Hotel landlord Service Properties Trust replaced its three existing operating agreements with Marriott International Inc. to form a single portfolio for a 16-year term which commenced Jan. 1.
Historically referred to as the Marriott Nos. 1, 234 and 5, the agreements included 122 hotels and provided $192.2 million in aggregate priority returns and rents due to Service Properties Trust, expiring on Dec. 31 of the years 2024, 2025 and 2019, respectively.
The new combined agreements combine all the 122 hotels economically and will be extended to 2035, with Marriott having the option to renew for two consecutive 10-year terms on an all-or-none basis.
Around 33 of the hotels will be sold or rebranded, the proceeds of which will go toward Service Properties to be deducted from the outstanding $192.2 million.