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US: Hospitality investment firm TKO has submitted a formal written offer to acquire the entire hospitality portfolio of Service Properties Trust (SVC) for $2 billion in cash.
The portfolio consists of 93 hotels with 21,110 rooms/suites. It includes properties operating under the Sonesta (including Royal Sonesta, Sonesta Hotels & Resorts, Sonesta ES Suites, Sonesta Select, and Sonesta Simply Suites), Hyatt Place, Radisson, and Crowne Plaza brands.
The all-cash transaction, subject to execution of definitive documentation and customary closing conditions, would provide SVC with immediate liquidity to support meaningful debt reduction while enabling the company to focus on its substantial and highly attractive net lease retail platform.
TKO says it believes this offer “delivers compelling value to SVC shareholders by crystallising the hotel portfolio’s worth at a significant premium to its implied market valuation while eliminating the operational complexity and capital intensity inherent in hospitality assets”.
“We have tremendous conviction in the long-term value of SVC’s hotel portfolio and believe TKO is uniquely positioned to unlock its full potential,” said Jim Koehler, CEO of TKO. “This acquisition represents a transformational opportunity for our firm. SVC has assembled an exceptional collection of hospitality assets across prime markets, and we are prepared to move swiftly and decisively to bring this transaction to fruition. Our all-cash offer eliminates financing risk and provides SVC with the certainty it needs to execute a successful strategic repositioning. We look forward to engaging constructively with SVC’s Board and management to reach a mutually beneficial agreement.”
Highlights:
- Hospitality investment firm TKO has submitted a formal written offer to acquire the entire hospitality portfolio of Service Properties Trust (SVC) for $2 billion in cash.
- The portfolio consist of 93 hotels with 21,110 rooms/suites
- It includes properties operating under the Sonesta (including Royal Sonesta, Sonesta Hotels & Resorts, Sonesta ES Suites, Sonesta Select, and Sonesta Simply Suites), Hyatt Place, Radisson, and Crowne Plaza brands
