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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Service Properties Trust's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 14.88. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Service Properties Trust's Degree of Operating Leverage or its related term are showing as below:
SVC's Degree of Operating Leverage is ranked worse than 87.3% of 701
companies
in the REITs industry
Industry Median: 1.22
vs SVC: 14.88
Service Properties Trust (NAS:SVC) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Service Properties Trust Degree of Operating Leverage Related Terms
Service Properties Trust Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Service Properties Trust's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Service Properties Trust Degree of Operating Leverage Chart
SVC vs INN, CLDT, RLJ: Degree of Operating Leverage Comparison
For the REIT - Hotel & Motel subindustry, Service Properties Trust's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Service Properties Trust Degree of Operating Leverage vs REITs Industry
For the REITs industry and Real Estate sector, Service Properties Trust's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Service Properties Trust's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 14.88 mean?
Service Properties Trust (SVC) has a Degree of Operating Leverage of 14.88 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Service Properties Trust and its competitors. According to the industry distribution chart, Service Properties Trust ranks #612 out of 701 companies in the REITs industry, placing it in the top 87.3%.
Is Service Properties Trust's Degree of Operating Leverage too high?
Service Properties Trust's current Degree of Operating Leverage is 14.88. The REITs industry median Degree of Operating Leverage is 1.22. Service Properties Trust's value of 14.88 is 1119.7% above this industry median. Based on the distribution chart, Service Properties Trust ranks #612 out of 701 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Service Properties Trust has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Service Properties Trust's Degree of Operating Leverage compare to INN and CLDT?
According to the REITs industry distribution chart, Service Properties Trust ranks #612 out of 701 companies for Degree of Operating Leverage. This places Service Properties Trust in the lower half of its industry. The industry median Degree of Operating Leverage is 1.22. Service Properties Trust's value of 14.88 is 1119.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a REITs company?
The median Degree of Operating Leverage among REITs companies is 1.22, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Properties Trust's current Degree of Operating Leverage of 14.88 is 1119.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Service Properties Trust and its competitors. For the REITs industry, the median Degree of Operating Leverage is 1.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Properties Trust's current Degree of Operating Leverage is 14.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Service Properties Trust stock overvalued right now?
Based on GuruFocus' analysis, Service Properties Trust (SVC) is currently considered Possible Value Trap. The stock's GF Value™ is $13.53, compared to a current price of $7.72 — trading 42.9% below its estimated fair value. The current Degree of Operating Leverage is 14.88 and 1119.7% above the REITs industry median of 1.22. Service Properties Trust's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Service Properties Trust (SVC), the current Degree of Operating Leverage is 14.88 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Service Properties Trust (SVC) Overvalued in 2026?
Based on GuruFocus' analysis, Service Properties Trust stock appears to be undervalued.
The current stock price of $7.72 is trading 42.9% below its estimated GF Value™ of $13.53.
GuruFocus considers Service Properties Trust to be Possible Value Trap.
Key valuation signals for SVC:
Degree of Operating Leverage: 14.88
GF Value™: $13.53 vs. price of $7.72 (42.9% below fair value)
Industry Position: 1119.7% above the REITs median (#612 of 701)
No single metric tells the full story. See the SVC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Service Properties Trust is a real estate investment trust that owns hotel properties. These properties are located in the United States, along with Canada and Puerto Rico. The company operates through its segments hotel investment unit, and net lease investments. The firm derives the majority of its revenue from the hotel real estate investments unit. The hotels are distinguished between their service levels, which include full service, select service, and extended stay; and chain scale, which includes luxury, upper upscale, upscale, upper midscale, and midscale. The hotels are extended stay or upscale. Some of the hotel brands include Courtyard by Marriott, Royal Sonesta, Crowne Plaza, Hyatt Place, and others.
61GF Score
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Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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