TKO Hotels Bids $2 Billion Cash for SVC Hotel Portfolio
TKO LLC has submitted a formal acquisition offer for Service Properties Trust's hotel assets, aiming to reshape SVC into a pure-play net lease REIT.
TKO LLC, a South Dakota-based hospitality investment firm, has submitted a formal written proposal to acquire Service Properties Trust's hotel portfolio in an all-cash transaction valued at approximately $2 billion, the company announced October 9, 2026.
The offer is structured to provide Service Properties Trust shareholders and stakeholders with immediate liquidity, while freeing the trust to pivot its business strategy. Under the proposed terms, SVC would shed its hotel holdings and reposition itself as a pure-play net lease real estate investment trust — a model that typically offers more predictable, long-term income streams tied to commercial tenants rather than hospitality operations.
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The move reflects continued consolidation pressure in the hotel REIT sector, where operators have faced persistent headwinds around labor costs, occupancy volatility, and capital-intensive property maintenance. An all-cash structure, if completed, would remove financing contingency risk and accelerate deal certainty for SVC's board and investors.
TKO described itself as a leading hospitality investment firm but did not disclose the source of acquisition financing or a projected timeline for closing in its initial announcement. Service Properties Trust has not yet issued a formal public response to the proposal.
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