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Upturn AI SWOT - About
Service Properties Trust (SVC)
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Upturn Advisory Summary
06/17/2025: SVC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
3 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $2.5
1 Year Target Price $2.5
| 1 | Strong Buy |
| 0 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -28.46% | Avg. Invested days 23 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/17/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 398.26M USD | Price to earnings Ratio - | 1Y Target Price 2.5 |
Price to earnings Ratio - | 1Y Target Price 2.5 | ||
Volume (30-day avg) 3 | Beta 1.86 | 52 Weeks Range 1.70 - 6.05 | Updated Date 07/1/2025 |
52 Weeks Range 1.70 - 6.05 | Updated Date 07/1/2025 | ||
Dividends yield (FY) 1.65% | Basic EPS (TTM) -1.89 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -16.54% | Operating Margin (TTM) 5.73% |
Management Effectiveness
Return on Assets (TTM) 1.64% | Return on Equity (TTM) -33.91% |
Valuation
Trailing PE - | Forward PE 21.14 | Enterprise Value 5981348540 | Price to Sales(TTM) 0.21 |
Enterprise Value 5981348540 | Price to Sales(TTM) 0.21 | ||
Enterprise Value to Revenue 3.15 | Enterprise Value to EBITDA 13.94 | Shares Outstanding 166636000 | Shares Floating 157212861 |
Shares Outstanding 166636000 | Shares Floating 157212861 | ||
Percent Insiders 6.76 | Percent Institutions 74.76 |
Analyst Ratings
Rating 2 | Target Price 2.5 | Buy - | Strong Buy 1 |
Buy - | Strong Buy 1 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Service Properties Trust
Company Overview
History and Background
Service Properties Trust (SVC) was founded in 1995 as Hospitality Properties Trust, focusing on hotel investments. It later expanded into other service-related properties and rebranded to Service Properties Trust in 2019. It has undergone significant portfolio adjustments and strategic shifts in response to market conditions.
Core Business Areas
- Hotels: Owns a portfolio of hotels branded under various major flags like Marriott, Hyatt, and IHG. Generates revenue through lease agreements and management contracts. This segment has been affected by COVID, leading to portfolio adjustments.
- Net Lease Service Properties: Includes service-oriented retail properties such as travel centers and restaurants. These properties are typically leased to single tenants under long-term net lease agreements.
Leadership and Structure
SVC is led by John Murray as President and CEO. The company operates as a Real Estate Investment Trust (REIT) with a board of trustees overseeing its operations and strategic direction. The RMR Group provides management services.
Top Products and Market Share
Key Offerings
- Hotel Leases and Management Agreements: SVC generates revenue from leasing hotels to operating companies and through management contracts. Market share is fragmented amongst various hotel REITs. Competitors include Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK).
- Net Lease Properties: SVC leases net lease service properties, primarily travel centers and restaurants. Competitors in the net lease space include Realty Income (O) and National Retail Properties (NNN).
Market Dynamics
Industry Overview
The REIT industry is influenced by interest rates, economic growth, and property-specific factors. The hospitality sector, in particular, is sensitive to travel trends and economic cycles. The net lease sector provides relatively stable income streams due to long-term lease agreements.
Positioning
SVC positions itself as a diversified REIT focusing on service-oriented properties. Its competitive advantage lies in its diversification across hotels and net lease properties, as well as its relationship with The RMR Group, which provides management expertise.
Total Addressable Market (TAM)
The TAM for the hospitality and net lease REIT sectors is estimated to be in the hundreds of billions of dollars. SVC, with a market capitalization in the hundreds of millions, has significant room to grow within this TAM.
Upturn SWOT Analysis
Strengths
- Diversified portfolio across hotels and net lease properties
- Experienced management team through The RMR Group
- Established relationships with major hotel brands
Weaknesses
- High debt levels
- Exposure to cyclical hospitality industry
- External management structure
Opportunities
- Strategic acquisitions of undervalued properties
- Improvement in the hospitality sector as travel recovers
- Refinancing debt at lower interest rates
Threats
- Economic downturn affecting travel and consumer spending
- Rising interest rates increasing borrowing costs
- Increased competition from other REITs
Competitors and Market Share
Key Competitors
- HST
- PK
- O
- NNN
- APLE
Competitive Landscape
SVC faces intense competition from larger, more established REITs. Its smaller size and higher debt levels can be disadvantages. However, its diversified portfolio and experienced management team offer competitive advantages.
Major Acquisitions
TravelCenters of America (TA)
- Year: 2023
- Acquisition Price (USD millions): 395
- Strategic Rationale: Increase net lease asset base by acquiring TA, which operates travel centers along major highways.
Growth Trajectory and Initiatives
Historical Growth: SVC's historical growth has been uneven, with periods of expansion followed by contractions due to economic downturns and strategic shifts.
Future Projections: Future growth is dependent on the recovery of the hospitality industry, strategic acquisitions, and effective management of its portfolio. Analyst estimates vary widely.
Recent Initiatives: Recent initiatives include portfolio optimization, debt reduction, and focusing on core service-oriented properties.
Summary
Service Properties Trust has potential given its diversified portfolio across hotels and net lease service properties. The high debt and cyclical nature of the hospitality industry require caution. Management is working to optimize their portfolio and reduce debt. The volatile dividend history has affected investor confidence, but strategic acquisitions could improve long-term growth prospects.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Service Properties Trust
Exchange NASDAQ | Headquaters Newton, MA, United States | ||
IPO Launch date 1995-08-17 | President, CEO & Managing Trustee Mr. Christopher J. Bilotto | ||
Sector Real Estate | Industry REIT - Hotel & Motel | Full time employees - | Website https://www.svcreit.com |
Full time employees - | Website https://www.svcreit.com | ||
SVC is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of March 31, 2025, SVC owned 202 hotels with over 35,000 guest rooms throughout the United States and in Puerto Rico and Canada. As of March 31, 2025, SVC also owned 739 service-focused retail net lease properties with over 13.1 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $40 billion in assets under management as of March 31, 2025, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
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