Service Properties Trust (NASDAQ:SVC) Q3 2023 Earnings Conference Call November 7, 2023 10:00 AM ET
Company Participants
Stephen Colbert - Director, IR
Todd Hargreaves - President & CIO
Brian Donley - CFO & Treasurer
Conference Call Participants
Bryan Maher - B. Riley Securities
Operator
Good morning, and welcome to the Service Properties Trust Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions].
I would now like to turn the conference call 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 written consent of SEC. I would 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 7, 2023. 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 filings with the SEC, which can be accessed from our website at secreit.com or the SEC's website. 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.
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 operating and financial data package which can be found on our website.
And with that, I'll turn the call over to Todd.
Todd Hargreaves
Thank you, Stephen, and good morning. SVC's solid third quarter results reflect moderate top-line improvement in our hotel portfolio. As year-over-year, comparable RevPAR increased 0.8%, and comparable hotel EBITDA was generally flat, despite displacement from 12 active renovations during the quarter impacting performance.
Top-line performance was led by Sonesta with an 11.9% gain in group revenue and a 17.6% gain in contract revenue, mitigating some of the softening demand we are experiencing at our leisure-oriented hotels.
Our full-service portfolio continues to outperform our other service levels, driven by improvement at our urban hotels, as full-service RevPAR increased 2.5% year-over-year, and EBITDA increased by $2.4 million.