# EDGAR Filing Document

**Accession Number:** 0000945394
**File Stem:** 0000945394-23-000013
**Filing Date:** 2023-2
**Character Count:** 125766
**Document Hash:** ac9398a6fe0dd37f9fed9df002cdbb46
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000945394-23-000013.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0000945394-23-000013

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 48

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Service Properties Trust
- **CENTRAL INDEX KEY:** 0000945394
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 043262075
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-11527
- **FILM NUMBER:** 23685977

**BUSINESS ADDRESS:**
- **STREET 1:** C/O THE RMR GROUP
- **STREET 2:** TWO NEWTON PL., 255 WASH. ST., STE. 300
- **CITY:** NEWTON
- **STATE:** MA
- **ZIP:** 02458
- **BUSINESS PHONE:** (617) 964-8389

**MAIL ADDRESS:**
- **STREET 1:** C/O THE RMR GROUP
- **STREET 2:** TWO NEWTON PL., 255 WASH. ST., STE. 300
- **CITY:** NEWTON
- **STATE:** MA
- **ZIP:** 02458

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HOSPITALITY PROPERTIES TRUST
- **DATE OF NAME CHANGE:** 19950517

?xml version="1.0" ? svc-20230228

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT PURSUANT**

**TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): **February 28, 2023** 

**SERVICE PROPERTIES TRUST**

(Exact Name of Registrant as Specified in Its Charter)

**Maryland**

(State or Other Jurisdiction of Incorporation)

---

| | |
|:---|:---|
| **1-11527** | **04-3262075** |
| (Commission File Number) | (IRS Employer Identification No.) |

---

**Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634**

(Address of Principal Executive Offices) (Zip Code)

**617-964-8389**

(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

**☐** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

**☐**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

**☐**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

**☐**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol** | **Name of each Exchange on which Registered** |
| Common Shares of Beneficial Interest | SVC | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company **☐** 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. **☐**

    

------

**Item 2.02. Results of Operations and Financial Condition.**

On February 28, 2023, Service Properties Trust, or the Company, issued a press release regarding the Company's results of operations and financial condition for the quarter and year ended December 31, 2022, and also provided certain supplemental operating and financial data for the quarter and year ended December 31, 2022. Copies of the Company's press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.

**Item 9.01. Financial Statements and Exhibits.**

*(d)*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Exhibits*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Press release dated](ex991svcq42022er.htm)[February 2](ex991svcq42022er.htm)[8](ex991svcq42022er.htm)[, 20](ex991svcq42022er.htm)[23](ex991svcq42022er.htm)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[99.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;](ex992svcq42022supp.htm)[Fourth](ex992svcq42022supp.htm)[Quarter 2022 Supplemental Operating and Financial Data](ex992svcq42022supp.htm)</u>

104&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cover Page Interactive Data File (Embedded within the Inline XBRL document.)

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | SERVICE PROPERTIES TRUST | SERVICE PROPERTIES TRUST |
| | | By: | /s/ Brian E. Donley |
| | | Name: | Brian E. Donley |
| | | Title: | Chief Financial Officer and Treasurer |
| Dated: | February 28, 2023 |  |  |

---

## Exhibit 99.1

**EXHIBIT 99.1**

![svcletterheadheaderq22020a.jpg](svcletterheadheaderq22020a.jpg)

**FOR IMMEDIATE RELEASE**

**Service Properties Trust Announces Fourth Quarter 2022 Results** 

***Net Loss of $(0.19) Per Common Share***

***159% Increase in Normalized FFO to $0.44 Per Common Share***

***27% Increase in Adjusted EBITDAre to $150.5 Million***

***Completes $610.2 Million Secured Financing***

***Agrees to Amend Lease Terms upon Completion of BP's Acquisition of TravelCenters of America Inc.***

    

Newton, MA (February 28, 2023). Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended December 31, 2022.

Todd Hargreaves, President and Chief Investment Officer of SVC, made the following statement:

"We are encouraged by the improved hotel fundamentals that we experienced throughout 2022 and expect that further progress will occur in 2023. Comparable hotel RevPAR for the fourth quarter increased by 21.4% over the same period last year, with occupancy increasing 3.3 percentage points, leading to a 98.3% increase in comparable hotel EBITDA over the same period last year.

Our portfolio of net lease assets continued to deliver steady and reliable cash flows during the quarter. We are excited to have reached agreement with BP on amended lease terms that will take effect upon completion of BP's acquisition of TA and the enhanced value we believe the amended leases with BP will provide SVC shareholders. We are also pleased with the recent execution of our ABS facility, which demonstrates one of the several options available to us to address upcoming debt maturities at attractive relative interest rates."

***Results for the Quarter Ended December 31, 2022:***

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
| | **2022** | **2021** | **Change** |
| | ($ in thousands, except per share data) | ($ in thousands, except per share data) | |
| &nbsp;&nbsp;Net loss | $(31409) | $(198793) | n/m |
| &nbsp;&nbsp;Net loss per common share | $(0.19) | $(1.21) | n/m |
| Normalized FFO <sup>(1)</sup> | $73266 | $27936 | 162.3% |
| Normalized FFO per common share <sup>(1)</sup> | $0.44 | $0.17 | 158.8% |
| Adjusted EBITDA*re* <sup>(1)</sup> | $150534 | $118997 | 26.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Additional information and reconciliations of net loss determined in accordance with U.S. generally accepted accounting principles, or GAAP, to certain non-GAAP measures, including FFO, Normalized FFO, EBITDA, EBITDA*re* and Adjusted EBITDA*re* for the quarters ended December 31, 2022 and 2021 appear later in this press release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)n/m - not meaningful

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.

No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

------

***Hotel Portfolio:***

As of December 31, 2022, SVC's 238 hotels were operated by subsidiaries of Sonesta Holdco Corporation, or Sonesta (196 hotels), Hyatt Hotels Corporation, or Hyatt (17 hotels), Radisson Hospitality, Inc., or Radisson (eight hotels), Marriott International, Inc., or Marriott (16 hotels), and InterContinental Hotels Group, plc, or IHG (one hotel).

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **Change** | **Change** | **2022** | **2021** | **Change** | **Change** |
| | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) | ($ in thousands, except hotel statistics) |
| &nbsp;&nbsp;**Comparable Hotels** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. of hotels | 236 | 236 |  |  | 235 | 235 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. of rooms or suites | 39736 | 39736 |  |  | 39364 | 39364 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 58.7% | 55.4% | 3.3 | pts | 61.4% | 52.5% | 8.9 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADR | $134.64 | $117.54 | 14.5 | % | $133.72 | $110.39 | 21.1 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel RevPAR | $79.03 | $65.12 | 21.4 | % | $82.10 | $57.95 | 41.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel operating revenues <sup>(1)</sup> | $349599 | $278342 | 25.6 | % | $1385508 | $951479 | 45.6 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel operating expenses <sup>(1)</sup> | $294602 | $250610 | 17.6 | % | $1145447 | $887592 | 29.1 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel EBITDA <sup>(1)</sup> | $54997 | $27732 | 98.3 | % | $240061 | $63887 | n/m | n/m |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel EBITDA margin | 15.7% | 10.0% | 5.7 | pts | 17.3% | 6.7% | 10.6 | pts |
| &nbsp;&nbsp;**All Hotels** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. of hotels | 238 | 238 |  |  | 238 | 238 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. of rooms or suites | 40053 | 40053 |  |  | 40053 | 40053 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 58.6% | 55.3% | 3.3 | pts | 61.3% | 52.3% | 9.0 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADR | $134.64 | $117.54 | 14.5 | % | $134.47 | $110.47 | 21.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel RevPAR | $78.90 | $65.00 | 21.4 | % | $82.43 | $57.78 | 42.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel operating revenues <sup>(1)(2)</sup> | $350501 | $317215 | 10.5 | % | $1467344 | $1104678 | 32.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel operating expenses <sup>(1)(2)</sup> | $296427 | $288825 | 2.6 | % | $1239109 | $1033463 | 19.9 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel EBITDA <sup>(1)(2)</sup> | $54074 | $28390 | 90.5 | % | $228235 | $71215 | n/m | n/m |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel EBITDA margin | 15.4% | 8.9% | 6.5 | pts | 15.6% | 6.4% | 9.2 | pts |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Reconciliations of hotel operating revenues and hotel operating expenses used to determine Hotel EBITDA from hotel operating revenues and hotel operating expenses determined in accordance with GAAP for the periods ended December 31, 2022 and 2021 appear later in this press release.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Results of all hotels as owned during the periods presented, including the results of hotels sold by SVC for the period owned by SVC.

Recent operating statistics for SVC's hotels are as follows:

**<u>Comparable Hotels</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **236 Hotels, 39,736 rooms** | **236 Hotels, 39,736 rooms** | **236 Hotels, 39,736 rooms** | **2022 vs 2019** | **2022 vs 2019** | **2022 vs 2019** |
| | **Occupancy** | **Average Daily Rate** | **RevPAR** | **Occupancy** | **Average Daily Rate** | **RevPAR** |
| October | 67.3% | $143.32 | $96.45 | (11.3) pts | 1.6% | (13.3)% |
| November | 58.4% | $130.59 | $76.26 | (11.8) pts | (0.3)% | (17.0)% |
| December | 50.5% | $127.61 | $64.44 | (10.5) pts | 3.8% | (14.1)% |

---

------

**<u>All Hotels</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **238 Hotels, 40,563 rooms** | **238 Hotels, 40,563 rooms** | **238 Hotels, 40,563 rooms** | **2022 vs 2019** | **2022 vs 2019** | **2022 vs 2019** |
| | **Occupancy** | **Average Daily Rate** | **RevPAR** | **Occupancy** | **Average Daily Rate** | **RevPAR** |
| October | 67.2% | $143.32 | $96.31 | (11.5) pts | 1.6% | (13.3)% |
| November | 58.3% | $130.59 | $76.13 | (11.9) pts | (0.2)% | (17.1)% |
| December | 50.4% | $127.61 | $64.32 | (10.6) pts | 3.8% | (14.2)% |

---

For SVC's 237 hotels owned as of January 31, 2023, January 2023 occupancy, ADR and RevPAR were 49.5%, $132.38 and $65.53, respectively.

***Net Lease Retail Portfolio:***

SVC's net lease retail portfolio is summarized as follows:

---

| | |
|:---|:---|
| | **As of December 31, 2022** |
| Number of properties | 765 |
| Industries | 21 |
| Tenants | 180 |
| Brands | 138 |
| Square feet | 13.4 million |
| Occupancy | 97.6% |
| Weighted average lease term (by annual minimum rent) | 9.6 years |
| Rent Coverage | 3.00x |

---

------

***BP Acquisition:***

As previously announced, SVC has agreed to amend its existing leases and guarantees with TravelCenters of America Inc. (Nasdaq: TA) effective upon the completion of the pending acquisition of TA by BP p.l.c. (NYSE: BP) for cash consideration of $86.00 per share of TA common stock outstanding (the "BP Acquisition"). Under the amended leases for 176 of SVC's travel center properties, aggregate annual minimum rent will be $254.0 million, with annual 2% increases throughout the initial 10-year terms and any renewal terms, and there will be no percentage rent requirement. At closing, TA Operating LLC will prepay $188.0 million of rent under the amended leases and will receive monthly rent credits totaling $25.0 million per year over the 10-year initial term of the leases. TA Operating LLC will have five, 10-year extension options for each of the five leases. BP Corporation North America Inc. will guarantee each of the leases. BP Corporation North America Inc. owns the vast majority of BP's assets in the United States across virtually all segments, and it is rated A3 by Moody's and A- by S&P. SVC also currently owns certain tradenames and trademarks associated with TA's business and has agreed to sell those tradenames and trademarks to TA as part of the BP Acquisition at their current book value of $89.4 million.

The BP Acquisition is subject to the approval of TA stockholders owning a majority of TA's outstanding common shares. SVC currently owns 7.8% of TA's outstanding common shares, valued at $101.9 million based on the cash merger consideration, and has agreed to vote its TA shares in favor of the BP Acquisition. Subject to stockholder and regulatory approvals and various customary conditions to closing, the parties expect that the BP Acquisition will be completed by mid-year 2023. SVC expects to receive approximately $379.3 million in total cash for the value of its TA common shares, the TA tradenames and trademarks and the prepaid rent under the amended and restated lease agreements upon completion of the BP Acquisition.

***Recent Investment Activities:***

During the quarter ended December 31, 2022, SVC sold four hotels with 514 keys for an aggregate sales price of $25.8 million, excluding closing costs, and two net lease properties with an aggregate of 9,090 rentable square feet for an aggregate sales price of $2.3 million, excluding closing costs. From January 1, 2023 through February 28, 2023, SVC sold eight hotels with 1,097 keys for a sale price of $53.3 million, excluding closing costs, including seven of its Marriott branded hotels.

SVC is under agreement to sell its remaining nine Marriott branded hotels with 1,210 keys located in four states for an aggregate sales price of $88.5 million, excluding closing costs. SVC has entered agreements to sell one additional hotel with 219 keys for $14.6 million and two net lease properties with an aggregate of 2,384 rentable square feet for an aggregate sales price of $0.7 million, excluding closing costs. These pending sales are subject to conditions; as a result, these sales may not occur, may be delayed or their terms may change. SVC expects the majority of these sales to be completed by the end of the first quarter of 2023. SVC continues to market for sale two net lease properties with an aggregate of 7,283 rentable square feet.

Capital expenditures made at certain of SVC's properties for the quarter ended December 31, 2022 were $36.8 million.

