By Robb M. Stewart

A joint venture backed by investment firms Kemmons Wilson Hospitality Partners and Ascendant Capital Partners struck a deal to buy real estate investment trust Sotherly Hotels.

Sotherly said Monday it reached a definitive agreement under which the venture, KW Kingfisher, will acquire all of its outstanding shares for $2.25 each in cash.

Sotherly's shares, which last closed at $0.89, more than doubled in premarket trading to trade around $2.12.

The agreement has been unanimously approved by Sotherly's full board of directors.

Sotherly Chairman Andrew Sims said the transaction represents the highest premium paid for a public, exchange-traded REIT in the past five years.

Sotherly was formed in August 2004 to own, acquire and renovate hotel properties in the mid-Atlantic and southern U.S. owns 10 full-service, hotels in seven states and has interests in two condominium hotels.

Hospitality-focused investment management firm KWHP was established by the Kemmons Wilson family, founders of the Holiday Inn brand, while Ascendant is an integrated real estate investment and operating platform.

Affiliates of Apollo and Ascendant provided debt financing commitments to the joint venture in connection with the transaction.

The deal is expected to close in the first quarter of 2026, subject to approval by Sotherly shareholders.

Sims, one of the Company's largest stockholders, has agreed to vote all of his shares in favor of the transaction.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 27, 2025 07:11 ET (11:11 GMT)

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