Reported Earlier, Service Properties Trust Board Issues Letter To Blackwells; Unanimously Concluded That Its Requests Are Not In The Best Interests Of SVC's Shareholders

Instead, the Board reaffirmed SVC’s ongoing strategy of growing EBITDA at its portfolio of 77 retained hotels (the "Retained Hotels") before selling them, as allowing this growth to take hold offers the opportunity to realize significantly higher proceeds than selling the hotels today. With significant capital invested in the Retained Hotels and the operating initiatives SVC has identified, SVC believes the hotels are well positioned to grow EBITDA by approximately $109 million within 12 to 24 months.

As outlined in the Board’s letter, SVC expects to begin selling the Retained Hotels in 2027, with the goal of selling substantially all of them by the end of 2028. Proceeds from these sales are expected to reduce SVC’s leverage from the current nine times net debt to Adjusted EBITDA to no more than five times, positioning SVC to complete its transition to a deleveraged pure-play triple net lease REIT.

The Board remains fully committed to executing this strategy and delivering value for SVC shareholders.