Service Properties Trust Fair Value Disclosure
| Fair Value at Reporting Date Using | ||||||||||||||||||||||||||
| Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
Non-recurring Fair Value Measurement Assets: | ||||||||||||||||||||||||||
Assets of properties held for sale (1) | $ | 610 | $ | — | $ | 610 | $ | — | ||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying | Fair | Carrying | Fair | ||||||||||||||||||||
Value (1) | Value | Value (1) | Value | ||||||||||||||||||||
Senior Unsecured Notes, due 2026 at 5.25% | $ | — | $ | — | $ | 348,730 | $ | 339,889 | |||||||||||||||
Senior Unsecured Notes, due 2026 at 4.75% | — | — | 448,957 | 425,237 | |||||||||||||||||||
Senior Unsecured Notes, due 2027 at 4.95% | 399,164 | 401,716 | 398,428 | 373,796 | |||||||||||||||||||
Senior Guaranteed Unsecured Notes, due 2027 at 5.50% | 447,858 | 442,985 | 446,758 | 420,809 | |||||||||||||||||||
Senior Secured Notes, due 2027 at zero coupon | 501,256 | 524,263 | — | — | |||||||||||||||||||
Net Lease Mortgage Notes, due 2028 at 5.60% | 578,368 | 598,113 | 568,283 | 585,236 | |||||||||||||||||||
Senior Unsecured Notes, due 2028 at 3.95% | 397,645 | 377,596 | 396,505 | 335,056 | |||||||||||||||||||
Senior Guaranteed Unsecured Notes, due 2029 at 8.375% | 686,738 | 703,780 | 682,934 | 676,725 | |||||||||||||||||||
Senior Unsecured Notes, due 2029 at 4.95% | 422,056 | 368,382 | 421,269 | 338,071 | |||||||||||||||||||
Senior Unsecured Notes, due 2030 at 4.375% | 395,318 | 338,932 | 394,189 | 301,752 | |||||||||||||||||||
Senior Secured Notes, due 2031 at 8.625% | 976,121 | 1,050,370 | 972,073 | 1,040,590 | |||||||||||||||||||
Senior Guaranteed Unsecured Notes, due 2032 at 8.875% | 484,904 | 493,225 | 482,577 | 462,755 | |||||||||||||||||||
| Total financial liabilities | $ | 5,289,428 | $ | 5,299,362 | $ | 5,560,703 | $ | 5,299,916 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 24, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.