1.74b - Cost of Revenue TTM 1.34b) / Revenue TTM)
Gross Margin QoQ = -10.57% (prev 32.39%)
Tobins Q-Ratio = 1.02 (Enterprise Value 6.17b / Total Assets 6.08b)
Interest Expense / Debt = 7.47% (Interest Expense 380.1m / Debt 5.09b)
Taxrate = 21.0% (US default 21%)
NOPAT = 97.8m (EBIT 123.8m * (1 - 21.00%))
Current Ratio = 0.04 (Total Current Assets 19.3m / Total Current Liabilities 499.5m)
Debt / Equity = 10.30 (Debt 5.09b / totalStockholderEquity, last quarter 493.7m)
Debt / EBITDA = 11.91 (Net Debt 5.07b / EBITDA 425.5m)
Debt / FCF = -49.64 (negative FCF - burning cash) (Net Debt 5.07b / FCF TTM -102.1m)
Total Stockholder Equity = 620.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.63% (Net Income -237.1m / Total Assets 6.08b)
RoE = -5.05% (Net Income TTM -237.1m / Total Stockholder Equity 4.69b)
RoCE = 1.27% (EBIT 123.8m / Capital Employed (Equity 4.69b + L.T.Debt 5.09b))
RoIC = 1.61% (NOPAT 97.8m / Invested Capital 6.06b)
WACC = 6.82% (E(1.11b)/V(6.19b) * Re(11.02%) + D(5.09b)/V(6.19b) * Rd(7.47%) * (1-Tc(0.21)))
Discount Rate = 11.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 0.17%
[DCF] Fair Price = unknown (Cash Flow -102.1m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.22 | # QB: 0
Revenue Correlation: -60.56 | Revenue CAGR: -1.65% | SUE: 1.42 | # QB: 1
EPS current Quarter (2026-06-30): EPS=-0.03 | Chg30d=+78.57% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.06 | Chg30d=+77.78% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=-1.14 | Chg30d=+1.30% | Revisions=-20% | GrowthEPS=+6.6% | GrowthRev=-16.7%
EPS next Year (2027-12-31): EPS=-0.26 | Chg30d=+75.24% | Revisions=+20% | GrowthEPS=+10.3% | GrowthRev=+1.1%