TUCSON, AZ (November 21, 2025) -- The Sonesta ES Suites Tucson, a 128-suite extended-stay hotel located at 6477 E. Speedway Blvd., has been sold for $3,5 million ($27,343 per room) to an Albuquerque-based hospitality operator. The property closed on November 14, 2025. The buyer is Hospitality Management Services c/o Yogash Kumar of New Mexico, an experienced hotel owner and operator who consults and manages multiple hospitality assets across the region.
While the price per key is notably low by industry standards, Kumar said the property was in satisfactory condition at the time of sale and viewed the hotel as an excellent value and long-term opportunity. The buyer intends to continue operating the hotel in its current extended-stay format and sees operational efficiencies and market repositioning as the primary drivers of upside, rather than any need for a significant renovation.
The seller, Service Properties Trust (SVC)—a publicly traded lodging and service-focused real estate investment trust—has been actively deleveraging its portfolio over the past several years. As part of this national strategy, SVC has been divesting older or non-core Sonesta-branded hotels, particularly those in secondary markets or with extended-stay product types. These streamlined dispositions often emphasize balance-sheet simplification and exit velocity over maximum pricing, leading to accelerated closings at below-replacement-cost values.
The Tucson Sonesta ES Suites fits that broader profile. Built in the 1980s and converted through several flags before joining the Sonesta family, the hotel occupies a deep site on Tucson’s east side retail corridor. It includes one- and two-bedroom suites with kitchens, an outdoor pool, and extended-stay amenities. Despite its age, the property has maintained steady occupancy under Sonesta and remains well-positioned for travelers seeking longer-term accommodations in the mid-market segment.
At $27K per room, the acquisition offers a below-market basis, giving the buyer significant room for operational enhancements or future repositioning. Extended-stay hotels in similar vintage and secondary markets have traded between $25K and $45K per key nationwide, making this transaction consistent with current national pricing for stabilized but older inventory—particularly when sold by large REITs conducting strategic portfolio reductions.