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Service Properties Trust (SVC) Fair Value & Analysis

Real Estate · US · Market cap $1.1B

SP Service Properties Trust logo Service Properties Trust SVC · US
Price$8.23
Fair Value$2.55
Upside-69.0%
Quality49/100
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Mixed Growth
Loss-making · -13.6% net margin
High debt · generates free cash flow
2.41% dividend yield
Trails peers (2/14)
Narrow moat 16/100
Evidence: High Range $2.43 – $7.87 Share as image

Fair value as of: Jul 27, 2026

From 7 valuation models · updated 14 days ago

Share price −4.0% over the past month.

Below-average quality, and screening another 69% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($7.87). The favourable scenario is already priced in.
  • The model range is unusually wide ($2.43 to $7.87). 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.
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Price vs Fair Value (5 years)

$11.51 $1.17 Fair Value $2.55 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $1.17 – $11.51 · fair‑value band $2.43 – $7.87 · the $8.23 price screens above the $2.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

Service Properties Trust (SVC) currently trades at $8.23, while our model-based Fair Value estimate is $2.55, implying the stock looks roughly 69.0% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Real Estate sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

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 Jul 27, 2026

Our scenario range runs from $2.43 (bear case) to $7.87 (bull case); at $8.23, the current price sits above 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 -33% fair-value upside, at -69%, 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 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.

Model BearBaseBull Evidence
Highest evidence
Gordon GGM $0.0800 $0.1400 $0.2000 70
DDM Multi-Stage $0.0800 $0.1300 $0.1500 61
EV/EBITDA $2.66 $6.11 $9.57 54
All 7 models by family
DCF Models
5Y EBITDA Exit $3.35 $9.10 41
10Y EBITDA Exit $0.0900 $4.88 37
Dividend Discount
Gordon GGM $0.0800 $0.1400 $0.2000 70
DDM Multi-Stage $0.0800 $0.1300 $0.1500 61
Multiples
EV/EBIT $1.26 53
EV/EBITDA $2.66 $6.11 $9.57 54
Asset-Based
NCAV (Graham) $0.5000 $0.6700 $1.00 50

Widest divergence: Multiples ($6.11) versus DCF Models ($0.0900). Highest evidence: Gordon GGM (70).

Key figures & financial health

Revenue (TTM) $1.7B
Revenue growth (YoY) -16.3%
Net margin -13.6%
Return on equity -38.6%
Free cash flow $118M FY2025
Operating margin 7.5%
More key figures
EPS (TTM) $-1.43
Dividend yield 2.4%
EPS growth (YoY) -66.2%
Net debt $5.1B FY2025

Figures from reported company fundamentals · as of Jul 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 42 · Market factors (momentum, volatility) 58

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 67
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.

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. growth/yr (3Y)
−0.9%
Avg. growth/yr (5Y)
+7.5%
Avg. growth/yr (30Y)
+15.6%
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 69% 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

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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 −69% · 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% · Below median
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

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.

VALUE 0 · sector 12
FUTURE 0 · sector 2
PAST 0 · sector 6
HEALTH 0 · sector 73
DIVIDEND 48 · sector 65

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more REIT - Hotel & Motel stocks, each showing price versus our Fair Value estimate (as of Jul 27, 2026).

Stock Price Fair Value vs Fair Value
Host Hotels & Resorts, Inc HST $24.50 $16.49 -33%
Ryman Hospitality Properties, Inc RHP $133.09 $48.74 -63%
COVH COVH €21.80 €21.79 -0%
Apple Hospitality REIT, Inc APLE $16.61 $12.63 -24%
Park Hotels & Resorts inc. PK $14.74 $20.58 +40%
DiamondRock Hospitality Company DRH $12.85 $8.43 -34%
Sunstone Hotel Investors, Inc SHO $11.74 $2.52 -79%
Pebblebrook Hotel Trust PEB $19.09 $25.37 +33%
Xenia Hotels & Resorts, Inc XHR $21.49 $11.63 -46%
RLJ Lodging Trust (RLJ) RLJ $12.34 $8.28 -33%

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Frequently asked questions

Is Service Properties Trust (SVC) overvalued or undervalued?
As of Jul 27, 2026, our model estimates a fair value of $2.55 versus a price of $8.23, about −69% (overvalued).
What is the fair value of SVC?
Our model-based fair value for Service Properties Trust is $2.55 (as of Jul 27, 2026), built from audited fundamentals. The current price is $8.23.
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 Jul 27, 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 Jul 27, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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