Service Properties Trust (NASDAQ: SVC) reported Q3 EPS of ($0.62), $0.22 worse than the analyst estimate of ($0.40). Revenue for the quarter came in at $296.5 million versus the consensus estimate of $262.54 million.

• Third Quarter Net Loss of $102.6 million, or $0.62 Per Common Share
• Third Quarter Normalized FFO of $0.14 Per Common Share
• Third Quarter Adjusted EBITDAre of $103.6 million

John Murray, President and Chief Executive Officer of SVC, made the following statement:

“Our financial results during the third quarter reflect the impact of the COVID-19 pandemic on the economy generally and the hospitality industry specifically. The failure of IHG and Marriott to pay our minimum returns led us to terminate these hotel management agreements and move towards rebranding the hotels to Sonesta brands and management. We believe the rebranding will benefit SVC by creating more flexibility with respect to capital investments, possible repurposing hotels to other uses, or sales. SVC also benefits from its 34% ownership of Sonesta.

“Our hotel portfolio’s performance continues to exhibit gradual improvement. All but two of our hotels are now open and occupancies have steadily increased to 45.8% in September from a low of 21.0% in April. Our extended stay portfolio has continued to outperform our other hotel types during the third quarter of 2020, with occupancy of 62.1%, versus 32.6% for select service hotels and 26.0% for full service hotels.

“Rent collections from our retail net lease tenants also trended upward to 89.3% for September from a low of 45.9% for April, as businesses that were temporarily closed due to government mandates or guidelines have largely reopened. As of October 31, 2020, we had agreed to defer an aggregate of $13.4 million of rent for tenants representing approximately 1% of our annual minimum returns and rents. Our travel centers have benefited from healthy trucking activity and TA remains current on all rent obligations.

“We also continue to take proactive steps to maintain liquidity and preserve capital. We have repaid most of our 2021 debt maturities and secured continued availability under our $1 billion revolving credit facility by recently extending our existing covenant waivers through the second quarter of 2022.”

For earnings history and earnings-related data on Service Properties Trust (SVC) click here.