Massachusetts-based real estate investment trust Service Properties Trust has sold a portfolio of 65 hotels with a total of 7,865 guestrooms in 27 states to 21 separate buyers for a total consideration of approximately $514 million. CBRE helped arrange the sale, with Al Calhoun and Mark Fair of CBRE Hotels’ Capital Markets Institutional Group representing the seller in each transaction. The list of buyers includes mostly family offices and some private equity firms.
The portfolio is comprised of 14 Sonesta Simply Suites, 32 Sonesta ES Suites and 19 Sonesta Select hotels. More than half of the portfolio’s 65 hotels are located in the top 25 most populated U.S. metro areas, including Atlanta, Baltimore, Boston, Chicago, Dallas, Detroit, Houston, Minneapolis, New York City, Philadelphia, San Antonio, St. Louis and Washington, D.C. By region, the Midwest has the most hotels with 20 and the most rooms with 2,364. The Northeast/Mid-Atlantic has the second highest concentration with 18 hotels and 2,347 rooms.
“This transaction represented a highly strategic disposition execution for Service Properties Trust, generating substantial sales proceeds and converting a majority of the properties from managed to long-term franchised, contributing to the growth of Sonesta’s franchise business,” Fair said in a statement.
The last four quarters ending in Q3 2022 has seen approximately $43.8 billion in hotel investment in the U.S., a 20.3 percent increase over Q3 2020-Q3 2021, according to a recent CBRE report. Over the last four quarters, hotel investment in the U.S. has made up 5.1 percent of total capital markets activity.