Sotherly Hotels Inc. Enters Into Agreement to Purchase Condo Hotel Commercial Unit
June 07 2017 - 9:00AM
Sotherly Hotels Inc. (NASDAQ:SOHO) (the “Company”) today
announced that the Company has entered into an agreement (the
“Agreement”) to purchase the commercial unit of the planned Hyde
Beach House Resort & Residences (the “Planned Hotel”) under
development in Hollywood, Florida for $5.10 million. The Agreement
includes the purchase of the hotel commercial unit, which consists
of the designated lobby and front desk areas, offices, and other
spaces. In addition, the Company will enter into a lease for the
parking garage and poolside cabanas of the Planned Hotel, as well
as an agreement to operate and manage the condominium
association. The Agreement also includes a Pre-Opening
Services Agreement whereby the Seller has agreed to pay the Company
$0.75 million in connection with certain pre-opening activities.
The Hyde Beach House Resort & Residences is
a new development in Hollywood, Florida slated to open in the
second quarter of 2019. The Planned Hotel is located adjacent to
the Company’s Crowne Plaza Hollywood Beach Resort and directly
across from the Hyde Resort & Residences.
The 342-unit condominium-hotel consists of 265
use-restricted units and 77 residences that feature one, two and
three bedroom layouts. The property will feature luxury amenities
that include an expansive pool deck with infinity edge pool, Sports
Club and Aqua Club offering watersports on the Intracoastal
Waterway.
Drew Sims, Chief Executive Officer of the
Company, commented, "This transaction represents the final phase of
a value creation strategy we have envisioned since we initially
commenced our investment into the South Florida market. Once
completed, this will be a unique complex that offers a tremendous
variety of product offerings and amenities for our guests while
providing the ability to fully implement and take advantage of
operational efficiencies and sales and marketing synergies."
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 to
upper-upscale full-service hotels in the Southern United States.
Currently, the Company’s portfolio consists of investments in
eleven hotel properties, comprising 2,838 rooms, and an interest in
the Hyde Resort & Residences, a luxury condo hotel. 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 Vice President – Operations
and Investor RelationsSotherly Hotels Inc.410 West Francis
StreetWilliamsburg, Virginia 23185 (757)
229-5648
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