Service Properties Trust Files 2023 Annual Report on Form 10-K

TL;DR

<b>Service Properties Trust (SVC) has submitted its 2023 annual report on Form 10-K, detailing its financial performance and operational status for the fiscal year ending December 31, 2023.</b>

AI Summary

Service Properties Trust (SVC) filed a Annual Report (10-K) with the SEC on February 28, 2024. Service Properties Trust (SVC) filed its 2023 Form 10-K on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. SVC is a real estate investment trust (REIT) operating under SIC code 6798. The company's principal business address is C/O The RMR Group in Newton, MA. SVC was formerly known as Hospitality Properties Trust, with a name change on May 17, 1995.

Why It Matters

For investors and stakeholders tracking Service Properties Trust, this filing contains several important signals. This 10-K filing provides a comprehensive overview of SVC's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors assessing the REIT's performance and future outlook. As a publicly traded REIT, SVC's annual report is a key document for understanding its real estate portfolio, debt structure, and management's perspective on market conditions and strategic initiatives.

Risk Assessment

Risk Level: medium — Service Properties Trust shows moderate risk based on this filing. The company's business involves significant credit concentration risk, indicating potential vulnerability to the financial health of its key tenants or borrowers.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the impact of credit concentration and other risks on SVC's future performance.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-28 — Filing Date (Date of submission)
• 1995-05-17 — Name Change Date (Date Service Properties Trust was formerly known as Hospitality Properties Trust)
• 6798 — SIC Code (Real Estate Investment Trusts)

Key Players & Entities

• Service Properties Trust (company) — Filer name
• SVC (company) — Ticker symbol
• Hospitality Properties Trust (company) — Former company name
• The RMR Group (company) — Business and mailing address provider
• Newton, MA (location) — Business and mailing address city and state
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 6798 (industry_code) — Standard Industrial Classification

FAQ

Risk Factors

• Credit Concentration Risk [medium — financial]: The company is exposed to credit concentration risk, which could adversely affect its financial condition and results of operations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by SVC to report its annual financial results and operational details.)

REIT

Real Estate Investment Trust, a company that owns, operates, or finances income-generating real estate. (SVC operates as a REIT, and its business model is centered around real estate investments.)

Key Financial Figures

• $8.69 — pproximately $ 1.4 billion based on the $8.69 closing price per common share on The N
• $2,945 — ct brands with an average investment of $2,945 per property. For more information abo
• $2.3 billion — 1, 2023, we have invested approximately $2.3 billion in 132 TravelCenters of America branded
• $1.0 billion — 3,697,503 square feet and approximately $1.0 billion in 44 Petro Stopping Centers branded pr

Filing Documents

• svc-20231231.htm (10-K) — 4415KB
• svc-q42023xex424xnovember2.htm (EX-4.24) — 804KB
• svc-q42023xex81sullivantax.htm (EX-8.1) — 11KB
• svc-q42023xex1011xfirstame.htm (EX-10.11) — 56KB
• svc-q42023xex211subsidiary.htm (EX-21.1) — 38KB
• svc_123123xex231consentofdt.htm (EX-23.1) — 2KB
• svc_123123x10kex311.htm (EX-31.1) — 10KB
• svc_123123x10kex312.htm (EX-31.2) — 10KB
• svc_123123x10kex313.htm (EX-31.3) — 9KB
• svc_123123x10kex314.htm (EX-31.4) — 9KB
• svc_123123x10kex321.htm (EX-32.1) — 8KB
• svc-q42023xex971clawbackpo.htm (EX-97.1) — 4KB
• image_0.jpg (GRAPHIC) — 123KB
• image_1.jpg (GRAPHIC) — 31KB
• 0000945394-24-000015.txt (&nbsp;) — 19570KB
• svc-20231231.xsd (EX-101.SCH) — 126KB
• svc-20231231_cal.xml (EX-101.CAL) — 95KB
• svc-20231231_def.xml (EX-101.DEF) — 672KB
• svc-20231231_lab.xml (EX-101.LAB) — 1255KB
• svc-20231231_pre.xml (EX-101.PRE) — 885KB
• svc-20231231_htm.xml (XML) — 3084KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 30 Item 1B. Unresolved Staff Comments 50 Item 1C. Cybersecurity 50 Item 2.

Properties

Properties 51 Item 3.

Legal Proceedings

Legal Proceedings 52 Item 4. Mine Safety Disclosures 52 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 53 Item 6. [ Reserved ] 53 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 54 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 73 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 74 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 74 Item 9A.

Controls and Procedures

Controls and Procedures 74 Item 9B. Other Information 74 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 75 Part III Item 10. Directors, Executive Officers and Corporate Governance 75 Item 11.

Executive Compensation

Executive Compensation 75 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 75 Item 13. Certain Relationships and Related Transactions, and Director Independence 76 Item 14. Principal Accountant Fees and Services 76 Part IV Item 15. Exhibits and Financial Statement Schedules 76 Item 16. Form 10-K Summary 81

Signatures

Signatures iii Table of Contents PART I

Business

Item 1. Business Our Company We are a REIT formed in 1995 under the laws of the State of Maryland. As of December 31, 2023, we owned 221 hotels with 37,777 rooms or suites located in 36 states, the District of Columbia, Ontario, Canada and San Juan, Puerto Rico and 752 service-focused retail net lease properties with 13,341,172 square feet located in 42 states. Our principal place of business is Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634, and our telephone number is (617) 964-8389. We seek to have a geographically diverse portfolio of real estate primarily in the United States. Our principal internal growth strategy is to apply asset management strategies to aid our hotel operators in improving performance and operating income of our hotel properties. We actively manage our net lease portfolio by engaging in early lease renewal discussions to maintain occupancy and grow rental income while simultaneously monitoring the credit of our tenants and identifying asset recycling opportunities. Our asset management teams also work closely with our operators to ensure our hotels and net lease properties are well maintained and that capital investments are well planned, prudent and executed efficiently in order to maximize the long term value of our properties. Our external growth strategy is defined by our acquisition, disposition and financing policies as described below. Our investment, financing and disposition policies and business strategies are established by our Board of Trustees and may be changed by our Board of Trustees at any time without shareholder approval. Hotel Portfolio As of December 31, 2023, we owned 221 hotels with 37,777 rooms or suites located in 36 states, the District of Columbia, Ontario, Canada and San Juan, Puerto Rico. We believe the scale, geographic diversity, strategic locations and the variety of service levels of our hotels gives us a competitive advantage. Our hotel properties are typically l

View Full Filing

View this 10-K filing on SEC EDGAR