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Sotherly Hotels Agrees to $2.25-a-Share Take-Private by KW Kingfisher Venture

The board-approved cash deal targets an early 2026 close pending a shareholder vote.

Overview

  • KW Kingfisher LLC, a joint venture led by affiliates of Kemmons Wilson Hospitality Partners with Ascendant Capital Partners as strategic partner, will acquire all outstanding Sotherly common shares for cash.
  • The $2.25 per-share price reflects a premium of roughly 153 percent to the Oct. 24 close and about 126 percent to the 30‑day average.
  • Sotherly’s board unanimously approved the merger after an independent special committee review, and chairman Andrew Sims agreed to vote his shares in favor.
  • Affiliates of Apollo Global Management and Ascendant provided debt financing commitments to support the transaction.
  • Preferred holders may convert Series B, C, and D shares into common or keep existing terms, the company canceled its Q3 earnings call, will file a Form 8‑K, and expects closing in the first quarter of 2026 subject to approvals and customary conditions.