TravelCenters of America Completes Sale-Leasebacks
WESTLAKE, Ohio — TravelCenters of America LLC’s TA Operating LLC division on Wednesday completed a sale-leaseback of two travel centers for $51.5 million in aggregate.
On June 1, TravelCenters announced it would conduct 30 sale-leaseback transactions with Hospitality Properties Trust, its principal landlord, for total consideration of $397 million. This transaction of two travel centers represents the fourth closing since this transaction was announced.
According to a Form 8-K filing issued by TravelCenters Thursday morning, its annual rent for the two travel centers increased by $4.4 million as a result of the sale-leaseback transaction.
The Westlake-based travel center operator previously said the proceeds obtained from the sale leaseback transaction would be used to fund its ongoing expansion program.
“I believe [the transactions involving TravelCenters of America and Hospitality Properties Trust] represent clear wins for both companies,” TravelCenters CEO and Managing Director Thomas M. O’Brien stated in June. “I also believe these agreements are strong evidence of TA’s success in creating value by buying and redeveloping travel centers.”
Westlake-based TravelCenters of America LLC operates under the Minit Mart, TA and Petro Stopping Centers brands in 43 states and Canada. Its business includes 370 convenience stores, 256 of which are located at travel centers.