Service Properties Trust (NASDAQ: SVC) announced it has commenced a $500 million underwritten public offering of common shares. The real estate investment trust plans to use net proceeds to redeem all or part of its $100 million in 4.95% senior notes due 2027 and its $450 million in 5.50% senior notes due 2027.

The underwriters will receive a 30-day option to purchase up to an additional 15% of the shares offered at the public offering price, minus underwriting discounts and commissions.

Several parties have indicated interest in purchasing shares at the public offering price. Helix Partners expressed interest in up to $100 million worth of shares, while The RMR Group, SVC's manager, indicated interest in up to $50 million. SVC's president, CEO, CFO, treasurer, and certain board members also provided non-binding indications of interest.

In connection with the offering, SVC plans to expand its board of trustees by adding an independent trustee with hotel experience. The company stated this addition aims to enhance governance as it works to improve hotel portfolio performance.

The board committed to maximizing shareholder value through capital allocation between SVC's hotel and net lease retail real estate portfolios as the company continues transitioning toward greater focus on net lease retail real estate.

Yorkville Securities serves as lead bookrunner and Jones acts as bookrunning manager for the offering. The offering proceeds under SVC's effective shelf registration statement filed with the Securities and Exchange Commission.

Service Properties Trust owns 760 service-focused retail net lease properties with over 13.6 million square feet and 94 hotels with over 21,000 guest rooms across the United States, Puerto Rico, and Canada as of December 31, 2025.