EX-99.2 3 ex992svcq32020supprevise.htm EX-99.2 ex992svcq32020supprevise
Exhibit 99.2 SVC Service Properties Trust Nasdaq Listed Third Quarter 2020 Supplemental Operating and Financial Data Royal Sonesta Chase Park Plaza St. Louis, MO All amounts in this report are unaudited.


 
Table of Contents (1) CORPORATE INFORMATION Company Profile 4 Investor Information 5 Research Coverage 6 FINANCIALS Key Financial Data 8 Condensed Consolidated Balance Sheets 9 Condensed Consolidated Statements of Income 10 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre 11 Calculation of FFO and Normalized FFO 12 Notes to Condensed Consolidated Statements of Income, EBITDAre, Normalized FFO and Hotel EBITDA 13 Debt Summary 14 Debt Maturity Schedule 15 Leverage Ratios, Coverage Ratios and Public Debt Covenants 16 Capital Expenditure and Restricted Cash Activity 17 Property Acquisition and Disposition Information Since January 1, 2020 18 PORTFOLIO INFORMATION Portfolio Summary 20 Consolidated Portfolio by Brand Affiliation 21 Consolidated Portfolio Diversification by Industry 22 Hotel Portfolio by Brand 23 Hotel Operating Agreement Information 24, 25 Hotel Operating Statistics by Operating Agreement 26, 27 Hotel Operating Statistics by Service Level 28 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels 29 Calculation and Reconciliation of Hotel EBITDA - All Hotels 30 Hotel Coverage by Operating Agreement 31 Net Lease Portfolio by Brand 32 Net Lease Portfolio by Industry 33 Net Lease Portfolio by Tenant (Top 10) 34 Net Lease Portfolio Expiration Schedule 35 Net Lease Portfolio Occupancy and Leasing Summary 36 Non-GAAP Financial Measures and Certain Definitions 37, 38 WARNING CONCERNING FORWARD-LOOKING STATEMENTS 39 (1) Please refer to non-GAAP Financial Measures and Certain Definitions for terms used throughout the document. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 2


 
Corporate Information Sonesta Resort 130 Shipyard Drive Hilton Head, SC SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 3


 
Company Profile Corporate Headquarters: The Company: Two Newton Place Service Properties Trust, or SVC, we, our or us, is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada 255 Washington Street, Suite 300 with 149 distinct brands across 23 distinct industries. SVC is a component of 135 market indices and it comprises more than Newton, MA 02458-1634 1% of the following index as of September 30, 2020: Bloomberg REIT Hotels Index (BBREHOTL). (t) (617) 964-8389 Management: Stock Exchange Listing: SVC is managed by The RMR Group LLC, or RMR LLC, the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., RMR LLC is an alternative asset management company that was founded in 1986 to manage real estate Nasdaq companies and related businesses. RMR LLC primarily provides management services to four publicly traded equity REITs Trading Symbol: and three real estate related operating businesses. In addition to managing SVC, RMR LLC manages Industrial Logistics Properties Trust, a REIT that owns industrial and logistics properties, Office Properties Income Trust, a REIT that owns Common Shares: SVC buildings primarily leased to single tenants and those with high credit quality characteristics such as government entities, and Diversified Healthcare Trust, a REIT that primarily owns high-quality, private-pay healthcare properties like medical office Senior Unsecured Debt Ratings: and life science properties, senior living communities and wellness centers. RMR LLC also provides management services Standard & Poor's: BB- to Five Star Senior Living Inc., a publicly traded operator of senior living communities, Sonesta Holdco Corporation and its Moody's: Ba1/ Baa3 (1) subsidiaries, or Sonesta, a privately owned operator and franchisor of hotels (including some of the hotels that SVC owns) and cruise ships, and TravelCenters of America Inc., or TA, a publicly traded operator and franchisor of travel centers along (1) Baa3 rating assigned to guaranteed Senior Unsecured Notes. the U.S. Interstate Highway System (including 179 travel centers that SVC owns), and standalone truck service facilities and restaurants. RMR also advises RMR Mortgage Trust, which is in the process of converting from a registered investment Key Data (as of September 30, 2020): company to a publicly traded mortgage REIT, and Tremont Mortgage Trust, a publicly traded mortgage REIT, both of which (dollars in 000s) will focus on originating and investing in floating rate first mortgage loans, secured by middle market and transitional commercial real estate, through wholly owned Securities and Exchange Commission, or SEC, registered investment Total properties: 1,133 advisory subsidiaries. As of September 30, 2020, RMR LLC had $32.1 billion of real estate assets under management and Hotels 329 the combined RMR LLC managed companies had approximately $12 billion of annual revenues, over 2,100 properties and Net lease properties 804 approximately 42,500 employees. We believe that being managed by RMR LLC is a competitive advantage for SVC Number of hotel rooms/suites 51,404 because of RMR LLC’s depth of management and experience in the real estate industry. We also believe RMR LLC provides management services to us at costs that are lower than we would have to pay for similar quality services if we were self Total net lease square feet 13,682,478 managed. Q3 2020 total revenues $ 296,495 Q3 2020 net loss $ (102,642) Q3 2020 Normalized FFO $ 23,195 Q3 2020 Adjusted EBITDAre $ 103,611 SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 4


 
Investor Information Board of Trustees Laurie B. Burns Robert E. Cramer Donna D. Fraiche Independent Trustee Independent Trustee Independent Trustee John L. Harrington William A. Lamkin John G. Murray Lead Independent Trustee Independent Trustee Managing Trustee Adam D. Portnoy Chair of the Board & Managing Trustee Senior Management John G. Murray Brian E. Donley Ethan S. Bornstein President and Chief Executive Officer Chief Financial Officer and Treasurer Senior Vice President Todd W. Hargreaves Vice President and Chief Investment Officer Contact Information Investor Relations Inquiries Service Properties Trust Investor and media inquiries should be directed to Two Newton Place Kristin Brown, Director, Investor Relations at 255 Washington Street, Suite 300 (617) 796-8232, or kbrown@rmrgroup.com. Newton, MA 02458-1634 (t) (617) 964-8389 Financial inquiries should be directed to Brian E. Donley, (email) info@svcreit.com Chief Financial Officer and Treasurer, at (617) 964-8389 (website) www.svcreit.com or bdonley@rmrgroup.com. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 5


 
Research Coverage Equity Research Coverage B. Riley | FBR BTIG Janney Montgomery Scott Bryan Maher James Sullivan Tyler Batory (646) 885-5423 (212) 738-6139 (215) 665-4448 bmaher@fbr.com jsullivan@btig.com tbatory@janney.com Wells Fargo Securities Dori Kesten (617) 603-4233 dori.kesten@wellsfargo.com Rating Agencies Moody’s Investors Service S&P Global Reed Valutas Michael Souers (212) 553-14169 (212) 438-2508 reed.valutas@moodys.com michael.souers@spglobal.com SVC is followed by the analysts and its publicly held debt is rated by the rating agencies listed above. 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 6


 
FINANCIALS Sonesta ES Suites 1200 Hilmar Court Montgomery, AL SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 7


 
Key Financial Data (dollars in thousands, except per share data) As of and For the Three Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Selected Balance Sheet Data: Total gross assets $ 12,009,267 $ 12,026,904 $ 12,206,842 $ 12,154,728 $ 12,602,187 Total assets $ 8,796,673 $ 8,879,545 $ 8,996,623 $ 9,033,967 $ 9,515,503 Total liabilities $ 6,554,589 $ 6,533,824 $ 6,614,357 $ 6,528,089 $ 6,906,517 Total shareholders' equity $ 2,242,084 $ 2,345,721 $ 2,382,266 $ 2,505,878 $ 2,608,986 Selected Income Statement Data: Total revenues $ 296,495 $ 214,940 $ 483,766 $ 580,906 $ 599,772 Net income (loss) $ (102,642) $ (37,349) $ (33,650) $ (14,893) $ 40,074 FFO $ 23,195 $ 117,924 $ 123,084 $ 147,830 $ 147,184 Normalized FFO $ 23,195 $ 78,158 $ 123,084 $ 151,622 $ 155,635 Adjusted EBITDAre $ 103,611 $ 152,166 $ 195,137 $ 227,013 $ 209,545 Per Common Share Data (basic and diluted): Net income (loss) $ (0.62) $ (0.23) $ (0.20) $ (0.09) $ 0.24 FFO $ 0.14 $ 0.72 $ 0.75 $ 0.90 $ 0.90 Normalized FFO $ 0.14 $ 0.48 $ 0.75 $ 0.92 $ 0.95 Dividend Data: Annualized dividends paid per share during the period $ 0.04 $ 0.04 $ 2.16 $ 2.16 $ 2.16 Annualized dividend yield (at end of period) 0.5 % 0.6 % 40.0 % 8.9 % 8.4 % Normalized FFO payout ratio 7.1 % 2.1 % 72.0 % 58.7 % 56.8 % SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 8


