Service Properties Trust Completes Sale of 10 Hotels
NEWTON, MA—Service Properties Trust (SVC) has completed the previously announced sale of 10 Hawthorn Suites by Wyndham branded hotels with 1,212 rooms and a net carrying value of $30.4 million for an aggregate sales price of $41.0 million, excluding closing costs. The proceeds from the sale will be used for the repayment of debt.
SVC also entered a short-term lease and revised purchase agreement for its five remaining Hawthorn Suites branded hotels with the same buyer. SVC has agreed to sell these five hotels with 430 rooms and a net carrying value of $10.7 million for $22.3 million and expects to complete the sale of these hotels by the end of the second quarter of 2021.
“We are pleased to have reached this restructured agreement for the sale and lease of these 15 hotels,” said John Murray, president/CEO, SVC. “In addition to closing on the sale of 10 hotels, we will receive lease income for the five remaining hotels at an 8% return until these hotels are sold, which we expect to occur in the first half of 2021.”