World of Hyatt Could Lose 22 Hotels in April
Service Properties Trust (SVC), a real estate investment trust which owns a diverse portfolio of 329 properties under multiple brands. It has announced that it has received a notice of termination from Hyatt. The notice is in regards to the management agreement for 22 Hyatt Place hotels owned by subsidiaries of SVC.
Hyatt’s obligations under the management agreement requires minimum returns of $22.0 million annually, and a $50 million limited guaranty. Hyatt is current on its payments, but it recently exhausted this $50 million guaranty and under the terms of the management agreement, Hyatt may terminate the agreement upon 90 days’ notice once the guaranty has been fully utilized. The effective date of the termination noted in Hyatt’s notice is April 8, 2021.
SVC and Hyatt are currently in discussions regarding possible changes to the management agreement which may enable some or all of the hotels to remain Hyatt Place hotels managed by Hyatt. But, if these discussions do not result in a mutually acceptable agreement, SVC expects to transition management of the 22 hotels to Sonesta on April 8, 2021 under the Sonesta Select brand. SVC also owns 34% of Sonesta.
The Hyatt Place brand currently has about 385 properties worldwide. The 22 hotels that could soon convert to Sonesta Select are:
- Hyatt Place Tempe Phoenix Airport
- Hyatt Place Tucson Airport
- Hyatt Place Colorado Springs Garden Of Gods
- Hyatt Place Orlando Airport Northwest
- Hyatt Place Atlanta Airport South
- Hyatt Place Atlanta Duluth Gwinnett Mall
- Hyatt Place Atlanta Cobb Galleria
- Hyatt Place Fort Wayne
- Hyatt Place Indianapolis Airport
- Hyatt Place Kansas City Overland Park Convention Center
- Hyatt Place Detroit Utica
- Hyatt Place Kansas City Airport
- Hyatt Place Charlotte Airport Lake Pointe
- Hyatt Place Mount Laurel
- Hyatt Place Columbus Dublin
- Hyatt Place Nashville Northeast
- Hyatt Place Austin North Central
- Hyatt Place Dallas North
- Hyatt Place El Paso Airport
- Hyatt Place San Antonio Riverwalk
- Hyatt Place Chantilly Dulles Airport South
- Hyatt Place Sterling Dulles Airport North
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I stayed at one of the above listed “Hyatt” properties in February, and it was the worst Hyatt ever! Now it makes sense to me – it wasn’t actually managed by Hyatt. It really damaged the Hyatt reputation, IMO.