 
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) As of September 30, 2020 As of December 31, 2019 ASSETS Real estate properties: Land $ 2,017,431 $ 2,066,602 Buildings, improvements and equipment 9,058,542 9,318,434 Total real estate properties, gross 11,075,973 11,385,036 Accumulated depreciation (3,212,594) (3,120,761) Total real estate properties, net 7,863,379 8,264,275 Acquired real estate leases and other intangibles, net 338,430 378,218 Assets held for sale 191,202 87,493 Cash and cash equivalents 47,847 27,633 Restricted cash 38,130 53,626 Due from related persons 58,648 68,653 Other assets, net 259,037 154,069 Total assets $ 8,796,673 $ 9,033,967 LIABILITIES AND SHAREHOLDERS' EQUITY Unsecured revolving credit facility $ 80,086 $ 377,000 Unsecured term loan, net 397,523 397,889 Senior unsecured notes, net 5,734,565 5,287,658 Security deposits 284 109,403 Accounts payable and other liabilities 334,475 335,696 Due to related persons 7,656 20,443 Total liabilities 6,554,589 6,528,089 Shareholders' equity: Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 164,823,833 and 164,563,034 shares issued and outstanding 1,648 1,646 Additional paid in capital 4,549,466 4,547,529 Cumulative other comprehensive loss 63 — Cumulative net income available for common shareholders 3,318,004 3,491,645 Cumulative common distributions (5,627,097) (5,534,942) Total shareholders' equity 2,242,084 2,505,878 Total liabilities and shareholders' equity $ 8,796,673 $ 9,033,967 SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 9


 
Condensed Consolidated Statements of Income (dollars in thousands, except per share data) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenues: Hotel operating revenues (1) $ 199,719 $ 525,290 $ 700,578 $ 1,521,368 Rental income (2) 96,776 73,619 294,432 210,509 FF&E reserve income (3) — 863 201 3,365 Total revenues 296,495 599,772 995,211 1,735,242 Expenses: Hotel operating expenses (1) 174,801 377,895 492,906 1,076,011 Other operating expenses 3,705 1,707 11,029 4,419 Depreciation and amortization 122,204 103,160 377,557 301,721 General and administrative (4) 12,295 12,464 37,621 36,906 Loss on asset impairment (5) 10,248 — 55,502 — Total expenses 323,253 495,226 974,615 1,419,057 Gain (loss) on sale of real estate (6) 109 — (9,655) 159,535 Gain on insurance settlement (7) — — 62,386 — Dividend income — — — 1,752 Unrealized gains (losses) on equity securities, net (8) 5,606 (3,950) 4,409 (43,761) Interest income 6 688 283 1,774 Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $3,877, $2,689, $10,651 and $7,829 respectively) (80,532) (52,375) (223,679) (151,742) Loss on early extinguishment of debt (9) — (8,451) (6,970) (8,451) Income (loss) before income taxes and equity in earnings (losses) of an investee (101,569) 40,458 (152,630) 275,292 Income tax benefit (expense) (7) 296 (467) (16,706) (1,266) Equity in earnings (losses) of an investee (10) (1,369) 83 (4,305) 617 Net income (loss) $ (102,642) $ 40,074 $ (173,641) $ 274,643 Weighted average common shares outstanding (basic) 164,435 164,321 164,397 164,294 Weighted average common shares outstanding (diluted) 164,435 164,348 164,397 164,332 Net income (loss) per common share (basic and diluted) $ (0.62) $ 0.24 $ (1.06) $ 1.67 See notes on page 13. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 10


 
Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Net income (loss) $ (102,642) $ (37,349) $ (33,650) $ (14,893) $ 40,074 $ (173,641) $ 274,643 Add (Less): Depreciation and amortization 122,204 127,427 127,926 126,727 103,160 377,557 301,721 (Gain) loss on sale of real estate (6) (109) 2,853 6,911 — — 9,655 (159,535) Loss on asset impairment (5) 10,248 28,514 16,740 39,296 — 55,502 — Unrealized gains and losses on equity securities, net (8) (5,606) (3,848) 5,045 (3,300) 3,950 (4,409) 43,761 Adjustments to reflect the entity's share of FFO attributable to an investee (10) (900) 327 112 — — (461) — FFO 23,195 117,924 123,084 147,830 147,184 264,203 460,590 Add (Less): Acquisition and transaction related costs (12) — — — 1,795 — — — Loss on early extinguishment of debt (9) — 6,970 — — 8,451 6,970 8,451 Loss contingency (13) — — — 1,997 — — — Gain on insurance settlement, net of tax (7) — (46,736) — — — (46,736) — Normalized FFO $ 23,195 $ 78,158 $ 123,084 $ 151,622 $ 155,635 $ 224,437 $ 469,041 Weighted average shares outstanding (basic) 164,435 164,382 164,370 164,364 164,321 164,397 164,294 Weighted average shares outstanding (diluted) 164,435 164,382 164,370 164,364 164,348 164,397 164,332 Basic and diluted per share common share amounts: Net income (loss) $ (0.62) $ (0.23) $ (0.20) $ (0.09) $ 0.24 $ (1.06) $ 1.67 FFO $ 0.14 $ 0.72 $ 0.75 $ 0.90 $ 0.90 $ 1.61 $ 2.80 Normalized FFO $ 0.14 $ 0.48 $ 0.75 $ 0.92 $ 0.95 $ 1.37 $ 2.85 See Notes on page 13. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 11


 
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Net income (loss) $ (102,642) $ (37,349) $ (33,650) $ (14,893) $ 40,074 $ (173,641) $ 274,643 Add (Less): Interest expense 80,532 72,072 71,075 73,384 52,375 223,679 151,742 Income tax expense (benefit) (7) (296) 16,660 342 1,527 467 16,706 1,266 Depreciation and amortization 122,204 127,427 127,926 126,727 103,160 377,557 301,721 EBITDA 99,798 178,810 165,693 186,745 196,076 444,301 729,372 Add (Less): (Gain) loss on sale of real estate (6) (109) 2,853 6,911 — — 9,655 (159,535) Loss on asset impairment (5) 10,248 28,514 16,740 39,296 — 55,502 — EBITDAre 109,937 210,177 189,344 226,041 196,076 509,458 569,837 Add (Less): General and administrative expense paid in common shares (11) 863 832 590 480 1,068 2,285 2,369 Adjustments to reflect the entity's share of EBITDA attributable to an investee (10) (1,583) 421 158 — — (1,004) — Estimated business management incentive fee (4) — — — — — — — Acquisition and transaction related costs (12) — — — 1,795 — — — Loss on early extinguishment of debt (9) — 6,970 — — 8,451 6,970 8,451 Gain on insurance settlement (7) — (62,386) — — — (62,386) — Unrealized (gains) losses on equity securities, net (8) (5,606) (3,848) 5,045 (3,300) 3,950 (4,409) 43,761 Loss contingency (13) — — — 1,997 — — — Adjusted EBITDAre $ 103,611 $ 152,166 $ 195,137 $ 227,013 $ 209,545 $ 450,914 $ 624,418 See Notes on page 13. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 12


 
Notes to Condensed Consolidated Statements of Income and Calculations of EBITDAre, Normalized FFO and Hotel EBITDA (dollar amounts in thousands, except share data) (1) As of September 30, 2020, we owned 329 hotels; 328 of these hotels were managed by hotel operating companies and one hotel was leased to a hotel operating company. Our condensed consolidated statements of income include hotel operating revenues and expenses of managed hotels and rental income from our leased hotel. When managers of these hotels are required to fund the shortfalls of minimum returns under the terms of our management agreements or their guarantees, we reflect such fundings (including security deposit applications) in our condensed consolidated statements of income as a reduction of hotel operating expenses. The reduction to hotel operating expenses was $30,474 and $2,404 for the three months ended September 30, 2020 and 2019, respectively, and $222,134 and $21,775 for the nine months ended September 30, 2020 and 2019, respectively. When we reduce the amounts of the security deposit we hold for any of our operating agreements for payment deficiencies, it does not result in additional cash flows to us of the deficiency amounts, but reduces the refunds due to the respective tenants or managers who have provided us with these deposits upon expiration of the applicable operating agreement. The security deposits are non-interest bearing and are not held in escrow. Certain of our guarantees and our security deposits may be replenished by a share of future cash flows from the applicable hotel operations in excess of the minimum returns due to us, certain fees to the manager, or working capital advances, if any, pursuant to the terms of the applicable agreements. When our guarantees and security deposits are replenished by cash flows from hotel operations, we reflect such replenishments in our condensed consolidated statements of income as an increase to hotel operating expenses. There were no such replenishments for either of the three or nine months ended September 30, 2020, respectively, and replenishments of $2,405 and $8,519 for the three and nine months ended September 30, 2019, respectively. (2) We increased rental income by $2,370 for the three months ended September 30, 2020, reduced rental income by $3,046 in the three months ended September 30, 2019 and reduced rental income by $298 and $7,368 for the nine months ended September 30, 2020 and 2019, respectively, to record scheduled rent changes under certain of our leases, the deferred rent obligations under our leases with 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) 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. We report deposits by our tenants into the escrow accounts under our hotel leases as FF&E reserve income. We do not report the amounts which are escrowed as FF&E reserves for our managed hotels as FF&E reserve income. (4) Incentive fees under our business management agreement with RMR LLC are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in general and administrative expense in our consolidated statements of income. In calculating net income (loss) in accordance with generally accepted accounting principles, or GAAP, we recognize estimated business management incentive fee expense, if any, in the first, second and third quarters. Although we recognize this expense, if any, in the first, second and third quarters for purposes of calculating net income (loss), we do not include these amounts in the calculation of Normalized FFO or Adjusted EBITDAre until the fourth quarter, which is when the business management incentive fee expense amount for the year, if any, is determined. No business management incentive fee expense was recorded for the three and nine months ended September 30, 2020 or 2019. (5) We recorded a $10,248 loss on asset impairment during the three months ended September 30, 2020 to reduce the carrying value of one hotel and two net lease properties to their estimated fair value. We recorded a $55,502 loss on asset impairment during the nine months ended September 30, 2020 to reduce the carrying value of 18 hotel properties and eight net lease properties to their estimated fair value. (6) We recorded a $109 net gain on sale of real estate during the three months ended September 30, 2020 in connection with the sales of five net lease properties and a $9,655 net loss on sales of 15 net lease properties during the nine months ended September 30, 2020. We recorded a $159,535 gain on sale of real estate during the three months ended March 31, 2019 in connection with the sales of 20 travel centers. (7) We recorded a $62,386 gain on insurance settlement during the nine months ended September 30, 2020 for insurance proceeds received with respect to our leased hotel in San Juan, PR related to Hurricane Maria. Under GAAP, we were required to increase the building basis of our San Juan hotel for the amount of the insurance proceeds. We also recorded a $15,650 deferred tax liability as a result of the book value to tax basis difference related to this accounting in the nine months ended September 30, 2020 (8) Unrealized gains (losses) on equity securities, net represent the adjustment required to adjust the carrying value of our former investment in RMR Inc. common stock and our investment in TA common shares to their fair value. We sold our RMR Inc. shares in July 2019. (9) We recorded a $6,970 loss on extinguishment of debt, net of unamortized discount and deferred financing costs, relating to our repurchase of $350,000 principal amount of our $400,000 of 4.25% senior notes due 2021, for an aggregate purchase price of $355,971, excluding accrued interest. We recorded a $8,451 loss on early extinguishment of debt in the three months ended September 30, 2019 related to the termination of a term loan commitment we arranged in connection with the acquisition of a net lease portfolio. (10) Represents our proportionate share of our equity investment in Sonesta during the three and nine months ended September 30, 2020 and Affiliates Insurance Company during the three and nine months ended September 30, 2019. (11) Represents equity compensation awarded to our trustees, our employees and certain other employees of RMR LLC. (12) Acquisition and transaction related costs represents costs related to our exploration of possible financing transactions. (13) We recorded a $1,997 loss contingency during the three months ended December 31, 2019 for an expected settlement of a historical pension withdrawal liability for a hotel we rebranded. (14) 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 condensed consolidated statements of comprehensive income. We reduced hotel operating expenses by $621 and $1,448 for the three and nine months ended September 30, 2020, respectively, for this liability. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 13


