Sotherly Hotels secures a $42 million loan, causing shares to surge more than 20% in after-hours trading
In a significant development, Sotherly Hotels has announced the execution of a $42 million secured loan for its property, the DeSoto Hotel in Savannah, Georgia. The loan, which serves as a testament to the company's financial strength, has been arranged by Citi Real Estate Funding.
The loan, which is collateralized by a first mortgage on the DeSoto Hotel, does not specify a repayment term. However, the interest rate for the loan remains undisclosed.
The DeSoto Hotel, a prized asset in Sotherly Hotels' portfolio, continues to be a property owned by the company. The loan, which is a secured loan, provides Sotherly Hotels with the necessary funds to maintain and enhance the hotel's operations and guest experience.
The transaction was facilitated by the investment fund, Fortress Investment Group. This marks another successful collaboration between Sotherly Hotels and Fortress Investment Group, further strengthening their business relationship.
The news of the loan has sent Sotherly Hotels' stock soaring, with the company's shares continuing to surge on the NASDAQ stock exchange under the ticker symbol SOHO.
Despite the ongoing economic uncertainty, Sotherly Hotels remains committed to its growth strategy, focusing on strategic investments and partnerships to drive long-term value for its shareholders. The successful completion of the $42 million loan for the DeSoto Hotel is a clear indication of the company's robust financial position and its ability to navigate the challenges posed by the current market conditions.
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