Q2 2024 Service Properties Trust Earnings Call Transcript
Key Points
- RevPAR growth at full-service and select-service portfolios, led by gains in group and contract segments.
- Urban hotels outpaced the market with a 4.1% RevPAR increase.
- Group room nights at Royal Sonesta hotels increased by 13.8%.
- Net lease portfolio was 97.3% leased with a weighted average lease term of 8.4 years.
- No debt maturities until 2026, providing financial stability.
- Extended-stay hotels experienced a 1.6% decline in RevPAR year over year.
- Hotel operating expenses impacted margins due to cost increases in insurance premiums and labor.
- Normalized FFO decreased to $0.45 per share from $0.58 per share in the prior year.
- Adjusted EBITDA declined 7.4% year over year to $171.5 million.
- Renovation disruptions negatively impacted revenue and EBITDA.
Good day and welcome to the Service Properties Trust second quarter 2024 earnings call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question. You may press star, then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Stephen Colbert, Director of IR. Please go ahead.
Good morning. Joining me on today's call are Todd Hargreaves, President and Chief Investment Officer, Brian Lee, Treasurer and Chief Financial Officer, and just a bare Vice President. Today's call includes a 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
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