Service Properties Trust Declares Quarterly Cash Dividend at $0.20 Per Common Share

Dividend Rate Represents Modest 37% Payout Ratio Based on Q2 2022 Normalized FFO

Over $750 Million of Liquidity After Dividend Payment

Service Properties Trust (Nasdaq: SVC) today announced its Board of Directors has declared a quarterly cash dividend at $0.20 per common share ($0.80 per share per year), representing a 37% payout ratio based on Q2 2022 normalized funds from operations, or Normalized FFO. This distribution will be paid to SVC’s common shareholders of record as of the close of business on October 24, 2022 and distributed on or about November 17, 2022.

Brian Donley, Service Properties Trust’s Chief Financial Officer and Treasurer, made the following statement:

“As the result of the continued improved performance of our hotel portfolio and the steady performance of our net lease assets, we are pleased to declare our quarterly common dividend at $0.20 per share. We believe the dividend at this level is well covered and sustainable, representing only a 37% Normalized FFO payout ratio on our second quarter 2022 results, as well as positions SVC well for possible additional dividend increases in the future. We also believe a dividend at this level balances our desire to return excess cashflows to shareholders with the company’s near-term liquidity needs. After payment of this dividend, SVC expects to have over $750 million of available liquidity, which is far in excess of near-term obligations.”

About Service Properties Trust

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 June 30, 2022, SVC owned 247 hotels with over 41,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of June 30, 2022, SVC also owned 775 retail service-focused net lease properties totaling over 13 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with more than $37 billion in assets under management as of June 30, 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.

WARNING REGARDING FORWARD-LOOKING STATEMENTS

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:

• This press release states that SVC’s Board of Directors has declared a cash dividend at $0.20/share per quarter or $0.80/share per year, a dividend at this level is well covered and sustainable, representing only a 37% Normalized FFO payout ratio on SVC’s second quarter 2022 results and positions SVC well for possible additional dividend increases in the future. Possible implications of these statements are that SVC will continuously pay quarterly dividends at $0.20/share per quarter or $0.80/share per year in the future and may further increase dividends in the future. SVC’s dividend rates are set and reset from time to time by SVC’s Board of Trustees. The SVC Board considers many factors when setting dividend rates including SVC’s historical and projected income, Normalized FFO, cash available for distribution, the then current and expected needs and availability of cash to pay SVC’s obligations and fund SVC’s investments, distributions which may be required to be paid to maintain SVC’s tax status as a real estate investment trust and other factors deemed relevant by SVC’s Board of Trustees in its discretion. Accordingly, future dividend rates may be increased or decreased and there is no assurance as to the rate at which future dividends will be paid.
• This press release also states that SVC believes a dividend of $0.20 per share balances SVC’s desire to return excess cashflows to shareholders with SVC’s near-term liquidity needs, and that SVC expects to have over $750 million of available liquidity, which is far in excess of SVC’s near-term obligations. These statements may imply that the continued improved performance of SVC’s hotel portfolio and steady performance of SVC’s net lease assets may continue and that SVC has sufficient working capital and liquidity to meet its obligations and fund its business and investments. However, the performance of SVC’s hotel portfolio and performance of SVC’s net lease assets may not continue or may decline and the amounts SVC receives from its operators may be insufficient to operate SVC’s business profitably. Accordingly, SVC may not have sufficient working capital or liquidity.

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.

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.

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