Sotherly Hotels Inc. secures a $42 million loan for the DeSoto Hotel, enhancing its refinancing strategy and financial position.
Quiver AI Summary
Sotherly Hotels Inc. announced the execution of a $42 million secured loan with Citi Real Estate Funding, secured by a first mortgage on the DeSoto Hotel in Savannah, Georgia. This interest-only loan, maturing on October 6, 2030, has a fixed interest rate of 7.13%. The funds will be used to repay an existing mortgage and for general corporate purposes. CEO Dave Folsom highlighted that this refinancing signifies the successful completion of the hotel’s repositioning strategy that started in 2017, adding significant value for the property and its shareholders. Sotherly Hotels Inc., a self-managed lodging REIT based in Williamsburg, Virginia, focuses on upscale hotel acquisitions and has a portfolio of ten properties, along with interests in condominium hotels.
Potential Positives
- Sotherly Hotels Inc. successfully executed a $42.0 million secured loan, enhancing its financial positioning and liquidity.
- The loan allows for the repayment of existing debt and supports general corporate purposes, improving the company's balance sheet.
- This refinancing is part of the company's repositioning strategy that has created substantial value for both the DeSoto Hotel and its shareholders.
- With a fixed interest rate of 7.13%, the loan provides predictable financial planning for the company until maturity in 2030.
Potential Negatives
- The secured loan with a high fixed interest rate of 7.13% may indicate financial distress or a lack of better refinancing options, potentially raising concerns about the company's long-term financial health.
- The loan being collateralized by the DeSoto Hotel may place the asset at risk if the company struggles to meet its financial obligations.
- Although the company states the refinancing is part of a repositioning strategy, it does not provide detailed information on the effectiveness or results of this strategy, which may lead to skepticism about future performance.
FAQ
What is the value of the loan executed by Sotherly Hotels Inc.?
The loan executed by Sotherly Hotels Inc. is valued at $42.0 million.
What property is secured by the loan with Citi Real Estate Funding Inc.?
The loan is secured by a first mortgage on the DeSoto Hotel in Savannah, Georgia.
What is the interest rate on the loan?
The loan carries a fixed interest rate of 7.13%.
What will the proceeds from the loan be used for?
Proceeds from the loan will be used to repay the existing mortgage and for general corporate purposes.
What strategy is Sotherly Hotels Inc. following?
Sotherly Hotels Inc. is following a repositioning strategy that began with the independent lifestyle conversion in 2017.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SOHO Hedge Fund Activity
We have seen 8 institutional investors add shares of $SOHO stock to their portfolio, and 12 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- REPERTOIRE PARTNERS LP removed 474,938 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $351,264
- BARD ASSOCIATES INC removed 407,125 shares (-100.0%) from their portfolio in Q2 2025, for an estimated $386,768
- VANGUARD GROUP INC added 196,634 shares (+28.5%) to their portfolio in Q2 2025, for an estimated $186,802
- GATOR CAPITAL MANAGEMENT, LLC removed 167,185 shares (-14.3%) from their portfolio in Q2 2025, for an estimated $158,825
- THOMPSON DAVIS & CO., INC. added 149,489 shares (+52.1%) to their portfolio in Q2 2025, for an estimated $142,014
- PSI ADVISORS, LLC added 39,004 shares (+41.9%) to their portfolio in Q2 2025, for an estimated $37,053
- UBS GROUP AG removed 36,727 shares (-99.3%) from their portfolio in Q2 2025, for an estimated $34,890
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
WILLIAMSBURG, Va., Sept. 17, 2025 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) today announced that the Company has executed a $42.0 million secured loan with Citi Real Estate Funding Inc., collateralized by a first mortgage on the DeSoto Hotel in Savannah, Georgia. The interest-only loan, which has a principal balance of $42.0 million, matures on October 6, 2030, and carries a fixed interest rate of 7.13%. Proceeds from the loan were used to repay the existing first mortgage and for general corporate purposes.
“We are pleased to announce the successful refinancing of the historic DeSoto Savannah hotel,” commented Dave Folsom, Chief Executive Officer of the Company. “This refinancing represents the culmination of our repositioning strategy that began with our independent lifestyle conversion in 2017, which has created substantial value for the hotel and our shareholders.”
About Sotherly Hotels Inc.
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout 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 organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com .
