Financial Comparison: Service Properties Trust (NASDAQ:SVC) & American Hotel Income Properties REIT (OTCMKTS:AHOTF)

Service Properties Trust (NASDAQ:SVC) and American Hotel Income Properties REIT (OTCMKTS:AHOTF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Dividends

Service Properties Trust pays an annual dividend of $0.80 per share and has a dividend yield of 16.5%. American Hotel Income Properties REIT pays an annual dividend of $0.76 per share and has a dividend yield of 147.3%. Service Properties Trust pays out -95.2% of its earnings in the form of a dividend. American Hotel Income Properties REIT pays out 1,245.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Service Properties Trust and American Hotel Income Properties REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Service Properties Trust	1	1	1	0	2.00
American Hotel Income Properties REIT	0	0	0	0	N/A

Service Properties Trust presently has a consensus target price of $6.67, suggesting a potential upside of 37.46%. Given Service Properties Trust’s higher probable upside, equities analysts clearly believe Service Properties Trust is more favorable than American Hotel Income Properties REIT.

Earnings & Valuation

This table compares Service Properties Trust and American Hotel Income Properties REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Service Properties Trust	$1.89 billion	0.43	-$32.78 million	($0.84)	-5.77
American Hotel Income Properties REIT	N/A	N/A	N/A	$0.06	8.45

American Hotel Income Properties REIT has lower revenue, but higher earnings than Service Properties Trust. Service Properties Trust is trading at a lower price-to-earnings ratio than American Hotel Income Properties REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Service Properties Trust and American Hotel Income Properties REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Service Properties Trust	-10.56%	-17.17%	-2.72%
American Hotel Income Properties REIT	N/A	N/A	N/A

Insider and Institutional Ownership

77.6% of Service Properties Trust shares are held by institutional investors. Comparatively, 10.3% of American Hotel Income Properties REIT shares are held by institutional investors. 1.4% of Service Properties Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

About American Hotel Income Properties REIT

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. AHIP's long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio.