Marriott in Danger of Losing 122 Hotels to Much Smaller Brand
Photo Credit: The landlord of a 122-hotel Marriott portfolio wants to end a financial agreement and change brand affiliation to Sonesta, of which the landlord has an ownership stake. Flickr / Mike Mozart
Skift Take
Don't count the major brands out quite yet, but Sonesta's growth continues to fly in the face of industry belief that hotel owners will flock to bigger brand franchise agreements during the pandemic recovery.
A Boston real estate trust that severed ties with IHG on a 103-hotel deal last month appears poised to do the same with Marriott on an even larger portfolio — and a smaller hotel company stands to benefit once again.
Service Properties Trust, or SVC, sent Marriott a payment shortfall notice this week on 122 hotels across 31 states. Marriott has 10 days to cover the $11 million shortfall or SVC will terminate the agreement and transfer the hotels — largely a mix of select-service and extended stay brands like Courtyard and Residence Inn — to affiliation with Sonesta International Hotels Corp., the memo states.
The flag affiliation transfer would be the second growth shot in the arm in less than a month for Sonesta, which currently has 83 hotels ahead of taking on th