------

***Financing Activities:*** 

As previously announced, on February 10, 2023, a subsidiary of SVC, issued $610.2 million in aggregate principal amount of net lease mortgage notes, or the Notes. The Notes were issued in three classes, as summarized below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Note Class** | **S&P Rating** | **Amount** | **Coupon Rate** | **Term** | **Maturity** |
| Class A | AAA | $305.0 | 5.15% | 5 years | February 2028 |
| Class B | AA | 173.0 | 5.55% | 5 years | February 2028 |
| Class C | A | 132.2 | 6.70% | 5 years | February 2028 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total / weighted average | &nbsp;&nbsp;&nbsp;&nbsp;Total / weighted average | $610.2 | 5.60% |  |  |

---

The net proceeds from this issuance were approximately $555.0 million after initial purchaser discounts and offering costs.

SVC also announced the early redemption of its outstanding 4.50% Senior Notes due 2023 at a redemption price equal to the principal amount of $500.0 million, plus accrued and unpaid interest to, but excluding, the date of redemption. This redemption is expected to occur on or about March 8, 2023. SVC currently expects to fund this redemption with the proceeds from the issuance of net lease mortgage notes described above.

***Conference Call:***

On March 1, 2023 at 1:00 p.m. Eastern Time, Todd Hargreaves, President and Chief Investment Officer and Brian Donley, Chief Financial Officer and Treasurer, will host a conference call to discuss SVC's fourth quarter 2022 financial results. The conference call telephone number is (877) 329-3720. Participants calling from outside the United States and Canada should dial (412) 317-5434. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through Wednesday, March 8, 2023. To access the replay, dial (412) 317-0088. The replay pass code is 5200808.

A live audio webcast of the conference call will also be available in a listen-only mode on SVC's website, www.svcreit.com. Participants wanting to access the webcast should visit SVC's website about five minutes before the call. The archived webcast will be available for replay on SVC's website for about one week after the call. **The transcription, recording and retransmission in any way of SVC's fourth quarter conference call is strictly prohibited without the prior written consent of SVC.**

***Supplemental Data:***

A copy of SVC's Fourth Quarter 2022 Supplemental Operating and Financial Data is available for download at SVC's website, www.svcreit.com. SVC's website is not incorporated as part of this press release.

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2022, SVC owned 238 hotels with over 40,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2022, SVC also owned 765 retail service-focused net lease properties totaling over 13.4 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with over $37 billion in assets under management as of December 31, 2022 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit www.svcreit.com.

------

***Non-GAAP Financial Measures and Certain Definitions:***

SVC presents certain "non-GAAP financial measures" within the meaning of the applicable Securities and Exchange Commission, or SEC, rules, including funds from operations, or FFO, Normalized FFO, earnings before interest, taxes, depreciation and amortization, or EBITDA, Hotel EBITDA, EBITDA for real estate, or EBITDA*re*, and Adjusted EBITDA*re*. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) as indicators of SVC's operating performance or as measures of SVC's liquidity. These measures should be considered in conjunction with net income (loss) as presented in SVC's consolidated statements of income (loss). SVC considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss). SVC believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of SVC's operating performance between periods and with other REITs and, in the case of Hotel EBITDA, reflecting only those income and expense items that are generated and incurred at the hotel level may help both investors and management to understand the operations of SVC's hotels. SVC believes that Hotel EBITDA provides useful information to management and investors as a key measure of the profitability of its hotel operations.

Please see the pages attached hereto for a more detailed statement of SVC's operating results and financial condition and for an explanation of SVC's calculation of FFO, Normalized FFO, EBITDA, Hotel EBITDA, EBITDA*re* and Adjusted EBITDA*re* and a reconciliation of those amounts to amounts determined in accordance with GAAP.

***Average Daily Rate,*** or ADR, represents rooms revenue divided by the total number of room nights sold in a given period. ADR provides useful insight on pricing at SVC's hotels and is a measure widely used in the hotel industry.

***Comparable Hotels Data:*** SVC presents RevPAR, ADR, and occupancy for the periods presented on a comparable basis to facilitate comparisons between periods. SVC generally defines comparable hotels as those that were owned by it on December 31, 2022 and were open and operating for the entire periods being compared. For the three and twelve months ended December 31, 2022 and 2021, SVC's comparable results excluded two and three hotels, respectively, that had suspended operations during part of the periods presented.

***Hotel EBITDA:*** Hotel EBITDA is calculated as hotel operating revenues less hotel operating expenses of all managed and leased hotels, prior to any adjustments required for presentation in SVC's consolidated statements of income (loss) in accordance with GAAP.

***Hotel EBITDA Margin:*** Hotel EBITDA Margin is Hotel EBITDA as a percentage of hotel operating revenues.

***Occupancy*** represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy is an important measure of the utilization rate and demand of SVC's hotels.

***Rent Coverage:*** SVC defines Rent Coverage as earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, divided by the annual minimum rent due to SVC weighted by the minimum rent of the property to total minimum rents of the net lease portfolio. EBITDAR amounts used to determine rent coverage are generally for the latest twelve month period, based on the most recent operating information, if any, furnished by the tenant. Operating statements furnished by the tenant often are unaudited and, in certain cases, may not have been prepared in accordance with GAAP and are not independently verified by SVC. In instances where SVC does not have tenant financial information, it calculates an implied coverage ratio for the period based on other tenants with available financial statements operating the same brand or within the same industry. As a result, SVC believes using this implied coverage metric provides a more reasonable estimated representation of recent operating results and the financial condition for those tenants.

***Revenue per Available Room***, or RevPAR, represents rooms revenue divided by the total number of room nights available to guests for a given period. RevPAR is an industry metric correlated to occupancy and ADR and helps measure revenue performance over comparable periods.

------

**SERVICE PROPERTIES TRUST**

**CONSOLIDATED BALANCE SHEETS**

(dollars in thousands, except share data)

(unaudited)

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2022** | **2021** |
| ASSETS |  |  |
| Real estate properties: |  |  |
| &nbsp;&nbsp;&nbsp;Land | $1902587 | $1918385 |
| &nbsp;&nbsp;&nbsp;Buildings, improvements and equipment | 7658282 | 8307248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate properties, gross | 9560869 | 10225633 |
| &nbsp;&nbsp;Accumulated depreciation | (2970133) | (3281659) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate properties, net | 6590736 | 6943974 |
| Acquired real estate leases and other intangibles, net | 252357 | 283241 |
| Assets held for sale | 121905 | 515518 |
| Cash and cash equivalents | 38369 | 944043 |
| Restricted cash | 7051 | 3375 |
| Equity method investments | 112617 | 62687 |
| Investment in equity securities | 53055 | 61159 |
| Due from related persons | 35033 | 48168 |
| Other assets, net | 277068 | 291150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $7488191 | $9153315 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Revolving credit facility | $— | $1000000 |
| Senior unsecured notes, net | 5655530 | 6143022 |
| Accounts payable and other liabilities | 425960 | 433448 |
| Due to related persons | 17909 | 21539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 6099399 | 7598009 |
| Commitments and contingencies |  |  |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 165,452,566 and 165,092,333 shares issued and outstanding, respectively | 1655 | 1651 |
| &nbsp;&nbsp;Additional paid in capital | 4554861 | 4552558 |
| &nbsp;&nbsp;&nbsp;Cumulative other comprehensive income | 2383 | 779 |
| &nbsp;&nbsp;Cumulative net income available for common shareholders | 2503279 | 2635660 |
| &nbsp;&nbsp;Cumulative common distributions | (5673386) | (5635342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 1388792 | 1555306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $7488191 | $9153315 |

---

------

**SERVICE PROPERTIES TRUST**

**CONSOLIDATED STATEMENTS OF INCOME (LOSS)**

(amounts in thousands, except per share data)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hotel operating revenues <sup>(1)</sup> | $350501 | $317215 | $1467344 | $1104678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental income <sup>(2)</sup> | 104718 | 104160 | 395667 | 390902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 455219 | 421375 | 1863011 | 1495580 |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hotel operating expenses <sup>(1)(3)</sup> | 293554 | 286968 | 1227357 | 1010737 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 4015 | 3900 | 13176 | 15658 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 94961 | 115757 | 401108 | 485965 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 8660 | 12601 | 44404 | 53439 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction related costs <sup>(4)</sup> |  | 35830 | 1920 | 64764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on asset impairment, net <sup>(5)</sup> | 1269 | 76510 | 10989 | 78620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 402459 | 531566 | 1698954 | 1709183 |
| Gain on sale of real estate, net <sup>(6)</sup> | 3583 | 588 | 47818 | 11522 |
| Unrealized (losses) gains on equity securities, net <sup>(7)</sup> | (10841) | 2168 | (8104) | 22535 |
| Interest income | 644 | 177 | 3379 | 664 |
| Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $3,846, $5,913, $19,375 and $21,036, respectively) | (77891) | (92494) | (341795) | (365721) |
| Loss on early extinguishment of debt <sup>(8)</sup> |  |  | (791) |  |
| Loss before income taxes and equity in earnings (losses) of an investee | (31745) | (199752) | (135436) | (544603) |
| Income tax benefit (expense) | 1757 | 1950 | 199 | 941 |
| Equity in (losses) earnings of an investee <sup>(9)</sup> | (1421) | (991) | 2856 | (941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(31409) | $(198793) | $(132381) | $(544603) |
| Weighted average common shares outstanding (basic and diluted) | 164862 | 164667 | 164738 | 164566 |
| Net loss per common share (basic and diluted) | $(0.19) | $(1.21) | $(0.80) | $(3.31) |

---

*See Notes on page <u>[12](#ibdad4681ce144b84b87f1c57fd8d0c0a_28)</u>.*

------

**SERVICE PROPERTIES TRUST**

**RECONCILIATIONS OF FUNDS FROM OPERATIONS, NORMALIZED FUNDS** 

**FROM OPERATIONS, EBITDA, EBITDA*re* AND ADJUSTED EBITDA*re***

(amounts in thousands, except per share data)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Calculation of FFO and Normalized FFO:** <sup>(10)</sup> |  |  |  |  |
| Net loss | $(31409) | $(198793) | $(132381) | $(544603) |
| Add (Less): Depreciation and amortization | 94961 | 115757 | 401108 | 485965 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on asset impairment, net <sup>(5)</sup> | 1269 | 76510 | 10989 | 78620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate, net <sup>(6)</sup> | (3583) | (588) | (47818) | (11522) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses (gains) on equity securities, net <sup>(7)</sup> | 10841 | (2168) | 8104 | (22535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reflect SVC's share of FFO attributable to an investee <sup>(9)</sup> | 1049 | 737 | 3723 | 2605 |
| FFO | 73128 | (8545) | 243725 | (11470) |
| Add (Less): Transaction related costs <sup>(4)</sup> |  | 35830 | 1920 | 64764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on early extinguishment of debt <sup>(8)</sup> |  |  | 791 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reflect SVC's share of Normalized FFO attributable to an investee <sup>(9)</sup> | 138 | 651 | 1037 | 2270 |
| Normalized FFO | $73266 | $27936 | $247473 | $55564 |
| Weighted average common shares outstanding (basic and diluted) | 164862 | 164667 | 164738 | 164566 |
| Basic and diluted per common share amounts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss per share | $(0.19) | $(1.21) | $(0.80) | $(3.31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FFO | $0.44 | $(0.05) | $1.48 | $(0.07) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Normalized FFO | $0.44 | $0.17 | $1.50 | $0.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions declared per share | $0.20 | $0.01 | $0.23 | $0.04 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Calculation of EBITDA, EBITDA*re* and Adjusted EBITDA*re:*** <sup>(11)</sup> | | | | |
| Net loss | $(31409) | $(198793) | $(132381) | $(544603) |
| Add (Less): Interest expense | 77891 | 92494 | 341795 | 365721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (benefit) expense | (1757) | (1950) | (199) | (941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 94961 | 115757 | 401108 | 485965 |
| EBITDA | 139686 | 7508 | 610323 | 306142 |
| Add (Less): Loss on asset impairment, net <sup>(5)</sup> | 1269 | 76510 | 10989 | 78620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate, net <sup>(6)</sup> | (3583) | (588) | (47818) | (11522) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reflect SVC's share of EBITDA*re* attributable to an investee <sup>(9)</sup> | 2340 | 781 | 7881 | 2904 |
| EBITDA*re* | 139712 | 84211 | 581375 | 376144 |
| Add (Less): Transaction related costs <sup>(4)</sup> |  | 35830 | 1920 | 64764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses (gains) on equity securities, net <sup>(7)</sup> | 10841 | (2168) | 8104 | (22535) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on early extinguishment of debt <sup>(8)</sup> |  |  | 791 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reflect SVC's share of Adjusted EBITDA*re* attributable to an investee <sup>(9)</sup> | (529) | 651 | 1037 | 2270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expense paid in common shares <sup>(12)</sup> | 510 | 473 | 2776 | 2963 |
| Adjusted EBITDA*re* | $150534 | $118997 | $596003 | $423606 |