 
Debt Summary As of September 30, 2020 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Floating Rate Debt: $1,000,000 revolving credit facility (1) (2) 2.550 % $ 80,086 7/15/22 $ 80,086 1.8 $400,000 term loan (3) 2.750 % 400,000 7/15/23 400,000 2.8 Subtotal / weighted average 2.717 % $ 480,086 $ 480,086 2.6 Unsecured Fixed Rate Debt: Senior unsecured notes due 2021 4.250 % $ 50,000 2/15/21 $ 50,000 0.4 Senior unsecured notes due 2022 5.000 % 500,000 8/15/22 500,000 1.9 Senior unsecured notes due 2023 4.500 % 500,000 6/15/23 500,000 2.7 Senior unsecured notes due 2024 4.650 % 350,000 3/15/24 350,000 3.5 Senior unsecured notes due 2024 4.350 % 825,000 10/1/24 825,000 4.0 Senior unsecured notes due 2025 4.500 % 350,000 3/15/25 350,000 4.5 Senior unsecured notes due 2025 (4) 7.500 % 800,000 9/15/25 800,000 5.0 Senior unsecured notes due 2026 5.250 % 350,000 2/15/26 350,000 5.4 Senior unsecured notes due 2026 4.750 % 450,000 10/1/26 450,000 6.0 Senior unsecured notes due 2027 4.950 % 400,000 2/15/27 400,000 6.4 Senior unsecured notes due 2028 3.950 % 400,000 1/15/28 400,000 7.3 Senior unsecured notes due 2029 4.950 % 425,000 10/1/29 425,000 9.0 Senior unsecured notes due 2030 4.375 % 400,000 2/15/30 400,000 9.4 Subtotal / weighted average 5.025 % $ 5,800,000 $ 5,800,000 5.2 Total / weighted average (5) 4.848 % $ 6,280,086 $ 6,280,086 5.0 (1) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 205 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 above is as of September 30, 2020. Subject to the payment of an extension fee and meeting certain other conditions, we may extend the maturity date of our credit facility for two additional six month periods. (2) Under the terms of our November 2020 amendment to the credit agreement governing our credit facility, we have provided equity pledges on certain of our property owning subsidiaries and have agreed to provide first mortgage liens on 74 properties owned by the pledging subsidiaries to secure our obligations under the credit agreement. (3) We are required to pay interest on the amount outstanding under our term loan at a rate of LIBOR plus a premium of 225 basis points per annum, subject to adjustment based on changes to our credit ratings. The interest rate listed above is as of September 30, 2020. We repaid this term loan on November 5, 2020 through drawings under our revolving credit facility. (4) The notes are guaranteed by certain of our subsidiaries. (5) The carrying value of our total debt of $6,212,174 as of September 30, 2020 is net of unamortized discounts and premiums and certain issuance costs totaling $67,912. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 14


 
Debt Maturity Schedule As of September 30, 2020 1,250 1,000 750 $400 $80 $1,175 $1,150 $ (Millions) 500 $800 250 $500 $500 $400 $400 $425 $400 $50 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Fixed rate bonds Revolving Credit Facility (1) Term loan (2) (1) Represents amounts outstanding under our $1,000,000 revolving credit facility at September 30, 2020. (2) Represents amounts outstanding on our term loan at September 30, 2020. We repaid this term loan on November 5, 2020 through drawings under our revolving credit facility. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 15


 
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and For the Three Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Leverage Ratios: Net debt / total gross assets 51.9 % 51.7 % 50.4 % 50.2 % 51.8 % Net debt / gross book value of real estate assets 54.4 % 54.1 % 52.0 % 52.0 % 56.0 % Secured debt/ total assets 14.0 % 13.8 % 0.0 % 0.0 % 0.0 % Variable rate debt / Net debt 7.7 % 7.0 % 13.9 % 12.7 % 18.2 % Coverage Ratios: Adjusted EBITDAre / interest expense 1.3x 2.1x 2.7x 3.1x 4.0x Net debt / annualized Adjusted EBITDAre (1) 15.0x 10.2x 7.9x 6.7x 6.6x As of and For the Trailing Twelve Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Public Debt Covenants: Total debt / adjusted total assets - allowable maximum 60.0% 50.4 % 50.1 % 49.6 % 49.4 % 51.1 % Secured debt / adjusted total assets - allowable maximum 40.0% 3.9 % 3.5 % 0.0 % 0.0 % 0.0 % Consolidated income available for debt service / debt service - required minimum 1.50x 2.05x 2.85x 2.87x 2.86x 2.61x Total unencumbered assets / unsecured debt - required minimum 150% 197.2 % 199.5 % 201.5 % 202.5 % 195.8 % (1) We completed the SMTA Transaction on September 20, 2019. For purposes of calculating coverage ratios for the three months ended September 30, 2019, we included our pro forma estimates of the annualized Adjusted EBITDAre that we would have realized from this portfolio if we had owned it since the beginning of that three-month period. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 16


 
Capital Expenditure and Restricted Cash Activity (dollars in thousands) Capital Expenditures For the Three Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Hotel capital improvements & FF&E Reserve fundings (1) $ 29,874 $ 39,085 $ 35,015 $ 119,380 $ 36,335 Net lease capital improvements 18 221 4,179 2,295 — Total capital improvements & FF&E Reserve fundings $ 29,892 $ 39,306 $ 39,194 $ 121,675 $ 36,335 Restricted Cash As of and For the Three Months Ended 9/30/2020 6/30/2020 3/31/2020 9/30/2019 6/30/2019 Total restricted cash (beginning of period) $ 29,652 $ 44,537 $ 53,626 $ 53,519 $ 37,792 Manager deposits into FF&E Reserve 18,735 — 33,806 18,100 46,618 SVC fundings into FF&E Reserve: IHG — 3,900 — 25,100 — Marriott 21,500 28,600 5,800 10,877 1,252 Radisson — — — — 1,891 Hotel improvements funded from FF&E Reserves (31,757) (47,385) (48,695) (53,970) (34,034) FF&E reserves (end of period) 38,130 29,652 44,537 53,626 53,519 SVC sale proceeds — — — — — Total restricted cash (end of period) $ 38,130 $ 29,652 $ 44,537 $ 53,626 $ 53,519 (1) Includes amounts we funded into our FF&E reserves and amounts directly reimbursed to our hotel managers for capital expenditures. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 17


 
Property Acquisition and Disposition Information Since January 1, 2020 (dollars in thousands except per room and per sq. ft. data) ACQUISITIONS: Average Purchase Purchase Price per Room or Date Acquired Properties Brand Location Square Footage Operating Agreement Price (1) Suite / Square Foot 3/12/2020 3 Taco Bell Various 6,696 AG Bells LLC $ 7,071 $ 1,056 (1) Represents cash purchase price and excludes acquisition related costs. DISPOSITIONS: Average Sales Price Date Disposed Properties Brand Location Square Footage Former Operating Agreement Sales Price (1) per Square Foot 01/28/2020 1 Vacant Gothenburg, NE 31,978 Vacant $ 585 $ 18 02/06/2020 1 Vacant Rochester, MN 90,503 Vacant 2,600 29 02/13/2020 1 Vacant Ainsworth, NE 32,901 Vacant 775 24 02/14/2020 1 Vacant Dekalb, IL 5,052 Vacant 1,050 208 03/02/2020 1 HOM Furniture, Inc. Eau Claire, MI 98,824 HOM Furniture, Inc. 2,600 26 03/28/2020 1 Vacant Stillwater, OK 33,018 Vacant 400 12 05/26/2020 1 Vacant Pawtucket, RI 22,027 Vacant 1,610 73 05/28/2020 1 Destination XL Group, Inc. Canton, MA 755,992 Destination XL Group, Inc. 51,000 67 05/28/2020 1 Vacant Phoenix, AZ 29,434 Vacant 2,900 99 06/25/2020 1 Vacant Bellefontaine, OH 2,267 Vacant 440 194 07/17/2020 1 Pizza Hut Clinton, MD 2,935 ADF Midatlantic LLC 700 239 08/20/2020 1 Pizza Hut Lancaster, PA 3,014 Chaac Pizza Northeast, LLC 775 257 08/26/2020 1 Vacant Baton Rouge, LA 2,334 Vacant 750 321 08/26/2020 1 Vacant Winston Salem, NC 32,816 Vacant 1,300 40 09/17/2020 1 Vacant Hillard, OH 5,316 Vacant 2,350 442 10/06/2020 1 Vacant Cabot, AR 18,165 Vacant 550 30 10/08/2020 1 The Forge Bar and Grill Lander, WY 8,900 The Forge Bar and Grill 350 39 11/02/2020 1 Vacant Raleigh, NC 55,558 Vacant 4,000 72 18 1,231,034 $ 74,735 61 (1) Represents cash purchase or sales price and excludes closing related costs. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 18


