Service Properties Trust Divests Hotels To Streamline Operations
Service Properties Trust (SVC), one of the largest real estate investment trusts (REIT), continued its restructuring by selling 34 hotels for 224.7 million dollars. This sale was completed on November 18 and 19, 2025. This sale is part of a larger transaction whereby SVC is selling one hundred and thirteen hotels.
These steps are repositioning SVC to meet its long term approved financial objectives and, most urgently, its debt. The restructuring and selling of hotels reposition SVC to meet long term approved financial objectives and, most urgently, its debt.
Recent deal hotels were located across 18 states and consisted of 31 hotels with 3,734 rooms and 3 additional hotels of 357 rooms. These sales are part of Service Properties Trust’s strategy of divesting 113 properties, a mixture of branded hotels and independent hotels, to simplify the company’s structure and alleviate financial distress. To date, the company has completed the sale of 85 hotels, resulting in a gross profit of 618.5 million dollars. The final 28 properties, totaling 3,765 rooms, are expected to be sold by the end of 2025.
The company’s selling of these hotels in these major US cities responds to the latest trends in the tourism market and the changes along the value chain in the hospitality industry. With the sale of hotels in major US cities, Service Properties Trust will be able to lower its debt, gain operational breathing space, and concentrate on properties with more predictable returns, all while the tourism and hospitality industry continues its recovery.