Sotherly Hotels Enhances Financial Strategy with New Loan

Sotherly Hotels Inc. Enhances Financial Strategy with New Loan

WILLIAMSBURG, Va. — Sotherly Hotels Inc. (NASDAQ: SOHO) recently announced an exciting development in financing by securing a $42.0 million secured loan with Citi Real Estate Funding Inc. The loan is collateralized by a first mortgage on the DeSoto Hotel, located in Savannah. This strategic financial decision reflects the company’s ongoing commitment to optimizing its operations and boosting investment returns.

Loan Details and Purpose

The principal amount of the loan stands at $42 million, featuring an interest-only structure. It has a fixed interest rate of 7.13% and is set to mature on October 6, 2030. Proceeds from this financial arrangement will facilitate the repayment of the existing mortgage and serve general corporate purposes, ensuring Sotherly Hotels is well-positioned to leverage growth opportunities.

A Strategic Move by Leadership

Dave Folsom, the Chief Executive Officer of Sotherly Hotels, expressed enthusiasm regarding this refinancing achievement. He emphasized that it is a significant milestone in the company's repositioning strategy initiated in 2017. This initiative began with the independent lifestyle conversion of the DeSoto Hotel, which has significantly increased its value and benefitted shareholders.

About Sotherly Hotels Inc.

Sotherly Hotels Inc. operates as a self-managed and self-administered lodging real estate investment trust (REIT). The company focuses on acquiring, renovating, upbranding, and repositioning upscale and upper-upscale full-service hotels primarily in the Southern United States. Additionally, Sotherly often seeks acquisition opportunities across the nation.

Current Portfolio Overview

As of now, the company’s portfolio encompasses a robust selection of ten hotel properties that collectively provide 2,786 rooms. There are also interests in two condominium hotels along with their associated rental programs. The hotels under Sotherly's management operate under prestigious brands, such as Hilton Worldwide and Hyatt Hotels Corporation, as well as select independent hotels.

A Look to the Future

Since its establishment in 2004, Sotherly Hotels Inc. has been headquartered in Williamsburg, Virginia, guiding its growth through strategic investments and management decisions. The recent refinancing of the DeSoto Hotel exemplifies the company’s proactive approach in a competitive hospitality landscape, underscoring its focus on maintaining a strong and valuable portfolio.

Investor Communication and Transparency

For investors and stakeholders, Sotherly Hotels is committed to maintaining open lines of communication regarding its financial health and operational strategies. The enhancement of its financial strategy through this refinancing illustrates the company's dedication to maximizing shareholder value while navigating the challenges in the hospitality industry.

Frequently Asked Questions

What is the main purpose of the new loan secured by Sotherly Hotels?

The loan aims to refinance the existing mortgage on the DeSoto Hotel and assist in general corporate purposes.

What is the significance of the DeSoto Hotel in Sotherly's portfolio?

The DeSoto Hotel is a key property that has undergone significant repositioning since 2017, contributing to substantial value for the company.

How does this refinancing impact Sotherly Hotels' financial strategy?

The refinancing helps secure lower costs, improve cash flow, and supports the company's ongoing growth initiatives.

What types of properties does Sotherly Hotels focus on?

Sotherly Hotels primarily focuses on upscale and upper-upscale full-service hotels, particularly within the Southern United States.

When was Sotherly Hotels Inc. established?

Sotherly Hotels Inc. was established in 2004 and has been operating effectively to enhance its portfolio ever since.

About The Author

Even at just 28 years old, Lucas Young has made a name for himself as a writer and financial expert. Lucas is a gifted communicator of difficult financial ideas and has written a number of well-received books and articles that appeal to both new and experienced investors. The financial world has come to rely on his perceptive analysis and useful counsel. Many people have been enabled to make wise investment decisions by Lucas's commitment to financial literacy and his ability to demystify the complexities of the market. Lucas is still dedicated to advising and teaching people on their financial journeys as he shares his knowledge.

Contact Lucas Young privately here. Or send an email with ATTN: Lucas Young as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.