Service Properties Reports Strong Q3 2026 Earnings Driven by Hotel RevPAR Growth and Debt Reduction
Service Properties (SVC) reported robust third-quarter 2026 financial results, highlighted by a 29.3% year-over-year increase in normalized Funds From Operations (FFO) to $0.34 per share. The company's hotel segment continues to outperform the broader U.S. industry, with Retained Hotel RevPAR growing 8.3% year-over-year to $128.38. Adjusted EBITDAre reached $133.5 million, exceeding consensus estimates due to significant interest expense reductions following a $1.6 billion debt redemption strategy implemented year-to-date. Despite the strong performance, management provided updated guidance that reflects certain operational headwinds. The 2026 Net Lease NOI guidance was slightly lowered at the midpoint due to higher credit reserves and vacancy costs. Additionally, delays in the Phase 3 opening of the Nautilus Miami Beach renovation deferred approximately $3.8 million in EBITDA contribution, contributing to a narrowing of hotel EBITDA projections.
Tickers: $SVC
Topics: debt reduction EBITDA FFO guidance RevPAR