Service Properties Trust 5-for-1 Split, 5.9% Drop

Service Properties Trust 5-for-1 Split, 5.9% Drop

Service Properties Trust (NASDAQ:SVC) disclosed that its Board of Trustees has approved a five‑for‑one reverse stock split, which is expected to become effective after the close of trading on or about July 6 2026, subject to the receipt of all required regulatory approvals. Under the split, every five issued and outstanding common shares will be reclassified into one common share, reducing the total number of outstanding common shares from approximately 647.7 million to roughly 129.5 million. The company will continue to trade on Nasdaq under the ticker “SVC” but will adopt a new CUSIP number following the split.

The reverse split is designed to affect all shareholders proportionally; ownership percentages will remain unchanged except for minor adjustments arising from cash payments in lieu of fractional shares. The REIT confirmed that its regular quarterly cash distribution will stay at $0.05 per share, equating to $0.20 per share on an annual basis, indicating no change in distribution levels after accounting for the split.

Following the announcement, Service Properties Trust shares declined 5.9% in after‑hours trading on Thursday. The company highlighted that its core business remains unchanged, managing over $10 billion in service‑focused retail net‑lease properties and hotels. As of March 31 2026, the REIT owned 761 service‑focused retail net‑lease properties encompassing more than 13.6 million square feet, and 93 hotels comprising over 21,000 guest rooms across the United States, Puerto Rico, and Canada.