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Service Trust terminates Marriott management agreement : 122 hotels to leave

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Service Trust terminates Marriott management agreement : 122 hotels to leave

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Old Oct 7, 2020, 10:21 am
  #31  
ryw
 
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Location: ATL
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Is there a list anywhere of what properties this includes?
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Old Oct 7, 2020, 10:42 am
  #32  
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Below is the list of hotels that will be leaving Marriott; I've categorized them by brand. 9 leaving December 15th, 89 January 31st, 2021. 24 will be sold off. No details yet as to which ones are leaving first, or are being sold just yet.

khabah

***Courtyard
Courtyard Allentown Bethlehem Lehigh Valley Airport
Courtyard Arlington Rosslyn
Courtyard Atlanta Airport North Virginia Avenue
Courtyard Atlanta Cumberland Center
Courtyard Atlanta Midtown Georgia Tech
Courtyard Atlanta Norcross I 85
Courtyard Bettendorf Quad Cities
Courtyard Birmingham Colonnade
Courtyard Boca Raton
Courtyard Boston Danvers
Courtyard Boston Foxborough Mansfield
Courtyard Boston Lowell Chelmsford
Courtyard Boston Milford
Courtyard Boston Norwood Canton
Courtyard Boston Stoughton
Courtyard Boston Woburn Burlington
Courtyard Camarillo
Courtyard Charleston North Coliseum
Courtyard Charlotte University Research Park
Courtyard Chattanooga I 75
Courtyard Chicago Arlington Heights North
Courtyard Chicago Elgin West Dundee
Courtyard Columbia
Courtyard Dallas Central Expressway
Courtyard Dallas Richardson @ Campbell
Courtyard Detroit Auburn Hills
Courtyard Detroit Novi
Courtyard Dulles Airport Chantilly
Courtyard Durham Research Triangle Park
Courtyard Fayetteville
Courtyard Fishkill
Courtyard Fort Worth Fossil Creek
Courtyard Greenbelt
Courtyard Hanover Whippany
Courtyard Houston Hobby Airport
Courtyard Huntington Beach Fountain Valley
Courtyard Indianapolis Carmel
Courtyard Jacksonville Mayo Clinic Beaches
Courtyard Kansas City Airport
Courtyard Kansas City South
Courtyard Laguna Hills Irvine Spectrum
Courtyard Las Vegas Summerlin
Courtyard Los Angeles LAX El Segundo
Courtyard Los Angeles Torrance South Bay
Courtyard Macon
Courtyard Mahwah
Courtyard Miami Lakes
Courtyard Milwaukee Brookfield
Courtyard Minneapolis Eden Prairie
Courtyard Newport Middletown
Courtyard Oakland Emeryville
Courtyard Oklahoma City Northwest
Courtyard Philadelphia Airport
Courtyard Philadelphia Willow Grove
Courtyard Phoenix Camelback
Courtyard Phoenix Chandler
Courtyard Pittsburgh Airport
Courtyard Pleasant Hill
Courtyard Raleigh Durham Airport
Courtyard Richmond Northwest
Courtyard San Francisco Airport Oyster Point Waterfront
Courtyard San Jose Airport
Courtyard San Ramon
Courtyard Scottsdale @ Mayo Clinic
Courtyard Seattle Bellevue Redmond
Courtyard Spartanburg
Courtyard Syracuse Carrier Circle
Courtyard Tempe Downtown
Courtyard Tinton Falls Eatontown
Courtyard Williamsburg Busch Gardens Area
Courtyard Wilmington Newark Christiana

Marriott
Marriott Kauai Resort & Beach Club
Marriott Nashville Airport

Residence Inn
Residence Inn Albuquerque
Residence Inn Allentown Bethlehem Lehigh Valley Airport
Residence Inn Annapolis
Residence Inn Atlanta Alpharetta North Point Mall
Residence Inn Atlanta Alpharetta Windward
Residence Inn Atlanta Kennesaw Town Center
Residence Inn Baltimore Washington Airport
Residence Inn Birmingham Homewood
Residence Inn Boston Westborough
Residence Inn Charleston
Residence Inn Charlottesville
Residence Inn Chicago Downtown Magnificent Mile
Residence Inn Chicago Waukegan Gurnee
Residence Inn Dallas Central Expressway
Residence Inn Dallas Market Center
Residence Inn Dallas Richardson
Residence Inn Detroit Warren
Residence Inn Durham Research Triangle Park
Residence Inn Fair Lakes Fairfax
Residence Inn Fort Worth Fossil Creek
Residence Inn Fresno
Residence Inn Huntington Beach Fountain Valley
Residence Inn Nashville Brentwood
Residence Inn New Orleans Downtown
Residence Inn Parsippany
Residence Inn Philadelphia Willow Grove
Residence Inn Raleigh Cary
Residence Inn Raleigh Durham Airport
Residence Inn Reno
Residence Inn San Antonio Downtown Alamo Plaza
Residence Inn San Diego Rancho Bernardo
Residence Inn San Francisco Airport Oyster Point Waterfront
Residence Inn Scottsdale Paradise Valley
Residence Inn Syracuse Carrier Circle
Residence Inn Tempe

