REIT Terminates Management Agreement for 122 Marriott Hotels
Service Properties Trust will transfer most properties to Sonesta, sell others >>
by: Harvey Chipkin
Service Properties Trust, a real estate investment trust (REIT), announced it has terminated the management agreements for 122 hotels, including multiple brands, with Marriott International. The REIT has previously called for payments due, which were not paid. The effective date of the termination is Jan. 31, 2021, and Service Properties Trust plans to transfer the branding and management of 98 of these hotels to Sonesta. The company will also sell 24 properties. Upon transfer to Sonesta, Service Properties Trust expects that the 98 Marriott-branded hotels not being sold will be operated under the Royal Sonesta, Sonesta, Sonesta Select and Sonesta ES Suites brands. There are currently 80 Sonesta-branded hotels worldwide. Service Properties Trust owns approximately 34% of Sonesta and, according to a statement, will share in the benefit of these new management agreements and in the hotels’ performance to the extent they ramp up in the post-pandemic recovery.
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