22 More Under Purchase and Sale Agreements Expected to Still Close in the Second Quarter
Newton, MA & Tucson, AZ -- 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 ($62,634 per room).
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.
Among the 42 closings was the Tucson Sonesta Hotel at 6885 S Tucson Blvd that recorded at $8 million ($66,666 per room) with 5 stories, 120 rooms, pool, meeting rooms, business enter, fitness center located at the Tucson Airport. The transaction closed May 17, 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.”
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.
SVC purchased the property in 1997 for $8,535,458.
To learn more, see RED Comp #9877.