Service Properties Trust 5-for-1 reverse split takes effect July 6; shares to shrink by 80%

Service Properties Trust (SVC) will execute a 5-for-1 reverse stock split effective July 6, 2026, the real estate investment trust said. The move consolidates every five existing shares into one, reducing the outstanding share count by 80%.

The split does not change the company's market capitalization or the value of any single shareholder's stake. A holder of 100 shares before the split will own 20 shares after, each priced at roughly five times the pre-split level.

Reverse splits are typically used by companies whose share price has fallen to levels that risk delisting from major exchanges. SVC shares have traded below $5 for much of the past year, a threshold that can trigger non-compliance notices from the New York Stock Exchange.

The trust owns a portfolio of hotels and net-lease properties across the U.S. It has been under pressure from elevated interest rates and a slow recovery in business travel demand. The reverse split is a mechanical fix for the listing requirement, not a change in the underlying business.

Shareholders approved the split at the company's annual meeting in May. The new shares will begin trading on a split-adjusted basis when markets open July 6.