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

ABERDEEN, S.D., Oct. 15, 2026 /PRNewswire/ -- TKO LLC ("TKO"), a leading hospitality investment firm, calls on Service Properties Trust ("SVC") and its Board of Directors to engage promptly and in good faith regarding TKO's written offer dated October 7, 2026 (the "LOI") to acquire SVC's hospitality portfolio for $2.0 billion. Despite submitting an all cash offer, TKO contends that it has received no meaningful response from SVC. TKO maintains that this silence is difficult to reconcile with SVC's public statements regarding its intention to sell its hotel assets. TKO believes that its acquisition of SVC's hotels will build upon its decades' long experience and legacy in the hospitality sector. 

TKO is prepared to deliver proof of funds demonstrating its strong financial capacity and wherewithal to complete the proposed transaction. To facilitate discussions, TKO has executed the enclosed customary non-disclosure agreement ("NDA") and is requesting SVC's countersignature. The NDA requires both parties to negotiate in good faith toward a mutually acceptable definitive agreement. Upon execution of the NDA, TKO is willing to deposit $50 million into escrow with a mutually acceptable title company further demonstrating its commitment. Following execution of the NDA, TKO is also prepared to execute the franchise disclosure documents for each Sonesta-branded hotel. These concrete steps reflect TKO's seriousness in pursuing a transaction.

TKO understands that other bids to acquire SVC's hotel assets may have been submitted. If competing proposals exist, TKO demands that SVC disclose all written proposals (solicited and unsolicited). Although TKO prefers to negotiate directly with SVC, TKO is willing to participate in a transparent, competitive sale process. TKO is also flexible regarding transaction terms, including purchase price, the potential retention of Sonesta as the hotel franchisor, other arrangements that could facilitate a successful transaction.

TKO encourages SVC's shareholders to compel the Board of Directors and management to negotiate in good faith for the benefit of its shareholders, and not to allow a credible proposal to go unanswered. TKO stands ready to proceed.

About TKO LLC

TKO LLC is a hospitality-focused investment company with a proven track record of acquiring, repositioning, and operating hotel assets across the United States. Led by an experienced management team with deep expertise in hospitality real estate and capital markets, TKO is committed to creating long-term value through disciplined investment strategies and operational excellence. 

SOURCE TKO Hotels