Service Properties Trust Reduces Quarterly Dividend To $0.01 Per Share, Saving $127M Annually; Plans To Sell 114 Sonesta-Managed Hotels In 2025 To Repay Debt; Expected To Save $725M In Capital Expenditures
Portfolio Pulse from Benzinga Newsdesk
Service Properties Trust (SVC) has announced a reduction in its quarterly dividend to $0.01 per share, saving $127 million annually. The company also plans to sell 114 Sonesta-managed hotels in 2025 to repay debt, which is expected to save $725 million in capital expenditures.
October 16, 2024 | 12:09 pm
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Service Properties Trust has reduced its quarterly dividend to $0.01 per share, saving $127 million annually. The company plans to sell 114 Sonesta-managed hotels in 2025 to repay debt, saving $725 million in capital expenditures.
The reduction in dividends is typically seen as a negative signal by investors, indicating potential financial challenges or a shift in capital allocation strategy. The planned sale of hotels to repay debt suggests a focus on debt reduction, which could be positive in the long term but may raise concerns about current liquidity and operational strategy.
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