{"id":412957,"date":"2021-01-12T08:03:46","date_gmt":"2021-01-12T13:03:46","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=412957"},"modified":"2021-01-12T08:03:46","modified_gmt":"2021-01-12T13:03:46","slug":"service-properties-trust-receives-termination-notice-from-hyatt-covering-22-hotels","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/service-properties-trust-receives-termination-notice-from-hyatt-covering-22-hotels\/","title":{"rendered":"Service Properties Trust Receives Termination Notice from Hyatt Covering 22 Hotels"},"content":{"rendered":"

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Service Properties Trust Receives Termination Notice from Hyatt Covering 22 Hotels<\/b><\/p>\n

Hyatt\u2019s Guaranty Is Now Fully Utilized<\/i><\/p>\n

NEWTON, Mass.–(BUSINESS WIRE<\/a>)–Service Properties Trust (Nasdaq: SVC)<\/a>, or SVC, today announced that it has received a notice of termination from a subsidiary of Hyatt Hotels Corporation, or Hyatt, with respect to the management agreement for 22 Hyatt Place hotels owned by subsidiaries of SVC. Hyatt\u2019s obligations under the management agreement, which requires minimum returns of $22.0 million annually, is supported by a $50.0 million limited guaranty. While Hyatt is current on its payments to SVC at this time, it recently exhausted this $50.0 million guaranty and under the terms of the management agreement, Hyatt may terminate the agreement upon 90 days\u2019 notice once the guaranty has been fully utilized. The effective date of the termination pursuant to Hyatt\u2019s notice is April 8, 2021.\n<\/p>\n

\nSVC and Hyatt are currently 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. However, if such discussions do not result in a mutually acceptable agreement, SVC expects to transition management of the 22 hotels to Sonesta International Hotels Corporation, or Sonesta, on April 8, 2021 under the Sonesta Select brand. SVC also owns 34% of Sonesta.\n<\/p>\n

About Service Properties Trust<\/b><\/p>\n

\nService Properties Trust is a real estate investment trust which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada. SVC is managed by the majority owned operating subsidiary of The RMR Group Inc. (Nasdaq: RMR)<\/a>, an alternative asset management company that is headquartered in Newton, Massachusetts.\n<\/p>\n

Warning Concerning Forward-Looking Statements<\/b><\/p>\n

\nThis press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever SVC uses words such as \u201cbelieve\u201d, \u201cexpect\u201d, \u201canticipate\u201d, \u201cintend\u201d, \u201cplan\u201d, \u201cestimate\u201d, \u201cwill\u201d, \u201cmay\u201d and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC\u2019s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC\u2019s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC\u2019s control. For example:\n<\/p>\n