Hyatt & SVC Continue Negotiations About 22 Hyatt Affiliated Hotels – Exit Postponed Until May 22, 2021

Service Properties Trust (SVC) has operated hundreds of hotels under IHG, Marriott, Wyndham, Radisson, and Hyatt brands. They appear to be in the process of converting most of them to Sonesta, of which the company owns 34%.

Hyatt informed SVC back in January (read more here) that it intends to hand over the keys of 22 Hyatt Place hotels back to SVC after exhausting the $50M minimum guaranty. Hyatt & SVC have agreed to postpone the exit from April 8 to May 22, 2021, while negotiations continue.

Here’s the press release from SVC:

Service Properties Trust and Hyatt Agree to Extend Termination Date April 8, 2021

SVC and Hyatt Remain in Discussions Regarding Management Agreement

NEWTON, Mass.–(BUSINESS WIRE)– Service Properties Trust (Nasdaq: SVC), or SVC, today announced that it has reached an agreement with a subsidiary of Hyatt Hotels Corporation, or Hyatt, to extend the termination date of the management agreement for 22 Hyatt Place hotels to May 22, 2021, versus April 8, 2021, previously. SVC and Hyatt remain in discussions regarding possible changes to the management agreement which may enable some or all of the hotels to remain Hyatt Place hotels managed by Hyatt.

Here are the affected hotels

Arizona
Hyatt Place Tempe Phoenix Airport
Hyatt Place Tucson Airport
Colorado
Hyatt Place Colorado Springs Garden Of Gods
Florida
Hyatt Place Orlando Airport Northwest
Georgia
Hyatt Place Atlanta Airport South
Hyatt Place Atlanta Duluth Gwinnett Mall
Hyatt Place Atlanta Cobb Galleria
Indiana
Hyatt Place Fort Wayne
Hyatt Place Indianapolis Airport
Kansas
Hyatt Place Kansas City Overland Park Convention Center
Michigan
Hyatt Place Detroit Utica
Missouri
Hyatt Place Kansas City Airport
North Carolina
Hyatt Place Charlotte Airport Lake Pointe
New Jersey
Hyatt Place Mount Laurel
Ohio
Hyatt Place Columbus Dublin
Tennessee
Hyatt Place Nashville Northeast
Texas
Hyatt Place Austin North Central
Hyatt Place Dallas North
Hyatt Place El Paso Airport
Hyatt Place San Antonio Riverwalk
Virginia
Hyatt Place Chantilly Dulles Airport South
Hyatt Place Sterling Dulles Airport North

Conclusion

I believe that this is a positive development from Hyatt and SVC. It seems that the negotiations continue and some, if not all, of these hotels, may stay affiliated with Hyatt.

The exit of SVC’s IHG and Marriott properties was prompt and took place on the date originally announced.

It would be interesting to know how well these former IHG and Marriott hotels have performed under Sonesta, a brand not well known among the traveling audience and without a vital loyalty component (they do have Sonesta Travel Pass).

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