Sotherly Hotels Inc. Completes Sale of Jeffersonville, Indiana Hotel

Rhea-AI Summary

Sotherly Hotels Inc. (NASDAQ: SOHO) has successfully sold the Sheraton Louisville Riverside Hotel in Jeffersonville, Indiana for $11.5 million. This sale, which provides an EBITDA multiple of approximately 21.0 and a cap rate of 2.5% based on 2019 results, is expected to enhance the company's cash flow. CEO Dave Folsom emphasized that the asset no longer aligned with the company’s strategic objectives, and its sale will enable Sotherly to focus on growth within its core portfolio, aiming to maximize shareholder value.

Positive

• Sale of Sheraton Louisville Riverside Hotel for $11.5 million enhances cash flow.
• Achieved attractive valuation with a 21.0x EBITDA multiple.
• The sale allows the company to focus on its core portfolio.

Negative

• None.

WILLIAMSBURG, Va., Feb. 11, 2022 (GLOBE NEWSWIRE) --  Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) announced that the Company has closed on the sale of the Sheraton Louisville Riverside Hotel (the “Hotel”) in Jeffersonville, Indiana for $11.5 million.

“We are pleased with the completion of the sale of the Sheraton Louisville Riverside Hotel,” noted Dave Folsom, Chief Executive Officer of the Company. “This hotel was identified as an asset that no longer fit the long-term strategic objectives of the Company. We believe the Company garnered an attractive valuation for the asset, which equates to approximately 21.0x EBITDA multiple and 2.5% cap rate based on 2019 results. This disposition will be immediately accretive to our cash flow, meanwhile it will allow the Company to streamline its management efforts and focus on growing its core portfolio in order to maximize value for 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 eleven hotel properties, comprising 2,976 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide, Marriott International, Inc., 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

FAQ

What was the sale price of the Sheraton Louisville Riverside Hotel by Sotherly Hotels Inc.?

Sotherly Hotels Inc. sold the Sheraton Louisville Riverside Hotel for $11.5 million.

What is the EBITDA multiple achieved in the sale of the Sheraton Louisville Riverside Hotel?

The sale achieved an EBITDA multiple of approximately 21.0.

How will the sale of the Sheraton Louisville Riverside Hotel affect Sotherly Hotels Inc.'s cash flow?

The sale is expected to be immediately accretive to Sotherly Hotels Inc.'s cash flow.

What strategic change is Sotherly Hotels Inc. implementing with the sale of the Sheraton Louisville Riverside Hotel?

Sotherly Hotels Inc. is shifting focus to grow its core portfolio and maximize shareholder value.