US: 103 IHG properties in the US, Canada and Puerto Rico are to be reflagged under the Sonesta brand.
The move is a result of Service Properties Trust’s (SVC) decision to terminate its agreement with IHG by the end of November this year.
SVC – which owns a 34 per cent stake in Sonesta – said that it was transferring the 22 full service and 81 extended stay hotels “following an uncured default by IHG”.
A total of three InterContinental, five Kimpton, 11 Crowne Plaza, three Holiday Inn, 20 Staybridge Suites and 61 Candlewood Suites will be affected. The move will bring the Sonesta portfolio to nearly 200 properties worldwide, of which more than 160 are located in the US.
SVC said that the move had also been influenced by the experience of the transition of 16 IHG-branded hotels to Sonesta in 2012, which it claims boosted total annual revenue and hotel EBITDA.
The firm operates hotels under the extended stay Sonesta ES Suites brand, as well as Royal Sonesta Hotels, Sonesta Hotels and Resorts, Sonesta Posadas del Inca, and Sonesta Cruise Collection.
Carlos Flores, president and CEO, Sonesta International Hotels Corporation, said: “We’re extremely proud of the continued confidence that SVC has demonstrated by entrusting Sonesta to rebrand and assume management of 103 more of their hotels. In these unprecedented times, it is more crucial than ever to ensure we do not compromise our dedication to operational excellence; the safety and security for our guests and employees; and the delivery of skilled and genuine hospitality. This new agreement with SVC reinforces our continued evolution as a global hotel operator and brand and we look forward to introducing our existing loyal guests, as well as new ones, to all the destinations within our significantly expanded portfolio.”
Earlier this month, SVC delayed the sale of 39 Sonesta extended stay properties due to their solid performance during lockdown.
