Service Properties Trust said on 9 October 2026 that it had received an unsolicited US$2.0bn all-cash proposal from TKO LLC for its hotel portfolio.
Why TKO LLC (TKO Hotels) is buying Service Properties Trust hotel portfolio (93 hotels)
TKO says the acquisition would build on its experience acquiring and repositioning hotels, and points to SVC's public statements about selling hotel assets.
Deal terms and financing
TKO's letter of intent, dated 7 October, offers US$2.0bn in cash. On 15 October TKO said it was flexible on price and on retaining Sonesta as franchisor, and would deposit US$50m in escrow after signing an NDA.
Regulatory approvals and timing
Any transaction would require SVC board approval and definitive agreements; none has been signed.
Market context
SVC said it had no contact with TKO before the proposal. Analysts quoted by Bisnow questioned the bid's feasibility, citing the cost of exiting management contracts with Sonesta and other brands.
