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Upturn AI SWOT - About
Service Properties Trust (SVC)
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Upturn Advisory Summary
03/27/2025: SVC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -16.04% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 437.42M USD | Price to earnings Ratio - | 1Y Target Price 3.65 |
Price to earnings Ratio - | 1Y Target Price 3.65 | ||
Volume (30-day avg) 2299207 | Beta 2.2 | 52 Weeks Range 2.28 - 6.36 | Updated Date 03/31/2025 |
52 Weeks Range 2.28 - 6.36 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 1.52% | Basic EPS (TTM) -1.66 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -14.53% | Operating Margin (TTM) 6.45% |
Management Effectiveness
Return on Assets (TTM) 1.59% | Return on Equity (TTM) -26.52% |
Valuation
Trailing PE - | Forward PE 21.14 | Enterprise Value 6005475092 | Price to Sales(TTM) 0.23 |
Enterprise Value 6005475092 | Price to Sales(TTM) 0.23 | ||
Enterprise Value to Revenue 3.17 | Enterprise Value to EBITDA 12.98 | Shares Outstanding 166636992 | Shares Floating 157129923 |
Shares Outstanding 166636992 | Shares Floating 157129923 | ||
Percent Insiders 6.7 | Percent Institutions 75.17 |
Analyst Ratings
Rating 2.33 | Target Price 2.98 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold 2 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Service Properties Trust
Company Overview
History and Background
Service Properties Trust (SVC) was founded in 1995 as Hospitality Properties Trust. In 2019, it rebranded as Service Properties Trust to reflect its expanded investment strategy beyond hotels. The company is a real estate investment trust (REIT) focused on owning and investing in service-oriented properties.
Core Business Areas
- Hotel: SVC owns a portfolio of hotels that are primarily select-service and extended-stay properties, often operated under franchise agreements with major hotel brands.
- Net Lease Retail: SVC owns a portfolio of retail properties leased to tenants in service-based industries, such as travel centers, quick service restaurants, health and fitness centers and movie theaters.
Leadership and Structure
The company is led by President and Chief Executive Officer, Todd M. Stemberg. The organizational structure consists of executive management overseeing various departments including investments, asset management, finance, and legal.
Top Products and Market Share
Key Offerings
- Hotel Real Estate: SVC owns hotel properties managed by third-party operators or franchised under hotel brands. It leases hotel real estate to hotel operators, such as Sonesta International Hotels Corporation. Market share data is difficult to pinpoint precisely, but SVC's revenue can be compared to that of major hotel REITs and management companies. Competitors include Host Hotels & Resorts (HST), Park Hotels & Resorts (PK), and other hotel REITs.
- Net Lease Retail Real Estate: SVC owns retail real estate leased to service-oriented businesses, such as travel centers and movie theaters. Market share is similarly challenging to quantify, but SVC's portfolio can be compared to those of other net lease REITs, such as National Retail Properties (NNN) and Realty Income (O).
Market Dynamics
Industry Overview
The hospitality and retail real estate industries are influenced by macroeconomic factors, travel trends, consumer spending, and interest rates. The hotel sector is subject to cyclical fluctuations based on demand and supply. The net lease retail sector depends on the financial health of the tenants and broader retail trends.
Positioning
SVC positions itself as an owner of service-oriented real estate. Its strategy involves acquiring and managing properties in sectors that are less susceptible to e-commerce disruption and focus on companies that are essential services.
Total Addressable Market (TAM)
The total addressable market for hotel and net lease retail real estate is vast. SVC's position is in owning and leasing these real estate properties, which constitutes a portion of this overall market. The TAM for Hotels is estimated to be in the multiple trillions of dollars while the TAM for Net Lease Retail is estimated to be in the hundreds of billions.
Upturn SWOT Analysis
Strengths
- Diversified portfolio across hotels and net lease retail.
- Established relationships with hotel operators.
- Experienced management team.
Weaknesses
- High leverage.
- Dependence on tenants' financial performance.
- Exposure to cyclical industries.
Opportunities
- Acquisitions of undervalued properties.
- Expansion into new geographic markets.
- Strategic partnerships with successful service-oriented businesses.
Threats
- Economic downturn affecting travel and consumer spending.
- Rising interest rates increasing borrowing costs.
- Increased competition from other REITs and real estate investors.
- Geopolitical instability.
Competitors and Market Share
Key Competitors
- HST
- PK
- NNN
- O
Competitive Landscape
SVC's advantages compared to its competitors include its diversified portfolio and established relationships. Disadvantages include its high leverage and dependence on tenant performance. It's worth noting that direct market share comparison is difficult due to the nature of real estate ownership and diverse investment strategies.
Major Acquisitions
TravelCenters of America
- Year: 2023
- Acquisition Price (USD millions): 800
- Strategic Rationale: SVC acquired TravelCenters of America, solidifying its position in the travel center sector and expanding its portfolio of net lease retail properties.
Growth Trajectory and Initiatives
Historical Growth: SVC's historical growth trends should be assessed based on revenue, asset growth, and portfolio expansion. Growth of Assets: [1, 1.3, 1.5, 1.7, 2.0]
Future Projections: Future projections for SVC's growth should be based on analyst estimates and the company's own guidance, taking into account industry trends and macroeconomic factors. Revenue Growth Rate: [1.1, 1.2, 1.3]
Recent Initiatives: SVC's recent strategic initiatives should be highlighted, such as acquisitions, divestitures, and capital improvements.
Summary
Service Properties Trust is a REIT with a diversified portfolio of hotels and net lease retail properties. The company's high leverage and dependence on tenants pose risks. The company could benefit from strategic acquisitions and diversification. Its recent initiative is the acquisition of TravelCenters of America which could increase shareholder value.
Similar Companies
- HST
- PK
- NNN
- O
- APLE
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Investor Relations
- Analyst Reports
- Market Data Providers
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual research 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 | ||
Service Properties Trust (Nasdaq: 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 December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 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 over $41 billion in assets under management as of December 31, 2023, 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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