Service Trust terminates Marriott management agreement : 122 hotels to leave
Sep 25, 2020, 9:17 am
#16
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The old RIs with outdoor corridors will also fit into the Sonesta family well as Sonesta has some new extended stay properties that seem to be a bunch of separate two-story buildings with outdoor staircases.
Sep 25, 2020, 9:30 am
#17
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Right. Looking at the list, the SPC RI's and Courtyards I've stayed at are decidedly middle of the road -- clean, well-kept, but aging. They're replaceable. Courtyard Laguna Hills Irvine Spectrum (California) is emblematic of this -- it's not bad as such, but it's the lesser of the two Courtyards in the Irvine Spectrum area, to say nothing of the other Marriott brands.
Sep 25, 2020, 9:33 am
#18
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Perhaps, but as someone pointed out, they only just signed this agreement in January 2020. My point re: pandemic was that this switch is unlikely to improve their revenue. Sonesta just doesn't have the customer draw that Marriott has. However bad their revenue may be right now, Sonesta won't make it any better.
Last edited by TBD; Sep 25, 2020 at 9:39 am Reason: typo
Sep 25, 2020, 1:52 pm
#19
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Maybe good (for consumers)
Could end up being beneficial. Maybe brand new CY's and RI's replacing aging properties that were not going to be replaced any time soon? More limited service and extended stay properties competing with Marriott properties?
Sep 25, 2020, 2:47 pm
#20
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Id agree with you if they didnt pull the IHG hotels, but it appears they want to pull all their hotels and make Sonesta their main Home. After all they own I think 38% of Sonesta and probably 0% of IHG or MR or any other chain. Its a gamble but on the other hand they wont be told they Must pour x dollars into the hotels.. m sure they are very well thoughtout on whats best for them profit wise. Wonder how many Hiltons they have and others as well
Sep 25, 2020, 3:40 pm
#21
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Losing more than seventy Courtyards could be a good thing, right?
Can anyone comment on the general quality level of the Service Trust Marriott properties? Would any important locations be lost with no alternative Marriott family hotels nearby?
BTW, are the 22 Hyatts next?
Can anyone comment on the general quality level of the Service Trust Marriott properties? Would any important locations be lost with no alternative Marriott family hotels nearby?
BTW, are the 22 Hyatts next?
Sep 25, 2020, 3:43 pm
#22
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Sep 25, 2020, 5:26 pm
#23
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The prior link didn't work for me but here is another one: https://onemileatatime.com/marriott-...se-122-hotels/
This is fascinating to me - I had no idea that Marriott guaranteed revenue levels as part of their brand agreements. Seems like a risky move; perhaps foolish in hindsight.
This is fascinating to me - I had no idea that Marriott guaranteed revenue levels as part of their brand agreements. Seems like a risky move; perhaps foolish in hindsight.
Sep 26, 2020, 9:05 am
#24
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Id agree with you if they didnt pull the IHG hotels, but it appears they want to pull all their hotels and make Sonesta their main Home. After all they own I think 38% of Sonesta and probably 0% of IHG or MR or any other chain. Its a gamble but on the other hand they wont be told they Must pour x dollars into the hotels.. m sure they are very well thoughtout on whats best for them profit wise. Wonder how many Hiltons they have and others as well
Sep 26, 2020, 11:06 am
#25
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If Marriott was clearly in default and they were owed all this money, they would almost certainly be suing for the money and not just terminating the agreement. Why would a company give up a guaranteed minimum return in this environment? It's not often that I stick up for Marriott, but if there is a bad guy in the story it seems like its Service Properties Trust. If Marriott was defaulting on payments and attempting to screw over property holders, I imagine we would be hearing about more hotels suing Marriott for defaulting on payments.
I'm sure the agreement had some sort of force majeure clause that Marriott is pointing to as a reason for not making the payments, and Marriott will just let them terminate the agreement rather than argue and sue each other over the provision.
Losing options is not positive, but more competition is probably good in the long run and it looks like there are still MAR options in most of these places.
I'm sure the agreement had some sort of force majeure clause that Marriott is pointing to as a reason for not making the payments, and Marriott will just let them terminate the agreement rather than argue and sue each other over the provision.
Losing options is not positive, but more competition is probably good in the long run and it looks like there are still MAR options in most of these places.
For those of us poopooing the properties possibly leaving the Marriott fold (good riddance, the properties suck, and so on) just remember a few things.
(1) This is how most of the USA travels - not in top end full service hotels,with 15000 count Egyptian cotton sheets and bath products that make you have a "special event" when opening the little bottle. Most of the USA travels in much more affordable places.
(2) A new (to us) program to compete with the limited choices that still remain is good. Little doubt that we'll have short term promo benefit over this.
(3) We haven't been all that thrilled with how we've been Bonvoyed in relative degrees over the past couple of years. We aren't MARried to this company. It is ok to sleep around.
Sep 26, 2020, 11:09 am
#26
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For those of us poopooing the properties possibly leaving the Marriott fold (good riddance, the properties suck, and so on) just remember a few things.
(1) This is how most of the USA travels - not in top end full service hotels,with 15000 count Egyptian cotton sheets and bath products that make you have a "special event" when opening the little bottle. Most of the USA travels in much more affordable places.
(1) This is how most of the USA travels - not in top end full service hotels,with 15000 count Egyptian cotton sheets and bath products that make you have a "special event" when opening the little bottle. Most of the USA travels in much more affordable places.
Oct 7, 2020, 9:32 am
#29
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Articles here and here released within the last hour show that Marriott has defaulted on its 11 million dollar payment to SVC, and the hotels that were threatened to be pulled will now transition to Sonesta. The first nine hotels will rebrand on December 15th, and the remaining 89 will move on January 31st, 2021. The remaining 24 are in the process of being sold by SVC and are not included in the rebranding.
Sonesta has blown up thanks to SVC’s aggressiveness.
khabah
Sonesta has blown up thanks to SVC’s aggressiveness.
khabah
Oct 7, 2020, 9:33 am
#30
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98 Marriott-branded hotels to rebrand as Sonesta, selling 24 hotels: https://www.bloomberg.com/news/artic...sell-24-hotels