Sotherly Hotels Inc. Announces Refinancing and Renovation Plans for Philadelphia Hotel
Sotherly Hotels Inc. announced refinancing and renovation plans for the DoubleTree by Hilton Philadelphia Airport.
Sentiment and the balance of points
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Rhea-AI Summary
Sotherly Hotels Inc. announced refinancing and renovation plans for the DoubleTree by Hilton Philadelphia Airport. The mortgage loan terms were amended with TD Bank, reducing the loan by $3.0 million to $35.9 million. The loan matures in April 2026 with an interest rate based on SOFR plus 3.5%. The company also signed a new 10-year franchise agreement with Hilton Worldwide and will undergo an $11.5 million renovation scheduled for completion by April 2026.
Positive
Reduction of mortgage loan by $3.0 million to $35.9 million.
New 10-year franchise agreement with Hilton Worldwide.
Renovation plans for the property with a cost of approximately $11.5 million.
Strong positioning with a well-known brand like Hilton for future success.
Negative
Carries a floating interest rate based on SOFR plus 3.5%.
Renovation cost of $11.5 million may impact short-term cash flow.
Details
News Market Reaction – SOHO
The recorded move for SOHO in the trading session of this news was +1.45%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
WILLIAMSBURG, Va., May 03, 2024 (GLOBE NEWSWIRE) -- 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
“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.
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