Enters Agreement to Sell 16 Hotels For $137.3 Million and Continues to Make Progress on Previously Announced Sales
NEWTON, Mass.–(BUSINESS WIRE)–Service Properties Trust (Nasdaq: SVC) today announced it has entered into a purchase and sale agreement to sell 16 Marriott branded hotels totaling 2,155 keys for $137.3 million, excluding closing costs. SVC expects to close the transaction in the fourth quarter of 2022.
In connection with its previously announced marketing of 68 Sonesta branded hotels, SVC has sold 61 of the hotels totaling 7,751 keys for aggregate proceeds of $523.1 million, excluding closing costs. SVC has entered into agreements to sell six additional hotels totaling 790 keys for an aggregate sales price of $34.2 million, excluding closing costs. SVC expects to close these six sales during the third and fourth quarters of 2022. SVC continues to market one additional 219 key Sonesta branded hotel. SVC expects to use the net proceeds of these transactions for general corporate purposes, including, but not limited to, the repayment of debt.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of June 30, 2022, SVC owned 247 hotels with over 41,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of June 30, 2022, SVC also owned 775 retail service-focused net lease properties totaling over 13 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with more than $37 billion in assets under management as of June 30, 2022 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit www.svcreit.com.
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever SVC uses words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC’s control. For example:
SVC has entered agreements for the sale of 16 Marriott branded hotels for an aggregate sales price of $137.3 million and six Sonesta branded hotels for an aggregate sales price of $34.2 million and expects to close these sales during the third and fourth quarters of 2022 and use the net proceeds of these transactions for general corporate purposes, including but not limited to the repayment of debt. The sales of SVC’s properties are subject to conditions; accordingly, SVC cannot provide any assurance that it will sell any of these properties and the sales may be delayed, may not occur or their terms may change. Any sales it may complete may be at prices less than SVC expects and less than its net book value. In addition, if the sales occur and SVC uses a portion to repay debt, SVC may incur additional debt.
The information contained in SVC’s filings with the SEC, including under the caption “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, SVC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
Stephen Colbert, Director, Investor Relations