Service Properties Trust announced that it has received a notice of termination from a subsidiary of Hyatt Hotels Corporation with respect to the management agreement for 22 Hyatt Place hotels owned by subsidiaries of the company. Hyatt’s obligations under the management agreement, which requires minimum returns of $22.0 million annually, is supported by a $50.0 million limited guaranty. While Hyatt is current on its payments to the company at this time, it recently exhausted this $50.0 million guaranty and under the terms of the management agreement, Hyatt may terminate the agreement upon 90 days’ notice once the guaranty has been fully utilized. The effective date of the termination pursuant to Hyatt’s notice is April 8, 2021. The company and Hyatt are currently in discussions regarding possible changes to the management agreement which may enable some or all of the hotels to remain Hyatt Place hotels managed by Hyatt. However, if such discussions do not result in a mutually acceptable agreement, the company expects to transition management of the 22 hotels to Sonesta International Hotels Corporation on April 8, 2021 under the Sonesta Select brand. The company also owns 34% of Sonesta.