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Over 100 Properties Leave IHG to Be Reflagged Under the Sonesta Brand

Portfolio includes a total of 22 full service and 81 extended stay hotels in the US, Canada and Puerto Rico

August 25, 2020

As the result of Service Properties Trust’s (SVC) decision to terminate its agreement with InterContinental Hotels Group, a total of 103 IHG properties in the US, Canada and Puerto Rico will be reflagged under the Sonesta brand.

SVC – which owns a 34 percent stake in Sonesta – says its agreement with IHG ends “on or about Nov. 30, 2020.” A total of 22 full service and 81 extended stay hotels are to be transferred to Sonesta “following an uncured default by IHG,” according to a statement from SVC.

The group added that the transition of the properties to the Sonesta brand had also been influenced by a 2012 conversion of 16 IHG-branded hotels to Sonesta, which SVC claims boosted total annual revenue and hotel EBITDA.

In all, three InterContinental, five Kimpton, 11 Crowne Plaza, three Holiday Inn, 20 Staybridge Suites and 61 Candlewood Suites properties will leave the IHG portfolio. Destinations on the list of properties to be reflagged include Washington, DC, San Diego, Seattle, Salt Lake City, Denver, Louisville, Raleigh, Ontario (Canada) and San Juan (Puerto Rico).

A full list of hotels which are set to be rebranded can be downloaded here.

The move expands the Sonesta portfolio to nearly 200 properties worldwide, of which over 160 are located in the US, operating 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.

“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,” said Carlos Flores, president and CEO of Sonesta International Hotels Corporation.

“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.”