From The Real Deal · TRD Staff · · 1m
Service Properties Trust Faces $2B Hotel Bid
Service Properties Trust faces $2 billion cash bid for 93 hotels that raises red flags for analysts.
In brief
Service Properties Trust faces $2 billion cash bid for 93 hotels that raises red flags for analysts. Service Properties Trust may reject a $2 billion cash offer for 93 hotels as it faces debt pressure and analyst concerns about the deal's feasibility. Originally reported by The Real Deal.
Service Properties Trust
Service Properties Trust, listed on Nasdaq as SVC, faces a $2 billion cash bid for 93 hotels from TKO investment firm.
Offer Details
The bid comes as the REIT evaluates its $5.8 billion debt maturities over five years and has sold 66 hotels for $534 million this year.
Analyst Concerns
Analysts warn the offer is too large for a portfolio that makes up only 12 percent of SVC's total properties and lacks prior contact with TKO.
Deal Feasibility
TKO would need to sever agreements with Sonesta, the largest operator, before even considering deals with Hyatt, IHG, and Radisson, raising doubts about completion.
The takeaway
Service Properties Trust may reject a $2 billion cash offer for 93 hotels as it faces debt pressure and analyst concerns about the deal's feasibility.
