TKO Hotels Calls on Service Properties Trust to Engage on $2.0 Billion All Cash Offer to Acquire Hospitality Portfolio

Service Properties Trust (SVC) filed an SEC Form 8-K — Completion of Acquisition or Disposition of Assets. Item 2.01. Completion of Acquisition or Disposition of Assets. On October 15, 2026, SVC sold three hotels for an aggregate sales price of $19.0 million, excluding closing costs, pursuant to a purchase and sale agreement that SVC previously entered. These three hotels constitute a

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Service Properties Trust (SVC) received a $2 billion cash bid from TKO for its 92-hotel portfolio. SVC's stock rose 14.95% on the news. TKO owns 58 properties and did not disclose funding details. SVC's market value was $926 million at the time of the offer.

TKO offered $2B for Service Properties Trust's 93-hotel portfolio, valued at 21,110 keys. The deal, exceeding SVC's market cap, faces hurdles like termination fees and operator restrictions. SVC's board will evaluate the proposal, which could help retire 40% of its debt. SVC shares closed at $6.49 on Oct. 6, down over 50% year-over-year.

TKO LLC offered $2B in cash for 93 hotels in Service Properties Trust's (SVC) portfolio, exceeding SVC's market cap. SVC, which has been selling assets to reduce debt, will review the offer. SVC's shares initially rose but then fell. The deal would help SVC pivot to a net-leased-focused REIT. SVC reported a Q2 net loss of $223.8M and has been selling hotels to pay down debts.

TKO proposed a $2 billion cash acquisition of a hotel portfolio owned by Service Properties Trust (SVC). SVC's Board will review the offer to determine the best course of action for shareholders. SVC is a real estate investment trust listed on Nasdaq.