Hospitality investment firm TKO LLC has submitted an unsolicited proposal to acquire the hotel portfolio of Service Properties Trust, known as SVC, in an all-cash transaction valued at $2 billion. SVC acknowledged the approach and indicated that it will review the proposal, emphasizing that there had been no prior engagement or negotiations with TKO before the offer was made.
According to the parties’ statements, the proposal centers on SVC’s dedicated hotel platform, which comprises 93 properties totaling 21,110 keys. The collection spans full-service, select-service, and extended-stay hotels, representing a diversified lodging portfolio assembled across what TKO describes as prime markets. The structure outlined by TKO calls for a straightforward cash acquisition of the hotel assets.
TKO framed the potential transaction as a way to provide SVC with immediate liquidity, positioning the offer as an opportunity for SVC to reallocate capital and further concentrate on its net lease retail platform. While no additional financial terms or process milestones were disclosed, TKO signaled a willingness to move quickly should SVC elect to engage on the proposal.
In comments accompanying the offer, TKO CEO Jim Koehler described the firm’s view of the portfolio as a long-term value opportunity. Koehler said TKO sees itself as well suited to unlock what it believes is the full potential of SVC’s hotel holdings and characterized the prospective acquisition as a transformational step for TKO. He highlighted SVC’s hotels as an “exceptional collection of hospitality assets” and reiterated the firm’s readiness to act swiftly and decisively to advance discussions.
The proposal, if pursued, would represent a sizable portfolio-level trade in the lodging sector, shifting a large group of hotels under the control of a single hospitality-focused investor. For now, the process remains at the initial review stage, with SVC evaluating the unsolicited approach and TKO publicly signaling its conviction in both the asset base and the long-term trajectory of the hotel portfolio.
