This $2.25-A-Share Deal Just Sent Sotherly Hotels Stock Soaring Over 140%

Author: Akanksha Bakshi | October 27, 2025 08:48am

Sotherly Hotels Inc. (NASDAQ:SOHO) agreed to be acquired by a joint venture led by affiliates of Kemmons Wilson Hospitality Partners LP (KWHP), with Ascendant Capital Partners LP as a strategic partner. The venture’s entity, KW Kingfisher LLC, will buy all outstanding Sotherly common shares for $2.25 each in cash.

Significant Financial Premium for Shareholders

The price represents a premium of about 153% to Sotherly’s closing share price on Oct. 24, 2025, and 126% above its 30-day average.

The deal received unanimous approval from the board of directors following the recommendation of an independent special committee.

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Leadership Commentary on Growth and Value

Andrew Sims, Sotherly’s board chairman, said the transaction delivers a “significant premium” to shareholders and marks one of the largest payouts for a publicly traded REIT in recent years.

David Folsom, the company’s CEO, said the deal recognizes Sotherly’s two decades of growth and positions its hotels and employees for continued success.

Webb Wilson, KWHP’s chief investment officer, said the firm plans to strengthen Sotherly’s Southeastern U.S. hotel portfolio with additional resources and long-term investment.

Alex Halpern, Ascendant’s chief investment officer, said the firm will contribute its operational expertise and financing solutions to support the portfolio.

Acquisition Financing and Expected Closing

Affiliates of Apollo Global Management Inc. (NYSE:APO) and Ascendant are providing debt financing for the acquisition, which is expected to close in the first quarter of 2026 pending shareholder approval and customary conditions.

Sims, one of Sotherly’s largest shareholders, will vote his shares in favor of the transaction.

Preferred stockholders will have the option to convert their Series B, C, and D shares into common stock or retain them under existing terms.

Following the announcement, Sotherly canceled its third-quarter earnings call and will file a Form 8-K with the SEC detailing the merger.

Price Action: SOHO shares were trading higher by 141.49% to $2.150 at last check Monday.

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Posted In: APO SOHO