---

*See Notes on page <u>[12](#ibdad4681ce144b84b87f1c57fd8d0c0a_28)</u>.*

------

**SERVICE PROPERTIES TRUST**

**CALCULATION AND RECONCILIATION OF HOTEL EBITDA**

**Comparable Hotels**

(amounts in thousands)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| *Number of hotels* | *236* | *236* | *235* | *235* |
| Room revenues | $287337 | $234829 | $1168811 | $824395 |
| Food and beverage revenues | 45952 | 30697 | 154960 | 81246 |
| Other revenues | 16310 | 12816 | 61737 | 45838 |
| &nbsp;&nbsp;Hotel operating revenues - comparable hotels | 349599 | 278342 | 1385508 | 951479 |
| Rooms expenses | 94005 | 78181 | 363399 | 271401 |
| Food and beverage expenses | 35226 | 25824 | 120140 | 68799 |
| Other direct and indirect expenses | 125255 | 109131 | 487356 | 404555 |
| Management fees | 12898 | 10848 | 51779 | 34644 |
| Real estate taxes, insurance and other | 24966 | 25390 | 113506 | 103790 |
| FF&E reserves <sup>(13)</sup> | 2252 | 1236 | 9267 | 4403 |
| &nbsp;&nbsp;Hotel operating expenses - comparable hotels | 294602 | 250610 | 1145447 | 887592 |
| Hotel EBITDA - comparable hotels | $54997 | $27732 | $240061 | $63887 |
| Hotel EBITDA Margin | 15.7% | 10.0% | 17.3% | 6.7% |
| Hotel operating revenues (GAAP) <sup>(1)</sup> | $350501 | $317215 | $1467344 | $1104678 |
| Add (Less): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hotel operating revenues from non-comparable hotels | (902) | (38873) | (81836) | (153199) |
| Hotel operating revenues - comparable hotels | $349599 | $278342 | $1385508 | $951479 |
| Hotel operating expenses (GAAP) <sup>(1)</sup> | $293554 | $286968 | $1227357 | $1010737 |
| Add (Less): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel operating expenses from non-comparable hotels | (1825) | (38215) | (91798) | (143867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reduction for security deposit and guaranty fundings, net <sup>(3)</sup> |  |  |  | 15698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FF&E reserves from managed hotel operations <sup>(13)</sup> | 2252 | 1236 | 9267 | 4403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other <sup>(14)</sup> | 621 | 621 | 621 | 621 |
| Hotel operating expenses - comparable hotels | $294602 | $250610 | $1145447 | $887592 |

---

*See Notes on page <u>[12](#ibdad4681ce144b84b87f1c57fd8d0c0a_28)</u>.*

------

**SERVICE PROPERTIES TRUST**

**CALCULATION AND RECONCILIATION OF HOTEL EBITDA**

**All Hotels**

(amounts in thousands)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Room revenues | $288082 | $272458 | $1244925 | $972411 |
| Food and beverage revenues | 45968 | 31503 | 158762 | 84430 |
| Other revenues | 16451 | 13254 | 63657 | 47837 |
| &nbsp;&nbsp;Hotel operating revenues | 350501 | 317215 | 1467344 | 1104678 |
| Rooms expenses | 93067 | 90705 | 393553 | 321228 |
| Food and beverage expenses | 35248 | 26768 | 125312 | 72884 |
| Other direct and indirect expenses | 124396 | 126208 | 517982 | 458586 |
| Management fees | 12450 | 11869 | 53384 | 40478 |
| Real estate taxes, insurance and other | 29014 | 32039 | 139610 | 135741 |
| FF&E reserves <sup>(13)</sup> | 2252 | 1236 | 9268 | 4546 |
| &nbsp;&nbsp;Hotel operating expenses | 296427 | 288825 | 1239109 | 1033463 |
| Hotel EBITDA | $54074 | $28390 | $228235 | $71215 |
| Hotel EBITDA Margin | 15.4% | 8.9% | 15.6% | 6.4% |
| Hotel operating expenses (GAAP) <sup>(1)</sup> | $293554 | $286968 | $1227357 | $1010737 |
| Add (Less): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Reduction for security deposit and guaranty fundings, net <sup>(3)</sup> |  |  |  | 15696 |
| &nbsp;&nbsp;&nbsp;&nbsp;FF&E reserves from managed hotels operations <sup>(13)</sup> | 2252 | 1236 | 9268 | 4546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other <sup>(14)</sup> | 621 | 621 | 2484 | 2484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotel operating expenses | $296427 | $288825 | $1239109 | $1033463 |

---

*See Notes on page <u>[12](#ibdad4681ce144b84b87f1c57fd8d0c0a_28)</u>*

------

(1)As of December 31, 2022, SVC owned 238 hotels. SVC's consolidated statements of income (loss) include hotel operating revenues and expenses of its managed hotels.

(2)In calculating net income, SVC recognizes percentage rental income when all contingencies are met and the income is earned. SVC recognized percentage rental income of $9,353 and $7,471 in the three months ended December 31, 2022 and 2021, respectively, and $12,773 and $8,415 in the years ended December 31, 2022 and 2021, respectively.

SVC reduced rental income by $2,247 and increased rental income by $466 for the three months ended December 31, 2022 and 2021, respectively, and reduced rental income by $7,767 and $2,621 for the years ended December 31, 2022 and 2021, respectively, to record scheduled rent changes under certain of SVC's leases, the deferred rent obligations under SVC's leases with TravelCenters of America Inc., or TA, and the estimated future payments to SVC under its leases with TA for the cost of removing underground storage tanks on a straight-line basis.

(3)When managers of SVC's hotels are required to fund the shortfalls of owner's priority return under the terms of SVC's management agreements or their guarantees, SVC reflects such fundings in its consolidated statements of income (loss) as a reduction of hotel operating expenses. There were no net reductions to hotel operating expenses during the year ended December 31, 2022. The net reductions to hotel operating expenses were $15,696 for the year ended December 31, 2021.

(4)Transaction related costs for the year ended December 31, 2022 of $1,920 primarily consisted of costs related to SVC's exploration of possible financing transactions. Transaction related costs for the three months ended December 31, 2021 of $35,830 primarily consisted of working capital advances SVC previously funded under its agreements with Marriott and IHG that SVC expensed as a result of the amounts no longer expected to be recoverable. Transaction related costs for the year ended December 31, 2021 included $38,446 of working capital advances SVC previously funded under its agreements with Marriott, IHG and Hyatt that SVC expensed as a result of the amounts no longer expected to be recoverable, $19,920 of hotel manager transition related costs resulting from the rebranding of 94 hotels during the period, and $6,398 of legal costs related to SVC's arbitration proceeding with Marriott.

(5)SVC recorded a loss on asset impairment during the three months ended December 31, 2022 of $1,269 to reduce the carrying value of one hotel and one net lease property to their estimated fair value less costs to sell and a $76,510 loss on asset impairment during the three months ended December 31, 2021 to reduce the carrying value of 35 hotels and 21 net lease properties to their estimated fair value less costs. SVC recorded a loss on asset impairment during the year ended December 31, 2022 of $10,989 to reduce the carrying value of 26 hotels and five net lease properties to their estimated fair value less costs to sell and a $78,620 loss on asset impairment during the year ended December 31, 2021 to reduce the carrying value of 35 hotels and 26 net lease properties to their estimated fair value less costs to sell.

(6)SVC recorded a $3,583 net gain on sale of real estate during the three months ended December 31, 2022 in connection with the sale of four hotels and two net lease properties and a $588 net gain on sale of real estate during the three months ended December 31, 2021 in connection with the sale of one hotel and six net lease properties. SVC recorded a $47,818 net gain on sale of real estate during the year ended December 31, 2022 in connection with the sale of 65 hotels and 21 net lease properties and a $11,522 net gain on sale of real estate during the year ended December 31, 2021 in connection with the sale of seven hotels and eleven net lease properties.

(7)Unrealized gain on equity securities, net represents the adjustment required to adjust the carrying value of SVC's investment in shares of TA common stock to its fair value.

(8)SVC recorded a $791 loss on extinguishment of debt during the year ended December 31, 2022 related to the write off of deferred financing costs and unamortized discounts relating to its amendment to its credit agreement and the repayment of $500,000 of unsecured senior notes.

(9)Represents SVC's proportionate share from its equity investment in Sonesta.

(10)SVC calculates FFO and Normalized FFO as shown above. FFO is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is net income (loss), calculated in accordance with GAAP, excluding any gain or loss on sale of properties and loss on impairment of real estate assets, if any, plus real estate depreciation and amortization, less any unrealized gains and losses on equity securities, as well as adjustments to reflect SVC's share of FFO attributable to an investee and certain other adjustments currently not applicable to SVC. In calculating Normalized FFO, SVC adjusts for the items shown above. FFO and Normalized FFO are among the factors considered by SVC's Board of Trustees when determining the amount of distributions to its shareholders. Other factors include, but are not limited to, requirements to satisfy SVC's REIT distribution requirements, the availability to SVC of debt and equity capital, SVC's distribution rate as a percentage of the trading price of its common shares, or dividend yield, and to the dividend yield of other REITs, SVC's expectation of its future capital requirements and operating performance and SVC's expected needs for and availability of cash to pay its obligations. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than SVC does.

(11)SVC calculates EBITDA, EBITDA*re*, and Adjusted EBITDA*re* as shown above. EBITDA*re* is calculated on the basis defined by Nareit which is EBITDA, excluding gains and losses on the sale of real estate, loss on impairment of real estate assets, if any, and adjustments to reflect SVC's share of EBITDA*re* attributable to an investee. In calculating Adjusted EBITDA*re*, SVC adjusts for the items shown above. Other real estate companies and REITs may calculate EBITDA, EBITDA*re* and Adjusted EBITDA*re* differently than SVC does.

(12)Amounts represent the equity compensation for SVC's Trustees, and officers and certain other employees of SVC's manager.

(13)Various percentages of total sales at certain of SVC's hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. SVC owns all the FF&E reserve escrows for its hotels.

(14)SVC is amortizing a liability it recorded for the fair value of its initial investment in Sonesta as a reduction to hotel operating expenses in its consolidated statements of income (loss). SVC reduced hotel operating expenses by $621 for each of the three months ended December 31, 2022 and 2021, and $2,484 for each of the years ended December 31, 2022 and 2021 for this liability.

------

<u>Warning Concerning Forward-Looking Statements</u>

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever SVC uses words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "will," "may" and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC's forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC's control. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Hargreaves states that SVC has experienced improving hotel fundamentals throughout 2022 and expects that further progress will occur in 2023. Mr. Hargreaves also noted that comparable hotel RevPAR, occupancy and Hotel EBITDA increased over the same period last year. These statements may imply that these trends will continue to improve; however, the hotel industry and SVC's business are subject to various risks, including risks beyond its control, such as the impact of the market practices that arose or increased in response to the COVID-19 pandemic, and economic and market conditions, including the current inflationary conditions, rising or sustained high interest rates, geopolitical risks and possible recession. As a result, hotel operating trends may not continue to improve and may decline and SVC's operating results could decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Hargreaves states that SVC's net lease properties continue to deliver steady and reliable cash flows. However, SVC's net lease tenants may become unable or unwilling to pay rents due to SVC, which could adversely impact SVC and the value of its net lease properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Hargreaves states that the recent execution of SVC's ABS facility demonstrates one of the several options available to the company to address upcoming maturities at attractive relative interest rates. This may imply that SVC will successfully obtain additional financing at attractive relative rates and that it will repay or refinance its upcoming maturities with those financings. However, these options may not be available if markets conditions change, if interest rates continue to increase or otherwise, and SVC may need to address upcoming maturities with cash on hand or with other resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This press release states that the parties currently expect that the BP Acquisition will be completed by mid-year 2023, and that SVC expects to receive approximately $379.3 million in total cash upon completion of the BP Acquisition. This press release also states that SVC is excited for the enhanced value that it believes the amended leases with BP will provide SVC's shareholders. The BP Acquisition is subject to various customary conditions and contingencies to closing as are customary in merger agreements in the United States, including the approval of TA stockholders and regulatory approvals. If these conditions are not satisfied or the specified contingencies do not occur, the BP Acquisition may not be completed, in which case SVC's lease and guaranty arrangements with TA would not be amended and SVC would not receive the expected proceeds, or the BP Acquisition could be delayed or the terms could change. In addition, even if the BP Acquisition is completed, the amended leases may not provide enhanced value for SVC's shareholders as SVC currently expects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SVC is under agreement to sell ten hotels and two net lease properties and expects the majority of these sales to be completed by the end of the first quarter of 2023. The pending sales of SVC's properties are subject to conditions; accordingly, SVC cannot provide any assurance that it will sell any of these properties and the sales may be delayed, may not occur or their terms may change.

