USA: TravelCenters of America acquires 20 locations for $308mn

TravelCenters of America LLC announces agreements to acquire 20 Travel Centers and amend property leases to reduce total annual rent by $43.1 million.

TravelCenters of America LLC has agreed with principal landlord, Hospitality Properties Trust (HPT) to acquire 20 travel center properties for $308.2 million that it currently leases from HPT. These sites are currently operated by TA and are located in 15 states.

TA will continue to lease 179 properties under its five leases with HPT. TA’s aggregate minimum annual rent due to HPT is to be reduced by $43.1 million and the term of each lease is to be extended, according to a press release.

“With the sale of the standalone convenience stores business concluded last month and the proceeds from that sale now committed to reduce TA’s leverage with the transaction announced today, TA can begin 2019 focused on our core travel center business and thoughtfully pursuing growth opportunities that include network expansion,” said Andrew J. Rebholz, TA's Chief Executive Officer.

TA’s total number of owned unencumbered travel centers increases from 32 to 52 with the new purchase agreement. Rbholz believes this will lower TA’s rental expenses, increase potential net operating cash flows, and provide greater financial flexibility.