Q1 2024 Service Properties Trust Earnings Call Transcript
Key Points
- Service Properties Trust reported top line growth in full-service hotels driven by increased group demand.
- The net lease portfolio remains robust, being 97.3% leased with a weighted average lease term of 8.7 years, providing stable long-term income.
- Service Properties Trust has over $700 million in liquidity and no debt maturities in 2024, positioning it well for strategic initiatives.
- Renovation programs across various hotels are expected to yield operational improvements and enhance long-term asset value.
- The merger of the Travel Pass and Red Lion loyalty programs has doubled in size, potentially boosting customer retention and revenue.
- Comparable RevPAR declined by 3.5% year-over-year, indicating potential challenges in certain segments of the hotel portfolio.
- Service Properties Trust experienced a hotel EBITDA margin decline of 280 basis points over the prior quarter due to increased costs.
- The select-service hotels segment saw significant disruption, with 18 out of 61 hotels under renovation impacting performance.
- Extended stay portfolio's RevPAR declined by 4.6% year-over-year, continuing a trend of declining performance in this segment.
- Normalized FFO per share decreased to $0.13 from $0.23 in the prior year, reflecting a downturn in financial performance.
Good morning and welcome to the Service Properties Trust first quarter 2024 earnings conference call. (Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to Stephen Covaro, Director of Investor Relations. Please go ahead.
Good morning, and joining me on today's call are Todd Hargreaves, President and Chief Investment Officer, and Brian Donnelly, Treasurer and Chief Financial Officer. Today's call includes the presentation by management, followed by a question and answer session with analysts.
Please note that the recording, retransmission and transcription of today's conference call is prohibited without the prior written consent of SCC. I would like to point out that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws.
These forward-looking statements are based on SEC's present beliefs and
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