Service Properties Trust (STU:HPO0) Gross Margin %: 31.38% (As of Mar. 2026) — 14% Below Median

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STU:HPO0 Service Properties Trust STU:HPO0
61 GF Score
Price €7.60
GF Value €11.96
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Service Properties Trust Gross Margin %?

Service Properties Trust STU:HPO0 61 Gross Margin % is 31.38% as of Mar. 2026, which is 14% below its 10-year median of 36.41. GuruFocus rates STU:HPO0 with a GF Score™ of 61/100 and a GF Value™ of €11.96 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 672 REITs companies, Service Properties Trust ranks worse than 92.41% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Service Properties Trust's Gross Profit for the three months ended in Mar. 2026 was €99 Mil. Service Properties Trust's Revenue for the three months ended in Mar. 2026 was €315 Mil. Therefore, Service Properties Trust's Gross Margin % for the quarter that ended in Mar. 2026 was 31.38%.

Warning Sign:

Service Properties Trust gross margin has been in long-term decline. The average rate of decline per year is -5.3%.


The historical rank and industry rank for Service Properties Trust's Gross Margin % or its related term are showing as below:

STU:HPO0' s Gross Margin % Range Over the Past 10 Years
Min: 31.23   Med: 36.41   Max: 46.03
Current: 31.96


During the past 13 years, the highest Gross Margin % of Service Properties Trust was 46.03%. The lowest was 31.23%. And the median was 36.41%.

STU:HPO0's Gross Margin % is ranked worse than
92.41% of 672 companies
in the REITs industry
Industry Median: 69.705 vs STU:HPO0: 31.96

Service Properties Trust had a gross margin of 31.38% for the quarter that ended in Mar. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Service Properties Trust was -5.30% per year.


Service Properties Trust  (STU:HPO0) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Service Properties Trust had a gross margin of 31.38% for the quarter that ended in Mar. 2026 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Service Properties Trust Gross Margin % Related Terms


Service Properties Trust Gross Margin % Historical Data

* Premium members only.

The historical data trend for Service Properties Trust's Gross Margin % 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 Gross Margin % Chart

Service Properties Trust Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.37 33.41 33.74 31.79 31.23

Service Properties Trust Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.43 33.59 30.32 32.39 31.38

STU:HPO0 vs INN, CLDT, RLJ: Gross Margin % Comparison

For the REIT - Hotel & Motel subindustry, Service Properties Trust's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs REITs Industry

For the REITs industry and Real Estate sector, Service Properties Trust's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Service Properties Trust's Gross Margin % falls into.


STU:HPO0
61GF Score
Service Properties Trust STU:HPO0
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Service Properties Trust Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Service Properties Trust's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=484 / 1549.872
=(Revenue - Cost of Goods Sold) / Revenue
=(1549.872 - 1065.911) / 1549.872
=31.23 %

Service Properties Trust's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=98.9 / 315.25
=(Revenue - Cost of Goods Sold) / Revenue
=(315.25 - 216.323) / 315.25
=31.38 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 31.38% mean?
Service Properties Trust (STU:HPO0) has a Gross Margin % of 31.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Service Properties Trust and its competitors. This is 14% below median its historical median of 36.41. Over the past decade, Service Properties Trust's Gross Margin % has ranged from 31.23 to 46.03. According to the industry distribution chart, Service Properties Trust ranks #621 out of 672 companies in the REITs industry, placing it in the top 92.4%.
Is Service Properties Trust's Gross Margin % too high?
Service Properties Trust's current Gross Margin % of 31.38% is 14% below median its 10-year median of 36.41. Over the past 10 years, this metric has ranged from a low of 31.23 to a high of 46.03. The REITs industry median Gross Margin % is 69.71. Service Properties Trust's value of 31.38% is 55% below this industry median. Based on the distribution chart, Service Properties Trust ranks #621 out of 672 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 Gross Margin % compare to INN and CLDT?
According to the REITs industry distribution chart, Service Properties Trust ranks #621 out of 672 companies for Gross Margin %. This places Service Properties Trust in the lower half of its industry. The industry median Gross Margin % is 69.71. Service Properties Trust's value of 31.38% is 55% below this benchmark. Historically, Service Properties Trust's own Gross Margin % has ranged from 31.23 to 46.03 over the past decade. While the company's 10-year median is 36.41 vs. the industry median of 69.71, Service Properties Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 672 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Properties Trust's current Gross Margin % of 31.38% is 55% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Service Properties Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Properties Trust's current Gross Margin % is 31.38%, which is 14% below median its own 10-year median of 36.41. 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 (STU:HPO0) is currently considered Possible Value Trap. The stock's GF Value™ is €11.96, compared to a current price of €7.60 — trading 36.5% below its estimated fair value. The current Gross Margin % is 31.38%, which is 14% below median its 10-year median of 36.41 and 55% below the REITs industry median of 69.71. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Service Properties Trust (STU:HPO0), the current Gross Margin % is 31.38% as of Mar. 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 (STU:HPO0) Overvalued in 2026?

Based on GuruFocus' analysis, Service Properties Trust stock appears to be undervalued. The current stock price of €7.60 is trading 36.5% below its estimated GF Value™ of €11.96. GuruFocus considers Service Properties Trust to be Possible Value Trap.

Key valuation signals for STU:HPO0:

  • Gross Margin %: 31.38% (14% below median its 10-year median of 36.41)
  • GF Value™: €11.96 vs. price of €7.60 (36.5% below fair value)
  • GF Score™: 61/100 with 6 warning signs
  • Industry Position: 55% below the REITs median (#621 of 672)

No single metric tells the full story. See the STU:HPO0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Service Properties Trust Business Description

Industry Real EstateREITs
Other Exchanges SVC:USA
Address 255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634
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

Get the complete analysis for STU:HPO0

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€7.60
Price
€11.96
GF Value