 
PORTFOLIO INFORMATION Popeyes 457 West Broadway Tempe, AZ SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 19


 
Portfolio Summary As of September 30, 2020 (1) Portfolio composition (dollars in thousands) Number of Properties Hotel Properties 329 Net Lease Properties 804 Total Properties 1,133 Diversification Facts Net lease: 38.4% Tenants/Operators 189 Brands 149 Hotel: 61.6% Industries 23 States (2) 47 Investments Hotels $ 7,091,615 (1) Net Lease Properties 5,181,939 Geographical Diversification Total Investments $ 12,273,554 Annualized Minimum Return and Rent CA 11% Hotels $ 591,468 Net Lease Properties 369,803 TX 8% Total Annualized Minimum Returns and Rents $ 961,271 GA 7% Other 46% Minimum Return/Rent Coverage (3) Hotels 0.14x (37 States, IL 7% DC, PR, ON) Net Lease 2.12x OH 4% Total Portfolio 0.90x FL 4% (1) Based on the annualized Minimum Returns and Rents. (2) We also own one property in Washington, D.C., two in Canada and one in Puerto Rico. AZ MA NJ PA (3) Coverage data amounts include data for certain properties for periods prior to when we acquired 4% 3% 3% them. 3% SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 20


 
Consolidated Portfolio by Brand Affiliation As of September 30, 2020 (dollars in thousands) Percent of Total Percent of Number of Rooms or Number of Rooms Percent of Total Suites (Hotels) / or Suites (Hotels) / Percent of Investment Total Annual Number of Number of Square Footage (Net Square Footage Total Per Annual Minimum Minimum Brand Affiliation Properties Properties Lease) (Net Lease) Investment (1) Investment Room / SF Return / Rent (1) Return / Rent IHG 103 9.1 % 17,154 33.5 % $ 2,381,721 15.4 % $ 139 216,551 20.2 % Marriott 122 10.8 % 17,085 33.2 % 1,891,334 19.4 % 109 $ 194,613 22.5 % Sonesta 56 4.9 % 10,297 20.0 % 2,067,982 16.8 % 201 124,795 13.0 % Hyatt 22 1.9 % 2,724 5.3 % 301,942 2.5 % 111 22,037 1.4 % Radisson 9 0.8 % 1,939 3.7 % 289,139 2.4 % 149 20,442 2.3 % Wyndham 17 1.5 % 2,205 4.3 % 159,497 1.3 % 72 13,030 2.1 % Subtotal/Average Hotels 329 29.0 % 51,404 100.0 % 7,091,615 57.8 % 138 591,468 61.5 % TravelCenters of America 134 11.8 % 3,720,693 27.2 % 2,281,589 18.6 % 613 168,011 17.5 % Petro Stopping Centers 45 4.0 % 1,470,004 10.7 % 1,021,226 8.3 % 695 78,099 8.1 % AMC Theatres 11 1.0 % 575,967 4.2 % 102,580 0.8 % 178 8,702 0.9 % The Great Escape 14 1.2 % 542,666 4.0 % 98,242 0.8 % 181 7,140 0.7 % Life Time Fitness 3 0.3 % 420,335 3.1 % 92,617 0.8 % 220 5,770 0.6 % Buehler's Fresh Foods 5 0.4 % 502,727 3.7 % 76,536 0.6 % 152 5,143 0.5 % Heartland Dental 59 5.2 % 234,274 1.7 % 61,120 0.5 % 261 4,493 0.5 % Pizza Hut 59 5.2 % 192,609 1.4 % 59,502 0.5 % 309 4,310 0.4 % Express Oil Change 23 2.0 % 83,825 0.6 % 49,724 0.4 % 593 3,379 0.4 % Flying J Travel Plaza 3 0.3 % 48,069 0.4 % 41,681 0.3 % 867 3,151 0.3 % Other (2) 448 39.6 % 5,891,309 43.0 % 1,297,122 10.6 % 220 81,605 8.6 % Subtotal/Average Net Lease (3) 804 71.0 % 13,682,478 100.0 % 5,181,939 42.2 % 379 369,803 38.5 % Total/Average 1,133 100.0 % 51,404/13,682,478 100% / 100% $ 12,273,554 100.0 % $138 / $379 $ 961,271 100.0 % (1) Includes 40 hotels with 4,794 rooms, annual minimum returns of $38,901 and an aggregate carrying value of $184,467 classified as held for sale and six net lease properties with 121,451 square feet with leases requiring annual minimum rent of $536 and an aggregate carrying value of $6,735 classified as held for sale. (2) Other includes 119 distinct brands with an average investment of $10,900 and average annual minimum rent of $686. (3) The brands listed in the table above represent the top 10 net lease brands as a percentage of total annual minimum rent as of September 30, 2020. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 21


 
Consolidated Portfolio Diversification by Industry As of September 30, 2020 (dollars in thousands) Percent of Total Annualized No. of Rooms/ Percent of Total Annual Minimum Minimum Return/ Industry Properties Square Footage Investments (1) Investment Return/ Rent (1) Rent 1. Hotels 329 51,404 $ 7,091,615 57.8% $ 591,468 61.6% 2. Travel Centers 182 5,238,765 3,344,496 27.2% 249,261 25.9% 3. Restaurants-Quick Service 248 682,016 317,833 2.6% 20,986 2.2% 4. Restaurants-Casual Dining 55 400,063 203,002 1.7% 11,763 1.2% 5. Movie Theaters 22 1,152,845 190,725 1.6% 11,783 1.2% 6. Health and Fitness 13 837,811 184,744 1.5% 11,511 1.2% 7. Grocery 19 1,020,819 129,219 1.1% 8,598 0.9% 8. Medical/Dental Office 71 409,706 118,098 1.0% 9,185 1.0% 9. Miscellaneous Retail 19 598,731 114,433 0.9% 8,892 0.9% 10. Automotive Parts and Service 63 210,152 96,496 0.8% 6,583 0.7% 11. Automotive Dealers 9 172,251 64,756 0.5% 5,118 0.5% 12. Entertainment 4 199,853 61,436 0.5% 2,435 0.3% 13. Educational Services 9 220,758 55,647 0.5% 4,135 0.4% 14. Sporting Goods 3 331,864 52,022 0.4% 3,489 0.4% 15. Home Furnishings 5 248,448 37,215 0.3% 2,854 0.2% 16. Miscellaneous Manufacturing 6 758,146 31,824 0.3% 2,245 0.2% 17. Building Materials 27 430,164 30,036 0.2% 2,523 0.3% 18. Car Washes 5 41,456 28,658 0.2% 2,086 0.2% 19. Drug Stores and Pharmacies 8 82,543 23,970 0.2% 1,646 0.2% 20. Legal Services 5 25,429 11,362 0.1% 1,019 0.1% 21. Apparel 1 89,305 11,027 0.1% 670 0.1% 22. General Merchandise 3 99,233 7,492 0.1% 541 0.1% 23. Dollar Stores 3 27,593 2,971 —% 186 —% 24. Other 10 172,557 25,905 0.2% 2,294 0.2% 25. Vacant 14 231,970 38,572 0.2% — —% Total 1,133 51,404/ 13,682,478 $ 12,273,554 100.0% $ 961,271 100.0% (1) Includes 40 hotels with 4,794 rooms, annual minimum returns of $38,901 and an aggregate carrying value of $184,467 classified as held for sale and six net lease properties with 121,451 square feet with leases requiring annual minimum rent of $536 and an aggregate carrying value of $6,735 classified as held for sale. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 22


