Service Properties to End Pact With IHG on Missed Payments
- Move affects 103 hotels in U.S., Canada and Puerto Rico
- Branding and management will be transferred to Sonesta
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Service Properties Trust will terminate a management agreement with InterContinental Hotels Group Plc for a portfolio of 103 hotels after IHG failed to pay minimum returns and rents due.
The Newton, Massachusetts-based real estate investment trust, led by Chief Executive Officer John G. Murray, will transfer the branding and management of those hotels to Sonesta International Hotels Corp., effective Nov. 30, the REIT said in a statement Tuesday, confirming an earlier report by Bloomberg. Some of the properties may be repurposed or sold, the company said.