Refile: TKO offers $2 billion for Service Properties Trust's hotel portfolio

Service Properties Trust

09/10/2026 20:49

Corrects day in paragraph 1 to Friday from Thursday
Oct 9 (Reuters) - Hospitality investment firm TKO LLC said on Friday it had submitted a $2 billion all-cash offer to acquire the hospitality portfolio of Service Properties Trust SVC.O, in a deal that would provide the real estate investment trust with liquidity to reduce debt.
Shares of Service Properties Trust were up more than 15% in afternoon trading.
Hotel REIT Service Properties Trust is among the few companies with significant exposure to both hotels and net-lease real estate. The company owned 93 hotels and 745 net-lease properties as of June 30, with the latter providing a steadier stream of rental income than its lodging business
The deal comes at a time when hotel REITs remain more sensitive to shifts in travel demand and the broader economy, with earnings largely driven by occupancy levels and room rates
TKO's offer exceeds Service Properties Trust's current market value and would allow the REIT to focus on its net-lease retail business while reducing debt
TKO said its proposal would enable Service Properties Trust to pay down more than 40% of its debt, while preserving its net-lease business. The offer remains subject to negotiations and approval by Service Properties' board

 (Reporting by Apratim  Sarkar in Bengaluru; Editing by Anil D'Silva)
 ((Apratim.Sarkar@thomsonreuters.com;))