Sotherly Hotels Inc. Announces Refinancing and Relaunch Plans for Jacksonville, FL Hotel
Rhea-AI Summary
Sotherly Hotels (NASDAQ: SOHO) has announced a secured loan with Fifth Third Bank for its DoubleTree by Hilton Jacksonville Riverfront hotel. The loan includes an initial principal balance of $26.25 million with an additional $9.49 million available for improvements. Additionally, Sotherly has signed a 10-year franchise agreement with Hilton Worldwide to rebrand the hotel as Hotel Bellamy. A complete renovation, costing $14.6 million, is planned, covering guest rooms, public spaces, and more, with completion expected by January 2027. CEO Dave Folsom highlighted that the refinance and relaunch will enhance the hotel's position in the Jacksonville market.
Positive
- Secured loan with Fifth Third Bank offers $26.25 million initial principal plus $9.49 million for improvements.
- 10-year franchise agreement with Hilton Worldwide.
- Comprehensive $14.6 million renovation to rebrand and upgrade the hotel.
- Strategic location and rebranding expected to strengthen market position.
Negative
- Renovation expected to complete only by January 2027, indicating a long-term investment period.
News Market Reaction
On the day this news was published, SOHO declined 0.41%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WILLIAMSBURG, Va., July 09, 2024 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) today announced that the Company has executed a secured loan with Fifth Third Bank, collateralized by the DoubleTree by Hilton Jacksonville Riverfront hotel (the “Hotel”) in Jacksonville, FL. The loan, which carries a floating interest rate based on SOFR plus
The Company also announced that it has entered into a new 10-year franchise agreement with Hilton Worldwide to relicense the Hotel as a soft-branded DoubleTree by Hilton under the name Hotel Bellamy. As part of its relaunch efforts for the Hotel, the Company will undertake a complete renovation of the property, with a cost of approximately
“We are pleased to announce the completed refinance as well as the relaunch plans for our Jacksonville asset. Given the current lending environment, we view the completion of the refinancing of the mortgage loan for this Hotel with Fifth Third Bank as a positive outcome for the Company,” commented Dave Folsom, Chief Executive Officer of the Company. “The Hotel’s direct riverfront location is perfectly suited to reposition the Hotel as the first full-service lifestyle concept in the downtown Jacksonville market. We believe our repositioning strategy, coupled with the strength of the Hilton reservation system, will position the Hotel for success for years to come.”
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.
FAQ
What recent financial move did Sotherly Hotels (SOHO) make for its Jacksonville hotel?
What is the new franchise agreement for Sotherly Hotels' Jacksonville property?
How much will the renovation of Sotherly Hotels' Jacksonville property cost?
When is the expected completion date for the renovation of Hotel Bellamy in Jacksonville?
What improvements are planned for the renovated Hotel Bellamy in Jacksonville?
