Service Properties Trust

SVC

REIT - Hotel & Motel · Real Estate

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Winston Score History

The full picture

Service Properties Trust is a real estate investment trust (REIT) that owns hotels and service-focused retail properties across the United States. Its hotel portfolio includes brands like Sonesta, Marriott, and Hyatt, while its retail properties are mostly net-leased to tenants like travel centers and restaurants. It is one of the larger publicly traded hotel-focused REITs in the country.

SVC makes money primarily by collecting rent and management fees from the operators running its properties. The company owns hundreds of properties spread across dozens of states, giving it geographic diversification. A key concern for SVC is its heavy debt load and its significant concentration with Sonesta, its largest hotel operator and a related party, which creates both operational dependency and potential conflicts of interest. The company's performance is closely tied to travel demand trends and its ability to refinance or reduce its substantial debt obligations.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-16.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-30.0% YoY

YoY Growth Rate

Earnings declining

Insider Activity

19.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$5.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Service Properties Trust's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

-10.6%

Thin — -10.6% gross margin

Profit after running costs

Operating Margin

8.2%

Modest — 8.2% operating margin

Return on the money invested

ROCE

3.9%

Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-8.1%

Shrinking sales (-8.1% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

2.2%

Thin free cash flow (2.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

10.30

Heavy debt load (10.30)

Covers its interest

Interest Cover

0.58x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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