TKO LLC has submitted a $2 billion all-cash offer to acquire the hospitality portfolio of Service Properties Trust (SVC), according to an Oct. 15 announcement from the hospitality investment firm.
The Aberdeen, S.D.–based company submitted its written proposal Oct. 7 and said it has not received a meaningful response from SVC. TKO is urging the REIT’s board of directors to engage in negotiations, citing SVC’s previously announced intention to sell its hotel assets.
TKO said it is prepared to provide proof of funds demonstrating its ability to complete the transaction and deposit $50 million into escrow following the execution of a nondisclosure agreement. The firm also indicated it is willing to retain Sonesta as the hotel franchisor and negotiate other transaction terms, including the purchase price.
TKO acknowledged that other proposals may have been submitted for SVC’s hotel assets and said it would participate in a competitive sale process.
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