Service Properties Trust (SVC) has completed the transfer of 78 hotels to US-based Sonesta International Hotels’ subsidiaries from Marriott International (MAR).
By the end of next month, ten additional hotels are expected to be transferred to Sonesta.
Real estate investment trust SVC and Sonesta have signed short-term management agreements for managing the 78 hotels.
The agreements have been made on terms that are substantially consistent with SVC’s legacy management agreements with Sonesta that will expire on 31 December this year.
Similarly, SVC plans to sign management agreements with Sonesta for the ten hotels that are scheduled to be transferred to the latter.
One Royal Sonesta hotel, two Sonesta hotels, 32 Sonesta ES Suites, four Sonesta Simply Suites and 49 Sonesta Select brands are included in these 88 hotels.
Service Properties Trust president and CEO John Murray said: “We are pleased to have successfully transitioned 78 hotels to Sonesta, with ten additional hotels transitioning in the coming weeks.
“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 the presently challenging market conditions and provide improved decision-making control over dispositions or alternative uses, which we expect will have a positive impact on this portfolio’s performance in the future.”
SVC is managed by the operating subsidiary of alternative asset management company The RMR Group.
As a 34% owner of Sonesta, SVC is expected to benefit from Sonesta’s growth as well as share in more of the upside from the recovery of these hotels.