Hospitality JV Completes $2.25 Per Share Acquisition of Sotherly Hotels
Kemmons Wilson Hospitality Partners and Ascendant Capital Partners completed acquisition of Sotherly Hotels for $2.25 per share in cash, expanding their Southeastern portfolio with 10 full-service hotels and 2,786 rooms across seven states. Schulte Hospitality Group will assume operations and invested alongside the joint venture to align incentives.
1. Deal Completion
The merger between Sotherly Hotels and JV entity KW Kingfisher LLC closed after unanimous board approval and a January 22 stockholder vote, with all outstanding shares acquired at $2.25 per share in cash. Sotherly will now operate as a privately held portfolio under the joint venture partners.
2. Portfolio Impact
The acquisition brings 10 full-service, primarily upscale and upper-upscale hotels totaling 2,786 rooms across seven Southeastern states into the portfolios of KWHP and Ascendant Capital. This expansion targets established travel markets with durable demand and aligns with both firms’ focus on high-quality hospitality assets.
3. Management Transition
Schulte Hospitality Group will take over management of the entire Sotherly estate and has invested alongside the joint venture partners, ensuring aligned interests. SHG’s operational systems and development expertise will be applied to enhance guest experience and drive asset value.
4. Financing Support
Debt financing commitments for the transaction were provided by affiliates of Apollo and Ascendant, underlining the credit profile and growth prospects of the combined hospitality portfolio. This financing structure supports planned capital improvements and operational enhancements across the acquired properties.