TKO Hotels Offered $2 Billion for Hotel Portfolio

TKO Hotels has submitted an unsolicited all-cash proposal to acquire 92 properties from Service Properties Trust.

Updated on Oct. 9, 2026 in Hotels

Modern minimalist hotel facade at dawn, with cool morning tones contrasted by warm golden interior lighting. — TKO Hotels has submitted an unsolicited $2 billion all-cash offer to acquire 92 hotel properties from Service Properties Trust. AI Illustration. Upload story photo >

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TKO Hotels made an unsolicited $2 billion all-cash offer to purchase a portfolio of 92 hotels from Service Properties Trust. The target company has been working to divest non-core hotel assets since 2019.

Why it matters

TKO Hotels intends to acquire the properties to unlock the portfolio's full potential as Service Properties Trust shifts its focus away from a hotel-only business model. The move follows a long-term trend of divestment for the target firm.

Service Properties Trust currently holds 92 hotels with fewer than 21,000 rooms, while TKO Hotels maintains an existing portfolio of 58 properties with over 4,000 rooms. As of June 2026, hotels accounted for 30% of the earnings for Service Properties Trust.

The players

TKO Hotels

Headquartered in Aberdeen, South Dakota, this company manages a portfolio of 58 properties.

Service Properties Trust

Based in Newton, Massachusetts, this company owns a vast portfolio of properties and has been shifting its business model since 2019.

The details

TKO Hotels, based in Aberdeen, South Dakota, submitted the proposal to the board of Newton, Massachusetts-based Service Properties Trust. Service Properties Trust has been selling hotel assets identified as non-core for several years to diversify its business holdings.

In 2019, the company rebranded from Hospitality Properties Trust.
As of June 2026, hotels represented 30% of the firm's total earnings.
On October 9, 2026, Service Properties Trust stock was trading at $7.15 a share.

Travel Outlook

This acquisition bid follows the wider industry move where large property trusts exit hotel ownership to pivot toward more diversified commercial real estate sectors. This reflects a multi-year trend of consolidation that contrasts with the firm's 2019 holdings of 329 hotels.

The proposed acquisition may lead to changes in branding or management for the 92 affected properties, which could influence future stay experiences. Travelers should monitor booking platforms for any transitions in property management if the deal is finalized.

The takeaway

Large-scale hospitality divestments often signal a broader corporate pivot toward more stable, non-hotel real estate assets. Investors should note that such acquisitions are frequently aimed at consolidating operational efficiency rather than simple brand expansion.