The information contained in SVC's filings with the SEC, including under the caption "Risk Factors" in SVC's periodic reports, or incorporated therein, identifies other important factors that could cause differences from SVC's forward-looking statements. SVC's filings with the SEC are available on the SEC's website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

------

Except as required by law, SVC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

Contact:

Stephen Colbert, Director, Investor Relations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(617) 231-3223

(end)

## Exhibit 99.2

![](ex992svcq42022supp001.jpg)

Royal Sonesta Chase Park Plaza St. Louis, MO FOURTH QUARTER 2022 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2The Stephen F Austin Royal Sonesta Hotel Austin, TX

------

![](ex992svcq42022supp002.jpg)

Supplemental Q4 2022 2 **Table of Contents** CORPORATE INFORMATION Company Profile ...................................................................................................................................................................................................................................... 3 Investor Information ................................................................................................................................................................................................................................ 4 FINANCIALS Key Financial Data ................................................................................................................................................................................................................................... 5 Consolidated Balance Sheets ............................................................................................................................................................................................................... 6 Consolidated Statements of Income (Loss) ....................................................................................................................................................................................... 7 Calculation of FFO and Normalized FFO ........................................................................................................................................................................................... 8 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre ............................................................................................................................................................ 9 Notes to Consolidated Statements of Income (Loss) and calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA ....................................................................................................................................................................................................................................... 10 Debt Summary ......................................................................................................................................................................................................................................... 11 Debt Maturity Schedule ......................................................................................................................................................................................................................... 12 Leverage Ratios, Coverage Ratios and Public Debt Covenants .................................................................................................................................................... 13 Capital Expenditures and Restricted Cash Activity .......................................................................................................................................................................... 14 Property Acquisitions and Dispositions Information Since January 1, 2022 ............................................................................................................................... 15 PORTFOLIO INFORMATION Portfolio Summary .................................................................................................................................................................................................................................. 16 Consolidated Portfolio Diversification by Industry ........................................................................................................................................................................... 17 Consolidated Portfolio Geographical Diversification ...................................................................................................................................................................... 18 Hotel Portfolio by Brand ........................................................................................................................................................................................................................ 19 Hotel Operating Statistics by Service Level - Comparable Hotels - three months ended December 31, 2022 .................................................................. 20 Hotel Operating Statistics by Service Level - Comparable Hotels - year ended December 31, 2022 ................................................................................... 21 Hotel Operating Statistics by Service Level - All Hotels - three months ended December 31, 2022 .................................................................................... 22 Hotel Operating Statistics by Service Level - All Hotels - year ended December 31, 2022 ..................................................................................................... 23 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels ...................................................................................................................................... 24 Calculation and Reconciliation of Hotel EBITDA - All Hotels .......................................................................................................................................................... 25 Net Lease Portfolio by Brand ................................................................................................................................................................................................................ 26 Net Lease Portfolio by Industry ............................................................................................................................................................................................................ 27 Net Lease Portfolio by Tenant (Top 10) .............................................................................................................................................................................................. 28 Net Lease Portfolio - Expiration Schedule .......................................................................................................................................................................................... 29 Net Lease Portfolio - Occupancy Summary ....................................................................................................................................................................................... 30 Non-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS .......................................................................................................................................................................... 31 WARNING CONCERNING FORWARD-LOOKING STATEMENTS ............................................................................................................................................................................ 33 Please refer to Non-GAAP Financial Measures and Certain Definitions for terms used throughout this document. SVC Nasdaq Listed

------

![](ex992svcq42022supp003.jpg)

Supplemental Q4 2022 3 The Company: Service Properties Trust, or SVC, we, our or us, is a real estate investment trust, or REIT, that owns hotels and service-focused retail net lease properties throughout the United States and in Puerto Rico and Canada. SVC is included in 166 market indices and comprises more than 1% of the following indices as of December 31, 2022: Bloomberg Reit Hotels Index (BBREHOTL), Invesco S&P SmallCap Financials ETF INAV Index (PSCFIV), Invesco S&P SmallCap 600® Equal Weight ETF INAV Index (EWSCIV), and Hoya Capital High Dividend Yield Index (GTR) (RIET). Company Profile RETURN TO **TABLE OF CONTENTS** Management: SVC is managed by The RMR Group (Nasdaq: RMR). RMR is an alternative asset management company that is focused on commercial real estate and related businesses. RMR primarily provides management services to publicly traded real estate companies, privately held real estate funds and real estate related operating businesses. As of December 31, 2022, RMR had over $37 billion of real estate assets under management and the combined RMR managed companies had more than $16 billion of annual revenues, nearly 2,100 properties and over 38,000 employees. We believe that being managed by RMR is a competitive advantage for SVC because of RMR's depth of management and experience in the real estate industry. We also believe RMR provides management services to us at costs that are lower than we would have to pay for similar quality services if we were self-managed. Diversified Portfolio with National Scale 1,003 Located in $11.3B46 States Properties Investment and Puerto Rico and Canada 238 40,053 $6.2B Hotels Keys Investment 765 13.4 $5.1B Retail Net Lease Assets Rentable Square Feet Investment

------

![](ex992svcq42022supp004.jpg)

Supplemental Q4 2022 4 Board of Trustees Senior Management Laurie B. Burns Robert E. Cramer Donna D. Fraiche Todd W. Hargreaves Independent Trustee Independent Trustee Lead Independent Trustee President and Chief Investment Officer John L. Harrington William A. Lamkin John G. Murray Brian E. Donley Independent Trustee Independent Trustee Managing Trustee Chief Financial Officer and Treasurer Adam D. Portnoy Chair of the Board & Managing Trustee Contact Information Investor Relations Inquiries Senior Unsecured Debt Ratings Rating Agencies Service Properties Trust Financial, investor and media Standard & Poor's: B+ (Outlook Negative)/BB\* Two Newton Place inquiries should be directed to: Moody's: B2 (Outlook: Negative)/B1\* Moody's Investors Service 255 Washington Street/Suite 300 Stephen Colbert \* BB/B1 rating assigned to guaranteed Senior Unsecured Notes. Reed Valutas Newton, MA 02458-1634 Director, Investor Relations (212) 553-4169 (t) (617) 964-8389 (617) 231-3223 (email) info@svcreit.com scolbert@rmrgroup.com S&P Global (website) www.svcreit.com Alan Zigman (416) 507-2556 Equity Research Coverage alan.zigman@spglobal.com B. Riley Securities, Inc. Oppenheimer & Co. Inc. Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (212) 667-7230 (617) 603-4233 bmaher@brileyfin.com tyler.batory@opco.com dori.kesten@wellsfargo.com Investor Information RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp005.jpg)

Supplemental Q4 2022 5 As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Selected Balance Sheet Data: Total gross assets $10,458,324 $10,561,906 $11,222,613 $12,438,367 $12,434,974 Total assets $7,488,191 $7,632,713 $8,331,559 $9,017,072 $9,153,315 Total liabilities $6,099,399 $6,180,795 $6,886,687 $7,582,773 $7,598,009 Total shareholders' equity $1,388,792 $1,451,918 $1,444,872 $1,434,299 $1,555,306 Selected Income Statement Data: Total revenues $455,219 $498,521 $515,777 $393,764 $421,375 Net income (loss) $(31,409) $7,500 $11,350 $(119,822) $(198,793) FFO $73,128 $88,397 $87,031 $(4,831) $(8,545) Normalized FFO $73,266 $88,458 $89,158 $(3,409) $27,936 Adjusted EBITDAre $150,534 $173,455 $181,873 $90,106 $118,997 Per Common Share Data (basic and diluted): Net income (loss) $(0.19) $0.05 $0.07 $(0.73) $(1.21) FFO $0.44 $0.54 $0.53 $(0.03) $(0.05) Normalized FFO $0.44 $0.54 $0.54 $(0.02) $0.17 Dividend Data: Annualized dividends paid per share during the period $0.80 $0.04 $0.04 $0.04 $0.04 Annualized dividend yield (at end of period) 11.0 % 0.8 % 0.8 % 0.5 % 0.4 % Normalized FFO payout ratio 45.5 % 1.9 % 1.9 % (50.0) % 5.9 % (dollars in thousands, except per share data) Key Financial Data RETURN TO **TABLE OF CONTENTS** Sonesta ES Suites Fort Lauderdale, FL

------

![](ex992svcq42022supp006.jpg)

Supplemental Q4 2022 6 As of December 31, 2022 2021 ASSETS Real estate properties: Land $1,902,587 $1,918,385 Buildings, improvements and equipment 7,658,282 8,307,248 Total real estate properties, gross 9,560,869 10,225,633 Accumulated depreciation (2,970,133) (3,281,659) Total real estate properties, net 6,590,736 6,943,974 Acquired real estate leases and other intangibles, net 252,357 283,241 Assets held for sale 121,905 515,518 Cash and cash equivalents 38,369 944,043 Restricted cash 7,051 3,375 Equity method investments 112,617 62,687 Investment in equity securities 53,055 61,159 Due from related persons 35,033 48,168 Other assets, net 277,068 291,150 Total assets $7,488,191 $9,153,315 LIABILITIES AND SHAREHOLDERS' EQUITY Revolving credit facility $— $1,000,000 Senior unsecured notes, net 5,655,530 6,143,022 Accounts payable and other liabilities 425,960 433,448 Due to related persons 17,909 21,539 Total liabilities 6,099,399 7,598,009 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 165,452,566 and 165,092,333 shares issued and outstanding, respectively 1,655 1,651 Additional paid in capital 4,554,861 4,552,558 Cumulative other comprehensive income 2,383 779 Cumulative net income available for common shareholders 2,503,279 2,635,660 Cumulative common distributions (5,673,386) (5,635,342) Total shareholders' equity 1,388,792 1,555,306 Total liabilities and shareholders' equity $7,488,191 $9,153,315 Consolidated Balance Sheets (dollars in thousands, except share data) RETURN TO **TABLE OF CONTENTS** Royal Sonesta Chicago Riverfront Chicago, IL

------

![](ex992svcq42022supp007.jpg)

Supplemental Q4 2022 7 Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Revenues: Hotel operating revenues (1) $350,501 $317,215 $1,467,344 $1,104,678 Rental income (2) 104,718 104,160 395,667 390,902 Total revenues 455,219 421,375 1,863,011 1,495,580 Expenses: Hotel operating expenses (1)(3) 293,554 286,968 1,227,357 1,010,737 Other operating expenses 4,015 3,900 13,176 15,658 Depreciation and amortization 94,961 115,757 401,108 485,965 General and administrative 8,660 12,601 44,404 53,439 Transaction related costs (4) — 35,830 1,920 64,764 Loss on asset impairment, net (5) 1,269 76,510 10,989 78,620 Total expenses 402,459 531,566 1,698,954 1,709,183 Gain on sale of real estate, net (6) 3,583 588 47,818 11,522 Unrealized (losses) gains on equity securities, net (7) (10,841) 2,168 (8,104) 22,535 Interest income 644 177 3,379 664 Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $3,846 and $5,913, $19,375 and $21,036, respectively) (77,891) (92,494) (341,795) (365,721) Loss on early extinguishment of debt (8) — — (791) — Loss before income taxes and equity in earnings (losses) of an investee (31,745) (199,752) (135,436) (544,603) Income tax benefit (expense) 1,757 1,950 199 941 Equity in (losses) earnings of an investee (9) (1,421) (991) 2,856 (941) Net loss $(31,409) $(198,793) $(132,381) $(544,603) Weighted average common shares outstanding (basic and diluted) 164,862 164,667 164,738 164,566 Net loss per common share (basic and diluted) $(0.19) $(1.21) $(0.80) $(3.31) (amounts in thousands, except per share data) Consolidated Statements of Income (Loss) RETURN TO **TABLE OF CONTENTS** See accompanying notes on page 10.

------

![](ex992svcq42022supp008.jpg)

Supplemental Q4 2022 8 For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss) income $(31,409) $7,500 $11,350 $(119,822) $(198,793) $(132,381) $(544,603) Add (Less): Depreciation and amortization 94,961 101,514 100,520 104,113 115,757 401,108 485,965 Loss on asset impairment, net (5) 1,269 1,172 3,048 5,500 76,510 10,989 78,620 (Gain) loss on sale of real estate, net (6) (3,583) 164 (38,851) (5,548) (588) (47,818) (11,522) Unrealized losses (gains) on equity securities, net (7) 10,841 (23,056) 10,059 10,260 (2,168) 8,104 (22,535) Adjustments to reflect our share of FFO attributable to an investee (9) 1,049 1,103 905 666 737 3,723 2,605 FFO 73,128 88,397 87,031 (4,831) (8,545) 243,725 (11,470) Add (Less): Loss on early extinguishment of debt (8) — — 791 — — 791 — Adjustments to reflect our share of Normalized FFO attributable to an investee (9) 138 61 593 245 651 1,037 2,270 Transaction related costs (4) — — 743 1,177 35,830 1,920 64,764 Normalized FFO $73,266 $88,458 $89,158 $(3,409) $27,936 $247,473 $55,564 Weighted average shares outstanding (basic and diluted) 164,862 164,745 164,667 164,667 164,667 164,738 164,566 Basic and diluted per share common share amounts: Net income (loss) $(0.19) $0.05 $0.07 $(0.73) $(1.21) $(0.80) $(3.31) FFO $0.44 $0.54 $0.53 $(0.03) $(0.05) $1.48 $(0.07) Normalized FFO $0.44 $0.54 $0.54 $(0.02) $0.17 $1.50 $0.34 Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) RETURN TO **TABLE OF CONTENTS** See accompanying notes on page 10.

