WILLIAMSBURG, Va., June 14, 2022 (GLOBE NEWSWIRE) — Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) introduced that the Company has closed on the sale of the DoubleTree by Hilton Raleigh Brownstone in Raleigh, North Carolina for $42.0 million. A portion of the proceeds from the sale have been used to repay the primary mortgage and repay a majority of the Kemmons Wilson secured observe. Remaining proceeds shall be used to make any required distribution on the Company’s most well-liked inventory associated to sustaining the Company’s REIT standing and for common company functions.
“We are extremely pleased to complete the sale of the DoubleTree by Hilton Raleigh Brownstone,” famous Dave Folsom, Chief Executive Officer of Sotherly. “The $42.0M above-market price equaled approximately a 14.0x EBITDA multiple and a 6.2% cap rate on 2019 results. The sale represents a transformative event for the Company, as it significantly reduces mortgage debt, repays expensive corporate leverage, while simultaneously removing near term capex required for life cycle improvements at the hotel. These events are all major milestones in restructuring our balance sheet, as our portfolio continues its recovery from the pandemic. Further, in making these important balance sheet improvements, and by removing significant near-term capital outlays, the Company can focus on additional post-COVID efforts, including its accrued and unpaid preferred dividends. The completion of this transaction brings renewed optimism for Sotherly, and we look forward to the ongoing lodging recovery, its effect on our business, and improvements to the health of our balance sheet.”
About Sotherly Hotels Inc.
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT targeted on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service accommodations within the Southern United States. Sotherly may opportunistically purchase accommodations all through the United States. Currently, the Company’s portfolio consists of investments in ten resort properties, comprising 2,786 rooms, in addition to pursuits in two condominium accommodations and their related rental packages. The Company owns accommodations that function beneath the Hilton Worldwide and Hyatt Hotels Corporation manufacturers, in addition to impartial accommodations. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For extra info, please go to www.sotherlyhotels.com.
