Service Properties Trust (SVC) shares rose 15% on Friday after TKO Hotels submitted a formal offer to buy its entire hospitality portfolio for $2 billion.

The proposed all-cash deal would provide Service Properties with the liquidity to support more than 40% debt reduction while enabling it to prioritize its net lease retail platform, TKO Hotels said in a Friday statement.

The proposed acquisition is subject to approval by Service Properties' board, and a deal completion is not guaranteed, TKO said.

Service Properties Trust did not immediately respond to a request for comment from MT Newswires.