On failure to meet 80% termination threshold for cumulative owner’s priority returns, Service Properties Trust (NASDAQ:SVC) has terminated the management agreements for 122 hotels with Marriott International (NASDAQ:MAR), effective January 31, 2021 and currently plans to transfer the branding and management of 98 of these hotels to Sonesta and to sell 24 hotels.
SVC’s agreements with MAR cover 122 hotels in 31 states, currently require annual minimum returns of $194.6 M and currently expire in 2035.
SVC has entered agreements to sell a portfolio of eight TownePlace Suites hotels with 834 rooms in four states for an aggregate sales price of $45.3M and a portfolio of 16 hotels with 2,155 rooms in nine states for $107.8M. SVC expects these sales to be completed by year-end.
