Marriott Loses 78 Hotels to Sonesta in Multi-Million Dollar Default

By Jesse Sokolow on 12 February 2021
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Seventy-eight Marriott hotels have been reflagged as Sonesta International Hotels properties, the owner of the hotels, Service Properties Trust, announced Friday.

The action follows an $11 million default on payments to Service Properties Trust, which owns approximately 34% of Sonesta.

An additional ten hotels are slated to be reflagged under the Sonesta umbrella by the end of March.

“Marriott failed to meet the termination threshold of 80% of owner’s priority return through August,” Service Properties Trust said in a statement in September.

The action is the industry’s second major default since the start of the coronavirus pandemic and comes on the heels of a similar default by InterContinental Hotels Group, which lost 103 hotels to Service Properties Trust in August of last year.

Among the 88 properties are one Royal Sonesta hotel, namely the Royal Sonesta Kauai Resort, as well as two Sonesta hotels, 32 Sonesta ES Suites, four Sonesta Simply Suites, and 49 Sonesta Select properties.

Sonesta was founded in 1937 and its past portfolio included such storied properties as the Plaza in New York City and the Whitehall Hotel in Chicago.  In addition to the Clift in San Francisco, the chain owns some 80 properties in seven countries, which fall into either full service properties such as under the Royal Sonesta brand, or limited service properties under the Sonesta ES Suites brand.

(Photo: Accura Media Group)

Accura News

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