Discrepancies in Hotel Strategies: Analyzing RevPAR Trends and Disposition Timelines in Q1 2025

None



Performance in Hotel Portfolio:
- Service Properties Trust reported a 2.6% year-over-year increase in RevPAR for its lodging portfolio in Q1 2025.
- This growth was supported by occupancy and ADR gains, despite challenges from hotel renovations and slower government and international travel.

Hotel Disposition Strategy:
- The company plans to sell 123 hotels during 2025, with estimated proceeds of $1.1 billion.
- The goal is to use these proceeds to strengthen the balance sheet and reinvest in growth opportunities through acquisitions and capital spending on hotels.

Net Lease Expansion:
- SVC acquired or agreed to acquire 9 net lease retail properties for $33 million, with weighted average lease terms of 16 years.
- This strategic growth initiative aims to enhance the tenant and geographic diversity of the portfolio, increase weighted average lease terms, and expand annual minimum rents.

Financial Metrics and Guidance:
- Normalized FFO was $10.8 million, or $0.07 per share, compared to $0.13 per share in the prior year quarter.
- Despite a decline in adjusted hotel EBITDA, the company expects RevPAR of $99 to $102 and adjusted hotel EBITDA of $69 million to $74 million in Q2 2025, as hotel operating results typically improve seasonally.