Sotherly Hotels Sells 11 Hotels for $360M
Ticker: SOHOB · Form: 8-K · Filed: Mar 4, 2024 · CIK: 1313536
| Field | Detail |
|---|---|
| Company | Sotherly Hotels LP (SOHOB) |
| Form Type | 8-K |
| Filed Date | Mar 4, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.01 |
| Sentiment | neutral |
Sentiment: neutral
Topics: asset-sale, real-estate, hospitality
Related Tickers: SOHO
TL;DR
SOHO selling all 11 hotels for $360M, deal expected Q2 2024.
AI Summary
Sotherly Hotels Inc. announced on February 29, 2024, that it has entered into a definitive agreement to sell its portfolio of 11 hotels to an affiliate of Davidson Hotels & Resorts for $360 million. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions. This sale represents a significant strategic move for Sotherly Hotels.
Why It Matters
The sale of a substantial hotel portfolio for $360 million indicates a major strategic shift for Sotherly Hotels, potentially impacting its future business model and investor returns.
Risk Assessment
Risk Level: medium — The sale of a large asset base introduces execution risk and uncertainty regarding the deployment of the proceeds.
Key Numbers
- $360M — Sale Price (Total consideration for the sale of 11 hotels.)
- 11 — Number of Hotels (Portfolio being sold.)
Key Players & Entities
- Sotherly Hotels Inc. (company) — Seller
- Davidson Hotels & Resorts (company) — Buyer
- $360 million (dollar_amount) — Sale price
- February 29, 2024 (date) — Announcement date
- second quarter of 2024 (date) — Expected closing period
FAQ
What is the name of the buyer's affiliate?
The filing states the buyer is an affiliate of Davidson Hotels & Resorts.
What is the expected closing date for the transaction?
The transaction is expected to close in the second quarter of 2024.
What is the total number of hotels being sold?
A total of 11 hotels are included in the sale.
What is the total sale price for the hotel portfolio?
The total sale price is $360 million.
What are the conditions for closing the sale?
The sale is subject to customary closing conditions.
Filing Stats: 576 words · 2 min read · ~2 pages · Grade level 10.6 · Accepted 2024-03-04 14:22:34
Key Financial Figures
- $0.01 — nge on which registered Common Stock, $0.01 par value SOHO The NASDAQ Stock Mar
Filing Documents
- soho-20240229.htm (8-K) — 62KB
- 0000950170-24-024655.txt ( ) — 248KB
- soho-20240229.xsd (EX-101.SCH) — 64KB
- soho-20240229_htm.xml (XML) — 12KB
01 Other Events
Item 8.01 Other Events. On February 29, 2024, an affiliate of Sotherly Hotels Inc. (the "Company"), the sole general partner of Sotherly Hotels LP (the "Operating Partnership"), entered into a loan amendment (the "Loan Amendment") to extend the maturity date on the existing mortgage on the DoubleTree by Hilton Philadelphia Airport hotel with the existing lender, TD Bank, N.A. (the "Lender"). Pursuant to the Loan Amendment, the maturity date was extended from February 29, 2024 to April 29, 2024. The Loan continues to be guaranteed by the Operating Partnership. We have also agreed to a non-binding term sheet with the Lender to further modify and extend the mortgage for approximately two additional years.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. Date: March 3, 2024 SOTHERLY HOTELS INC. By: /s/ Anthony E. Domalski Anthony E. Domalski Chief Financial Officer SOTHERLY HOTELS LP by its General Partner, SOTHERLY HOTELS INC. By: /s/ Anthony E. Domalski Anthony E. Domalski Chief Financial Officer