 
Hotel Portfolio by Brand As of September 30, 2020 (dollars in thousands) Percent of Percent of Number of Total Number Percent of Investment Number of Total Number Rooms or of Rooms or Total Hotel Per Room or Brand Manager Hotels of Hotels Suites Suites Investment (1) Investment Suite Courtyard by Marriott® Marriott 71 21.8 % 10,265 19.9 % $ 1,035,166 14.6 % $ 101 Royal Sonesta Hotels® Sonesta 7 2.1 % 2,722 5.3 % 920,947 13.0 % 338 Sonesta ES Suites® Sonesta 40 12.2 % 4,845 9.4 % 659,569 9.3 % 136 Crowne Plaza® IHG 11 3.3 % 4,141 8.1 % 644,170 9.1 % 156 Candlewood Suites® IHG 61 18.5 % 7,553 14.7 % 605,986 8.5 % 80 Residence Inn by Marriott® Marriott 35 10.6 % 4,488 8.7 % 572,952 8.1 % 128 Sonesta Hotels & Resorts® Sonesta 9 2.7 % 2,730 5.3 % 487,466 6.9 % 179 Kimpton® Hotels & Restaurants IHG 5 1.5 % 1,421 2.8 % 482,474 6.8 % 340 Staybridge Suites® IHG 20 6.1 % 2,481 4.8 % 356,016 5.0 % 143 Hyatt Place® Hyatt 22 6.7 % 2,724 5.3 % 301,942 4.3 % 111 Radisson® Hotels & Resorts and Radisson Blu® Radisson 6 1.8 % 1,509 2.9 % 235,724 3.3 % 156 InterContinental Hotels and Resorts® IHG 3 0.9 % 804 1.6 % 219,106 3.1 % 273 Marriott® Hotel Marriott 2 0.6 % 748 1.5 % 132,635 1.9 % 177 TownePlace Suites by Marriott® Marriott 12 3.6 % 1,321 2.6 % 123,854 1.7 % 94 Hawthorn Suites® Wyndham 15 4.6 % 1,642 3.2 % 94,960 1.3 % 58 Holiday Inn® IHG 3 0.9 % 754 1.5 % 73,969 1.0 % 98 Wyndham Hotels and Resorts® Wyndham 2 0.6 % 563 1.1 % 64,537 0.9 % 115 Country Inns & Suites® by Radisson Radisson 3 0.9 % 430 0.8 % 53,415 0.8 % 124 SpringHill Suites by Marriott® Marriott 2 0.6 % 263 0.5 % 26,727 0.4 % 102 Total/Average Hotels 329 100.0 % 51,404 100.0 % $ 7,091,615 100.0 % $ 138 (1) Includes 40 hotels with 4,794 rooms, annual minimum returns of $38,901 and an aggregate carrying value of $184,467 classified as held for sale. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 23


 
Hotel Operating Agreement Information IHG - We lease 102 IHG branded hotels (20 Staybridge Suites®, 61 Candlewood Suites®, two InterContinental®, 11 Crowne Plaza®, three Holiday Inn® and five Kimpton® Hotels & Restaurants) in 30 states in the U.S., the District of Columbia and Ontario, Canada to one of our wholly owned taxable REIT subsidiaries, or TRSs. These 102 hotels are managed by IHG under a combination management agreement. We lease one additional InterContinental® branded hotel in Puerto Rico to IHG. The annual minimum return amount presented in the table on slide 22 includes $7,908 of minimum rent related to the leased Puerto Rico hotel. The management agreement and the lease expire in 2036; IHG had two renewal options for 15 years each for all, but not less than all, of the hotels. Our IHG agreement requires 5% of gross revenues from hotel operations be placed in an FF&E reserve. The requirement to fund FF&E reserves was waived through September 30, 2020. In addition to our minimum return, this management agreement provides for an annual additional return payment to us of $12,067 from the hotels' available cash flows after payment of hotel operating expenses, funding of the required FF&E reserve, payment of our minimum return, working capital advances, payment of certain management fees and replenishment and expansion of the security deposit, if any. In addition, the agreement provides for payment to us of 50% of the hotels' available cash flows after payment to us of the annual additional return amount. We sent notices of default and termination to IHG for failure to pay minimum returns and rents due to us of $36.8 million for the third quarter of 2020 and that we expect to transfer the branding and management of 102 of the 103 hotels to a subsidiary of Sonesta Holdco Corporation, or Sonesta, on December 1, 2020. Marriott - We lease our 122 Marriott branded hotels (two full service Marriott®, 35 Residence Inn by Marriott®, 71 Courtyard by Marriott®, 12 TownePlace Suites by Marriott® and two SpringHill Suites by Marriott® hotels) in 31 states to certain of our TRSs. The hotels under the Marriott agreement are managed by Marriott and require aggregate annual minimum returns of $194,613. The Marriott agreement was scheduled to expire in 2035 and Marriott had two renewal options for 10 years each for all, but not less than all, of the hotels. Our Marriott agreement requires 5.5% to 6.5% of gross revenues from hotel operations be placed in an FF&E reserve. As a result of current market conditions, we and Marriott have agreed to suspend contributions to the FF&E reserve under our Marriott agreement for the remainder of 2020. In addition to our minimum return, this agreement provides for payment to us of 60% of the hotels' available cash flows after payment of hotel operating expenses, funding of the required FF&E reserve, payment of our minimum return, payment of certain management fees, working capital advances and replenishment of the security deposit. We sent notices to Marriott terminating its agreement for its failure to cover the $23,952 million cumulative shortfall between the payments we have received to date and 80% of the cumulative priority returns due to us for the nine months ended September 30, 2020. The effective date of the termination is January 31, 2021 and we currently plan to transfer to Sonesta the branding and management of the 98 hotels to the extent they are not sold. Sonesta - We lease our 56 Sonesta branded hotels (seven Royal Sonesta® Hotels, nine Sonesta Hotels & Resorts® and 40 Sonesta ES Suites® hotels) in 26 states to certain of our TRSs. 53 of these hotels are managed by Sonesta under a management agreement which expires in 2037; Sonesta has two renewal options for 15 years each for all, but not less than all, of these 53 hotels. Three hotels that were rebranded to Sonesta from Wyndham in September 2020 are operating under agreements that expire on December 31, 2021. On October 1, 2020, we rebranded one additional hotel previously managed by Wyndham to Sonesta. We have no security deposit or guaranty from Sonesta. Accordingly, payment by Sonesta of the minimum returns due to us under this management agreement is limited to the hotels' available cash flows after the payment of operating expenses, including certain management fees, and we are financially responsible for operating cash flows deficits, if any. In addition to our minimum returns, this management agreement provides for payment to us of 80% of the hotels' available cash flows after payment of hotel operating expenses, including certain management fees to Sonesta, our minimum return, working capital advances and any required FF&E reserves. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 24


 
Hotel Operating Agreement Information Hyatt - We lease our 22 Hyatt Place® branded hotels in 14 states to one of our TRSs. The hotels are managed by Hyatt Hotel Corporation, or Hyatt, under a combination management agreement that expires in 2030; Hyatt has two renewal options for 15 years each for all, but not less than all, of the hotels. We have a limited guaranty of $50,000 under this agreement to cover payment shortfalls of our minimum return. As of September 30, 2020, the available Hyatt guaranty was $3,116. The guaranty is limited in amount but does not expire in time and may be replenished from a share of the hotels' available cash flows in excess of our minimum return and our working capital advances. In addition to our minimum return, this management agreement provides for payment to us of 50% of the hotels' available cash flows after payment of operating expenses, funding the required FF&E reserve, payment of our minimum return, our working capital advances and reimbursement to Hyatt of working capital and guaranty advances, if any. This additional return is not guaranteed. Our Hyatt agreement requires 5% of gross revenues from hotel operations be placed in an FF&E reserve, subject to available cash flow. Radisson - We lease our nine Radisson branded hotels (five Radisson® Hotels & Resorts, three Country Inns & Suites® by Radisson and one Radisson Blu® hotel) in six states to one of our TRSs. The hotels are managed by Radisson under a combination management agreement which expires in 2035; Radisson has two 15 year renewal options for all, but not less than all, of the hotels. We have a limited guaranty of $47,523 under this agreement to cover payment shortfalls of our minimum return. As of September 30, 2020, the available Radisson guaranty was $19,487. The guaranty is limited in amount but does not expire in time and may be replenished from a share of the hotels' available cash flows in excess of our minimum return and our working capital advances. In addition to our minimum return, this management agreement provides for payment to us of 50% of the hotels' available cash flows after payment of operating expenses, funding the required FF&E reserve, payment of our minimum return, our working capital advances and reimbursement to Radisson of working capital and guaranty advances, if any. This additional return is not guaranteed. Our Radisson agreement requires 5% of gross revenues from hotel operations be placed in an FF&E reserve. As a result of current market conditions, effective April 1, 2020, we and Radisson have agreed to suspend contributions to the FF&E reserve under our Radisson agreement for the remainder of 2020. Wyndham - We lease our 17 Wyndham branded hotels in 12 states to one of our TRSs. The hotels were managed by Wyndham under a combination management agreement. In September 2020, we amended the Wyndham management agreement so that Wyndham will continue as the manager of these Wyndham hotels for a limited time. Under the amended terms of this agreement we will pay Wyndham a management fee of 7% of hotel revenues subject to certain minimums. In September 2020, we rebranded three hotels previously managed by Wyndham to Sonesta. On October 1, 2020, we rebranded one additional Wyndham hotel previously managed by Wyndham to Sonesta. We expect to sell the remaining 16 Wyndham branded hotels in the fourth quarter of 2020. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 25


