Service Properties Trust’s shares rose 3.8% following results that highlighted effective deleveraging and better-than-expected hotel portfolio performance, driven by solid RevPAR gains and ongoing capitalization on asset renovations.

• Completed $1.5 billion in capital markets transactions, including $575 million equity raise and $745 million ABS financings, to refinance $1.6 billion of debt and reduce annual interest expenses by $59 million.
• Hotel RevPAR increased 6.7% year-over-year across 93 hotels; excluding 15 hotels being marketed for sale, RevPAR rose 7.5%.
• Hotel EBITDA fell 9.2% to $18.4 million for the total portfolio but increased 2.1% to $26.2 million when excluding marketed hotels.
• Capital recycling efforts continued with hotel dispositions progressing despite softer pricing on some full-service assets; letters of intent secured for over $116 million in aggregate sale proceeds.
• Management emphasized active asset management and operational improvements to drive EBITDA growth amid macro uncertainties such as elevated fuel costs and geopolitical risks.