Service Properties Trust (NASDAQ:SVC) Q3 2022 Earnings Conference Call November 4, 2022 10:00 AM ET

Company Participants

Stephen Colbert - Director of IR

Todd Hargreaves - President and CIO

Brian Donley - Treasurer and CFO

Conference Call Participants

Bryan Maher - B. Riley Securities

Dori Kesten - Wells Fargo

Tyler Batory - Oppenheimer

Operator

Good morning, and welcome to the Service Properties Trust Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Stephen Colbert, Director of Investor Relations. Please go ahead.

Stephen Colbert

Good morning. Joining me on today's call are Todd Hargreaves, President and Chief Investment Officer; and Brian Donley, Treasurer and Chief Financial Officer. Today's call includes a presentation by management followed by a question-and-answer session with analysts. Please note that the recording, retransmission and transcription of today's conference call is prohibited without prior written consent of SVC.

I'd like to point out that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on SVC's present beliefs and expectations as of today, November 4, 2022. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than as required by law.

In addition, this call may contain non-GAAP financial measures, including normalized funds from operations or normalized FFO and adjusted EBITDAre. Reconciliations of these non-GAAP financial measures to net income as well as components to calculate AFFO are available in our supplemental package found in the Investor Relations section of the company's website. Actual results may differ materially from those projected in these forward-looking statements.

Additional information concerning factors that could cause those differences is contained in our Form 10-Q on file with the SEC and in our supplemental operating and financial data found on our website at www.svcreit.com.

And with that, I'd like to turn the call over to Todd.

Todd Hargreaves

Thank you, Stephen, and good morning. Our third quarter results are highlighted by the ongoing improvement in our hotel portfolio as comparable RevPAR was 86% of 2019 for the third quarter compared with 83% of 2019 in Q2. The continued recovery of SVC's urban full-service and suburban select service hotels contributed to the improvement as travel patterns normalize and workplace expectations for employees slowly shift toward prior standards.