Sotherly Hotels Inc. Announces Board Authorization of Stock Repurchase Program
December 02 2016 - 12:08PM
Sotherly Hotels Inc. (NASDAQ:SOHO) (the “Company”) today announced
that its Board of Directors authorized a stock repurchase program
under which the Company may acquire up to $10 million of its
outstanding common stock, at the discretion of management.
The Company expects to complete the repurchase program prior to
December 31, 2017, unless extended by the Board of Directors.
The shares will be purchased pursuant to the
program from time to time at prevailing market prices, through open
market or privately negotiated transactions, depending upon market
conditions and may be made pursuant to one or more plans
established pursuant to Rule 10b5-1 under the Securities Exchange
Act, as amended. Under the program, the purchases will be funded
from available working capital. There is no guarantee as to the
exact number of shares that will be repurchased by the Company and
the Company may discontinue purchases at any time that management
determines additional purchases are not warranted. As of November
8, 2016, the Company had approximately 14.9 million shares
outstanding.
Drew Sims, CEO and Chairman of the Company,
remarked, “The Board’s approval of this program reflects our
confidence in the Company’s future. Repurchasing stock is one means
of underscoring our commitment to enhancing stockholder value.”
Forward Looking Statements
This news release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Although the Company believes that the expectations and assumptions
reflected in the forward-looking statements are reasonable, these
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions which are difficult to
predict and many of which are beyond the Company’s control.
Therefore, actual outcomes and results may differ materially from
what is expressed, forecasted or implied in such forward-looking
statements. Factors which could have a material adverse effect on
the Company’s future results, performance and achievements,
include, but are not limited to: national and local economic and
business conditions that affect occupancy rates and revenues at the
Company’s hotels and the demand for hotel products and services;
risks associated with the hotel industry, including competition,
increases in wages, energy costs and other operating costs; the
magnitude and sustainability of the economic recovery in the
hospitality industry and in the markets in which the Company
operates; the availability and terms of financing and capital and
the general volatility of the securities markets; risks associated
with the level of the Company’s indebtedness and its ability to
meet covenants in its debt agreements and, if necessary, to
refinance or seek an extension of the maturity of such indebtedness
or modify such debt agreements; management and performance of the
Company’s hotels; risks associated with maintaining our system of
internal controls; risks associated with the conflicts of interest
of the Company’s officers and directors; risks associated with
redevelopment and repositioning projects, including delays and cost
overruns; supply and demand for hotel rooms in the Company’s
current and proposed market areas; risks associated with our
ability to maintain our franchise agreements with our third party
franchisors; the Company’s ability to acquire additional properties
and the risk that potential acquisitions may not perform in
accordance with expectations; the Company’s ability to successfully
expand into new markets; legislative/regulatory changes, including
changes to laws governing taxation of REITs; the Company’s ability
to maintain its qualification as a REIT; and the Company’s ability
to maintain adequate insurance coverage. These risks and
uncertainties are described in greater detail under “Risk Factors”
in the Company’s Annual Report on Form 10-K and subsequent reports
filed with the Securities and Exchange Commission. The Company
undertakes no obligation to and does not intend to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Although the Company
believes its current expectations to be based upon reasonable
assumptions, it can give no assurance that its expectations will be
attained or that actual results will not differ materially.
About Sotherly
Hotels Inc. Sotherly Hotels Inc. is a self-managed
and self-administered lodging REIT focused on the acquisition,
renovation, upbranding and repositioning of upscale and
upper-upscale full-service hotels in the Southern United
States. Currently, the Company’s portfolio consists of
investments in twelve hotel properties, comprising 3,011 rooms.
Most of the Company’s properties operate under the Hilton
Worldwide, InterContinental Hotels Group and Marriott
International, Inc. brands. Sotherly Hotels Inc. was organized in
2004 and is headquartered in Williamsburg, Virginia. For more
information, please visit www.sotherlyhotels.com
Contact at the Company:
Scott Kucinski
Sotherly Hotels Inc.
410 West Francis Street
Williamsburg, Virginia 23185
(757) 229-5648
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