 
Hotel Operating Statistics by Operating Agreement (Comparable Hotels(1)) For the Three Months Ended September 30, For the Nine Months Ended September 30, No. of No. of Rooms or No. of No. of Rooms Hotels (1) Suites 2020 2019 Change Hotels (1) or Suites 2020 2019 Change ADR IHG 98 15,884 $ 80.03 $ 119.27 (32.9%) 93 14,556 $ 90.61 $ 116.61 (22.3%) Marriott 121 16,729 103.50 132.54 (21.9%) 121 16,729 117.40 134.37 (12.6%) Sonesta (2) 49 8,120 98.62 120.80 (18.4%) 46 7,057 92.02 109.98 (16.3%) Hyatt 22 2,724 86.36 105.76 (18.3%) 22 2,724 94.43 109.67 (13.9%) Radisson 8 1,759 91.26 136.89 (33.3%) 6 1,413 106.02 131.68 (19.5%) Wyndham 16 1,986 57.68 70.33 (18.0%) 16 1,986 61.26 69.98 (12.5%) All Hotels Total/Average 314 47,202 $ 89.50 $ 122.18 (26.7%) 304 44,465 $ 98.15 $ 120.33 (18.4%) OCCUPANCY IHG 98 15,884 57.4 % 81.9 % (24.5) pts 93 14,556 56.5 % 78.6 % (22.1) pts Marriott 121 16,729 35.3 % 75.4 % (40.1) pts 121 16,729 35.8 % 72.1 % (36.3) pts Sonesta (2) 49 8,120 49.3 % 75.0 % (25.7) pts 46 7,057 46.9 % 69.5 % (22.6) pts Hyatt 22 2,724 47.1 % 79.4 % (32.3) pts 22 2,724 44.9 % 78.9 % (34.0) pts Radisson 8 1,759 27.2 % 80.5 % (53.3) pts 6 1,413 34.3 % 75.0 % (40.7) pts Wyndham 16 1,986 46.4 % 67.8 % (21.4) pts 16 1,986 44.3 % 65.3 % (21.0) pts All Hotels Total/Average 314 47,202 46.0 % 77.6 % (31.6) pts 304 44,465 45.2 % 74.0 % (28.8) pts RevPAR IHG 98 15,884 $ 45.94 $ 97.68 (53.0%) 93 14,556 $ 51.19 $ 91.66 (44.2%) Marriott 121 16,729 36.54 99.94 (63.4%) 121 16,729 42.03 96.88 (56.6%) Sonesta (2) 49 8,120 48.62 90.60 (46.3%) 46 7,057 43.16 76.44 (43.5%) Hyatt 22 2,724 40.68 83.97 (51.6%) 22 2,724 42.40 86.53 (51.0%) Radisson 8 1,759 24.82 110.20 (77.5%) 6 1,413 36.36 98.76 (63.2%) Wyndham 16 1,986 26.76 47.68 (43.9%) 16 1,986 27.14 45.70 (40.6%) All Hotels Total/Average 314 47,202 $ 41.17 $ 94.81 (56.6%) 304 44,465 $ 44.36 $ 89.04 (50.2%) (1) Excludes 15 hotels for the three months ended September 30, 2020 and 25 hotels for the six months ended September 30, 2020 that were closed, renovated or not owned during the period. (2) Operating data includes data for five hotels for periods prior to when these were managed by Sonesta. "ADR" is average daily rate; "RevPAR" is room revenue per available room. 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 26


 
Hotel Operating Statistics by Operating Agreement No. of Rooms or For the Three Months Ended September 30, For the Nine months ended September 30, No. of Hotels Suites 2020 2019 Change 2020 2019 Change ADR IHG (1) (2) 103 17,154 $ 80.80 $ 122.03 (33.8%) $ 93.06 $ 123.32 (24.5%) Marriott (1) 122 17,085 103.70 136.82 (24.2%) 120.67 138.67 (13.0%) Sonesta (1) (3) 56 10,297 99.04 138.47 (28.5%) 109.87 143.89 (23.6%) Hyatt 22 2,724 86.36 105.76 (18.3%) 94.43 109.67 (13.9%) Radisson (1) 9 1,939 91.17 141.65 (35.6%) 112.01 136.66 (18.0%) Wyndham (1) 17 2,205 57.68 81.14 (28.9%) 64.63 80.14 (19.4%) All Hotels Total/Average 329 51,404 $ 89.88 $ 128.33 (30.0%) $ 103.30 $ 130.31 (20.7%) OCCUPANCY IHG (1) (2) 103 17,154 54.8 % 79.9 % (25.1) pts 51.8 % 77.7 % (25.9) pts Marriott (1) 122 17,085 34.6 % 75.7 % (41.1) pts 35.7 % 72.4 % (36.7) pts Sonesta (1) (3) 56 10,297 42.8 % 75.0 % (32.2) pts 41.0 % 70.7 % (29.7) pts Hyatt 22 2,724 47.1 % 79.4 % (32.3) pts 44.9 % 78.9 % (34.0) pts Radisson (1) 9 1,939 25.2 % 79.5 % (54.3) pts 30.5 % 72.7 % (42.2) pts Wyndham (1) 17 2,205 41.8 % 69.7 % (27.9) pts 41.7 % 65.9 % (24.2) pts All Hotels Total/Average 329 51,404 43.6 % 77.0 % (33.4) pts 42.7 % 73.9 % (31.2) pts RevPAR IHG (1) (2) 103 17,154 $ 44.28 $ 97.50 (54.6%) $ 48.21 $ 95.82 (49.7%) Marriott (1) 122 17,085 35.88 103.57 (65.4%) 43.08 100.40 (57.1%) Sonesta (1) (3) 56 10,297 42.39 103.85 (59.2%) 45.05 101.73 (55.7%) Hyatt 22 2,724 40.68 83.97 (51.6%) 42.40 86.53 (51.0%) Radisson (1) 9 1,939 22.97 112.61 (79.6%) 34.16 99.35 (65.6%) Wyndham (1) 17 2,205 24.11 56.55 (57.4%) 26.95 52.81 (49.0%) All Hotels Total/Average 329 51,404 $ 39.19 $ 98.81 (60.3%) $ 44.11 $ 96.30 (54.2%) (1) During the three months ended September 30, 2020, ten Sonesta hotels, four IHG hotels, three Radisson hotels, one Marriott hotel and one Wyndham hotel were closed due to the impact of the COVID-19 pandemic. (2) Operating data includes data for certain hotels for periods prior to when we acquired them. (3) Operating data includes data for five hotels for periods prior to when these were managed by Sonesta. "ADR" is average daily rate; "RevPAR" is room revenue per available room. 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 27


 
Hotel Operating Statistics by Service Level For the Three Months Ended September 30, For the Nine Months Ended September 30, No. of No. of Rooms or Hotels Suites 2020 2019 Change 2020 2019 Change ADR Extended stay 183 22,330 $ 81.42 $ 106.60 (23.6%) $ 87.57 $ 106.36 (17.7%) Select service 95 15,822 93.90 127.24 (26.2%) 110.90 129.77 (14.5%) Full service 51 13,252 115.36 162.07 (28.8%) 137.14 166.37 (17.6%) All Hotels Total/Average 329 51,404 $ 89.88 $ 128.33 (30.0%) $ 103.30 $ 130.31 (20.7%) OCCUPANCY Extended stay 183 22,330 62.1 % 80.1 % (18.0) pts 55.9 % 76.2 % (20.3) pts Select service 95 15,822 32.6 % 74.4 % (41.8) pts 33.7 % 71.8 % (38.1) pts Full service 51 13,252 26.0 % 75.0 % (49.0) pts 31.3 % 72.6 % (41.3) pts All Hotels Total/Average 329 51,404 43.6 % 77.0 % (33.4) pts 42.7 % 73.9 % (31.2) pts RevPAR Extended stay 183 22,330 $ 50.56 $ 85.39 (40.8%) $ 48.95 $ 81.05 (39.6%) Select service 95 15,822 30.61 94.67 (67.7%) 37.37 93.17 (59.9%) Full service 51 13,252 29.99 121.55 (75.3%) 42.92 120.78 (64.5%) All Hotels Total/Average 329 51,404 $ 39.19 $ 98.81 (60.3%) $ 44.11 $ 96.30 (54.2%) 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 28


 
Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels For the Three Months Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Room revenues $ 178,402 $ 108,599 $ 288,511 $ 355,655 $ 411,413 $ 575,512 $ 1,177,235 Food and beverage revenues 6,438 2,343 38,405 52,085 44,716 47,185 143,783 Other revenues 9,971 4,898 11,864 13,072 14,013 26,733 39,341 Hotel operating revenues - comparable hotels 194,811 115,840 338,780 420,812 470,142 649,430 1,360,359 Rooms expenses 56,848 41,500 92,898 102,435 110,521 191,246 315,542 Food and beverage expenses 8,820 5,862 32,797 38,934 36,255 47,479 109,918 Other direct and indirect expenses 87,897 70,719 125,260 130,526 138,154 283,875 400,046 Management fees 1,741 961 2,237 2,663 2,937 4,939 8,696 Real estate taxes, insurance and other 32,138 31,164 37,370 39,310 41,063 100,673 112,924 FF&E reserves (3) 262 3 9,966 16,085 18,145 10,231 52,533 Hotel operating expenses - comparable hotels 187,706 150,209 300,528 329,953 347,075 638,443 999,659 Hotel EBITDA $ 7,105 $ (34,369) $ 38,252 $ 90,859 $ 123,067 $ 10,987 $ 360,700 Hotel EBITDA Margin 4 % (30) % 11 % 22 % 26 % 2 % 27 % Hotel operating revenues (GAAP) (1) $ 199,719 $ 117,356 $ 383,503 $ 467,805 $ 525,290 $ 700,578 $ 1,521,368 Hotel operating revenues from non-comparable hotels (4,908) (1,516) (44,723) (46,993) (55,148) (51,148) (161,009) Hotel operating revenues - comparable hotels $ 194,811 $ 115,840 $ 338,780 $ 420,812 $ 470,142 $ 649,430 $ 1,360,359 Hotel operating expenses (GAAP) (1) $ 174,801 $ 46,957 $ 271,148 $ 330,216 $ 377,895 $ 492,906 $ 1,076,011 Add (less) Hotel operating expenses from non- comparable hotels (18,452) (18,524) (52,275) (40,306) (44,030) (89,250) (128,809) Reduction for security deposit and guaranty fundings, net 30,474 121,155 70,506 15,907 1 222,134 13,256 Management and incentive management fees paid from cashflows in excess of minimum returns and rents — — — 7,806 (5,216) — (14,106) FF&E reserves from managed hotel operations (3) 262 — 10,942 16,330 18,425 11,205 53,307 Other (14) 621 621 207 — — 1,448 — Hotel operating expenses - comparable hotels $ 187,706 $ 150,209 $ 300,528 $ 329,953 $ 347,075 $ 638,443 $ 999,659 See notes on page 13 SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 29


