TKO Hotels makes $2B all-cash offer for Service Properties Trust's hotels

Hospitality investment firm TKO has submitted a formal written offer to buy Service Properties Trust's entire hotel portfolio for $2.0 billion in cash. The offer is subject to definitive documentation and customary closing conditions. TKO says the deal would give SVC liquidity to cut debt and turn it into a pure-play net lease retail REIT.

Why it matters: The public offer puts pressure on SVC's board to consider shedding its capital-intensive hotels, and TKO says it is pitched at a significant premium to their implied market value.