Source: Hotel News Now
by Sean McCracken
March 2, 2020
NEWTON, Massachusetts—Service Properties Trust has added Sonesta to the list of brand portfolios company officials have decided to revisit, announcing plans during the company’s fourth-quarter and full-year 2019 earnings call to rebrand or divest 39 extended stay Sonesta properties.
“After we exit these extended-stay hotels, Sonesta will continue to manage 14 full-service hotels on our behalf where we believe they can compete more effectively,” said President and CEO John Murray.
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He said the sales of both the Marriott and Wyndham portfolios should be completed by the end of the second quarter.
Murray noted sales proceeds will be devoted largely to paying off debt.
He said the company has received significant interest in both the Marriott and Wyndham portfolios and expects the same with Sonesta properties eventually put up for sale.
“As of last night, we’re seeing bids increasing and seeing portfolio bids on everything we’re calling for offers on,” he said. Interest is coming from “smaller private equity shops, high-net-worth individuals and some bidders from the Asian American Hotel Owners Association.”
