Service Properties Trust Completes Transfer of 99 Hotels to Sonesta
Service Properties Trust (Nasdaq: SVC), or SVC, today announced that it has completed the transition of branding and management for 99 hotels to subsidiaries of Sonesta International Hotels Corporation, or Sonesta, from InterContinental Hotels Group plc, or IHG. Three additional hotels located in Canada and Puerto Rico will transition to Sonesta in mid-December and one hotel located in Atlanta, GA will continue to be managed by IHG.
SVC entered short term agreements with Sonesta to manage the 99 hotels that expire on December 31, 2021. These 99 hotels are now operated under the Royal Sonesta, Sonesta and Sonesta ES Suites brands. Sonesta has also launched Sonesta Simply Suites, a new extended-stay hotel concept with 61 initial locations, making it one of the largest U.S. hotel brand launches in history. The three hotels scheduled to be transitioned to Sonesta in mid-December will enter similar management agreements with Sonesta and they will be operated under the Royal Sonesta and Sonesta ES Suites brands.
John Murray, President and Chief Executive Officer of SVC, made the following statement regarding today’s announcement:
“We are excited to complete this milestone in transitioning 99 hotels to Sonesta and the launching of the Sonesta Simply Suites brand. We believe that as a 34% owner of Sonesta, SVC will benefit from Sonesta’s growth as well as share in more of the upside from the recovery of these hotels. The rebranding of these hotels with Sonesta will also create greater flexibility for us in managing through these challenging market conditions, give us improved decision-making control over dispositions or alternative uses, and potentially have a positive impact on this portfolio’s performance in the future. For example, while all of our hotels have been significantly negatively affected by the COVID-19 pandemic, year to date and for the third quarter of 2020, comparable hotel RevPAR performance at existing Sonesta managed hotels has been among the best performing of SVC’s hotel portfolios.”
About Service Properties Trust
Service Properties Trust is a real estate investment trust which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 149 distinct brands across 23 industries. SVC’s properties are primarily operated under long-term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.