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Service Properties Trust, a Massachusetts-based REIT, sold a portfolio of 65 hotels to 21 separate buyers for about $514M. The portfolio totals 7,865 rooms and is spread across 27 states.
All of the assets are Sonesta brands: 14 Sonesta Simply Suites, 32 Sonesta ES Suites and 19 Sonesta Select hotels. The properties are also all in populous U.S. metro markets, with the largest concentration in the Midwest.
The buyers were mostly family offices and private equity investors. The Atlanta office of CBRE facilitated the deal, representing the seller.
“This transaction represented a highly strategic disposition execution for Service Properties Trust, generating substantial sales proceeds and converting a majority of the properties from managed to long-term franchised, contributing to the growth of Sonesta’s franchise business,” CBRE Vice Chairman Mark Fair said in a statement.
As of the end of Q3 2022, SVC had 242 hotels totaling 40,563 rooms, down from a year earlier, when it had 304 hotels totaling 48,439 rooms, the result of a series of sales during the previous 12 months. In 2021, Sonesta International Hotels Corp. bought more than 200 properties from Service Properties Trust.
The company also owns, as of Q3 2022, 769 net lease properties totaling about 13.4M SF.
SVC stock ticked up about half a percentage point Tuesday morning on word of the sale. Compared with a year ago, its stock is down more than 13%; compared with five years ago, down more than 72%.
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