Sotherly Hotels Inc. is a lodging real estate investment trust that owns, acquires, renovates and repositions full-service, primarily upscale and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States. The company conducts its business through Sotherly Hotels LP, its operating partnership, of which it is the general partner. As of December 31, 2025, its portfolio consisted of ten full-service hotels with an aggregate of 2,786…
Sotherly Hotels Inc. is a lodging real estate investment trust that owns, acquires, renovates and repositions full-service, primarily upscale and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States. The company conducts its business through Sotherly Hotels LP, its operating partnership, of which it is the general partner. As of December 31, 2025, its portfolio consisted of ten full-service hotels with an aggregate of 2,786 hotel rooms, and interests in two condominium hotels and their associated rental programs.
Sotherly Hotels Inc. generates revenue primarily through leasing its wholly-owned hotel properties to taxable REIT subsidiaries, referred to as TRS Lessees, which in turn engage third-party hotel managers to operate the properties. The TRS Lessees pay fixed annual base rent plus percentage rent based on gross room revenues in excess of certain thresholds, along with other additional charges. Revenue is also derived from the rental of individually owned condominium units in the Lyfe Resort & Residences and Hyde Beach House Resort & Residences properties, managed under agreements with Schulte Hospitality Group, Inc. as of February 12, 2026.
Sotherly Hotels Inc. operates through a single reportable segment focused on hotel ownership and lodging operations.
- Hotel Ownership and Lodging Operations: This segment involves the ownership of full-service, primarily upscale and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States. The segment includes properties such as Hotel Ballast Wilmington, Tapestry Collection by Hilton, The DeSoto, DoubleTree by Hilton Philadelphia Airport, Hotel Alba Tampa, Tapestry Collection by Hilton, DoubleTree by Hilton Jacksonville Riverfront, DoubleTree by Hilton Laurel, Georgian Terrace, The Whitehall, DoubleTree Resort by Hilton Hollywood Beach, and Hyatt Centric Arlington. The segment also includes interests in the Lyfe Resort & Residences and Hyde Beach House Resort & Residences condominium hotels and their associated rental programs.
Sotherly Hotels Inc. operates in the highly competitive full-service upscale and upper-upscale hotel market, where competition is based on price, level of service, and geographic location. The company believes its competitive advantages include geographic location in markets with growth potential, strong franchise partnerships with national hotel brands, and a focus on properties with significant barriers to entry and proximity to major demand generators such as airports, convention centers, corporate headquarters, and sports venues. These factors support its strategy of acquiring underperforming hotels and repositioning them for improved performance and long-term value.
Sotherly Hotels Inc. serves business and leisure travelers seeking full-service hotel accommodations in the mid-Atlantic and southern United States. The company's customers include individuals attending conferences, tourists visiting regional attractions, and guests visiting nearby universities, corporate centers, and entertainment venues. Specific demand generators near its properties include large state universities, airports, convention centers, corporate headquarters, and sports venues in markets such as Florida, Georgia, Maryland, Virginia, North Carolina, Pennsylvania, and Texas.