Real estate investment trust Service Properties Trust, or SVC, announced Monday it has 22 hotels — totaling 1,781 rooms — under purchase and sale agreements for a total price of $141 million.
The REIT last year said it was marketing 68 properties for sale. Since then, it has sold 42 hotels totaling 6,348 rooms for aggregate proceeds of $397.6 million. An additional four hotels remain on the market, according to the company news release.
The company expects the sales for most of these 22 hotels to close in the second quarter, though they are subject to conditions.
These sales of non-core assets are part of SVC's disposition strategy, said Todd Hargreaves, president and chief investment officer of SVC. Included in the total set of 68 hotels are 46 extended-stay hotels, 19 select-service hotels and three full-service hotels.
"We expect that upon completion of this disposition initiative, SVC will have a higher-quality lodging portfolio and enhanced liquidity," Hargreaves said in the news release about the planned disposition.
An SEC filing from SVC on Monday notes more than 70% of the 68 hotels are expected to be sold encumbered of the brand, with buyers entering into long-term franchise agreements with Sonesta.