SOTHERLY HOTELS DL-,01

Sotherly Hotels shareholders have approved the sale to KW Kingfisher LLC, a joint venture led by Kemmons Wilson Hospitality Partners with Ascendant Capital Partners as strategic partner. Under the terms, shareholders will receive $2.25 per share in cash. The closing is expected in the first quarter of 2026 and is subject to customary closing conditions; final voting results will be reported to the SEC. » More on de.investing.com

At the 2025 annual meeting, shareholders elected six directors to the board of directors and ratified Cherry Bekaert LLP as independent auditors for the fiscal year ending 31 Dec. 2025. The advisory “Say on Pay” vote was approved by a majority, and the company will review it annually going forward. Separately, Sotherly announced acceptance of a merger agreement under which a joint venture led by Kemmons Wilson Hospitality Partners would acquire the company for USD 2.25 per share. In addition, the sale of a parking garage fell through, a default notice was issued on a mortgage for the DoubleTree Resort, and dividends on certain preferred shares were suspended. » More on de.investing.com

The planned sale of a parking garage property of the Georgian Terrace in Atlanta for $17.75m failed after the buyer withdrew during the due diligence period. Sotherly Hotels also received a Notice of Default on the mortgage loan for the DoubleTree Resort by Hilton Hollywood Beach; the direct obligation under the loan is about $49.3m (as of 12.11.2025). The company is negotiating with an advisor on a loan extension and has submitted proposals to the special servicer, while the hotel is in a cash trap. At the same time, a takeover agreement valuing Sotherly shares at $2.25 per share is in place, and the company secured a $42m loan for the DeSoto Hotel in Savannah. » More on de.investing.com

Sotherly Hotels reports that the sale of the parking garage at the Georgian Terrace in Atlanta to Banyan Street Capital was terminated during the due-diligence phase. At the same time, the company received a notice of default on a mortgage secured by the DoubleTree Resort by Hilton Hollywood Beach with an estimated obligation of about $49.3 million. Sotherly points to strained liquidity (current ratio 0.22), has suspended dividend payments on certain preferred shares, and has entered negotiations to extend the mortgage. At the same time, the company secured a $42 million loan for the DeSoto Hotel and agreed to a merger agreement to be acquired at $2.25 per share. » More on de.investing.com

Sotherly Hotels has agreed to a definitive merger agreement under which a joint venture led by KW Kingfisher LLC together with Ascendant Capital will acquire all outstanding common shares for $2.25 per share in cash. The price represents a 152.7% premium to the October 24 closing price. Financing for the transaction will be provided in part by affiliates of Apollo and Ascendant, and the deal is expected to close in the first quarter of 2026, subject to shareholder approval and customary conditions. Sotherly owns ten full-service hotels with 2,786 rooms; the company has recently reported weak margins, substantial debt and liquidity pressure. » More on de.investing.com