Service Properties Trust Sells 65-Property Sonesta Hotel Portfolio for $514M

Newton, MA-based Service Properties Trust has sold a 65-property, 7,865-key hotel portfolio located across 27 states for a total consideration of approximately $514 million. The real estate investment trust, which has over $10 billion invested in hotels and service-focused retail net lease properties, sold the portfolio to 21 separate buyers.

Al Calhoun and Mark Fair of CBRE represented Service Properties Trust in each transaction. The list of buyers includes primarily family offices and some private equity firms.

“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,” said Fair.

The portfolio is comprised of 14 Sonesta Simply Suites, 32 Sonesta ES Suites, and 19 Sonesta Select hotels. More than half of the portfolio’s 65 hotels are located in the top 25 most populated US metro areas, including Atlanta, Baltimore, Boston, Chicago, Dallas, Detroit, Houston, Minneapolis, New York City, Philadelphia, Portland, San Antonio, St. Louis and Washington DC. By region, the Midwest has the most hotels with 20 and the most rooms with 2,364. The Northeast/Mid-Atlantic has the second highest concentration with 18 hotels and 2,347 rooms.