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Service Properties Trust (SVC) Fair Value & Analysis

Real Estate · US · Market cap $1.1B · ISIN US81761L1026

What is Service Properties Trust really worth?

SP Service Properties Trust logo Service Properties Trust SVC · US
Price$7.61
Fair Value$2.44
Upside−67.9%
Quality49/100

Below-average quality, and trading another 212% above our fair value of $2.44.

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Risks

!Mixed Growth (revenue 5y +7.5 %/yr)
!Loss-making · -13.6% net margin
!High debt · generates free cash flow
!Trails peers (2/14)
!Narrow moat 16/100
!Evidence only medium, so the estimate is less certain
!The models disagree: range $2.43 to $7.69

For context

·2.41% dividend yield
Evidence: Medium Range $2.43 – $7.69

Fair value as of: Sep 5, 2026

From 7 valuation models · updated today

Share price −4.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide ($2.43 to $7.69). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.

Price vs Fair Value (5 years)

$11.51 $1.17 Fair Value $2.44 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range $1.17 – $11.51 · fair‑value band $2.43 – $7.69 · the $7.61 price screens above the $2.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Service Properties Trust (SVC) currently trades at $7.61, while our model-based Fair Value estimate is $2.44, implying the stock looks roughly 211.9% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Real Estate sector. Bull case: the Multiples group reads highest at a median of $6.11 per share, and 0 of the 6 models we run sit above the $7.61 price. Bear case: the Asset-Based group reads lowest at $0.6700, and 6 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Service Properties Trust generated revenue of $1.7B at a net margin of −13.6%. Revenue declined 16.3% year over year. It earns a return on equity of −38.6%. Net debt stands at $5.1B. Fundamentals as of Sep 5, 2026

Our scenario range runs from $2.43 (bear case) to $7.69 (bull case); at $7.61, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Real Estate peers we cover trades at −28% fair-value upside, at −68%, SVC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely ($0.0900 to $6.11). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
5Y EBITDA Exit best evidence $3.35 $9.10 72
Gordon GGM $0.0800 $0.1400 $0.2000 67
DDM Multi-Stage $0.0800 $0.1300 $0.1500 67
All 7 models by family
DCF Models
5Y EBITDA Exit best evidence $3.35 $9.10 72
10Y EBITDA Exit $0.0900 $4.88 65
Dividend Discount
Gordon GGM $0.0800 $0.1400 $0.2000 67
DDM Multi-Stage $0.0800 $0.1300 $0.1500 67
Multiples
EV/EBIT $1.26 61
EV/EBITDA $2.66 $6.11 $9.57 63
Asset-Based
NCAV (Graham) $0.5000 $0.6700 $1.00 54

Widest divergence: Multiples ($6.11) versus DCF Models ($0.0900). Highest evidence: 5Y EBITDA Exit (72).

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Key figures & financial health

P/S ratio 0.63 TTM
EPS (TTM) $−1.43
Dividend yield 2.4%
Net margin −11.1% FY2025
Return on equity −38.6% TTM
Return on assets (EBIT) 2.1% avg 5y
More key figures
Profitability
Operating margin 7.5% TTM
Growth
Revenue (TTM) $1.7B TTM
Revenue growth (YoY) −16.3% 3y avg −0.9%
EPS growth (YoY) −66.2%
Balance sheet & cash flow
Free cash flow $118M FY2025
Net debt $5.1B FY2025 · ≈ 43.6 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 42 · Market factors (momentum, volatility) 72

Profitability 7
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 6
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 7
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Service Properties Trust is a real estate investment trust with approximately 10 billion dollars invested in two asset categories service-focused retail net lease properties and hotels. As of December 31, 2025, SVC owned 760 service-focused retail net lease properties with over 13.6 million square feet throughout the United States.

Full company description

Service Properties Trust is a real estate investment trust with approximately 10 billion dollars invested in two asset categories service-focused retail net lease properties and hotels. As of December 31, 2025, SVC owned 760 service-focused retail net lease properties with over 13.6 million square feet throughout the United States. As of December 31, 2025, SVC also owned 94 hotels with over 21,000 guest rooms throughout the United States and in Puerto Rico and Canada. SVC is managed by The RMR Group, a leading U.S. alternative asset management company with over 37 billion dollars in assets under management as of December 31, 2025, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. Service Properties Trust was established on February 07, 1995. Service Properties Trust is headquartered in Newton, Massachusetts.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Service Properties Trust reported revenue of $1.8B in FY2025 versus $1.5B in FY2021, a compound +5.0%/yr. Reported net income was −$202M in FY2025.

Growth Quality 41/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$1.8B
Latest YoY
−4.3%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.5%
Avg. revenue growth/yr (30Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.6%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +5.0%/yr
FY21 $1.5B
FY22 $1.9B
FY23 $1.9B
FY24 $1.9B
FY25 $1.8B
Net income
FY21 −$545M
FY22 −$132M
FY23 −$32.8M
FY24 −$276M
FY25 −$202M

SVC screens 212% overvalued. Compare with Host Hotels & Resorts, Inc →

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Cite: Fair Value Calculator (2026). "Service Properties Trust Fair Value". https://www.fairvalue-calculator.com/stock/SVC

Peer Group

REIT - Hotel & Motel · 35 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 49 · Below median
Fair Value upside −68% · Bottom 25%
Return on assets 2% · Below median
Net margin (TTM) −14% · Bottom 25%
Operating margin (TTM) 7% · Below median
Revenue growth −16% · Bottom 25%
Dividend yield (TTM) 2.4% · Bottom 25%
Debt / equity 8.26× · Higher than 75% of peers

Valuation Multiples vs REIT - Hotel & Motel median · lower = cheaper

P/B 1.71× · Pricier than 75% of peers
P/S (TTM) 0.64× · Cheaper than median
P/FCF 9.4× · Pricier than median
EV/EBITDA 12.2× · Pricier than median
PEG 2.27× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 6
FUTURE0 · sector 7
PAST0 · sector 5
HEALTH0 · sector 73
DIVIDEND48 · sector 89

VALUE 0: the price sits above our fair-value range.

Insider activity: 90/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more REIT - Hotel & Motel stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Host Hotels & Resorts, Inc HST $22.81 $15.81 −31%
Ryman Hospitality Properties, Inc RHP $129.33 $47.68 −63%
COVH COVH €22.50 €21.42 −5%
Apple Hospitality REIT, Inc APLE $16.36 $12.63 −23%
Park Hotels & Resorts inc. PK $14.85 $19.87 +34%
DiamondRock Hospitality Company DRH $12.36 $8.43 −32%
Sunstone Hotel Investors, Inc SHO $11.01 $2.31 −79%
Pebblebrook Hotel Trust PEB $18.48 $25.37 +37%
Xenia Hotels & Resorts, Inc XHR $19.05 $11.54 −39%
RLJ Lodging Trust (RLJ) RLJ $11.46 $8.20 −28%

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Frequently asked questions

Is Service Properties Trust (SVC) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of $2.44 versus a price of $7.61, about −68% upside (overvalued).
What is the fair value of SVC?
Our model-based fair value for Service Properties Trust is $2.44 (as of Sep 5, 2026), built from audited fundamentals. The current price: $7.61.
What is the quality score of SVC?
Service Properties Trust has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Service Properties Trust (SVC)?
Service Properties Trust reported trailing-twelve-month revenue of about $1.7B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of SVC?
The net profit margin of Service Properties Trust is about −13.6%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Service Properties Trust pay a dividend?
Service Properties Trust currently shows a dividend yield of about 2.41% relative to its recent price (as of Sep 5, 2026).
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