FlyerTalk Forums - View Single Post - SVC REIT switch their 103 IHG hotels over missed payment to Sonesta (Nov 30, 2020)
Old Jul 27, 2020, 11:42 am
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lowfareair
 
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,506
SVC REIT switch their 103 IHG hotels over missed payment to Sonesta (Nov 30, 2020)

Looks like IHG owes an owner $7.4 million from June and the owner (SVC REIT) has given them the standard 30 days to remedy it before terminating the agreement November 30.

I'm guessing it is just chest-thumping to pay as SVC is likely to default on their properties due to the much lower occupancy levels post-COVID lockdowns, so even if this was a customary delay before, the additional pressure on them financially means they need to get this payment to prevent a cash flow issue.

The list of the properties that they own in their portfolio is here, with 103 in the US for IHG. Most IHG are select service properties, but they do have the following higher end properties in IC and Kimpton:

InterContinental San Juan
InterContinental Stephen F Austin Hotel
InterContinental Toronto Yorkville
Kimpton Hotel Alexis Seattle
Kimpton Hotel Alegro Chicago
Kimpton Hotel Monaco Portland
Kimpton Hotel Palomar Chicago
Kimpton Hotel Palomar Washington DC

I doubt much will happen here, although the threat to move to Sonesta seems like they may be deeper in talks than expected so these hotels may reflag.

If you think you have a reservation (especially an award reservation) at an affected property after August 24 the termination date of November 30th, I would keep an eye on this to ensure it doesn't evaporate.

Last edited by lowfareair; Jul 27, 2020 at 1:01 pm Reason: Corrected date hotels may leave IHG
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