------

![](ex992svcq42022supp009.jpg)

Supplemental Q4 2022 9 For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss) income $(31,409) $7,500 $11,350 $(119,822) $(198,793) $(132,381) $(544,603) Add (Less): Interest expense 77,891 81,740 89,820 92,344 92,494 341,795 365,721 Income tax (benefit) expense (1,757) 390 473 695 (1,950) (199) (941) Depreciation and amortization 94,961 101,514 100,520 104,113 115,757 401,108 485,965 EBITDA 139,686 191,144 202,163 77,330 7,508 610,323 306,142 Add (Less): Loss on asset impairment, net (5) 1,269 1,172 3,048 5,500 76,510 10,989 78,620 (Gain) loss on sale of real estate, net (6) (3,583) 164 (38,851) (5,548) (588) (47,818) (11,522) Adjustments to reflect our share of EBITDAre attributable to an investee (9) 2,340 2,787 2,074 680 781 7,881 2,904 EBITDAre 139,712 195,267 168,434 77,962 84,211 581,375 376,144 Add (less): Unrealized losses (gains) on equity securities, net (7) 10,841 (23,056) 10,059 10,260 (2,168) 8,104 (22,535) Loss on early extinguishment of debt (8) — — 791 — — 791 — Adjustments to reflect our share of Adjusted EBITDAre attributable to an investee (9) (529) 272 1,014 280 651 1,037 2,270 Transaction related costs (4) — — 743 1,177 35,830 1,920 64,764 General and administrative expense paid in common shares (10) 510 972 832 462 473 2,776 2,963 Adjusted EBITDAre $150,534 $173,455 $181,873 $90,141 $118,997 $596,003 $423,606 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) See accompanying notes on page 10. RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp010.jpg)

Supplemental Q4 2022 10 Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollar in thousands) RETURN TO **TABLE OF CONTENTS** (1) As of December 31, 2022, we owned 238 hotels. Our consolidated statements of income (loss) include hotel operating revenues and expenses of our managed hotels. (2) In calculating net income, we recognize percentage rental income when all contingencies are met and the income is earned. We recognized percentage rental income of $9,353 and $7,471 for the three months ended December 31, 2022 and 2021, respectively, and $12,773 and $8,415 for the years ended December 31, 2022 and 2021, respectively. We reduced rental income by $2,247 and increased rental income by $466 for the three months ended December 31, 2022 and 2021, respectively, and reduced rental income by $7,767 and $2,621 for the years ended December 31, 2022 and 2021, respectively, to record scheduled rent changes under certain of our leases, the deferred rent obligations under our leases with TravelCenters of America Inc., or TA, and the estimated future payments to us under our leases with TA for the cost of removing underground storage tanks on a straight-line basis. (3) When managers of our hotels are required to fund the shortfalls of owner's priority return under the terms of our management agreements or their guarantees, we reflect such fundings in our consolidated statements of income (loss) as a reduction of hotel operating expenses. There were no net reductions to hotel operating expenses during the year ended December 31, 2022. The net reductions to hotel operating expenses were $15,696 for the year ended December 31, 2021. (4) Transaction related costs for the three months ended June 30, 2022 and March 31, 2022 of $743 and $1,177, respectively, primarily consisted of costs related to our exploration of possible financing transactions. Transaction related costs for the three months ended December 31, 2021 of $35,830 primarily consisted of working capital advances we previously funded under our agreements with Marriott International Inc., or Marriott, and InterContinental Hotels Group, plc, or IHG, that we expensed as a result of the amounts no longer expected to be recoverable. Transaction related costs for the three months ended September 30, 2021 of $3,149 are primarily related to legal costs related to our arbitration proceeding with Marriott. Transaction related costs for the three months ended June 30, 2021 included $3,700 of working capital we previously funded under our agreement with Hyatt Hotels Corporation, or Hyatt, that we expensed as a result of the amount no longer expected to be recoverable, $1,110 of legal costs related to our arbitration proceeding with Marriott and $1,341 of hotel manager transaction costs. Transaction related costs for the three months ended March 31, 2021 include $19,635 of hotel manager transition related costs resulting from the rebranding of 88 hotels during the period. (5) We recorded a loss on asset impairment of $1,269 to reduce the carrying value of one hotel and one net lease property to their estimated fair value less costs to sell during the three months ended December 31, 2022, $1,172 to reduce the carrying value of three hotels and one net lease property to their estimated fair value less costs to sell during the three months ended September 30, 2022, $3,048 to reduce the carrying value of two hotels and four net lease properties to their estimated fair value less costs to sell during the three months ended June 30, 2022, $5,500 to reduce the carrying value of 25 hotels to their estimated fair value less costs to sell during the three months ended March 31, 2022, and a $76,510 loss on asset impairment during the three months ended December 31, 2021 to reduce the carrying value of 35 hotels and 26 net lease properties to their estimated fair value less costs to sell. (6) We recorded a $3,583 net gain on sale of real estate during the three months ended December 31, 2022 in connection with the sale of four hotels and two net lease properties. We recorded a $164 net loss on sale of real estate during the three months ended September 30, 2022 in connection with the sale of five hotels and six net lease properties, a $38,851 net gain on sale of real estate during the three months ended June 30, 2022 in connection with the sale of 51 hotels and eleven net lease properties, a $5,548 net gain on sale of real estate during the three months ended March 31, 2022 in connection with the sale of five hotels and two net lease properties, and a $588 net gain on sale of real estate during the three months ended December 31, 2021 in connection with the sale of one hotel and six net lease properties. (7) Unrealized gain or loss on equity securities, net represents the adjustment required to adjust the carrying value of our investment in shares of TA common stock to their fair value. (8) We recorded a $791 loss on extinguishment of debt during the three months ended June 30, 2022 related to the write off of deferred financing costs and unamortized discounts relating to our amendment to our credit agreement and the repayment of $500,000 of unsecured senior notes. (9) Represents our proportionate share from our equity investment in Sonesta. (10) Amounts represent the equity compensation for our Trustees, officers and certain other employees of our manager. (11) Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. (12) We are amortizing a liability we recorded for the fair value of our initial investment in Sonesta as a reduction to hotel operating expenses in our consolidated statements of income (loss). We reduced hotel operating expenses by $621 for each of the three months ended December 31, 2022 and 2021, and $2,484 for each of the years ended December 31, 2022 and 2021, for this liability.

------

![](ex992svcq42022supp011.jpg)

Supplemental Q4 2022 11 (1) In February 2023, one of our subsidiaries issued $610,200 in aggregate principal amount of net lease mortgage notes. The weighted average coupon of the notes is 5.60% and are expected to mature in February 2028. (2) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 250 basis points per annum, subject to an interest rate floor of 0.50%. We also pay a facility fee of 30 basis points per annum on the total amount of lending commitments under our revolving credit facility. Both the interest rate premium and facility fee are subject to adjustment based upon changes to our credit ratings. The interest rate listed in the scedule is as of December 31, 2022. (3) We have provided equity pledges on certain of our property owning subsidiaries and provided first mortgage liens on 73 properties owned by the pledged subsidiaries to secure our obligations under the credit agreement governing out credit facility. (4) In February 2023, we announced the early redemption of our outstanding 4.50% Senior Notes due in June 2023 at par plus accrued and unpaid interest. The notes are expected to be redeemed on or about March 8, 2023. (5) The notes are guaranteed by certain of our subsidiaries. (6) The carrying value of our total debt of $5,655,530 as of December 31, 2022 is net of unamortized discounts and premiums and certain issuance costs totaling $44,470. Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Floating Rate Debt: $800,000 revolving credit facility (2)(3) 6.379 % $— 7/15/23 $— 0.5 Unsecured Fixed Rate Debt: Senior unsecured notes due 2023 (4) 4.500 % $500,000 6/15/23 $500,000 0.5 Senior unsecured notes due 2024 4.650 % 350,000 3/15/24 350,000 1.2 Senior unsecured notes due 2024 4.350 % 825,000 10/1/24 825,000 1.8 Senior unsecured notes due 2025 4.500 % 350,000 3/15/25 350,000 2.2 Senior unsecured notes due 2025 (5) 7.500 % 800,000 9/15/25 800,000 2.7 Senior unsecured notes due 2026 5.250 % 350,000 2/15/26 350,000 3.1 Senior unsecured notes due 2026 4.750 % 450,000 10/1/26 450,000 3.8 Senior unsecured notes due 2027 4.950 % 400,000 2/15/27 400,000 4.1 Senior unsecured notes due 2027 (5) 5.500 % 450,000 12/15/27 450,000 5.0 Senior unsecured notes due 2028 3.950 % 400,000 1/15/28 400,000 5.0 Senior unsecured notes due 2029 4.950 % 425,000 10/1/29 425,000 6.8 Senior unsecured notes due 2030 4.375 % 400,000 2/15/30 400,000 7.1 Subtotal / weighted average 5.071 % 5,700,000 5,700,000 3.4 Total / weighted average (6) 5.071 % $5,700,000 $5,700,000 3.4 Debt Summary (1) As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp012.jpg)

Supplemental Q4 2022 12 $(M ill io ns) $500 $1,175 $1,150 $800 $850 $400 $425 $400 Fixed Rate Debt Revolving Credit Facility 2023 2024 2025 2026 2027 2028 2029 2030 0 250 500 750 1,000 1,250 Debt Maturity Schedule As of December 31, 2022 RETURN TO **TABLE OF CONTENTS** Buffalo Wild Wings Hammond, IN (1) (1) As of December 31, 2022, we had no amounts outstanding under our revolving credit facility. (2) In February 2023, we announced the early redemption of our outstanding 4.50% Senior Notes due in June 2023 at par plus accrued and unpaid interest. The notes are expected to be redeemed on or about March 8, 2023. (3) In February 2023, one of our subsidiaries issued $610,200 in aggregate principal amount of net lease mortgage notes. The weighted average coupon of the notes is 5.60% and are expected to mature in February 2028. (2) (3)

------

![](ex992svcq42022supp013.jpg)

Supplemental Q4 2022 13 As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Leverage Ratios: Net debt / total gross assets 54.1 % 54.2 % 52.3 % 51.7 % 50.3 % Net debt / gross book value of real estate assets and cash and cash equivalents 56.4 % 56.5 % 54.7 % 53.4 % 51.9 % Secured debt / total assets — % 0.4 % 2.0 % 0.3 % 0.6 % Variable rate debt / Net debt — % 1.7 % 13.6 % 16.1 % 16.0 % Coverage Ratios: Rolling four-quarter Adjusted EBITDAre / rolling four-quarter interest expense 1.7x 1.6x 1.4x 1.3x 1.2x Net debt / rolling four-quarter Adjusted EBITDAre 9.5x 10.1x 11.1x 13.4x 14.8x As of and For the Trailing Twelve Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Public Debt Covenants: Maintenance Covenant Total unencumbered assets / unsecured debt - required minimum 150% 159.1 % 161.0 % 169.2 % 170.4 % 176.3 % Incurrence Covenants Total debt / adjusted total assets - allowable maximum 60.0% 53.6 % 53.8 % 57.9 % 58.3 % 56.4 % Secured debt / adjusted total assets - allowable maximum 40.0% 0.0 % 0.9 % 7.1 % 8.1 % 7.8 % Consolidated income available for debt service / debt service - required minimum 1.50x 1.85x 1.72x 1.59x 1.32x 1.20x Leverage Ratios, Coverage Ratios and Public Debt Covenants RETURN TO **TABLE OF CONTENTS** 807 S. Indian Hill Boulevard Claremont, CA

------

![](ex992svcq42022supp014.jpg)

Supplemental Q4 2022 14 Capital Expenditures For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Hotel capital improvements & FF&E Reserve fundings (1) $36,629 $22,841 $17,517 $28,144 $30,010 Net lease capital improvements 170 1,520 3,190 740 402 Total capital improvements & FF&E Reserve fundings $36,799 $24,361 $20,707 $28,884 $30,412 Restricted Cash As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Total restricted cash (beginning of period) $10,891 $64,901 $2,963 $3,375 $1,657 Manager deposits into FF&E Reserve 2,598 2,700 2,425 1,408 1,312 SVC fundings into FF&E Reserve: Marriott — — — 75 Hotel improvements funded from FF&E Reserve (1,024) (1,577) (1,072) (787) (702) FF&E reserves (end of period) 12,465 66,024 4,316 3,996 2,342 Proceeds from asset sales deposited into (withdrawn from) revolving credit facility collateral account, net (5,414) (55,133) 60,585 (1,033) 1,033 Total restricted cash (end of period) $7,051 $10,891 $64,901 $2,963 $3,375 (1) Includes amounts we funded into our FF&E reserves and amounts directly reimbursed to our hotel managers for capital expenditures. (dollars in thousands) Capital Expenditures and Restricted Cash Activity RETURN TO **TABLE OF CONTENTS** Sonesta Select Atlanta Midtown Atlanta, GA

------

![](ex992svcq42022supp015.jpg)

Supplemental Q4 2022 15 ACQUISITIONS: Date Acquired Properties Property Type Brand Location Square Footage Purchase Price(2) Average Purchase Price per Square Foot September 2022 (1) N/A Land N/A MA N/A $2,715 N/A DISPOSITIONS: Quarter Disposed Properties Property Type Brand Location Rooms or Suites/ Square Footage Sales Price (2) Average Sales Price per Room or Suite / Square Foot Q1 2022 2 Hotel Sonesta ES Suites TX, OK 431 $26,124 $61 1 Hotel Simply Suites Horsham, PA 110 4,000 36 1 Hotel Sonesta Hotels and Resorts Gwinnett, GA 381 23,250 61 1 Hotel Sonesta Select Fort Worth, TX 138 6,800 49 2 Net Lease Vacant TX, WI 6,960 5,350 1 Q2 2022 29 Hotel Sonesta ES Suites AL, FL, GA, IL, MA, MI, MD, MN, MO, NE, NJ, OH, PA, TN, TX, VT, WA 3,504 285,075 81 12 Hotel Simply Suites KS, NJ, TX, TN, MI 1,341 77,719 58 10 Hotel Sonesta Select AL, AZ, GA, IL, MA, NC, NJ, TX 1,274 64,900 51 11 Net Lease Vacant AR, IA, KS, KY, MI, TX, WY 108,532 7,714 71 Q3 2022 1 Hotel Sonesta ES Suites RI 96 5,200 54 1 Hotel Simply Suites NY 124 3,000 24 3 Hotel Sonesta Select DE, GA, SC 383 21,500 56 6 Net Lease Vacant IA, IL, OK, TN 14,056 1,105 79 Q4 2022 4 Hotel Sonesta Select IA, IN, MA, MO 514 25,845 50 2 Net Lease Rick Johnson Auto and Tire FL 9,090 2,265 249 January 2023 1 Hotel Sonesta Select MD 152 4,444 29 February 2023 6 Hotel Courtyard GA, PA, MA, OK, TX 827 40,488 49 1 Hotel Residence Inn PA 118 8,336 71 94 9,393 / 138,638 $613,115 $64/$119 Property Acquisitions and Dispositions Information Since January 1, 2022 (dollars in thousands, except per sq. ft. data) (1) We acquired the previously leased land at one of our hotels for a sales price of $2,715, excluding acquisition related costs. (2) Represents cash sale price and excludes closing related costs. RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp016.jpg)

