SVC Sells 5 Hotels for $75.5M, Accelerates Debt Reduction

Service Properties Trust (SVC), a US-based real estate investment trust focused primarily on hotels, has completed the sale of five hotels for a combined $75.5 million. The transactions are part of a broader strategy to reduce debt, simplify operations, and rebalance its hotel portfolio.

Transaction details

The five hotels sold represent a total of 732 guest rooms spread across four states. These assets were divested as part of a larger disposition program targeting more than 100 properties.

In addition to the five-hotel sale, SVC completed the sale of another hotel the following day for $15 million. Together, the six transactions generated total proceeds of $90.5 million within a short time frame, strengthening the trust’s liquidity position.

These sales underline continued investor interest in hotel real estate, particularly as the US lodging sector continues its post-pandemic recovery. Recent activity across the hospitality sector supports this trend.

For example, a couple of days ago, Lotte Hotels and Resorts acquired the land beneath the Lotte New York Palace Hotel in Midtown Manhattan, reinforcing investor confidence in high-quality hotel assets and in NYC’s long-term strength as a global travel destination.

SVC’s background

Service Properties Trust began a portfolio reduction strategy in 2024, announcing plans to sell 114 extended-stay and select-service hotels previously affiliated with Sonesta brands. The broader program includes 113 properties totaling approximately 14,803 rooms, with an aggregate target sales value of about $913.3 million.

The strategy reflects SVC’s effort to streamline its holdings, reduce exposure to segments that no longer align with its long-term objectives, and prioritize balance sheet repair. Proceeds from asset sales are being directed primarily toward debt repayment and financial restructuring.

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