Service Properties Trust 8-K

What Happened

• Service Properties Trust (SVC) announced a 1-for-5 reverse share split of its common shares, effective July 6, 2026 at 4:01 p.m. Eastern Time. Under the split, every five common shares issued and outstanding were converted into one common share, subject to cash in lieu of any fractional shares. Immediately following the split, the company amended the par value of the common shares (briefly to $0.05 per share and then back to $0.01 per share effective 4:02 p.m. ET).

Key Details

• Reverse split ratio: 1 new share for every 5 existing shares (1-for-5).
• Effective date/time: July 6, 2026 at 4:01 p.m. ET (par value amendment effective 4:02 p.m. ET).
• Shares outstanding reduced from approximately 647.64 million to approximately 129.53 million (subject to downward adjustment for cash paid in lieu of fractional shares).
• New CUSIP for common shares: 81761L201. The split applied uniformly to all record holders and did not change any holder’s percentage ownership except for effects of cash paid for fractional shares.

Why It Matters

• The reverse split reduces the total number of outstanding shares, which changes share count metrics investors use (e.g., shares outstanding and per-share calculations). Holdings will be adjusted proportionally, but some investors may receive cash instead of fractional shares.
• Operational details to watch: updated CUSIP and the company’s communications about how fractional shares will be handled and how brokers will reflect the split in investor accounts.