Service Properties TrustSVC
Service Properties Trust Segments Disclosure
Segment Information
Our operating segments are based on our internal reporting structure and property type and are aligned with how our Chief Operating Decision Maker, or CODM, reviews the operating results to allocate resources and assess segment performance. The CODM is our President and Chief Executive Officer. Our two reportable segments are net lease investments and hotel investments. Our net lease investments segment consists of service-focused retail net lease properties, including travel centers leased to TA, our largest tenant. Our hotel investments segment consists of hotels managed by subsidiaries of Sonesta, Hyatt, Radisson and IHG.
The significant expense categories and amounts presented below align with the segment-level information that is regularly provided to our CODM. Our CODM reviews operating and financial results, including net income (loss) and its components, to allocate resources and assess segment performance. The accounting policies of our reportable segments are the same as those described in Note 2. The tables below present information about our segments.
Year Ended December 31, 2025 | |||||||||||||||||
| Net Lease | Hotels | Total | |||||||||||||||
| Revenues: | |||||||||||||||||
| Hotel operating revenues | $ | — | $ | 1,413,403 | $ | 1,413,403 | |||||||||||
| Rental income | 401,435 | — | 401,435 | ||||||||||||||
| Total revenues | 401,435 | 1,413,403 | 1,814,838 | ||||||||||||||
Less: | |||||||||||||||||
| Room expenses | — | 387,243 | 387,243 | ||||||||||||||
| Food and beverage expenses | — | 168,188 | 168,188 | ||||||||||||||
| Management fees | 8,517 | 52,199 | 60,716 | ||||||||||||||
| Real estate taxes and insurance | 3,041 | 109,316 | 112,357 | ||||||||||||||
Other operating expenses (1) | 10,039 | 509,596 | 519,635 | ||||||||||||||
| Depreciation and amortization | 140,700 | 174,263 | 314,963 | ||||||||||||||
Interest expense | 49,458 | — | 49,458 | ||||||||||||||
Other segment items (2) | 5,682 | 6,173 | 11,855 | ||||||||||||||
| Segment profit | 183,998 | 6,425 | 190,423 | ||||||||||||||
| Reconciliation of segment profit: | |||||||||||||||||
General and administrative | (40,667) | ||||||||||||||||
Transaction related costs | (289) | ||||||||||||||||
Interest income | 8,773 | ||||||||||||||||
| Interest expense | (364,156) | ||||||||||||||||
| Loss on early extinguishment of debt, net | (2,897) | ||||||||||||||||
| Income tax benefit | 10,717 | ||||||||||||||||
| Equity in losses of an investee | (4,225) | ||||||||||||||||
Net loss | $ | (202,321) | |||||||||||||||
(1) Other operating expenses for each reportable segment include expenses such as repairs and maintenance, utilities and other costs, including property level expense reimbursements for our net lease investments segment as discussed in Note 8, incurred in connection with the operation of our properties.
(2) Other segment items for each reportable segment include transaction related costs, gains and losses on asset impairment and sale of real estate and interest income, as applicable.
Year Ended December 31, 2024 | |||||||||||||||||
| Net Lease | Hotels | Total | |||||||||||||||
| Revenues: | |||||||||||||||||
| Hotel operating revenues | $ | — | $ | 1,496,705 | $ | 1,496,705 | |||||||||||
| Rental income | 400,223 | — | 400,223 | ||||||||||||||
| Total revenues | 400,223 | 1,496,705 | 1,896,928 | ||||||||||||||
Less: | |||||||||||||||||
| Room expenses | — | 396,855 | 396,855 | ||||||||||||||
| Food and beverage expenses | — | 162,206 | 162,206 | ||||||||||||||
| Management fees | 6,012 | 54,738 | 60,750 | ||||||||||||||
| Real estate taxes and insurance | 3,312 | 122,342 | 125,654 | ||||||||||||||
Other operating expenses (1) | 10,493 | 538,012 | 548,505 | ||||||||||||||
| Depreciation and amortization | 150,487 | 221,299 | 371,786 | ||||||||||||||
Interest expense | 46,231 | — | 46,231 | ||||||||||||||
Other segment items (2) | 19,687 | 36,746 | 56,433 | ||||||||||||||
| Segment profit (loss) | 164,001 | (35,493) | 128,508 | ||||||||||||||
Reconciliation of segment profit or loss: | |||||||||||||||||
General and administrative | (40,239) | ||||||||||||||||
Interest income | 3,648 | ||||||||||||||||
| Interest expense | (337,561) | ||||||||||||||||
| Loss on early extinguishment of debt, net | (16,181) | ||||||||||||||||
| Income tax expense | (1,402) | ||||||||||||||||
| Equity in losses of an investee | (12,299) | ||||||||||||||||
Net loss | $ | (275,526) | |||||||||||||||
(1) Other operating expenses for each reportable segment include expenses such as repairs and maintenance, utilities and other costs, including property level expense reimbursements for our net lease investments segment as discussed in Note 8, incurred in connection with the operation of our properties.
