NEWTON, Mass.--(BUSINESS WIRE)--Service Properties Trust (Nasdaq: SVC) today announced it has completed the purchase of the 261-room Kimpton Palomar Hotel in Chicago, IL for $55.0 million, or approximately $211,000 per key. The hotel will be added to SVC’s existing agreement with Intercontinental Hotels Group.
“The Hotel Palomar is ideally located near Michigan Avenue in an economically vibrant urban community in downtown Chicago,” said John Murray, Service Properties Trust’s President and Chief Executive Officer. “Built in 2010, we believe this is a quality acquisition in a major market at a price that is well below replacement cost and that will add long-term value to SVC’s portfolio.”
Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties located in 45 states, Washington, DC, Puerto Rico and Canada. SVC's properties are 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.
WARNING REGARDING FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward looking statements are based upon SVC’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond SVC’s control. For example:
- Mr. Murray states in this press release his belief that the Kimpton Palomar Hotel is ideally located in an economically vibrant urban community in downtown Chicago and that this hotel will add long-term value to SVC’s portfolio. Possible implications from these statements are that the market dynamics of this area will remain strong in the future and that the Kimpton Palomar Hotel will benefit as a result. However, competition may increase and the current market dynamics may decline, which may reduce the benefits SVC expects to realize from this acquisition.
For these reasons, among others, investors are cautioned not to place undue reliance upon any forward looking statements in this press release. Except for 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.