TKO Hotels Bids $2 Billion for Service Properties Trust Portfolio
TKO LLC has proposed an all-cash acquisition of SVC's hotel holdings, which would allow SVC to refocus as a net lease REIT.
TKO LLC, a hospitality investment firm based in Aberdeen, South Dakota, has submitted a formal written proposal to acquire Service Properties Trust's hotel portfolio in an all-cash deal valued at $2 billion, the company announced October 9, 2026.
The proposed transaction would deliver immediate liquidity to Service Properties Trust shareholders and clear the path for SVC to restructure itself as a pure-play net lease real estate investment trust, shedding its hospitality assets in a single transaction.
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All-cash offers of this scale are relatively rare in the current REIT landscape, where elevated borrowing costs have made leveraged buyouts more difficult to execute. A cash bid removes financing contingency risk and can accelerate closing timelines, factors that typically appeal to target-company boards evaluating competing offers.
If completed, the deal would mark one of the larger hotel-portfolio acquisitions in recent memory and would substantially expand TKO's footprint in the hospitality investment sector. For SVC, shedding the hotel assets would represent a significant strategic pivot, concentrating the company's balance sheet around net lease properties, which tend to carry more predictable, long-term income streams.
Neither company has disclosed the specific number of hotel properties included in the portfolio or provided a projected timeline for completing due diligence and reaching a definitive agreement. Continue reading at All Financial Services & Investing.
