Service Properties Trust delivered third quarter 2026 results that exceeded analyst estimates for both revenue and Normalized FFO, anchored by robust performance in its retained hotel segment. Management formally rejected an unsolicited $2.0 billion acquisition proposal for its hotel portfolio, asserting the bid significantly undervalued the assets.
Key Highlights
- Normalized FFO per share reached $0.34, surpassing the $0.30 consensus estimate despite a year-over-year decline attributed to aggressive asset sales.
- Revenue of $399.5 million beat projections as RevPAR for the company's 77 retained hotels grew 8.3% year-over-year.
- Asset optimization continued with 14 hotels sold since the second quarter for $116.7 million, largely completing the 2026 disposition program.
- Full-year 2026 Normalized FFO guidance was adjusted downward to a midpoint of $1.15 per share, compared to the previous $1.28 midpoint expectation.