TKO Hotels Bids $2 Billion for Service Properties Trust Portfolio

TKO LLC, a South Dakota-based hospitality investment firm, has submitted a formal written proposal to acquire Service Properties Trust's hotel portfolio in an all-cash deal valued at approximately $2 billion, the company announced Thursday. The bid signals one of the more significant moves in the lodging real estate sector in recent years.

The all-cash structure of the offer is designed to deliver immediate liquidity to Service Properties Trust, known by its ticker SVC, while allowing the publicly traded REIT to shed its hotel holdings and refocus its business model. If completed, SVC would emerge as a pure-play net lease real estate investment trust, a strategic pivot that management has signaled could unlock additional shareholder value.

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For TKO, the proposed acquisition would substantially expand its footprint in the hospitality investment space. The firm positioned the bid as consistent with its broader strategy of acquiring large-scale hotel assets, though the specific properties included in the portfolio were not detailed in the initial announcement.

The proposal remains subject to negotiation, due diligence, and regulatory review. No binding agreement has been reached, and there is no certainty a transaction will be finalized on the proposed terms or at all. Investors in both companies will be watching closely for any formal response from SVC's board of directors.

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