Supplemental Q4 2022 16 Portfolio Composition Net lease 45.3% Hotel 54.7% Number of Properties Hotel Properties 238 Number of hotel rooms 40,053 Net Lease Properties 765 Square feet 13,374,325 Total Properties 1,003 Average hotel property size 168 rooms Average net lease property size 17,570 sq. feet Investments Diversification Facts Hotels $6,179,444 Tenants/Operators 185 Net Lease Properties 5,107,828 Brands 149 Total Investments $11,287,272 Industries 22 States 46 Geographical Diversification CA 12% TX 8% IL 6% GA 6% FL 5% AZ 4% OH 4%PA 3% LA 3% NJ 3% Other 46% (36 States, DC, PR, ON) Portfolio Summary As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS** (1) Based on investment (1) (1) Royal Sonesta Houston Galleria Houston, TX

------

![](ex992svcq42022supp017.jpg)

Supplemental Q4 2022 17 Industry No. of Properties Rooms/ Square Footage Investments Percent of Total Investment 1. Hotels 238 40,053 $6,179,444 54.7% 2. Travel Centers 180 5,136,653 3,352,096 29.7% 3. Restaurants-Quick Service 216 690,042 294,153 2.5% 4. Restaurants-Casual Dining 53 415,547 192,199 1.7% 5. Health and Fitness 13 873,258 186,365 1.7% 6. Movie Theaters 19 976,418 164,809 1.5% 7. Grocery Stores 19 1,020,819 129,152 1.1% 8. Home Goods and Leisure 20 628,864 120,702 1.1% 9. Medical, Dental Office 71 401,810 109,232 1.0% 10. Automotive Equipment & Services 64 463,492 107,054 0.9% 11. Automotive Dealers 8 177,433 62,550 0.6% 12. Entertainment 4 199,853 61,436 0.5% 13. Educational Services 9 220,758 55,319 0.5% 14. General Merchandise Stores 4 381,193 55,112 0.5% 15. Building Materials 29 465,283 33,280 0.3% 16. Car Washes 5 41,456 28,658 0.3% 17. Miscellaneous Manufacturing 5 538,932 24,148 0.2% 18. Drug Stores and Pharmacies 7 67,423 19,251 0.2% 19. Sporting Goods 3 120,847 17,742 0.2% 20. Legal Services 5 25,429 11,362 0.1% 21. Dollar Stores 3 27,593 2,971 —% 22. Other 5 211,465 27,243 0.2% 23. Vacant 23 289,757 52,994 0.5% Total 1,003 40,053 / 13,374,325 $11,287,272 100.0% Consolidated Portfolio Diversification by Industry As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS** TA - 065 Seymore Seymore, IN

------

![](ex992svcq42022supp018.jpg)

Supplemental Q4 2022 18 Investments State Total Property Count Hotel Count Net Lease Count Total ($000s) % of Total Hotel ($000s) Hotel % of Total Net Lease ($000s) Net Lease % of Total California 58 36 22 $1,372,111 12.2 % $1,099,046 17.8 % $273,065 5.3 % Texas 77 21 56 882,781 7.8 % 366,762 5.9 % 516,020 10.1 % Illinois 66 10 56 704,203 6.2 % 413,195 6.7 % 291,008 5.7 % Georgia 91 17 74 678,393 6.0 % 408,259 6.6 % 270,134 5.3 % Florida 57 11 46 517,432 4.6 % 271,193 4.4 % 246,239 4.8 % Arizona 39 14 25 471,282 4.2 % 224,239 3.6 % 247,042 4.8 % Ohio 46 5 41 450,991 4.0 % 120,275 1.9 % 330,716 6.5 % Louisiana 15 3 12 378,634 3.4 % 246,929 4.0 % 131,705 2.6 % Pennsylvania 36 8 28 379,336 3.4 % 175,217 2.8 % 204,119 4.0 % New Jersey 12 9 3 290,257 2.6 % 189,279 3.1 % 100,978 2.0 % Top 10 497 134 363 6,125,420 54.4 % 3,514,394 56.8 % 2,611,026 51.1 % Other (1) 506 104 402 5,161,852 45.6 % 2,665,050 43.2 % 2,496,802 48.9 % Total 1,003 238 765 $11,287,272 100.0 % $6,179,444 100.0 % $5,107,828 100.0 % (1) Consists of properties in 36 different states, the District of Columbia, Puerto Rico and Ontario, Canada with an average investment of $10,161 per property. Consolidated Portfolio by Geographic Diversification As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS** Royal Sonesta Boston Cambridge, MA

------

![](ex992svcq42022supp019.jpg)

Supplemental Q4 2022 19 Brand Service Level Chain Scale Number of Hotels Percent of Total Number of Hotels Number of Rooms or Suites Percent of Total Number of Rooms or Suites Investment Percent of Total Hotel Investment Investment Per Room or Suite Royal Sonesta Hotels® Full Service Upper Upscale 17 7.1 % 5,663 14.1 % $1,860,539 30.1 % $328,543 Sonesta Hotels & Resorts® Full Service Upscale 23 9.7 % 7,368 18.4 % 1,178,048 19.1 % 159,887 Sonesta ES Suites® Extended Stay Upper Midscale 60 25.2 % 7,643 19.1 % 1,083,910 17.5 % 141,817 Sonesta Select® Select Service Upscale 45 18.9 % 6,579 16.4 % 682,874 11.1 % 103,796 Sonesta Simply Suites® Extended Stay Midscale 51 21.4 % 6,464 16.1 % 567,082 9.2 % 87,729 Hyatt Place® Select Service Upscale 17 7.1 % 2,107 5.3 % 247,665 4.0 % 117,544 Courtyard by Marriott® Select Service Upscale 13 5.5 % 1,813 4.5 % 172,301 2.8 % 95,036 Radisson® Hotels & Resorts Full Service Upscale 5 2.1 % 1,149 2.9 % 163,141 2.6 % 141,985 Crowne Plaza® Full Service Upscale 1 0.4 % 495 1.2 % 123,734 2.0 % 249,968 Country Inns & Suites® by Radisson Full Service Upper Midscale 3 1.3 % 430 1.1 % 54,076 0.9 % 125,758 Residence Inn by Marriott® Extended Stay Upscale 3 1.3 % 342 0.9 % 46,074 0.7 % 134,719 Total/Average Hotels 238 100.0 % 40,053 100.0 % $6,179,444 100.0 % $154,282 Hotel Portfolio by Brand As of December 31, 2022 (dollars in thousands, except per room or suite data) RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp020.jpg)

Supplemental Q4 2022 20 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full Service 22 7,149 58.6 % 54.4 % 4.2 pts $143.90 $132.70 8.4 % $84.33 $72.19 16.8 % Royal Sonesta (1) Full Service 17 5,663 51.3 % 39.8 % 11.5 pts 235.75 207.21 13.8 % 120.94 82.47 46.6 % Radisson Hotel Full Service 5 1,149 63.0 % 56.4 % 6.6 pts 129.80 110.73 17.2 % 81.77 62.45 30.9 % Crowne Plaza Full Service 1 495 53.8 % 46.4 % 7.4 pts 137.10 114.97 19.2 % 73.76 53.35 38.3 % Country Inn and Suites Full Service 3 430 55.1 % 53.3 % 1.8 pts 131.31 105.04 25.0 % 72.35 55.99 29.2 % Full Service Total / Average 48 14,886 55.8 % 48.7 % 7.1 pts 174.48 152.45 14.5 % 97.36 74.24 31.1 % Sonesta Select Select Service 45 6,579 49.7 % 42.6 % 7.1 pts 114.97 107.27 7.2 % 57.14 45.70 25.0 % Hyatt Place Select Service 17 2,107 65.1 % 63.3 % 1.8 pts 119.04 107.93 10.3 % 77.50 68.32 13.4 % Courtyard Select Service 13 1,813 54.1 % 50.8 % 3.3 pts 119.47 109.18 9.4 % 64.63 55.46 16.5 % Select Service Total / Average 75 10,499 53.5 % 48.2 % 5.3 pts 116.75 107.79 8.3 % 62.46 51.95 20.2 % Sonesta ES Suites Extended Stay 60 7,643 65.1 % 68.0 % (2.9) pts 126.84 112.53 12.7 % 82.57 76.52 7.9 % Sonesta Simply Suites Extended Stay 50 6,366 66.5 % 67.4 % (0.9) pts 90.15 78.12 15.4 % 59.95 52.65 13.9 % Residence Inn Extended Stay 3 342 58.0 % 58.6 % (0.6) pts 122.70 112.07 9.5 % 71.17 65.67 8.4 % Extended Stay Total / Average 113 14,351 65.5 % 67.5 % (2.0) pts 110.35 97.42 13.3 % 72.28 65.76 9.9 % 236 39,736 58.7 % 55.4 % 3.3 pts $134.64 $117.54 14.5 % $79.03 $65.12 21.4 % Hotel Operating Statistics by Service Level - Comparable Hotels RETURN TO **TABLE OF CONTENTS** All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Includes operating data for periods prior to when certain hotels were managed by Sonesta.

------

![](ex992svcq42022supp021.jpg)

Supplemental Q4 2022 21 All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Includes operating data for periods prior to when certain hotels were managed by Sonesta. Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Year Ended December 31, Year Ended December 31, Year Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (1) Full Service 22 7,149 60.4 % 47.4 % 13.0 pts $150.40 $132.07 13.9 % $90.84 $62.60 45.1 % Royal Sonesta (1) Full Service 16 5,291 52.2 % 36.3 % 15.9 pts 236.67 190.05 24.5 % 123.54 68.99 79.1 % Radisson Hotel Full Service 5 1,149 64.1 % 50.4 % 13.7 pts 133.59 105.23 27.0 % 85.63 53.04 61.4 % Crowne Plaza Full Service 1 495 54.4 % 46.6 % 7.8 pts 132.27 111.83 18.3 % 71.95 52.11 38.1 % Country Inn and Suites Full Service 3 430 62.8 % 50.0 % 12.8 pts 136.92 109.10 25.5 % 85.99 54.55 57.6 % Full Service Total / Average 47 14,514 57.5 % 43.7 % 13.8 pts 176.67 145.40 21.5 % 101.59 63.54 59.9 % Sonesta Select (1) Select Service 45 6,579 51.1 % 37.0 % 14.1 pts 117.49 105.56 11.3 % 60.04 39.06 53.7 % Hyatt Place Select Service 17 2,107 67.4 % 60.7 % 6.7 pts 119.00 101.76 16.9 % 80.21 61.77 29.9 % Courtyard Select Service 13 1,813 55.5 % 50.7 % 4.8 pts 119.01 103.14 15.4 % 66.05 52.29 26.3 % Select Service Total / Average 75 10,499 55.1 % 44.1 % 11.0 pts 118.13 104.03 13.6 % 65.09 45.88 41.9 % Sonesta ES Suites (1) Extended Stay 60 7,643 69.3 % 66.7 % 2.6 pts 124.90 105.72 18.1 % 86.56 70.52 22.7 % Sonesta Simply Suites (1) Extended Stay 50 6,366 71.2 % 68.8 % 2.4 pts 86.18 72.37 19.1 % 61.36 49.79 23.2 % Residence Inn Extended Stay 3 342 64.0 % 57.2 % 6.8 pts 120.25 110.01 9.3 % 76.96 62.93 22.3 % Extended Stay Total / Average 113 14,351 70.0 % 67.4 % 2.6 pts 107.49 90.81 18.4 % 75.24 61.21 22.9 % 235 39,364 61.4 % 52.5 % 8.9 pts $133.72 $110.39 21.1 % $82.10 $57.95 41.7 % Hotel Operating Statistics by Service Level - Comparable Hotels RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp022.jpg)

Supplemental Q4 2022 22 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full Service 23 7,368 58.6 % 54.4 % 4.2 pts $143.90 $132.70 8.4 % $84.33 $72.19 16.8 % Royal Sonesta (2) Full Service 17 5,663 51.3 % 39.8 % 11.5 pts 235.75 207.21 13.8 % 120.94 82.47 46.6 % Radisson Hotel Full Service 5 1,149 63.0 % 56.4 % 6.6 pts 129.80 110.73 17.2 % 81.77 62.45 30.9 % Crowne Plaza Full Service 1 495 53.8 % 46.4 % 7.4 pts 137.10 114.97 19.2 % 73.76 53.35 38.3 % Country Inn and Suites Full Service 3 430 55.1 % 53.3 % 1.8 pts 131.31 105.04 25.0 % 72.35 55.99 29.2 % Full Service Total / Average 49 15,105 55.8 % 48.7 % 7.1 pts 174.48 152.45 14.5 % 97.36 74.24 31.1 % Sonesta Select Select Service 45 6,579 49.7 % 42.6 % 7.1 pts 114.97 107.27 7.2 % 57.14 45.70 25.0 % Hyatt Place Select Service 17 2,107 65.1 % 63.3 % 1.8 pts 119.04 107.93 10.3 % 77.50 68.32 13.4 % Courtyard Select Service 13 1,813 54.1 % 50.8 % 3.3 pts 119.47 109.18 9.4 % 64.63 55.46 16.5 % Select Service Total / Average 75 10,499 53.5 % 48.2 % 5.3 pts 116.75 107.79 8.3 % 62.46 51.95 20.2 % Sonesta ES Suites Extended Stay 60 7,643 65.1 % 68.0 % (2.9) pts 126.84 112.53 12.7 % 82.57 76.52 7.9 % Sonesta Simply Suites Extended Stay 51 6,464 65.9 % 66.4 % (0.5) pts 90.15 78.11 15.4 % 59.41 51.87 14.5 % Residence Inn Extended Stay 3 342 58.0 % 58.6 % (0.6) pts 122.70 112.07 9.5 % 71.17 65.67 8.4 % Extended Stay Total / Average 114 14,449 65.2 % 67.1 % (1.9) pts 110.35 97.41 13.3 % 71.95 65.36 10.1 % 238 40,053 58.6 % 55.3 % 3.3 pts $134.64 $117.54 14.5 % $78.90 $65.00 21.4 % Hotel Operating Statistics by Service Level - All Hotels(1) RETURN TO **TABLE OF CONTENTS** All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Results of all hotels owned as of December 31, 2022. Excludes the results of hotels sold during the periods presented. (2) Includes operating data for periods prior to when certain hotels were managed by Sonesta.

