"Our priorities remain addressing our upcoming debt maturities," he said. "That being said, we continue to evaluate acquisition opportunities similar to what we bought in June with the Nautilus." Service Properties purchased the Nautilus Hotel in Miami Beach in June for $165.4 million and converted the hotel to Sonesta International Hotels branding and management. "We're underwriting a couple of transactions, but that said, it's unlikely we buy anything the rest of this calendar year," Hargreaves said.

In 2024, the hotel and net-lease retail focused REIT has debt maturities in March of $350 million and October of $825 million. "We're currently evaluating various options to address these maturities in the coming months, and we'll look to mitigate the impact of higher interest rates," Treasurer and Chief Financial Officer Brian Donley said. Service Properties has been much more active as a seller than buyer in recent years. In the past three years, the Nautilus was its only hotel acquisition, while the company sold "over 100 hotels for $1 billion in proceeds." "We have been net sellers, but we'll continue to opportunistically evaluate transactions," Hargreaves said.

For the quarter, Service Properties reported a net loss of $4.1 million with total revenues of $496.8 million, down from $498.5 million in the same period of 2022. The company's portfolio of 221 hotels experienced a marginal increase in demand with occupancy moving up 0.9 percentage points year over year to 67.3%, but a 0.5% decline in average daily rates kept revenue per available room growth at 0.8% in the quarter to $94.54. During the call, Service Properties executives said their full-service hotels have outperformed the rest of the portfolio with a 2.5% year-over-year improvement in RevPAR, driven by strength in urban hotels and a return in group demand. As of publication time, Service Properties' stock was trading at $7.54 a share, a 3.4% increase year to date. The Nasdaq Composite was up 30.3% for the same period.