Springhill Suites
Springhill Suites Nashville Airport
Springhill Suites Seattle South Renton

TownePlace Suites
TownePlace Suites Atlanta Norcross Peachtree Corners
TownePlace Suites Atlanta Northlake
TownePlace Suites Boston North Shore Danvers
TownePlace Suites Chantilly Dulles South
TownePlace Suites Chicago Elgin West Dundee
TownePlace Suites Detroit Novi
TownePlace Suites Falls Church
TownePlace Suites Newport News Yorktown
TownePlace Suites Richmond
TownePlace Suites Scottsdale
TownePlace Suites Seattle South Renton
TownePlace Suites Virginia Beach

Last edited by khabah; Oct 7, 2020 at 10:48 am
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Old Oct 8, 2020, 3:38 am
  #33  
 
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I guess its sort of win win win solution.

Marriott can offloads some of their hotels when the occupancy rate on record low,
Sonesta gain plenty of new hotels.
SVC investment in Sonesta grows as their coverage is increased
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Old Oct 8, 2020, 4:02 am
  #34  
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Originally Posted by khabah
Articles here and here released within the last hour show that Marriott has defaulted on its 11 million dollar payment to SVC
Just for the benefit for those of us not up to speed on US contractual law, what happens to the outstanding dollars owed by Marriott to SVC? Is the sum formally written off when the termination clause is triggered ?
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Old Oct 8, 2020, 4:38 am
  #35  
 
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Originally Posted by cmd320
By all means, they can axe all the select service dumps they want. The only two full service hotels are the Nashville Airport Marriott and some resort property on Kauai.

I wish them the best of luck rebranding as Sonesta though. That's one of the brands I don't even consider when looking for hotels. Old Courtyards should fit perfectly with their brand vision.
Of course, with only the original 80 some properties, Sonesta wouldn't really be a factor, especially with the anyone looking for elite benefits as well as award possibilities. But, even after the IHG hotels were rebranded, they are up to only 160 in the US and 200 worldwide, so they will need many more properties to make any difference in trying to close the gap with even some of the lesser brands. There are plenty of hotel ownership groups that are teetering on BK, so going with SVC/Sonesta may have some appeal, and it wouldn't take much to multiply Sonesta's flagged properties. We'll see.

Forgot to mention, Sonesta is status matching and has a very simple program with 10 pt per dollar, minimum 5% discount on rates for members, plus enhanced Wifi. The Courtyard breakfasts were insulting anyway.
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Old Oct 8, 2020, 9:59 am
  #36  
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Originally Posted by Oxon Flyer
Just for the benefit for those of us not up to speed on US contractual law, what happens to the outstanding dollars owed by Marriott to SVC? Is the sum formally written off when the termination clause is triggered ?
That is a simple question with complex answers. For accounting purposes, Marriott has probably written off the liability, but added a liability for potential litigation. SVC has probably written off the income, and added both income and liability for potential litigation. Note that an accounting write off is different from a legal rights.

For legal purposes, this is more than a single can of worms, from possible liquidated damages clauses and force majeure clauses, to proving damages. For example, let's say that there is no dispute that MAR breached the contract, and there are no enforceable liquidated damages nor force majeure clauses (because they aren't there, a court holds them unenforceable, or whatever - this is a hypothetical), SVC sues, and in its prove up of damages, shows it made $X million dollars due to MAR's breach. So many permutations of how litigation could go. They're all best to work something out behind the scenes. Lots of bad caselaw could come out of this.
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Old Oct 9, 2020, 3:20 pm
  #37  
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Marriott defaults on management aggreements

https://www.businesstravelnews.com/P...arriott-Hotels

So apparently Marriott has failed to pay the management company in charge of a bunch of properties, and their agreement is being terminated at end of the January due to non payment... at which point 98 of the hotels go under Sonesta and the rest are to be sold to someone else.
Anyone know anything more about this? What properties are Marriott defaulting payments and leaving the system?

