Real estate investment trust Service Properties Trust announced it has entered into an agreement to sell 16 Marriott-branded hotels for $137.3 million.
The 16 hotels comprise 2,155 rooms and the sale is expected to close in the fourth quarter of 2022, according to a news release.
The REIT, which is managed by The RMR Group, is also making progress on its previously announced initiative of marketing 68 Sonesta-branded hotels. It has sold 61 hotels so far, totaling 7,751 keys for aggregate proceeds of $523.1 million.
Speaking during the company's second-quarter earnings call in August, President and CEO Todd Hargreaves said, "We believe our disposition initiative has and will allow SVC and its operators to focus on a more profitable, higher-quality lodging portfolio."
The company has entered into agreements to sell six additional hotels, comprising 790 keys, for a total of $34.2 million in deals expected to close during the third and fourth quarters of this year.
SVC continues to market its one remaining 219-key Sonesta-branded hotel.
"SVC expects to use the net proceeds of these transactions for general corporate purposes, including, but not limited to, the repayment of debt," the release states.
As of June 30, the REIT owned 247 hotels — a majority in the extended-stay and select-service segments — throughout the U.S., Puerto Rico and Canada. According to the company's website, that included 13 Courtyard by Marriott hotels and three Residence Inn by Marriott hotels as of June 30.