A US based real estate investment trust (REIT) has sold a further tranche of hotels, as it looks to reduce the organisation’s debts.
A USD534 million package of 66 hotels across the US is the latest disposal by Service Properties Trust (SVC). In previous months, the company already sold 38 hotels in one portfolio, for a price of USD279 million. A further eight properties were disposed of in individual sales. All of the properties are branded under Sonesta, a brand family in which SVC has ownership interests.
Maintaining the Sonesta Brands
The Sonesta brand family covers a number of hospitality market segments. These include the Royal Sonesta upscale brand, Sonesta Select, and the midscale Red Lion Hotels. Extended stay brands include Sonesta ES Suites, and Sonesta Simply Suites.
In September 2025, SVC signed new 15 year management agreements for 59 of its hotels, binding the company to Sonesta brands until 2040. The deal sees SVC paying Sonesta a range of pre-agreed fees, for managing the properties, covering full service, select service and extended stay properties.
The Nasdaq listed business is a major US investor in real estate, with more than USD10 billion invested across two asset classes. Alongside its hotel interests, the group also has a major portfolio in retail, holding assets with long term rental income.
It was in spring 2025 that SVC revealed plans to sell down many of its hotel holdings, aiming to release USD1.1 billion from the sales to cover upcoming debt maturities. As of March 2025, the company owned 206 hotels, plus a further 742 properties counted within its broader hospitality holdings. The company has opted to switch its hotel holdings towards properties in the full service segments of the market, in strong urban destinations with a focus on leisure guests.
Among buyers of the Sonesta properties has been Noble Investment Group, an investment manager based in Atlanta. Its acquisitions included a package of 31 Sonesta Simply Suites properties, located across several US states.
The proceeds from the sales enabled SVC to pay down a tranche of unsecured notes due in February 2026, as well as a revolving credit facility. Another tranche of notes with an October 2026 redemption date were also redeemed ahead of deadline.
The group has additionally agreed sales of two further properties, for an additional inflow of USD12 million for the two. And it reported its plans to sell off seven further hotels, while recently stalled, is likely to take place during 2026. It expects to find new buyers, at a package price in the region of USD90-110 million.
Hotels Remain a Core Part of the Strategy
Speaking at a year end trading update, Chris Bilotto, the CEO of the company, commented: “In 2025, we made strong progress on our strategic priorities, successfully selling non-core, focused-service hotel assets and reallocating capital to strengthen our balance sheet.”
Even after the recent disposals, SVC remains a major holder of hotel assets. The portfolio still includes 17 Hyatt Place hotels, five Radisson Hotel and two Country Inns & Suites by Radisson properties, plus a Crowne Plaza.
