Sotherly Hotels Inc. Announces Sale of Parking Garage for $17.75 Million

Strategic Insights -

Sotherly Hotels Inc., a Maryland corporation and the sole general partner of Sotherly Hotels LP, has filed a FORM 8-K (Current Report) with the U.S. Securities and Exchange Commission on July 30, 2025, announcing the sale of a portion of its real estate containing the parking garage associated with the Georgian Terrace hotel in Atlanta, Georgia, to Banyan Street Capital LLC for a purchase price of $17.75 million. The Company intends to use the net cash proceeds from the sale to pay down a portion of the principal balance on the existing mortgage for the Hotel. The closing of the sale is subject to various closing conditions, including the completion of a separate reciprocal easement agreement, governmental approvals, and the termination of Parking Garage agreements and leases.

Key Takeaways:

  • Sotherly Hotels Inc. has sold a portion of its real estate containing the parking garage associated with the Georgian Terrace hotel in Atlanta, Georgia, to Banyan Street Capital LLC for a purchase price of $17.75 million.
  • The Company intends to use the net cash proceeds from the sale to pay down a portion of the principal balance on the existing mortgage for the Hotel.
  • The closing of the sale is subject to various closing conditions, including the completion of a separate reciprocal easement agreement, governmental approvals, and the termination of Parking Garage agreements and leases.
  • Sotherly Hotels Inc. has received a Notice of Default from the special servicer for its mortgage loan secured by the Hotel, which was reported in the Company's Form 8-K dated June 26, 2025.
  • The Company expects to consummate the transaction in the fourth quarter of 2025.
  • The sale is expected to generate significant proceeds for the Company, allowing it to reduce its debt burden.

Statistics:

  • July 24, 2025: Date of report of entry into material definitive agreement.
  • $17.75 million: Purchase price of the parking garage.
  • July 30, 2025: Date of filing of FORM 8-K with the U.S. Securities and Exchange Commission.
  • Fourth quarter of 2025: Expected consummation of the transaction.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT
  • Sotherly Hotels Inc.
  • Sotherly Hotels LP