------

![](ex992svcq42022supp023.jpg)

Supplemental Q4 2022 23 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (2) Full Service 23 7,368 60.4 % 47.4 % 13.0 pts $150.40 $132.07 13.9 % $90.84 $62.60 45.1 % Royal Sonesta (2) Full Service 17 5,663 52.2 % 35.7 % 16.5 pts 236.07 190.02 24.2 % 123.23 67.84 81.6 % Radisson Hotel Full Service 5 1,149 64.1 % 50.4 % 13.7 pts 133.59 105.23 27.0 % 85.63 53.04 61.4 % Crowne Plaza Full Service 1 495 54.4 % 46.6 % 7.8 pts 132.27 111.83 18.3 % 71.95 52.11 38.1 % Country Inn and Suites Full Service 3 430 62.8 % 50.0 % 12.8 pts 136.92 109.10 25.5 % 85.99 54.55 57.6 % Full Service Total / Average 49 15,105 57.4 % 43.4 % 14.0 pts 177.85 145.78 22.0 % 102.09 63.27 61.4 % Sonesta Select (2) Select Service 45 6,579 51.1 % 37.0 % 14.1 pts 117.49 105.56 11.3 % 60.04 39.06 53.7 % Hyatt Place Select Service 17 2,107 67.4 % 60.7 % 6.7 pts 119.00 101.76 16.9 % 80.21 61.77 29.9 % Courtyard Select Service 13 1,813 55.5 % 50.7 % 4.8 pts 119.01 103.14 15.4 % 66.05 52.29 26.3 % Select Service Total / Average 75 10,499 55.1 % 44.1 % 11.0 pts 118.13 104.03 13.6 % 65.09 45.88 41.9 % Sonesta ES Suites (2) Extended Stay 60 7,643 69.3 % 66.7 % 2.6 pts 124.90 105.72 18.1 % 86.56 70.52 22.7 % Sonesta Simply Suites (2) Extended Stay 51 6,464 70.4 % 68.6 % 1.8 pts 86.18 72.25 19.3 % 60.67 49.56 22.4 % Residence Inn Extended Stay 3 342 64.0 % 57.2 % 6.8 pts 120.25 110.01 9.3 % 76.96 62.93 22.3 % Extended Stay Total / Average 114 14,449 69.7 % 67.3 % 2.4 pts 107.49 90.66 18.6 % 74.92 61.01 22.8 % 238 40,053 61.3 % 52.3 % 9.0 pts $134.47 $110.47 21.7 % $82.43 $57.78 42.7 % Hotel Operating Statistics by Service Level - All Hotels(1) RETURN TO **TABLE OF CONTENTS** All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Results of all hotels owned as of December 31, 2022. Excludes the results of hotels sold during the periods presented. (2) Includes operating data for periods prior to when certain hotels were managed by Sonesta.

------

![](ex992svcq42022supp024.jpg)

Supplemental Q4 2022 24 (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Number of hotels 236 236 236 236 236 235 235 Room revenues $287,337 $336,616 $333,893 $227,034 $234,829 $1,168,811 $824,395 Food and beverage revenues 45,952 42,573 44,095 25,398 30,697 154,960 81,246 Other revenues 16,310 16,635 17,461 12,483 12,816 61,737 45,838 Hotel operating revenues - comparable hotels 349,599 395,824 395,449 264,915 278,342 1,385,508 951,479 Rooms expenses 94,005 102,650 98,013 77,032 78,181 363,399 271,401 Food and beverage expenses 35,226 34,430 32,162 22,797 25,824 120,140 68,799 Other direct and indirect expenses 125,255 130,319 127,909 112,292 109,131 487,356 404,555 Management fees 12,898 14,718 14,625 10,140 10,848 51,779 34,644 Real estate taxes, insurance and other 24,966 29,976 29,587 31,738 25,390 113,506 103,790 FF&E reserves (11) 2,252 2,621 2,600 1,794 1,236 9,267 4,403 Hotel operating expenses - comparable hotels 294,602 314,714 304,896 255,793 250,610 1,145,447 887,592 Hotel EBITDA $54,997 $81,110 $90,553 $9,122 $27,732 $240,061 $63,887 Hotel EBITDA Margin 15.7 % 20.5 % 22.9 % 3.4 % 10.0 % 17.3 % 6.7 % Hotel operating revenues (GAAP) (1) $350,501 $400,453 $418,984 $297,406 $317,215 $1,467,344 $1,104,678 Add (less) Hotel operating revenues from non-comparable hotels (902) (4,629) (23,535) (32,491) (38,873) (81,836) (153,199) Hotel operating revenues - comparable hotels $349,599 $395,824 $395,449 $264,915 $278,342 $1,385,508 $951,479 Hotel operating expenses (GAAP) (1) $293,554 $318,266 $325,194 $290,343 $286,968 $1,227,357 $1,010,737 Add (less) Hotel operating expenses from non-comparable hotels (1,825) (6,794) (23,519) (36,965) (38,215) (91,798) (143,867) Reduction for security deposit and guaranty fundings, net (3) — — — — — — 15,698 FF&E reserves from managed hotel operations (11) 2,252 2,621 2,600 1,794 1,236 9,267 4,403 Other (12) 621 621 621 621 621 621 621 Hotel operating expenses - comparable hotels $294,602 $314,714 $304,896 $255,793 $250,610 $1,145,447 $887,592 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels RETURN TO **TABLE OF CONTENTS** See accompanying notes on page 10.

------

![](ex992svcq42022supp025.jpg)

Supplemental Q4 2022 25 (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Number of hotels 238 242 247 298 303 238 303 Room revenues $288,082 $341,106 $357,117 $258,620 $272,458 $1,244,925 $972,411 Food and beverage revenues 45,968 42,636 44,256 25,902 31,503 158,762 84,430 Other revenues 16,451 16,711 17,611 12,884 13,254 63,657 47,837 Hotel operating revenues 350,501 400,453 418,984 297,406 317,215 1,467,344 1,104,678 Rooms expenses 93,067 104,761 106,982 88,743 90,705 393,553 321,228 Food and beverage expenses 35,248 34,497 32,333 23,234 26,768 125,312 72,884 Other direct and indirect expenses 124,396 130,470 136,099 127,017 126,208 517,982 458,586 Management fees 12,450 14,362 15,240 11,332 11,869 53,384 40,478 Real estate taxes, insurance and other 29,014 34,797 35,161 40,638 32,039 139,610 135,741 FF&E reserves (11) 2,252 2,622 3,172 1,222 1,236 9,268 4,546 Hotel operating expenses 296,427 321,509 328,987 292,186 288,825 1,239,109 1,033,463 Hotel EBITDA $54,074 $78,944 $89,997 $5,220 $28,390 $228,235 $71,215 Hotel EBITDA Margin 15.4 % 19.7 % 21.5 % 1.8 % 8.9 % 15.6 % 6.4 % Hotel operating expenses (GAAP) (1) $293,554 $318,266 $325,194 $290,343 $286,968 $1,227,357 $1,010,737 Add (less) Reduction for security deposit and guaranty fundings, net (3) — — — — — — 15,696 FF&E reserves from managed hotel operations (11) 2,252 2,622 3,172 1,222 1,236 9,268 4,546 Other (12) 621 621 621 621 621 2,484 2,484 Hotel operating expenses $296,427 $321,509 $328,987 $292,186 $288,825 $1,239,109 $1,033,463 Calculation and Reconciliation of Hotel EBITDA - All Hotels RETURN TO **TABLE OF CONTENTS** See accompanying notes on page 10.

------

![](ex992svcq42022supp026.jpg)

Supplemental Q4 2022 26 Brand Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America 133 3,643,581 $2,289,189 44.8 % $168,012 45.1 % 2.86x 2. Petro Stopping Centers 44 1,445,004 1,021,226 20.0 % 78,099 21.0 % 2.47x 3. The Great Escape 14 542,666 98,242 1.9 % 7,711 2.1 % 7.19x 4. Life Time Fitness 3 420,335 92,617 1.8 % 5,770 1.5 % 1.79x 5. AMC Theatres 9 442,240 82,488 1.6 % 6,716 1.8 % 1.73x 6. Buehler's Fresh Foods 5 502,727 76,469 1.5 % 5,657 1.5 % 3.48x 7. Heartland Dental 59 234,274 61,120 1.2 % 4,629 1.2 % 4.09x 8. Norms 10 63,490 53,673 1.1 % 3,628 1.0 % 2.11x 9. Express Oil Change 23 83,825 49,724 1.0 % 3,717 1.0 % 4.32x 10. Pizza Hut 40 167,366 45,285 0.9 % 3,401 0.9 % 2.21x 11. Flying J Travel Plaza 3 48,069 41,681 0.8 % 3,215 0.9 % 5.80x 12. Courthouse Athletic Club 4 193,659 39,688 0.8 % 1,878 0.5 % 1.35x 13. America's Auto Auction 6 72,338 38,314 0.8 % 3,216 0.9 % 5.88x 14. Fleet Farm 1 218,248 37,802 0.7 % 2,728 0.7 % 1.75x 15. B&B Theatres 4 261,300 37,619 0.7 % 2,885 0.8 % 0.09x 16. Big Al's 2 111,912 35,214 0.7 % 2,336 0.6 % 1.55x 17. Regal Cinemas 5 223,846 34,953 0.7 % 2,962 0.8 % 1.39x 18. Burger King 21 68,710 34,289 0.7 % 2,085 0.6 % 2.58x 19. Hardee's 19 62,792 31,844 0.6 % 2,123 0.6 % 1.22x 20. Martin's 16 81,909 31,144 0.6 % 2,252 0.6 % 2.42x 21. Arby's 19 57,868 29,234 0.6 % 1,731 0.5 % 4.15x 22. Crème de la Crème 4 81,929 29,131 0.6 % 2,429 0.7 % 1.34x 23. Mister Car Wash 5 41,456 28,658 0.6 % 2,170 0.6 % 3.45x 24. Popeye's 20 45,708 28,434 0.6 % 1,972 0.5 % 3.43x 25. Church's Chicken 32 43,399 26,326 0.5 % 1,796 0.5 % 3.87x 26. Other (1) 264 4,215,674 733,464 14.2 % 49,300 13.1 % 4.03x Total 765 13,374,325 $5,107,828 100.0 % $372,418 100.0 % 3.00x (1) Consists of 113 distinct brands with an average investment of $2,778 per property. Net Lease Portfolio by Brand As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS** 457 W. Broadway Road Tempe, AZ

------

![](ex992svcq42022supp027.jpg)

Supplemental Q4 2022 27 Industry No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 180 5,136,653 $3,352,096 65.6% $249,325 66.9% 2.78x 2. Restaurants-Quick Service 216 690,042 294,153 5.8% 19,908 5.3% 3.20x 3. Restaurants-Casual Dining 53 415,547 192,199 3.8% 11,945 3.2% 2.50x 4. Health and Fitness 13 873,258 186,365 3.6% 11,011 3.0% 1.66x 5. Movie Theaters 19 976,418 164,809 3.2% 13,163 3.5% 1.42x 6. Grocery Stores 19 1,020,819 129,152 2.5% 9,212 2.5% 4.05x 7. Home Goods and Leisure 20 628,864 120,702 2.4% 9,674 2.6% 6.11x 8. Medical, Dental Office 71 401,810 109,232 2.1% 8,759 2.4% 2.35x 9. Automotive Equipment & Services 64 463,492 107,054 2.1% 7,665 2.1% 4.06x 10. Automotive Dealers 8 177,433 62,550 1.2% 4,956 1.3% 5.65x 11. Entertainment 4 199,853 61,436 1.2% 4,301 1.2% 3.12x 12. Educational Services 9 220,758 55,319 1.1% 4,451 1.2% 1.78x 13. General Merchandise Stores 4 381,193 55,112 1.1% 3,874 1.0% 2.86x 14. Building Materials 29 465,283 33,280 0.7% 2,783 0.7% 7.41x 15. Car Washes 5 41,456 28,658 0.6% 2,170 0.6% 3.45x 16. Miscellaneous Manufacturing 5 538,932 24,148 0.5% 1,689 0.4% 16.46x 17. Drug Stores and Pharmacies 7 67,423 19,251 0.4% 1,258 0.3% 0.59x 18. Sporting Goods 3 120,847 17,742 0.3% 1,090 0.3% 4.99x 19. Legal Services 5 25,429 11,362 0.2% 1,054 0.3% 1.89x 20. Dollar Stores 3 27,593 2,971 0.1% 189 0.1% 2.69x 21. Other (1) 5 211,465 27,243 0.5% 3,941 1.1% 4.76x 22 Vacant 23 289,757 52,994 1.0% — —% —x Total 765 13,374,325 $5,107,828 100.0% $372,418 100.0% 3.00x (1) Consists of miscellaneous businesses with an average investment of $5,449 per property. Net Lease Portfolio by Industry As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS** 44905 Mound Road Sterling Heights, MI

