TKO Hotels Bids $2 Billion Cash for SVC Hotel Portfolio
TKO LLC has formally proposed a $2 billion all-cash acquisition of Service Properties Trust's hotel assets, a deal that would reshape both companies.
TKO LLC, a South Dakota-based hospitality investment firm, has submitted a formal written proposal to acquire the hotel portfolio held by Service Properties Trust (SVC) for approximately $2 billion in an all-cash transaction, the company announced Thursday from Aberdeen.
The proposed deal would provide SVC shareholders and stakeholders with immediate liquidity, according to the announcement. TKO framed the offer as a straightforward exit from the lodging sector for SVC, which has operated as a diversified real estate investment trust with holdings spanning both hotels and net lease properties.
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For Service Properties Trust, the transaction is positioned as a catalyst for a strategic pivot. By divesting its hotel portfolio, SVC would emerge as a pure-play net lease REIT — a structure that typically commands closer investor scrutiny and a more predictable revenue profile compared with hotel operations, which remain sensitive to travel demand cycles and macroeconomic conditions.
The all-cash structure of the bid removes financing contingency risk and signals TKO's intent to move quickly on a sizable hospitality consolidation. The firm described itself as a leading hospitality investment company, though the proposed acquisition would represent a significant expansion of its footprint if completed. No timeline for a final decision by SVC's board was disclosed in the announcement.
The proposal remains subject to negotiation and due diligence. Neither company has confirmed a binding agreement. Continue reading at All Financial Services & Investing.
