Sonesta International Hotels Corporation intends to enter into new long-term franchise agreements for 114 hotels currently owned by Service Properties Trust (SVC). SVC will sell these hotels, which are currently managed by Sonesta, to reduce its leverage levels.

The current Sonesta long-term management agreements are expected to be converted to long-term franchise agreements with Sonesta as the hotels are sold, which is anticipated to occur in 2025. When completed, the sales will add up to another 14,925 rooms, in 28 states, to Sonesta’s existing franchised hotel portfolio of more than 58,095 rooms and 862 properties across all of its brands.

“The transition to an asset-right and franchise-forward strategy is a natural, next step in Sonesta’s evolution and increases management attention on our existing larger, full-service hotels and growth opportunities in other key markets,” said John Murray, Sonesta’s president/CEO. “However, one fundamental characteristic of Sonesta that will not change is that we will continue to own and manage both full-service and focused-service hotels in addition to being a brand owner and franchisor.”

After the sales and franchise conversions, Sonesta will continue to manage 44 full-service and 22 focused-service (extended-stay and select-service) hotels throughout the U.S. and Canada.

SVC’s sale of 114 hotels will include 31 Sonesta Select upscale hotels, 44 Sonesta ES Suites upscale, extended-stay hotels and 39 Sonesta Simply Suites mid-priced, extended-stay hotels.

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