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."
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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.
