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
|Hyatt Place Tempe Phoenix Airport|
|Hyatt Place Tucson Airport|
|Hyatt Place Colorado Springs Garden Of Gods|
|Hyatt Place Orlando Airport Northwest|
|Hyatt Place Atlanta Airport South|
|Hyatt Place Atlanta Duluth Gwinnett Mall|
|Hyatt Place Atlanta Cobb Galleria|
|Hyatt Place Fort Wayne|
|Hyatt Place Indianapolis Airport|
|Hyatt Place Kansas City Overland Park Convention Center|
|Hyatt Place Detroit Utica|
|Hyatt Place Kansas City Airport|
|Hyatt Place Charlotte Airport Lake Pointe|
|Hyatt Place Mount Laurel|
|Hyatt Place Columbus Dublin|
|Hyatt Place Nashville Northeast|
|Hyatt Place Austin North Central|
|Hyatt Place Dallas North|
|Hyatt Place El Paso Airport|
|Hyatt Place San Antonio Riverwalk|
|Hyatt Place Chantilly Dulles Airport South|
|Hyatt Place Sterling Dulles Airport North|
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).