WILLIAMSBURG, Va., June 29, 2022 (GLOBE NEWSWIRE) — Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) introduced that the Company has modified its current mortgage mortgage with Fifth Third Bank secured by the Hotel Alba lodge in Tampa, Florida. The mortgage modification elevated the principal steadiness to $25.0 million, prolonged the time period by three years with two 1-year extension choices, decreased the floating rate of interest by 1.0% to SOFR plus 2.75%, and lowered the company warranty. Proceeds from the mortgage, mixed with current company money, have been used to repay of the rest of the Kemmons Wilson secured be aware. Including the payoff of the Kemmons Wilson secured be aware, the Company has lowered the debt obligations from its steadiness sheet by over $50.0 million through the first half of 2022.
“We are thrilled with the completion of this loan modification for Hotel Alba, which allowed us to realize significant value created through the successful execution of our repositioning strategy of this asset over the past three years. Further, it provided the necessary cash to fully payoff the remaining balance of the secured note with Kemmons Wilson, which was taken out of necessity during the height of the pandemic,” famous Dave Folsom, Chief Executive Officer of Sotherly. “The payoff of this loan allows us to restructure our balance sheet by eliminating costly corporate debt that included high-interest current payments, onerous loan covenants, and a significant interest reserve. This event not only marks a major step forward in stabilizing the overall health of the Company, but also facilitates a clearer path toward paying off our preferred dividend obligations and allows us to concentrate on our core business strategies focused on long-term growth and returns for shareholders.”
About Sotherly Hotels Inc.
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT centered on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service inns within the Southern United States. Sotherly can also opportunistically purchase inns all through the United States. Currently, the Company’s portfolio consists of investments in ten lodge properties, comprising 2,786 rooms, in addition to pursuits in two condominium inns and their related rental packages. The Company owns inns that function underneath the Hilton Worldwide and Hyatt Hotels Corporation manufacturers, in addition to impartial inns. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For extra data, please go to www.sotherlyhotels.com.
