NEWTON, Mass. — Service Properties Trust (SVC) today announced that it has terminated the management agreements for 122 hotels with Marriott International effective January 31, 2021, and currently plans to transfer the branding and management of 98 of these hotels to Sonesta.
The 122 properties include two Marriott hotels, two Springhill Suites, 12 TownePlace Suites, 35 Residence Inns, and 71 Courtyard by Marriott hotels in 31 states.
Pursuant to its existing agreement with Marriott, SVC is proceeding with the sale of 24 of the 122 Marriott branded hotels. SVC has entered agreements to sell a portfolio of eight TownePlace Suites hotels totaling 834 rooms in four states for an aggregate sales price of $45.3 million and a portfolio of 16 hotels totaling 2,155 rooms in nine states (13 Courtyard hotels with 1,813 rooms and three Residence Inn hotels with 342 rooms) for an aggregate sales price of $107.8 million. SVC expects these sales to be completed by the end of the year. Separate from selling these 24 hotels, SVC has been unable to sell nine additional Marriott-branded hotels pursuant to its existing agreement with Marriott, and the management of these nine hotels will be transitioned to Sonesta on December 15, 2020. The balance of the Marriott portfolio, or 89 hotels, will be transitioned to Sonesta on January 31, 2021.
Upon transfer to Sonesta, SVC 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. SVC owns approximately 34 percent of Sonesta. In August, Sonesta announced a transaction with Service Properties Trust to transfer 103 IHG hotels to Sonesta branding and management—the largest expansion Sonesta’s more than 80-year history.