WILLIAMSBURG, Va., June 29, 2022 (GLOBE NEWSWIRE) — Sotherly Hotels Inc. (SOHO) (the “Company”) announced that the Company has amended its existing mortgage loan with Fifth Third Bank secured by Hotel Alba in Tampa, Florida. The loan modification increased the principal balance to $25.0 million, extended the term by three years with two one-year extension options, decreased the variable interest rate from 1.0% to SOFR plus 2.75% and reduced the company’s guarantee. The loan proceeds, combined with the company’s existing cash, were used to repay the remainder of Kemmons Wilson’s secured note. Including the payment of the Kemmons Wilson secured note, the Company reduced debt securities on its balance sheet by more than $50.0 million during the first half of 2022.
“We are delighted with the completion of this loan modification for Hotel Alba, which has allowed us to realize significant value created through the successful execution of our strategy to reposition this asset over the past three years. Additionally, it provided the cash to fully repay the remaining balance of the secured note with Kemmons Wilson, which was taken out of necessity at the height of the pandemic,” noted Sotherly CEO Dave Folsom. this loan allows us to restructure our balance sheet by eliminating costly corporate debt which included high interest rate current payments, onerous loan covenants and a large 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 to the payment of our preferred dividend obligations and allows us to focus on our core business strategies focused on long-term growth and shareholder returns.”
About Sotherly Hotels Inc.
Sotherly Hotels Inc. is a self-managed, self-managed lodging REIT focused on the acquisition, renovation, branding and repositioning of upscale, full-service hotels in the southern United States. Sotherly may also opportunistically acquire hotels across the United States. Currently, the Company’s portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was established in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.