Sonesta Hotels plans to enter a long-term franchise agreement for 114 hotels currently managed by Service Properties Trust, following the trust's sale of the properties to enhance liquidity and optimize its portfolio strategy.

Target Information

Sonesta Hotels is poised to enter a long-term franchise agreement for 114 hotels currently under its management, following the sale of these properties by the existing owner, Service Properties Trust (SVC). This significant transaction is part of SVC's strategy to optimize its asset portfolio and will see the conversion of existing long-term management agreements to franchise agreements with Sonesta, thereby expanding the latter's hospitality offerings.

The portfolio consists of a total of 14,925 keys spread across various hotel categories, including Sonesta Select, Sonesta ES Suites, and Sonesta Simply Suites. This transaction is valued at approximately $850 million and is expected to finalize in 2025, marking a substantial milestone for both Sonesta and SVC.

Industry Overview

The hospitality industry in the United States, particularly in the franchised segment, is witnessing a transformational shift. The market has shown resilience and adaptability, with many hotel brands opting for franchise model