Welcome to our dedicated page for Service Properties Trust news (Ticker: SVC), a resource for investors and traders seeking the latest updates and insights on Service Properties Trust stock.
Service Properties Trust (Nasdaq: SVC) is a Maryland real estate investment trust focused on hotels and service-focused retail net lease properties. This news page aggregates company announcements, press releases and related updates so readers can follow how SVC’s portfolio, capital structure and distributions evolve over time.
Recent news emphasizes SVC’s hotel disposition program and balance sheet actions. The trust has entered agreements to sell 113 hotels with 14,803 keys for a combined sales price of approximately $913.3 million, excluding closing costs, and has reported the completion of numerous hotel sales across multiple states through a series of Form 8-K filings and Business Wire releases. SVC has stated that it expects to use proceeds from these sales to repay debt, and has provided unaudited pro forma financial information to show the impact of these significant dispositions.
Investors following SVC news will also see updates on financing and debt management, such as the pricing of zero coupon senior secured notes due 2027, early redemptions of senior unsecured notes, and related changes to its revolving credit facility borrowings. Regular quarterly cash distribution announcements on common shares are another recurring news theme, with the company outlining its distribution rate and explaining that future distributions may be adjusted at the discretion of its Board of Trustees.
In addition, SVC’s news flow includes quarterly earnings announcements and conference call details, along with information about hotel management relationships, including hotels managed by Sonesta International Hotels. Bookmark this page to review SVC’s historical and ongoing news items, from asset sales and capital markets transactions to dividend declarations and operating updates.
Service Properties Trust (SVC) plans to transfer management of 98 hotels to Sonesta International Hotels Corporation, enhancing its brand presence. The transition includes 2 full-service, 56 select-service, and 40 extended-stay hotels across the U.S. Management of 9 hotels will begin on December 15, 2020, with the remaining 89 on January 31, 2021. This latest transfer follows previous transactions, contributing to a 350% increase in Sonesta's national portfolio, which will exceed 250 properties in the U.S. by the end of Q1 2021.
Service Properties Trust (SVC) has terminated management agreements for 122 hotels with Marriott International due to non-payment of an $11 million shortfall. SVC plans to transfer management of 98 hotels to Sonesta, with 24 hotels being sold for a total of $153.1 million. The termination is effective January 31, 2021. The 122 hotels generated $2.6 million in cash flow during the first eight months of 2020. SVC owns approximately 34% of Sonesta, which could potentially enhance its performance moving forward.
Sonesta International Hotels Corporation is set for its largest expansion in over 80 years, acquiring 103 properties from Service Properties Trust (SVC). This includes 22 full-service and 81 extended-stay hotels across the U.S., District of Columbia, Ontario, Canada, and Puerto Rico. The transition to Sonesta management will occur following the termination of SVC's agreement with IHG on November 30, 2020. With this change, Sonesta's portfolio grows to over 160 U.S. properties and nearly 200 worldwide, significantly enhancing its presence in major tourism and business markets.