Service Properties Trust receives $2B unsolicited bid for hotel portfolio

TKO LLC has submitted an unsolicited $2 billion cash offer to acquire the entire hospitality portfolio of Service Properties Trust. The proposal targets 93 hotels comprising more than 21,000 rooms located across the United States, Canada, and Puerto Rico.

Service Properties Trust confirmed receipt of the proposal on October 9, 2026, stating that its board is currently reviewing the approach. No sale agreement has been reached, and no purchase agreement has been signed.

TKO argues that the acquisition would allow Service Properties Trust to exit the lodging sector and transform into a pure-play retail net-lease real estate investment trust (REIT). The bidder claims the $2 billion consideration could enable the trust to retire more than 40% of its outstanding debt. TKO suggests that a complete exit would eliminate operational complexity and provide immediate liquidity to address refinancing pressures in the current interest rate environment.

Service Properties Trust has previously focused on selling lodging assets to pay down debt, though management has also discussed selectively streamlining the portfolio rather than a full exit.