Seems pretty shady for Marriott corporate to just outright refuse to pay the management company, even if they are planning to divest those locations from the brand.
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Old Oct 9, 2020, 3:30 pm
  #38  
 
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Originally Posted by rylan
https://www.businesstravelnews.com/P...arriott-Hotels

So apparently Marriott has failed to pay the management company in charge of a bunch of properties, and their agreement is being terminated at end of the January due to non payment... at which point 98 of the hotels go under Sonesta and the rest are to be sold to someone else.
Anyone know anything more about this? What properties are Marriott defaulting payments and leaving the system?

Seems pretty shady for Marriott corporate to just outright refuse to pay the management company, even if they are planning to divest those locations from the brand.
https://www.flyertalk.com/forum/marr...otels-ihg.html
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Old Oct 9, 2020, 3:34 pm
  #39  
 
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Looks like there are 2 Marriott properties (Marriott Nashville Airport & Marriott Kauai Resort & Beach Club) that appear to be impacted by this decision. It will be interesting to see if the Kauai property remains within the Marriott fold or if it will truly go away. I've stayed there a couple of times and currently have reservations for next summer, so I certainly have an interest in seeing what happens.
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Old Oct 9, 2020, 5:43 pm
  #40  
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Fascinating. I'm pretty sure the TownePlace Suites Newport News Yorktown is the original TPS #1 from 1997.
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Old Oct 9, 2020, 5:58 pm
  #41  
 
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Marriott is not insolvent, so if they’re not paying up whatever SVC claims is owed them it’s because Marriott has determined, with counsel, they have a reasonable legal argument supporting their position that those monies are no longer due, be it some contractual force majeure clause or the frustration of contract based on unforeseen circumstances, or some other argument of the sort. They must be quite sure of their position because they appear ready to take their chances in litigating it.

Whether Marriott is right to stand their ground we won’t find out for quite some time, although I suspect the outcome of all this is going to be a settlement.
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Old Oct 9, 2020, 7:45 pm
  #42  
 
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Originally Posted by khabah
Below is the list of hotels that will be leaving Marriott; I've categorized them by brand. 9 leaving December 15th, 89 January 31st, 2021. 24 will be sold off. No details yet as to which ones are leaving first, or are being sold just yet.

khabah

***Courtyard
Courtyard Allentown Bethlehem Lehigh Valley Airport
Courtyard Arlington Rosslyn
Courtyard Atlanta Airport North Virginia Avenue
Courtyard Atlanta Cumberland Center
Courtyard Atlanta Midtown Georgia Tech
Courtyard Atlanta Norcross I 85
Courtyard Bettendorf Quad Cities
Courtyard Birmingham Colonnade
Courtyard Boca Raton
Courtyard Boston Danvers
Courtyard Boston Foxborough Mansfield
Courtyard Boston Lowell Chelmsford
Courtyard Boston Milford
Courtyard Boston Norwood Canton
Courtyard Boston Stoughton
Courtyard Boston Woburn Burlington
Courtyard Camarillo
Courtyard Charleston North Coliseum
Courtyard Charlotte University Research Park
Courtyard Chattanooga I 75
Courtyard Chicago Arlington Heights North
Courtyard Chicago Elgin West Dundee
Courtyard Columbia
Courtyard Dallas Central Expressway
Courtyard Dallas Richardson @ Campbell
Courtyard Detroit Auburn Hills
Courtyard Detroit Novi
Courtyard Dulles Airport Chantilly
Courtyard Durham Research Triangle Park
Courtyard Fayetteville
Courtyard Fishkill
Courtyard Fort Worth Fossil Creek
Courtyard Greenbelt
Courtyard Hanover Whippany
Courtyard Houston Hobby Airport
Courtyard Huntington Beach Fountain Valley
Courtyard Indianapolis Carmel
Courtyard Jacksonville Mayo Clinic Beaches
Courtyard Kansas City Airport
Courtyard Kansas City South
Courtyard Laguna Hills Irvine Spectrum
Courtyard Las Vegas Summerlin
Courtyard Los Angeles LAX El Segundo
Courtyard Los Angeles Torrance South Bay
Courtyard Macon
Courtyard Mahwah
Courtyard Miami Lakes
Courtyard Milwaukee Brookfield
Courtyard Minneapolis Eden Prairie
Courtyard Newport Middletown
Courtyard Oakland Emeryville
Courtyard Oklahoma City Northwest
Courtyard Philadelphia Airport
Courtyard Philadelphia Willow Grove
Courtyard Phoenix Camelback
Courtyard Phoenix Chandler
Courtyard Pittsburgh Airport
Courtyard Pleasant Hill
Courtyard Raleigh Durham Airport
Courtyard Richmond Northwest
Courtyard San Francisco Airport Oyster Point Waterfront
Courtyard San Jose Airport
Courtyard San Ramon
Courtyard Scottsdale @ Mayo Clinic
Courtyard Seattle Bellevue Redmond
Courtyard Spartanburg
Courtyard Syracuse Carrier Circle
Courtyard Tempe Downtown
Courtyard Tinton Falls Eatontown
Courtyard Williamsburg Busch Gardens Area
Courtyard Wilmington Newark Christiana

