NEWTON, Mass.--(BUSINESS WIRE)--Service Properties Trust (Nasdaq: SVC) today announced progress on its previously announced plan to sell 68 Sonesta branded hotels. To date, 42 hotels totaling 6,348 keys have been sold for aggregate proceeds of $397.6 million. An additional 22 hotels totaling 1,781 keys are under purchase and sale agreements for an aggregate sales price of $141.0 million. SVC continues to market four additional hotels for sale. SVC currently expects the majority of the 22 hotels under purchase and sale agreements to close in the second quarter of 2022.
Todd Hargreaves, President and Chief Investment Officer of SVC, made the following statement:
“The hotels we are selling are non-core to SVC. We expect that upon completion of this disposition initiative, SVC will have a higher quality lodging portfolio and enhanced liquidity.”
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with more than $12 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of March 31, 2022, SVC owned 298 hotels with over 47,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of March 31, 2022, SVC also owned 786 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 March 31, 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 22 hotels for an aggregate sales price of $141.0 million and expects to complete the majority of these sales during the second quarter of 2022. 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.
- Mr. Hargreaves states that SVC expects to have a higher quality lodging portfolio and enhanced liquidity, upon the completion of SVC’s disposition initiative. SVC may not succeed in selling the hotels at the prices and on the timing it expects if at all. For these and other possible reasons, SVC may not realize the benefits it expects from these sales.
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.