SVC: revenue $421.0M, net income -$223.8M. SVC cuts debt, exits 107 hotels, restores covenant compliance after Q2'25 breach

Filed August 5, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 5, 2025 · ~2 min read

Key Changes

• high

  Redeemed $1.55B of senior notes using $745M mortgage debt and $542M equity raise (95.8M shares, tripling share count); reduced total debt from $5.72B to $4.58B and shifted from 70% unsecured to 63% secured.

  MD&A: Capital Structure verify on EDGAR →
• high

  Debt-service coverage ratio recovered to 1.74x from 1.49x, restoring ability to incur debt after Q2 2025 covenant breach forced full $650M revolver draw.

  MD&A: Covenant Compliance verify on EDGAR →
• high

  Sold 112 hotels in 2025 and one in Q2 2026, reducing portfolio from 200 to 93 hotels; net lease properties now 89% of portfolio vs. 79% a year ago.

  MD&A: Dispositions verify on EDGAR →