GlobeNewswire·Nov 6, 2026, 8:30 AM ET

Blackwells Capital Sends Letter to the Board of Trustees of Service Properties Trust

SVC

Blackwells Capital LLC sent a letter to Service Properties Trust (SVC) demanding a transparent, competitive sale process for the hotel portfolio after the Board rejected TKO LLC's $2.0 billion all-cash offer on November 4, 2026.
Blackwells argues the $2.0 billion bid, which exceeds twice the market value of SVC's entire equity, represents a legitimate starting point for a sale rather than a reason for rejection.
The Trust holds $9.6 billion in invested capital while its market equity is valued at approximately $815 million, with the share price down 85 percent over five years & the dividend cut 98 percent.
Blackwells highlights significant conflicts of interest, noting Board Chair Adam D. Portnoy runs RMR, the Trust's external manager, & chairs Sonesta, which operates most hotels & receives $30.7 million in management fees over nine months.
The letter claims SVC's bylaws unlawfully extinguish shareholder rights through impossible nomination thresholds, restrictive transfer rules, & fee-shifting provisions that violate Maryland law.
Blackwells demands the Board countersign TKO's nondisclosure agreement, disclose all proposals received in the past 24 months, & reveal the analysis justifying the rejection of the $2.0 billion offer.
Blackwells requires written commitments that any termination payments to RMR or Sonesta will be negotiated by unconflicted trustees & disclosed prior to any sale.
The firm demands the repeal of specific bylaw sections (2.14, 3.2, 9.2, & 16.2) & requires a written response by 5:00 p.m. Eastern Time on November 13, 2026.