 
Calculation and Reconciliation of Hotel EBITDA For the Three Months Ended Nine Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 9/30/2020 9/30/2019 Room revenues $ 182,366 $ 109,516 $ 322,668 $ 397,995 $ 462,298 $ 614,550 $ 1,335,000 Food and beverage revenues 6,786 2,411 49,722 67,080 58,636 58,918 191,256 Other revenues 12,895 9,667 16,292 27,485 18,801 38,855 54,179 Hotel operating revenues 202,047 121,594 388,682 492,560 539,735 712,323 1,580,435 Rooms expenses 59,711 44,267 107,066 116,048 126,292 211,044 363,633 Food and beverage expenses 11,420 8,325 46,045 52,117 49,437 65,790 152,360 Other direct and indirect expenses 97,993 80,827 146,671 152,714 160,831 325,489 469,146 Management fees 1,781 969 2,864 3,465 3,910 5,614 11,768 Real estate taxes, insurance and other 37,169 36,263 44,288 44,869 45,449 117,720 124,776 FF&E reserves (3) 262 (515) 11,137 17,343 19,288 10,884 56,673 Hotel operating expenses 208,336 170,136 358,071 386,556 405,207 736,541 1,178,356 Hotel EBITDA $ (6,289) $ (48,542) $ 30,611 $ 106,004 $ 134,528 $ (24,218) $ 402,079 Hotel EBITDA Margin (3) % (40) % 8 % 22 % 25 % (3) % 25 % Hotel operating revenues (GAAP) (1) $ 199,719 $ 117,356 $ 383,503 $ 467,805 $ 525,290 $ 700,578 $ 1,521,368 Add: hotel revenues of leased hotels 2,328 4,238 5,179 24,755 14,445 11,745 59,067 Hotel operating revenues $ 202,047 $ 121,594 $ 388,682 $ 492,560 $ 539,735 $ 712,323 $ 1,580,435 Hotel operating expenses (GAAP) (1) $ 174,801 $ 46,957 $ 271,148 $ 330,216 $ 377,895 $ 492,906 $ 1,076,011 Add (less) Reduction for security deposit and guaranty fundings, net 30,474 121,155 70,506 15,907 1 222,134 13,256 Hotel expenses for leased hotels 2,178 1,403 5,268 16,297 14,102 8,848 49,888 Management and incentive management fees paid from cashflows in excess of minimum — — — 7,806 (5,216) — (14,106) returns and rents FF&E reserves from managed hotel operations 262 — 10,942 16,330 18,425 11,205 53,307 Other (14) 621 621 207 — — 1,448 — Hotel operating expenses $ 208,336 $ 170,136 $ 358,071 $ 386,556 $ 405,207 $ 736,541 $ 1,178,356 See notes on page 13. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 30


 
Hotel Coverage by Operating Agreement Number of For the Twelve Months Ended Operating Agreement Properties 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 IHG 103 0.31x 0.50x 0.80x 0.91x 0.89x Marriott 122 0.24x 0.52x 0.92x 1.06x 1.08x Sonesta 56 (0.18)x 0.04x 0.38x 0.54x 0.59x Hyatt 22 0.18x 0.37x 0.76x 0.90x 0.90x Radisson 9 (0.12)x 0.36x 0.84x 0.93x 0.95x Wyndham 17 (0.24)x 0.04x 0.38x 0.50x 0.48x Total Hotels 329 0.14x 0.38x 0.73x 0.86x 0.87x Number of For the Three Months Ended Operating Agreement Properties 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 IHG 103 0.13x (0.11)x 0.34x 0.88x 0.89x Marriott 122 0.02x (0.32)x 0.39x 0.86x 1.16x Sonesta 56 (0.30)x (0.59)x (0.22)x 0.31x 0.55x Hyatt 22 0.01x (0.36)x 0.38x 0.69x 0.77x Radisson 9 (0.55)x (0.80)x 0.11x 0.76x 1.38x Wyndham 17 (0.30)x (0.61)x (0.25)x 0.32x 0.70x Total Hotels 329 (0.04)x (0.33)x 0.20x 0.72x 0.90x 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 31


 
Net Lease Portfolio by Brand As of September 30, 2020 (dollars in thousands) Percent of Total Percent of Total Annualized Annualized Brand No. of Buildings Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage 1. TravelCenters of America 134 $ 2,281,589 44.0 % $ 168,012 45.4 % 1.94x 2. Petro Stopping Centers 45 1,021,226 19.7 % 78,099 21.1 % 1.53x 3. AMC Theatres 11 102,580 2.0 % 8,702 2.4 % 0.72x 4. The Great Escape 14 98,242 1.9 % 7,140 1.9 % 1.70x 5. Life Time Fitness 3 92,617 1.8 % 5,770 1.6 % 1.13x 6. Buehler's Fresh Foods 5 76,536 1.5 % 5,143 1.4 % 4.79x 7. Heartland Dental 59 61,120 1.2 % 4,493 1.2 % 3.00x 8. Pizza Hut 59 59,502 1.1 % 4,310 1.2 % 1.31x 9. Express Oil Change 23 49,724 1.0 % 3,379 0.9 % 3.99x 10. Regal Cinemas 6 44,476 0.9 % 2,481 0.7 % 0.58x 11. Flying J Travel Plaza 3 41,681 0.8 % 3,151 0.9 % 3.75x 12. Courthouse Athletic Club 4 39,688 0.8 % 2,400 0.6 % 0.89x 13. Fleet Farm 1 37,802 0.7 % 2,571 0.7 % 3.49x 14. Church's Chicken 45 35,995 0.7 % 2,587 0.7 % 2.00x 15. America's Auto Auction 6 34,314 0.7 % 2,992 0.8 % 4.85x 16. Burger King 21 34,289 0.7 % 2,064 0.6 % 2.16x 17. Hardee's 19 31,844 0.6 % 2,070 0.6 % 0.77x 18. Martin's 16 31,144 0.6 % 2,080 0.6 % 1.72x 19. Mealey's Furniture 3 30,773 0.6 % 2,453 0.7 % 0.72x 20. Creme de la Creme 4 29,131 0.6 % 2,208 0.6 % 0.73x 21. Mister Car Wash 5 28,658 0.6 % 2,086 0.6 % 1.65x 22. Popeye's Chicken & Biscuits 20 28,434 0.5 % 1,900 0.5 % 3.44x 23. United Supermarkets 6 26,121 0.5 % 1,686 0.5 % 4.98x 24. Golden Corral 6 25,816 0.5 % 1,759 0.5 % 0.92x 25. Pike Nursery 5 16,192 0.3 % 1,752 0.5 % 2.85x 26. Other (2) 281 822,445 15.7 % 48,515 12.8 % 3.66x Total 804 $ 5,181,939 100.0 % $ 369,803 100.0 % 2.12x (1) Includes six net lease properties with an aggregate carrying value of $6,735 and annual minimum rent of $536 we have classified as held for sale. (2) Other includes 104 distinct brands with an average investment of $2,927 per building and average annual minimum rent of $173 per lease. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 32


 
Net Lease Portfolio by Industry As of September 30, 2020 (dollars in thousands) Percent of Total Percent of Total Annualized Annualized Industry No. of Buildings Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage 1. Travel Centers 182 $ 3,344,496 64.5% $ 249,261 67.5% 1.83x 2. Restaurants-Quick Service 248 317,833 6.1% 20,986 5.7% 2.31x 3. Restaurants-Casual Dining 55 203,002 3.9% 11,763 3.2% 1.72x 4. Movie Theaters 22 190,725 3.7% 11,783 3.2% 0.69x 5. Health and Fitness 13 184,744 3.6% 11,511 3.1% 1.13x 6. Grocery 19 129,219 2.5% 8,598 2.3% 4.60x 7. Medical/Dental Office 71 118,098 2.3% 9,185 2.5% 3.18x 8. Miscellaneous Retail 19 114,433 2.2% 8,892 2.4% 1.92x 9. Automotive Parts and Service 63 96,496 1.9% 6,583 1.8% 3.33x 10. Automotive Dealers 9 64,756 1.2% 5,118 1.4% 4.98x 11. Entertainment 4 61,436 1.2% 2,435 0.7% 1.61x 12. Educational Services 9 55,647 1.1% 4,135 1.1% 2.08x 13. Sporting Goods 3 52,022 1.0% 3,489 0.9% 3.06x 14. Home Furnishings 5 37,215 0.7% 2,854 0.8% 0.92x 15. Miscellaneous Manufacturing 6 31,824 0.6% 2,245 0.6% 15.93x 16. Building Materials 27 30,036 0.6% 2,523 0.7% 5.64x 17. Car Washes 5 28,658 0.6% 2,086 0.6% 4.84x 18. Drug Stores and Pharmacies 8 23,970 0.5% 1,646 0.4% 1.41x 19. Legal Services 5 11,362 0.2% 1,019 0.3% 2.08x 20. Apparel 1 11,027 0.2% 670 0.2% 3.14x 21. General Merchandise 3 7,492 0.1% 541 0.1% 3.48 22. Dollar Stores 3 2,971 0.1% 186 0.1% 3.09x 23. Other 10 25,905 0.5% 2,294 0.4% 4.33x 24. Vacant 14 38,572 0.7% — —% — Total 804 $ 5,181,939 100.0% $ 369,803 100.0% 2.12x (1) Includes six net lease properties with an aggregate carrying value of $6,735 and annual minimum rent of $536 we have classified as held for sale. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 33


