Sotherly Hotels Inc. (SOHO) entered a merger agreement on October 27, 2025, to be acquired by a joint venture led by affiliates of Kemmons Wilson Hospitality Partners, LP, and Ascendant Capital Partners LP, in a deal valued at $894.74 million.
A joint venture entity, KW Kingfisher LLC, led by Kemmons and Ascendant, will acquire all outstanding shares of Sotherly common stock for $2.25 per share in cash, representing a premium of 152.81% over the stock’s last close.
Sotherly is a self-managed lodging REIT that owns, acquires, and repositions upscale and upper-upscale full-service hotels across the Southern United States, including properties under major brands such as Hilton, Hyatt, and Marriott.
Kemmons Wilson Hospitality Partners is a Memphis-headquartered, hospitality-focused investment firm established by the family behind the iconic Holiday Inn brand, which manages funds and acquires, renovates, and repositions hotels, resorts, timeshares, and short-term rentals across the U.S.
Ascendant is a Los Angeles–based, vertically integrated real estate investment and operating platform focused on the hospitality and residential sectors, managing over $1.5 billion in commitments across assets, portfolios, operating businesses, and public companies nationwide.
Affiliates of Apollo (APO) and Ascendant provided debt financing commitments to the joint venture for the merger.
Holders of Sotherly’s Series B (8%), Series C (7.875%), and Series D (8.25%) preferred stock may choose to convert their shares into common stock after the merger closes. If they do, they will receive the merger consideration. If a holder does not choose to convert, their preferred stock will not be affected by the merger and will continue to exist under the same terms set out in the company’s charter.
The deal is expected to close in the first quarter of 2026.
Piper Sandler served as financial advisor, and Frost Brown Todd acted as legal counsel to Sotherly Hotels. Berkadia provided financial advice, and Bass, Berry & Sims served as legal counsel to Kemmons Wilson and Ascendant.
For a more in-depth analysis of this merger and acquisition transaction, please refer to the Deal Metrics page here:
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Editor’s Note: Baranjot Kaur contributed to this article