------

![](ex992svcq42022supp028.jpg)

Supplemental Q4 2022 28 Tenant Brand Affiliation No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Weighted Average Lease Term Rent Coverage 1. TravelCenters of America Inc.(1) TravelCenters of America / Petro Stopping Centers 177 5,088,585 $3,310,415 64.8 % $246,110 66.1 % 10.05 2.74x 2. Universal Pool Co., Inc. The Great Escape 14 542,666 98,242 1.9 % 7,711 2.1 % 4.67 7.19x 3. Healthy Way of Life II, LLC Life Time Fitness 3 420,335 92,617 1.8 % 5,770 1.5 % 12.50 1.79x 4. American Multi-Cinema, Inc. AMC Theatres 9 442,240 82,488 1.6 % 6,716 1.8 % 3.15 1.73x 5. Styx Acquisition, LLC Buehler's Fresh Foods 5 502,727 76,469 1.5 % 5,657 1.5 % 12.84 3.48x 6. Professional Resource Development, Inc. Heartland Dental 59 234,274 61,120 1.2 % 4,629 1.2 % 3.25 4.09x 7. Norms Restaurants, LLC Norms 10 63,490 53,673 1.1 % 3,628 1.0 % 22.51 2.11x 8. Express Oil Change, L.L.C. Express Oil Change 23 83,825 49,724 1.0 % 3,717 1.0 % 12.25 4.32x 9. Pilot Travel Centers LLC Flying J Travel Plaza 3 48,069 41,681 0.8 % 3,215 0.9 % 5.98 5.80x 10. Automotive Remarketing Group, Inc. America's Auto Auction 6 72,338 38,314 0.8 % 3,216 0.9 % 12.30 5.88x Sub-total, Top 10 309 7,498,549 3,904,743 76.4 % 290,369 78.0 % 9.91 2.93x 11. Other (2) Various 456 5,875,776 1,203,085 23.6 % 82,049 22.0 % 7.11 3.24x Total 765 13,374,325 $5,107,828 100.0 % $372,418 100.0 % 9.29 3.00x (1) TA is our largest tenant. As of December 31, 2022, we leased 177 travel centers (133 under the TravelCenters of America brand and 44 under the Petro Stopping Centers brand) to a subsidiary of TA under five master leases that expire in 2029, 2031, 2032, 2033 and 2035, respectively. During 2022, we assigned the leasehold interest of two travel centers to TA. TA has two renewal options for 15 years each for each lease for all of the travel centers under the lease. In addition to the payment of our minimum rent, these leases provide for payment to us of percentage rent based on increases in total non-fuel revenues over base levels (3.5% of non-fuel revenues above threshold amounts defined in the leases). TA's remaining deferred rent obligation of $4,404 as of December 31, 2022 was paid in January 2023. (2) Consists of 170 tenants with an average investment of $7,077. Net Lease Portfolio by Tenant (Top 10) As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp029.jpg)

Supplemental Q4 2022 29 Year (1) Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2023 271,062 $2,207 0.6% 0.6% 2024 769,082 11,200 3.0% 3.6% 2025 436,524 8,974 2.4% 6.0% 2026 1,080,336 12,215 3.3% 9.3% 2027 1,071,904 14,164 3.8% 13.1% 2028 555,218 9,475 2.5% 15.6% 2029 1,266,197 48,494 13.0% 28.6% 2030 138,590 4,216 1.1% 29.7% 2031 1,321,160 48,848 13.1% 42.8% 2032 1,292,177 53,756 14.4% 57.2% 2033 1,153,360 52,516 14.1% 71.3% 2034 144,247 4,479 1.2% 72.5% 2035 2,212,712 80,368 21.7% 94.2% 2036 558,374 8,069 2.2% 96.4% 2037 35,103 465 0.1% 96.5% 2038 66,700 1,153 0.3% 96.8% 2039 134,901 3,214 0.9% 97.7% 2040 115,142 2,406 0.6% 98.3% 2041 223,043 2,291 0.6% 98.9% 2042 — — —% 98.9% 2043 141,134 280 0.1% 99.0% 2044 — — —% 99.0% 2045 63,490 3,628 1.0% 100.0% Total 13,050,456 $372,418 100.0% Weighted Average Lease Term 8.7 years 9.6 years (1) The year of lease expiration is pursuant to contract terms. Net Lease Portfolio - Expiration Schedule As of December 31, 2022 (dollars in thousands) RETURN TO **TABLE OF CONTENTS** 1410 N. Roosevelt Avenue Burlington, IA

------

![](ex992svcq42022supp030.jpg)

Supplemental Q4 2022 30 As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Properties (end of period)(1) 765 769 775 786 788 Total square feet 13,374,325 13,412,371 13,406,568 13,515,100 13,522,060 Square feet leased 13,050,456 13,160,403 13,251,701 13,185,809 13,266,385 Percentage leased 97.6 % 98.1 % 98.8 % 97.6 % 98.1 % As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Vacant properties beginning of period 21 17 29 30 32 Vacant property sales / leased (1) (7) (12) (3) (2) Lease terminations 3 11 — 2 — Vacant properties end of the period 23 21 17 29 30 Net Lease Portfolio - Occupancy Summary As of December 31, 2022 RETURN TO **TABLE OF CONTENTS** 201 Perimeter Center Parkway Atlanta, GA (1) During 2022, we assigned the leasehold interest of two travel centers to TA.

------

![](ex992svcq42022supp031.jpg)

Supplemental Q4 2022 31 Non-GAAP Financial Measures We present certain "non-GAAP financial measures" within the meaning of the applicable Securities and Exchange Commission, or SEC, rules, including FFO, Normalized FFO, EBITDA, Hotel EBITDA, Adjusted Hotel EBITDA, EBITDAre and Adjusted EBITDAre. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of income (loss). We consider these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income (loss). We believe these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of our operating performance between periods and with other REITs and, in the case of Hotel EBITDA, reflecting only those income and expense items that are generated and incurred at the hotel level may help both investors and management to understand the operations of our hotels. FFO and Normalized FFO: We calculate funds from operations, or FFO, and Normalized FFO as shown on page 8. FFO is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is net income (loss), calculated in accordance with GAAP, excluding any gain or loss on sale of properties and loss on impairment of real estate assets, if any, plus real estate depreciation and amortization, less any unrealized gains and losses on equity securities, as well as adjustments to reflect our share of FFO attributable to an investee and certain other adjustments currently not applicable to us. In calculating Normalized FFO, we adjust for the items shown on page 8. FFO and Normalized FFO are among the factors considered by our Board of Trustees when determining the amount of distributions to our shareholders. Other factors include, but are not limited to, requirements to satisfy our REIT distribution requirements, the availability to us of debt and equity capital, our distribution rate as a percentage of the trading price of our common shares, or dividend yield, and to the dividend yield of other REITs, our expectation of our future capital requirements and operating performance and our expected needs for and availability of cash to pay our obligations. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than we do. EBITDA, EBITDAre and Adjusted EBITDAre: We calculate earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, and Adjusted EBITDAre as shown on page 9. EBITDAre is calculated on the basis defined by Nareit, which is EBITDA, excluding gains and losses on the sale of real estate, loss on impairment of real estate assets, if any, and adjustments to reflect our share of EBITDAre attributable to an investee. In calculating Adjusted EBITDAre, we adjust for the items shown on page 9. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than we do. Hotel EBITDA: We calculate Hotel EBITDA as hotel operating revenues less hotel operating expenses of all managed and leased hotels, prior to any adjustments required for presentation in our consolidated statements of income (loss) in accordance with GAAP. We believe that Hotel EBITDA provides useful information to management and investors as a key measure of the profitability of our hotel operations. Other Definitions Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include original cost of real estate assets calculated in accordance with GAAP before impairment write-downs, if any, and exclude depreciation and amortization, accounts receivable and intangible assets. Annualized Dividend Yield: Annualized dividend yield is the annualized dividend paid during the period divided by the closing price of our common shares at the end of the period. Average Daily Rate: ADR represents rooms revenue divided by the total number of room nights sold in a given period. ADR provides useful insight on pricing at our hotels and is a measure widely used in the hotel industry. Chain Scale: As characterized by STR, a data benchmark and analytics provider for the lodging industry. Comparable Hotels Data: We present RevPAR, ADR and occupancy for the periods presented on a comparable basis to facilitate comparisons between periods. We generally define comparable hotels as those that we owned on December 31, 2022 and were open and operating since the beginning of the earliest period being compared. For the periods presented, our comparable results excluded three hotels that had suspended operations during part of the periods presented. Consolidated Income Available for Debt Service: Consolidated income available for debt service, as defined in our debt agreements, is earnings from operations excluding interest expense, unrealized gains and losses on equity securities, depreciation and amortization, loss on asset impairment, unrealized appreciation on assets held for sale, gains and losses on early extinguishment of debt, gains and losses on sales of property and amortization of deferred charges. Debt: Debt amounts reflect the principal balance as of the date reported. Net debt means total debt less unrestricted cash and cash equivalents as of the date reported. Equity Research Coverage / Ratings Agencies: SVC is followed by the analysts and its publicly held debt is rated by the rating agencies listed on page 4. Please note that any opinions, estimates or forecasts regarding SVC's performance made by these analysts or agencies do not represent opinions, forecasts or predictions of SVC or its management. SVC does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies. . Non-GAAP Financial Measures and Certain Definitions RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp032.jpg)

Supplemental Q4 2022 32 FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. FF&E Reserve Deposits Not Funded by Hotel Operations: The operating agreements for our hotels generally provide that, if necessary, we will provide FF&E funding in excess of escrowed reserves. To the extent we make such fundings, our contractual owner's priority returns or rents generally increase by a percentage of the amounts we fund. Gross Book Value of Real Estate Assets: Gross book value of real estate assets is real estate properties at cost plus acquisition related costs, if any, before purchase price allocations, less impairment write-downs, if any. Hotel EBITDA Margin: Hotel EBITDA as a percentage of hotel operating revenues. Investment: We define hotel investment as historical cost of our properties plus capital improvements funded by us less impairment write-downs, if any, and excludes capital improvements made from FF&E reserves funded from hotel operations that do not result in increases in owner's priority return or rents. We define net lease investment as historical cost of our properties plus capital improvements funded by us less impairment write-downs, if any. Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy is an important measure of the utilization rate and demand of our hotels. Owner's Priority Return: Each of our management agreements or leases with hotel operators provides for payment to us of an annual owner's priority return or minimum rent, respectively. Certain of these minimum payment amounts are secured by full or limited guarantees. In addition, certain of our hotel management agreements provide for payment to us of additional amounts to the extent of available cash flows as defined in the management agreement. Payments of these additional amounts are not guaranteed. Each of our agreements with our net lease tenants provides for payment to us of minimum rent. Certain of these minimum payment amounts are secured by full or limited guarantees. Annualized minimum rent amounts represent cash rent amounts due to us and exclude adjustments, if any, necessary to record scheduled rent changes under certain of our leases, the deferred rent obligations payable to us under our leases with TA and the estimated future payments to us under our TA leases for the cost of removing underground storage tanks at our travel centers on a straight line basis or any reimbursement of expenses paid by us. Rent Coverage: We define rent coverage as earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, divided by the annual minimum rent due to us weighted by the minimum rent of the property to total minimum rents of the net lease portfolio. EBITDAR amounts used to determine rent coverage are generally for the latest twelve month period, based on the most recent operating information, if any, furnished by the tenant. Operating statements furnished by the tenant often are unaudited and, in certain cases, may not have been prepared in accordance with GAAP and are not independently verified by us. In instances where we do not have tenant financial information, we calculate an implied coverage ratio for the period based on other tenants with available financial statements operating the same brand or within the same industry. As a result, we believe using this implied coverage metric provides a more reasonable estimated representation of recent operating results and the financial condition for those tenants. Revenue per Available Room: RevPAR represents rooms revenue divided by the total number of room nights available to guests for a given period. RevPAR is an industry metric correlated to occupancy and ADR and helps measure revenue performance over comparable periods. Total Gross Assets: Total gross assets is total assets plus accumulated depreciation. Non-GAAP Financial Measures and Certain Definitions (Continued) RETURN TO **TABLE OF CONTENTS**

------

![](ex992svcq42022supp033.jpg)

Supplemental Q4 2022 33 This supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "will," "may" and negatives or derivatives of these or similar expressions, we are making forward-looking statements. These forward-looking statements are based upon our present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by our forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. The information contained in our filings with the SEC, including under "Risk Factors" in our periodic reports, or incorporated therein, identifies important factors that could cause our actual results to differ materially from those stated in or implied by our forward-looking statements. Our filings with the SEC are available on the SEC's website at www.sec.gov. You should not place undue reliance upon our forward-looking statements. Except as required by law, we do not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. Warning Concerning Forward-Looking Statements RETURN TO **TABLE OF CONTENTS**

------