Sotherly Hotels Acquired by KWHP and Ascendant Joint Venture

Kemmons Wilson Hospitality Partners and Ascendant Capital Partners, through their joint venture KW Kingfisher LLC, have completed the acquisition of Sotherly Hotels Inc. following shareholder approval.

Kemmons Wilson Hospitality Partners (KWHP) and Ascendant Capital Partners, through their joint venture KW Kingfisher LLC, have completed the acquisition of Sotherly Hotels Inc. The transaction followed approval by Sotherly shareholders at a Special Meeting on January 22, 2026. The merger agreement provided for the acquisition of all outstanding shares of Sotherly common stock at $2.25 per share in cash, and received unanimous approval from Sotherly’s board of directors and a special committee of independent directors.

The acquisition expands the hospitality portfolios of KWHP and Ascendant in Southeastern U.S. submarkets. Schulte Hospitality Group (SHG) will assume operations of Sotherly’s 10 full-service hotels and its single condo-hotel management agreement. The founders of SHG have also invested alongside the investor group, acquiring Sotherly.

Affiliates of Apollo and Ascendant provided debt financing commitments to the joint venture for the transaction. KWHP was advised by Bass, Berry & Sims PLC as legal advisor, with Milbank LLP serving as debt and equity counsel to KWHP and debt counsel to the joint venture. Berkadia acted as the sole financial advisor, arranging financing for KWHP and the joint venture. Piper Sandler & Co. served as exclusive financial advisor to the Sotherly Special Committee, and FBT Gibbons LLP served as legal advisor to the Sotherly Special Committee.

Sotherly Hotels Inc., listed on Nasdaq under the symbol SOHO, owns 10 full-service hotels and interests in two condominium hotels and their associated rental programs. SHG, headquartered in Louisville, Kentucky, oversees a portfolio of more than 250 hotels, restaurants, and other hospitality ventures.