Sotherly Hotels to Be Acquired in $2.25 Per Share Cash Deal Pending Final Approvals

Sotherly Hotels Inc. stockholders have approved a merger with KW Kingfisher LLC, a joint venture led by Kemmons Wilson Hospitality Partners and Ascendant Capital Partners, under which all outstanding shares will be acquired for $2.25 per share in cash, pending satisfaction of closing conditions expected in the first quarter of 2026.

Sotherly Hotels Inc. announced on January 22, 2026, that its stockholders had approved a proposed merger with KW Kingfisher LLC. KW Kingfisher is a joint venture led by affiliates of Kemmons Wilson Hospitality Partners, LP, with Ascendant Capital Partners LP as a strategic partner. The approval was given at a special meeting of stockholders held on the same day. The final voting results will be detailed in a Form 8-K filing with the U.S. Securities and Exchange Commission.

Merger Details and Next Steps

Under the terms of the merger agreement, the joint venture will acquire all of Sotherly Hotels’ outstanding common stock. Stockholders are expected to receive $2.25 per share in cash upon the closing of the transaction. The merger remains subject to the satisfaction of closing conditions, and the company expects the transaction to close during the first quarter of 2026.

Company Background

Sotherly Hotels Inc. is a self-managed and self-administered real estate investment trust (REIT) that was established in August 2004. The company focuses on owning, acquiring, renovating, and repositioning full-service, primarily upscale and upper-upscale hotel properties. Its portfolio includes 10 full-service hotels in 7 states, totaling 2,786 rooms, as well as interests in 2 condominium hotels and their associated rental programs. Sotherly Hotels’ properties are primarily located in the mid-Atlantic and southern United States.

Sotherly Hotels noted that the merger’s completion is contingent on meeting certain closing conditions.