Marriott
Marriott Kauai Resort & Beach Club
Marriott Nashville Airport

Residence Inn
Residence Inn Albuquerque
Residence Inn Allentown Bethlehem Lehigh Valley Airport
Residence Inn Annapolis
Residence Inn Atlanta Alpharetta North Point Mall
Residence Inn Atlanta Alpharetta Windward
Residence Inn Atlanta Kennesaw Town Center
Residence Inn Baltimore Washington Airport
Residence Inn Birmingham Homewood
Residence Inn Boston Westborough
Residence Inn Charleston
Residence Inn Charlottesville
Residence Inn Chicago Downtown Magnificent Mile
Residence Inn Chicago Waukegan Gurnee
Residence Inn Dallas Central Expressway
Residence Inn Dallas Market Center
Residence Inn Dallas Richardson
Residence Inn Detroit Warren
Residence Inn Durham Research Triangle Park
Residence Inn Fair Lakes Fairfax
Residence Inn Fort Worth Fossil Creek
Residence Inn Fresno
Residence Inn Huntington Beach Fountain Valley
Residence Inn Nashville Brentwood
Residence Inn New Orleans Downtown
Residence Inn Parsippany
Residence Inn Philadelphia Willow Grove
Residence Inn Raleigh Cary
Residence Inn Raleigh Durham Airport
Residence Inn Reno
Residence Inn San Antonio Downtown Alamo Plaza
Residence Inn San Diego Rancho Bernardo
Residence Inn San Francisco Airport Oyster Point Waterfront
Residence Inn Scottsdale Paradise Valley
Residence Inn Syracuse Carrier Circle
Residence Inn Tempe

Springhill Suites
Springhill Suites Nashville Airport
Springhill Suites Seattle South Renton

TownePlace Suites
TownePlace Suites Atlanta Norcross Peachtree Corners
TownePlace Suites Atlanta Northlake
TownePlace Suites Boston North Shore Danvers
TownePlace Suites Chantilly Dulles South
TownePlace Suites Chicago Elgin West Dundee
TownePlace Suites Detroit Novi
TownePlace Suites Falls Church
TownePlace Suites Newport News Yorktown
TownePlace Suites Richmond
TownePlace Suites Scottsdale
TownePlace Suites Seattle South Renton
TownePlace Suites Virginia Beach
I am not sure if this list is accurate. I called 2 properties on here, the Nashville Airport Marriott and the Philadelphia Courtyard Airport and both said they are corporate owned hotels and they are not changing brands at all. So I'm not sure what is going on.
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Old Oct 9, 2020, 7:51 pm
  #43  
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Originally Posted by SummitBars
I am not sure if this list is accurate. I called 2 properties on here, the Nashville Airport Marriott and the Philadelphia Courtyard Airport and both said they are corporate owned hotels and they are not changing brands at all. So I'm not sure what is going on.
The Nashville Airport Marriott is clearly listed on the Service Trust portfolio.

Did you speak to actual managers or just front desk staff? The latter likely doesn’t know what they’re talking about.
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Old Oct 9, 2020, 8:20 pm
  #44  
 
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Originally Posted by cmd320
The Nashville Airport Marriott is clearly listed on the Service Trust portfolio.

Did you speak to actual managers or just front desk staff? The latter likely doesn’t know what they’re talking about.
Spoke to the GM Troy. Said they are not switching brands at all and told me they are not affiliated with Service Trust.
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Old Oct 9, 2020, 8:27 pm
  #45  
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Originally Posted by SummitBars
Spoke to the GM Troy. Said they are not switching brands at all and told me they are not affiliated with Service Trust.
Very interesting.
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