secwatch.observer — SEC 8-K summary
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Issuer:     Service Properties Trust (SVC)
CIK:        0000945394
Form:       8-K
Filed at:   2025-09-02T23:59:59+00:00
Accession:  0001104659-25-086013
Event type: other_material
Sentiment:  neutral
Materiality: 0.70
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

SVC enters 15-year Sonesta management pacts for 59 hotels; 111 sale hotels under agreement
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- New 15-year management agreements for 59 retained hotels with Sonesta, effective Aug 1, 2025, with two 10-year renewal options.
- Base fee: 3% gross revenue (full-service), 5% (extended stay/select); incentive fee 20% of EBITDA above threshold, capped at 3% or 5% of gross revenue.
- Brand promotion fee 3.5% of gross room revenue; loyalty fee 1%-4.5% of room revenue; centralized service fee $1.1M (full-service) or $250K (others), CPI-adjusted.
- SVC has sold 10 of 122 sale hotels and entered agreements to sell 111 more; Sonesta waived termination fees on sale hotels.
- Owner can terminate if performance thresholds not met for two consecutive calendar years starting 2028.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/945394/000110465925086013/0001104659-25-086013-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/945394/000110465925086013/tm2524729d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-25-086013

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