Sotherly Hotels Inc. Announces Refinancing and Renovation Plans for Philadelphia Hotel
03 Mayo 2024 - 1:30PM
Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) today announced
that the Company has executed an extension which includes amended
mortgage loan terms on its first mortgage with TD Bank,
collateralized by the DoubleTree by Hilton Philadelphia Airport in
Philadelphia, PA. The interest-only loan, which has been reduced by
$3.0 million to $35.9 million, matures in April 2026 and carries a
floating interest rate based on SOFR plus 3.5%. As part of the
transaction, the Borrower purchased an Interest Rate Cap capping
SOFR at 3.0%. The Company also announced that it has entered into a
new 10-year franchise agreement with Hilton Worldwide to relicense
the hotel under the DoubleTree by Hilton flag. As part of the new
agreement with Hilton, the Company will undertake a renovation of
the property, with a cost of approximately $11.5 million and an
estimated completion date of April 2026. Renovation plans for the
property to include upgrades to guestrooms, public spaces, food and
beverage spaces, and building exterior.
“We are pleased with the completion of the
restructuring of the mortgage loan for this hotel with its current
lender,” commented Dave Folsom, Chief Executive Officer of the
Company. “Given the current lending environment and challenges
faced in the Philadelphia market following the pandemic, we view
the loan terms as a positive outcome for the Company. By
simultaneously entering into a new 10-year franchise agreement with
Hilton, we believe we are aligning ourselves with a strong brand
and are positioning the hotel for success for the foreseeable
future.”
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.
Contact at the Company:
Mack Sims
Sotherly Hotels Inc.
306 South Henry Street, Suite 100
Williamsburg, Virginia 23185
(757) 229-5648
Sotherly Hotels (NASDAQ:SOHO)
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