Service Properties Trust announced that it has terminated the management agreements for 122 hotels with Marriott International after the hotel giant fell behind on payments

Terminating the agreement appears to be an opportunistic move by Service Properties. It gives the company the flexibility to consider other options with the Marriott-branded hotels, including dispositions or converting some of them into apartments, CEO John G. Murray told Bloomberg. 

"We knew that if we had a significant number of defaults, we'd be able to take back the keys," Murray told Bloomberg. "It's a great opportunity that presented itself."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.