Brief: Service Properties Trust Terminates Agreements With Marriott For 122 Hotels

Service Properties Trust

07/10/2020 13:09

Oct 7 (Reuters) - Service Properties Trust  SVC.O :
    * SERVICE PROPERTIES TRUST TERMINATES AGREEMENTS WITH
MARRIOTT FOR
122 HOTELS
    * SERVICE PROPERTIES TRUST - SVC PLANS TO TRANSFER
MANAGEMENT OF
98 OF 122 HOTELS TO SONESTA
    * SERVICE PROPERTIES TRUST - SVC HAS ENTERED AGREEMENTS TO
SELL 24
OF 122 HOTELS FOR $153 MILLION
    * SERVICE PROPERTIES - TERMINATED MARRIOTT DEAL FOR FAILURE
TO
MEET 80% TERMINATION THRESHOLD FOR OWNER'S PRIORITY RETURNS TO
SVC THROUGH AUGUST
    * SERVICE PROPERTIES TRUST - SVC DOES NOT EXPECT MAR TO PAY
CUMULATIVE SHORTFALL FOR BALANCE OF 2020
    * SERVICE PROPERTIES TRUST - MAR HAS DISPUTED TIMING OF
SVC'S
TERMINATION RIGHTS UNDER ITS AGREEMENTS WITH MAR
    * SERVICE PROPERTIES TRUST - MAR ARGUED THAT SVC MAY NOT
TERMINATE
MAR AGREEMENTS UNTIL AFTER YEAR END 2020.

Source text for Eikon:  ID:nBw1GkhzNa 
Further company coverage:  SVC.O 

 ((Reuters.Briefs@thomsonreuters.com;))