 
Net Lease Portfolio by Tenant (Top 10) As of September 30, 2020 (dollars in thousands) Percent of Total Percent of Total Annualized Annualized Tenant Brand Affiliation No. of Buildings Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage TravelCenters of America / 1. TravelCenters of America Inc. Petro Stopping Centers 179 $ 3,302,815 63.7 % $ 246,110 66.6 % 1.81x (2) (3) 2. Universal Pool Co., Inc. The Great Escape 14 98,242 1.9 % 7,140 1.9 % 1.70x 3. Healthy Way of Life II, LLC Life Time Fitness 3 92,617 1.8 % 5,770 1.6 % 1.13x (2) 4. Styx Acquisition, LLC Buehler's Fresh Foods 5 76,536 1.5 % 5,143 1.4 % 4.79x (2) 5. Professional Resource Development, Inc. Heartland Dental 59 61,120 1.2 % 4,493 1.2 % 3.00x 6. Eastwynn Theatres, Inc. AMC Theatres 5 41,771 0.8 % 3,541 1.0 % 0.32x 7. Express Oil Change, L.L.C. Express Oil Change 23 49,724 1.0 % 3,379 0.9 % 3.50x 8. Pilot Travel Centers LLC Flying J Travel Plaza 3 41,681 0.8 % 3,151 0.9 % 3.50x Automotive Remarketing 9. Automotive Remarketing Group, Inc. Group 6 34,314 0.7 % 2,992 0.8 % 4.85x 10. American Multi-Cinema, Inc. AMC Theatres 2 35,310 0.7 % 2,866 0.8 % 0.59x Sub-total, Top 10 299 3,834,130 74.1 % 284,585 77.1 % 1.91x 11. Other (4) Various 505 1,347,809 25.9 % 85,218 22.9 % 2.83x Total 804 $ 5,181,939 100.0 % $ 369,803 100.0 % 2.12x (1) Includes six net lease properties with an aggregate carrying value of $6,735 and annual minimum rent of $536 that we have classified as held for sale. (2) Leases subject to full or partial guarantee. (3) TA is our largest tenant. As of September 30, 2020, we leased 179 travel centers (134 under the TravelCenters of America brand and 45 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. TA has two renewal options for 15 years each for all of the travel centers. 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 agreements). TA's remaining deferred rent obligation of $44,036 is due in quarterly installments of $4,404 through January 31, 2023. (4) Other includes 173 tenants with an average investment of $7,791 and average annual minimum rent of $493. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 34


 
Net Lease Portfolio - Expiration Schedule As of September 30, 2020 (dollars in thousands) Cumulative % of Total Annualized Minimum Rent Percent of Total Annualized Annualized Minimum Rent Year (1) Square Feet Expiring (2) Minimum Rent Expiring Expiring 2020 77,720 $ 1,798 0.5% 0.5% 2021 478,322 5,409 1.5% 2.0% 2022 564,526 7,448 2.0% 4.0% 2023 147,678 2,316 0.6% 4.6% 2024 692,937 10,048 2.7% 7.3% 2025 438,433 8,796 2.4% 9.7% 2026 869,520 9,917 2.7% 12.4% 2027 1,064,806 14,379 3.9% 16.3% 2028 555,109 9,597 2.6% 18.9% 2029 1,311,612 47,350 12.8% 31.7% 2030 184,368 3,987 1.1% 32.8% 2031 1,467,658 49,757 13.5% 46.3% 2032 1,233,445 50,689 13.7% 60.0% 2033 1,107,227 53,349 14.4% 74.4% 2034 134,640 4,523 1.2% 75.6% 2035 2,577,853 81,288 22.0% 97.6% 2036 320,792 5,306 1.4% 99.0% 2037 — — — 99.0% 2038 10,183 416 0.1% 99.1% 2039 185,437 3,278 0.9% 100.0% 2040 1,739 152 —% 100.0% Total 13,424,005 $ 369,803 100.0% Weighted Average Lease Term 9.25 11.02 (1) The year of lease expiration is pursuant to contract terms. (2) Includes six net lease properties with an aggregate carrying value of $6,735 and annual minimum rent of $536 we have classified as held for sale. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 35


 
Net Lease Portfolio - Occupancy and Leasing Summary (dollars in thousands) As of and For the Three Months Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Properties (end of period) 804 809 813 816 946 Total square feet 13,682,477 13,728,893 14,511,567 14,886,967 17,563,459 Square feet leased 13,424,005 13,548,122 14,262,947 14,539,128 17,238,100 Percentage leased 98 % 99 % 98 % 98 % 98 % Leasing activity (Sq. ft): New Leases 2,535 39,892 — — — Renewals 496,756 506,870 59,694 217,807 — Total 499.291 546.762 59.694 217.807 — % Change in GAAP rent: New Leases 34.73 % (25.92) % (14.81) % — % — % Renewals (11.55) % 6.95 % — — — Total (weighted average) (11.20) % 6.04 % (14.81) % — % — % Leasing Costs and Concession Commitments: New Leases $ 189 $ 157 $ — $ — $ — Renewals 4,897 7,501 — 551 — Total (weighted average) $ 5,086 $ 7,658 $ — $ 551 $ — Leasing Costs and Concession Commitments per Square Foot: New Leases $ 74.64 $ 3.93 $ — $ — $ — Renewals 9.86 14.80 — 2.53 — Total (weighted average) $ 10.19 $ 14.01 $ — $ 2.53 $ — Weighted Average Lease Term by Sq. Ft (Years): New Leases 9.0 6.0 — — — Renewals 13.6 13.7 5.1 8.1 — Total (weighted average) 13.6 13.1 5.1 8.1 — Leasing Costs and Concession Commitments per Square Foot per Year: New Leases $ 8.29 $ 0.65 $ — $ — $ — Renewals 0.72 1.08 — 0.31 — Total $ 0.75 $ 1.07 $ — $ 0.31 $ — SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 36


 
Non-GAAP Financial Measures and Certain Definitions Non-GAAP Financial Measures We present certain “non-GAAP financial measures” within the meaning of applicable Securities and Exchange Commission, or SEC, rules, including EBITDA, Hotel EBITDA, EBITDAre, Adjusted EBITDAre, FFO and Normalized FFO. 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 condensed consolidated statements of income. 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. 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 11. EBITDAre is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or Nareit, which is EBITDA, excluding gains and losses on the sale of real estate, loss on impairment of real estate assets, if any, as well as certain other adjustments currently not applicable to us. In calculating Adjusted EBITDAre, we adjust for the items shown on page 11 and include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as an expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. Other real estate companies and REITs may calculate EBITDA, EBITDAre and Adjusted EBITDAre differently than we do. FFO and Normalized FFO: We calculate funds from operations, or FFO, and Normalized FFO as shown on page 12. FFO is calculated on the basis defined by 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 certain other adjustments currently not applicable to us. In calculating Normalized FFO, we adjust for the item shown on page 12 and include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as an expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. 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 maintain our qualification for taxation as a REIT, limitations in our credit agreement and public debt covenants, 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. 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 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. 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 and were open and operating for the entire periods being compared. For the three months ended September 30, 2020 and 2019, we excluded 15 hotels from our comparable results. Three of these hotels were not owned for the entire periods and 12 suspended operations during part of the periods presented. For the nine months ended September 30, 2020 and 2019, we excluded 25 hotels from our comparable results. Three of these hotels were not owned for the entire periods, four were closed for major renovations and 18 suspended operations during part of the periods presented. Consolidated Income Available for Debt Service: Consolidated income available for debt service 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 37


 
Non-GAAP Financial Measures and Certain Definitions (continued) Coverage: We define hotel coverage as total hotel revenues minus all hotel expenses and FF&E reserve escrows that are not subordinated to minimum returns due to us divided by the minimum returns or rents due to us. Coverage amounts include operating data for certain hotels for periods prior to when we acquired them for periods they were managed by a different brand. We define net lease 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 reported 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. Tenants that do not report operating information are excluded from the coverage calculations. Coverage amounts include data for certain properties for periods prior to when we acquired them. In instances where we do not have financial information for the most recent quarter from our tenants, we have calculated an implied EBITDAR for the 2020 third quarter using industry benchmark data to more accurately reflect the impact of COVID-19 on our tenants’ operations. We believe using only financial information from the earlier periods could be misleading as it would not reflect the negative impact those tenants experienced as a result of the COVID-19 pandemic. As a result, we believe using this industry benchmark data provides a more accurate estimated representation of recent operating results and coverage for those tenants. 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. FF&E Reserve: Most of our hotel operating agreements require the deposit of a percentage of gross hotel revenues into escrows to fund FF&E reserves. We own all the FF&E reserve escrows for our hotels. Our net lease agreements do not require FF&E escrow deposits; however, certain tenants may request that we fund capital improvements in return for increases in the annual minimum rent. Our tenants are generally not obligated to request and we are not obligated to fund any such improvements. 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 annual minimum 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: We define 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 condensed consolidated statements of income in accordance with GAAP. We believe Hotel EBITDA provides useful information to management and investors as a key measure of the profitability of our hotel operations. Hotel EBITDA Margin: is the percentage of Hotel EBITDA 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 minimum returns 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. Minimum Return/Rent: Each of our management agreements or leases with hotel operators provides for payment to us of an annual minimum return or minimum rent, respectively. Certain of these minimum payment amounts are secured by full or limited guarantees or security deposits. 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 or secured by deposits. 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. 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. 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 performance over comparable periods. SMTA Transaction: On September 20, 2019, we acquired 767 net lease properties from Spirit MTA REIT, a Maryland REIT, (NYSE: SMTA), or SMTA, located in 45 states, for an aggregate transaction value of $2.5 billion. Total Gross Assets: Total gross assets is total assets plus accumulated depreciation. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 38


 
Warning Concerning Forward-looking Statements 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. SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, September 30, 2020 39