(2) Other segment items for each reportable segment include gains and losses on asset impairment and sale of real estate and interest income, as applicable.
Year Ended December 31, 2023 | |||||||||||||||||
| Net Lease | Hotels | Total | |||||||||||||||
| Revenues: | |||||||||||||||||
| Hotel operating revenues | $ | — | $ | 1,478,034 | $ | 1,478,034 | |||||||||||
| Rental income | 395,829 | — | 395,829 | ||||||||||||||
| Total revenues | 395,829 | 1,478,034 | 1,873,863 | ||||||||||||||
Less (plus): | |||||||||||||||||
| Room expenses | — | 389,262 | 389,262 | ||||||||||||||
| Food and beverage expenses | — | 150,124 | 150,124 | ||||||||||||||
| Management fees | 3,702 | 54,192 | 57,894 | ||||||||||||||
| Real estate taxes and insurance | 3,465 | 109,287 | 112,752 | ||||||||||||||
Other operating expenses (1) | 10,496 | 521,041 | 531,537 | ||||||||||||||
| Depreciation and amortization | 167,825 | 216,235 | 384,060 | ||||||||||||||
Interest expense | 40,920 | — | 40,920 | ||||||||||||||
Other segment items (2) | 8,021 | (42,003) | (33,982) | ||||||||||||||
Segment profit | 161,400 | 79,896 | 241,296 | ||||||||||||||
Reconciliation of segment profit: | |||||||||||||||||
General and administrative | (45,397) | ||||||||||||||||
Transaction related costs | 1,623 | ||||||||||||||||
| Gain on equity securities | 48,837 | ||||||||||||||||
Interest income | 20,692 | ||||||||||||||||
| Interest expense | (295,422) | ||||||||||||||||
| Loss on early extinguishment of debt, net | (1,524) | ||||||||||||||||
Income tax benefit | 1,498 | ||||||||||||||||
| Equity in losses of an investee | (4,382) | ||||||||||||||||
Net loss | $ | (32,779) | |||||||||||||||
(1) Other operating expenses for each reportable segment include expenses such as repairs and maintenance, utilities and other costs, including property level expense reimbursements for our net lease investments segment as discussed in Note 8, incurred in connection with the operation of our properties.
(2) Other segment items for each reportable segment include gains and losses on asset impairment and sale of real estate and interest income, as applicable.
| As of December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Assets: | |||||||||||||||||
| Net Lease | $ | 2,902,699 | $ | 2,942,585 | $ | 3,084,686 | |||||||||||
| Hotels | 3,107,967 | 3,897,132 | 3,943,213 | ||||||||||||||
| Corporate | 480,914 | 279,841 | 328,217 | ||||||||||||||
| Total assets | $ | 6,491,580 | $ | 7,119,558 | $ | 7,356,116 | |||||||||||
| As of December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Capital expenditures: | |||||||||||||||||
| Net Lease | $ | 2,451 | $ | 5,494 | $ | 3,477 | |||||||||||
| Hotels | 234,469 | 297,398 | 232,053 | ||||||||||||||
| Total capital expenditures | $ | 236,920 | $ | 302,892 | $ | 235,530 | |||||||||||
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.