Service Properties Trust (SVC) Q3 2026 earnings summary

Executive summary

• Q3 Normalized FFO was $43.8M, or $0.34/share, and Adjusted EBITDAre was $133.5M, both above consensus; rolling four-quarter CAD turned positive at $12.6M.

• Strategy focused on debt reduction, improving retained-hotel margins and gradually increasing the portfolio share of service-focused retail net lease properties.

Financial highlights

• Q3 revenue fell 16.6% YoY to $399.520M; net loss was $87.940M versus $46.945M, while Normalized FFO rose to $43.839M from $33.910M.

• Q3 FFO was $40.2M; lower interest expense contributed $17.4M to the $9.9M YoY increase in Normalized FFO, partly offset by a $6.6M decline in hotel EBITDA.

• Q3 net lease cash-basis NOI was $93.8M, flat YoY; reported net lease NOI was $94.8M, flat QoQ.

• Nine-month net loss was $462.956M, including $270.883M of impairment charges and $61.589M of debt-extinguishment losses; nine-month Normalized FFO was $106.308M versus $102.349M.

Outlook and guidance

• FY26 guidance: Adjusted Hotel EBITDA of $124M–$134M, net lease NOI of $373M–$379M, Adjusted EBITDAre of $489M–$498M and Normalized FFO of $113M–$128M, or $1.07–$1.22/share.

• FY26 CapEx guidance was reduced by $10M at the midpoint to $115M–$125M; assumptions include no hotel acquisitions and ownership of the remaining two Exit Hotels through year-end.

• Net lease guidance reflects credit reserves, vacant-asset costs and the pace of asset recycling and acquisitions; hotel guidance includes ~$13.8M of renovation-related displacement.

• Retained-hotel operators identified ~$96M of potential operating upside over 12–24 months, plus ~$13M from forecast RevPAR growth; combined ~$109M could lift margin to ~20%.