SVC 8-K

Service Properties Trust (SVC)

8-K 2025-10-06 For: 2025-09-30

Added on April 12, 2026


1-11527						04-3262075
(Commission File Number)						(IRS Employer Identification No.)


99.1						Unaudited Pro Forma Condensed Consolidated Financial Statements with respect to the 45 Hotel Sale Portfolio. (Filed herewith.)
104						Cover Page Interactive Data File. (Embedded within the Inline XBRL document.)


	Historical		Transaction Accounting Adjustments		Pro Forma
	(A)		(B)
ASSETS
Real estate properties:
Land	$	1,735,709	$	—	$	1,735,709
Buildings, improvements and equipment	6,115,921		—		6,115,921
Total real estate properties, gross	7,851,630		—		7,851,630
Accumulated depreciation	(2,400,670)		—		(2,400,670)
Total real estate properties, net	5,450,960		—		5,450,960
Acquired real estate leases and other intangibles, net	100,481		—		100,481
Assets of properties held for sale	849,100		(108,040)		741,060
Cash and cash equivalents	63,176		113,005		176,181
Restricted cash	22,855		—		22,855
Equity method investment	111,653		—		111,653
Due from related persons	29,219		1,662		30,881
Other assets, net	305,068		—		305,068
Total assets	$	6,932,512	$	6,627	$	6,939,139

LIABILITIES AND SHAREHOLDERS’ EQUITY
Unsecured debt, net	$	4,026,768	$	—	$	4,026,768
Secured debt, net	1,692,494		—		1,692,494
Accounts payable and other liabilities	496,822		—		496,822
Due to related persons	13,941		—		13,941
Liabilities of properties held for sale	6,543		—		6,543
Total liabilities	6,236,568		—		6,236,568

Commitments and contingencies

Shareholders’ equity:
Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 166,860,830 shares issued and outstanding	1,669		—		1,669
Additional paid in capital	4,562,021		—		4,562,021
Cumulative other comprehensive income	2,173		—		2,173
Cumulative net income	2,040,380		6,627		2,047,007
Cumulative common distributions	(5,910,299)		—		(5,910,299)
Total shareholders’ equity	695,944		6,627		702,571
Total liabilities and shareholders’ equity	$	6,932,512	$	6,627	$	6,939,139


	Historical		Transaction Accounting Adjustments			Pro Forma
	(A)
Revenues:
Hotel operating revenues	$	1,496,705	$	(47,036)	(B)	$	1,449,669
Rental income	400,223		—			400,223
Total revenues	1,896,928		(47,036)			1,849,892

Expenses:
Hotel operating expenses	1,274,153		(41,071)		(B)	1,233,082
Net lease operating expenses	19,817		—			19,817
Depreciation and amortization	371,786		(9,297)		(B)	362,489
General and administrative	40,239		—			40,239
Transaction related costs	6,894		—			6,894
Loss on asset impairment, net	56,212		—			56,212
Total expenses	1,769,101		(50,368)			1,718,733

Gain on sale of real estate, net	6,269		6,627		(C)	12,896
Interest income	4,052		—			4,052
Interest expense	(383,792)		—			(383,792)
Loss on early extinguishment of debt, net	(16,181)		—			(16,181)
Loss before income tax expense and equity in losses of an investee	(261,825)		9,959			(251,866)
Income tax expense	(1,402)		—			(1,402)
Equity in losses of an investee	(12,299)		—			(12,299)
Net loss	$	(275,526)	$	9,959		$	(265,567)

Weighted average common shares outstanding (basic and diluted)	165,338					165,338

Net loss per common share (basic and diluted)	$	(1.67)				$	(1.61)


	Historical		Transaction Accounting Adjustments			Pro Forma
	(A)
Revenues:
Hotel operating revenues	$	739,368	$	(22,416)	(B)	$	716,952
Rental income	199,247		—			199,247
Total revenues	938,615		(22,416)			916,199

Expenses:
Hotel operating expenses	634,753		(20,037)		(B)	614,716
Net lease operating expenses	11,067		—			11,067
Depreciation and amortization	164,130		(2,370)		(B)	161,760
General and administrative	19,774		—			19,774
Transaction related costs	1,456		—			1,456
Loss on asset impairment	54,721		—			54,721
Total expenses	885,901		(22,407)			863,494

Gain on sale of real estate, net	590		—			590
Interest income	2,071		—			2,071
Interest expense	(204,196)		—			(204,196)
Loss before income tax expense and equity in losses of an investee	(148,821)		(9)			(148,830)
Income tax expense	(1,300)		—			(1,300)
Equity in losses of an investee	(4,473)		—			(4,473)
Net loss	$	(154,594)	$	(9)		$	(154,603)

Weighted average common shares outstanding (basic and diluted)	165,679					165,679

Net loss per common share (basic and diluted)	$	(0.93)				$	(0.93)


Assets of properties held for sale	$	108,040
Working capital(1)	(1,662)

Net book value	$	106,378

Gross sales price	$	116,500
Estimated closing costs(2)	(3,495)
Estimated net proceeds	113,005
Net book value	(106,378)
Cumulative net income adjustment	$	6,627