Service Properties Trust Completes Transfer of 12 Additional Hotels to Sonesta - Seite 2

• Sonesta is a small privately held company with less resources and scale than the transitioned hotels prior operators compared to IHG and MAR. If Sonesta were to fail to provide quality services and amenities or to maintain a quality brand, our income from these properties may be adversely affected. There can be no assurance that Sonesta can operate these hotels as effectively or for returns at levels that could otherwise be achieved by the prior managers. Further, if we were required to replace Sonesta, we could experience significant disruptions in operations at the applicable hotels, which could reduce our income and cash flows from, and the value of, those hotels. We have no guarantee or security deposit under our Sonesta agreements. Accordingly, we may receive amounts from Sonesta that are less than the contractual minimum returns stated in our agreements with Sonesta or we may be requested to fund losses for our Sonesta hotels. Further, we own a 34% interest in Sonesta. If Sonesta experiences losses, or requires additional capital, Sonesta may request we contribute additional capital.
• Mr. Murray states SVC believes that as a 34% owner of Sonesta, it will benefit from Sonesta’s growth as well as share in more of the upside from the recovery of these hotels. However, Sonesta may not operate these hotels profitably, Sonesta may not grow and SVC may not receive the benefit it would expect to receive. Further, it is not known how long the COVID-19 pandemic will last or how severe it will be, including its continued impact on the hotel industry. Moreover, it is not known how long it will take the economy to recover following the pandemic or what adverse changes on the hotel industry may be realized, such as if business and leisure travel are significantly reduced on a long-term or permanent basis. These and other factors may adversely affect the performance of these hotels, regardless of which operator is managing them.
• This press release also states that some of these hotels may be disposed of or have alternative uses. However, these outcomes may not occur.

The information contained in SVC’s filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC's website at www.sec.gov.