Sotherly Hotels Revises Expected Tax Treatment for 2024 Dividends

Sotherly Hotels Inc. Updates Tax Classification for Dividends

In an important announcement for its investors, Sotherly Hotels Inc. (NASDAQ: SOHO) has revised the estimated income tax classification information related to its 2024 dividend distributions on Series D preferred shares. This revision was made due to previously reported inaccuracies concerning crucial dates and aims to provide shareholders with clear and consistent information regarding their investments.

Understanding the Changes

The Company had initially communicated details on February 18, 2025, but inaccuracies prompted this necessary amendment. Primarily, the corrected information details how these distributions will be reported for tax purposes on the IRS Form 1099-DIV. This proactive step reinforces Sotherly Hotels' commitment to transparency and adherence to financial regulations.

Details of Series D Preferred Shares

The specifics of the amended dividend classifications for the Series D preferred shares include revised dates of record and payment. The cash distributions, taxable components, and nontaxable portions have all been meticulously detailed in the revisions.

Implications for Shareholders

Shareholders who hold common shares and have received dividends in the past will receive a Form 1099-DIV from Equiniti Trust Company, LLC, the Company’s dividend paying agent. This form will outline the dividends received and clarify the nature of the distributions for tax purposes. For those whose shares are held by a bank or brokerage, they will receive a similar document from their respective financial institutions.

What This Means for Investors

This clarity is crucial for investors as it directly impacts their tax planning and reporting obligations. Sotherly Hotels encourages all shareholders to consult their tax advisors to understand the implications of these distributions and to ensure compliance with federal and state tax regulations. Understanding these tax classifications is essential, as it helps shareholders plan their financial futures with greater accuracy.

Sotherly Hotels Inc.: The Company Behind the Report

Founded in 2004 and headquartered in Williamsburg, Virginia, Sotherly Hotels Inc. is a self-managed lodging real estate investment trust (REIT). The Company focuses on acquiring, renovating, and repositioning primarily upscale hotels across the Southern United States. With a portfolio of twelve hotel properties boasting 2,786 rooms, Sotherly Hotels operates under prestigious brands, including Hilton Worldwide, Marriott International, and Hyatt Hotels, alongside several independent hotels.

Sotherly Hotels' portfolio exemplifies their strategic approach to enhancing the quality and service of hospitality offerings. This growth strategy is driven by a commitment to operational excellence and customer satisfaction, underscoring the Company’s position as a leader in the hospitality industry.

Frequently Asked Questions

What is the significance of the amended tax treatment?

The amended tax treatment provides clearer guidelines on how dividends will be reported for tax purposes, ensuring shareholders understand the nature of their income.

How will shareholders receive information about their dividends?

Shareholders will receive an IRS Form 1099-DIV from Equiniti Trust Company, which details the dividends received throughout the year.

What should shareholders do to prepare for tax season?

Shareholders are advised to consult their tax advisors to understand the specific tax implications of receiving dividends and to ensure proper tax planning.

What properties does Sotherly Hotels own?

Sotherly Hotels Inc. owns and operates upscale hotels under major brands and maintains a diverse portfolio of properties across the Southern United States.

When was Sotherly Hotels Inc. founded?

Sotherly Hotels Inc. was established in 2004 and has since grown to become a recognized player in the hospitality market.

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