Hospitality Properties Trust has paid $2.4bn in cash for a net lease service retail portfolio from Spirit MTA REIT. In addition to the $2.4bn purchase price, HPT paid $82.1m of prepayment penalties related to SMTA’s extinguishment of the existing mortgage debt on the portfolio. HPT funded the transaction from net proceeds of its recently completed $1.7bn unsecured senior notes offering and the firm’s revolving credit facility. Once completed, HPT will change its name to Service Properties Trust.
“The properties acquired from SMTA are service and necessity-based assets that we are confident can be asset managed efficiently. The tenants and industries represented in the acquired portfolio benefit from demand drivers that are largely resistant to digital disruption, providing us with a steady contractual income stream while limiting capital expenditure requirements due to their net lease structure.” John Murray, managing trustee, president and CEO of HPT.
