Sotherly Hotels
Sotherly Hotels is a self-managed lodging REIT that owned 10 full-service upscale hotels (2,786 rooms) across 7 Southeastern US states and interests in 2 condo-hotels, operating primarily under Hilton and Hyatt brands. The company was acquired in February 2026 by KW Kingfisher LLC.
- Company typePrivate
- Founded2004
- HeadquartersWilliamsburg, United States
- Headcount11–50
- GTM typeB2C
- OfferingServices
What Sotherly Hotels does
Sotherly Hotels Inc. was a self-managed and self-administered Maryland-domiciled lodging REIT, founded in 2004 and headquartered in Williamsburg, Virginia, that acquired, renovated, upbranded, and repositioned upscale to upper-upscale full-service hotels in the Southeastern United States. At the time of its February 2026 acquisition, the company owned a portfolio of 10 full-service hotels encompassing 2,786 rooms across seven states (Georgia, Florida, Texas, North Carolina, Virginia, Maryland, and Pennsylvania) plus interests in two condominium hotels (Lyfe Resort & Residences and Hyde Beach House in Hollywood Beach, Florida). Properties operated primarily under Hilton Worldwide brands (DoubleTree, Tapestry Collection, and Crowne Plaza) and Hyatt Hotels Corporation (Hyatt Centric), benefiting from established loyalty program distribution, brand reservation systems, and corporate sales networks. Q2 2025 revenue was $48.8 million, falling short of consensus projections by 5.81%, with annual revenue implied in the $179-195 million range based on comparator data and quarterly run-rate.
The business model generated revenue from hotel room rentals, food and beverage operations, meeting and event space rentals, and other ancillary hospitality services, supplemented by condo-hotel rental program income. Distribution channels spanned Hilton and Hyatt brand booking platforms, direct hotel websites, third-party OTAs (Expedia, Booking.com), and corporate/group sales teams. Customer segments included business travelers, leisure travelers, and group/event planners. The company historically pursued a sales-led growth motion through opportunistic property acquisitions and brand conversions rather than internal development, with material investments in renovations (e.g., $22M Hotel Alba, $12M The DeSoto, $11.3M Hotel Alba 2019) supported by mortgage debt from Citi Real Estate Funding Inc.
On February 12, 2026, KW Kingfisher LLC (a joint venture between Kemmons Wilson Hospitality Partners and Ascendant Capital Partners) completed the acquisition of Sotherly Hotels for $2.25 per share in cash ($46.3 million total), with Apollo affiliates providing debt financing and Schulte Hospitality Group assuming operations of the 10 hotels and one condo-hotel management agreement. The company subsequently voluntarily delisted its Series B, C, and D Preferred Stock from Nasdaq in April 2026 and transitioned to OTC Market trading while maintaining SEC reporting obligations. Leadership transitioned to Zachary Schmidt (CEO, formerly of Kemmons Wilson Companies), William Ryan Pellum (CFO), and Scott Kucinski (EVP/COO, the longest-tenured Sotherly executive since 2004).
Sotherly Hotels firmographics
Firmographics- Name
- Sotherly Hotels
- Legal name
- Sotherly Hotels Inc.
- Website
- https://sotherlyhotels.com
- Company type
- Private
- Founded year
- 2004
- Operating status
- Acquired
- Headcount range
- 11–50 employees
- Short description
- Sotherly Hotels is a self-managed lodging REIT that owned 10 full-service upscale hotels (2,786 rooms) across 7 Southeastern US states and interests in 2 condo-hotels, operating primarily under Hilton and Hyatt brands. The company was acquired in February 2026 by KW Kingfisher LLC.
- Ownership category
- akta.pro rank
Sotherly Hotels industry classification
Industry- Product category
- Lodging REIT (Hotel Real Estate Investment)
- NAICS
- Hotels (except Casino Hotels) and Motels (72111), Hotels (except Casino Hotels) and Motels (721110), Traveler Accommodation (7211)
- SIC
- Hotels, Rooming Houses, Camps & Other Lodging Places (7000), Hotels & Motels (7011)
- akta.pro primary industry
- Business & Corporate Full-Service Hotels (THAGAAAE)
- akta.pro secondary industries
- Resort-Area Full-Service Hotels (Non–All-Inclusive) (THAGAAAD), Luxury Vacation Homes & Residences (THAMAEAB)
Keywords
Where Sotherly Hotels is headquartered
LocationHeadquarters
- HQ city
- Williamsburg
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Sotherly Hotels business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Operations, Personnel, Infrastructure, Marketing or Sales, Technology or R&D, Others
Revenue model
- Hotel Operations: Revenue generated from hotel room rentals, food and beverage operations, meeting and event space rentals, and other hospitality services across owned full-service hotel properties.
- Condo-hotel rental programs: Interests in two condominium hotels and associated rental programs generating supplemental revenue.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Unit Pricing | Pay-as-you-go | Hotel room rates vary by property and season |
Go-to-market motion1 record
Distribution channels3 records
Marketing channels3 records
Sotherly Hotels product offering
Product offeringCore offering
Sotherly Hotels Inc. is a self-managed lodging REIT that acquires, renovates, upbrands, and repositions upscale to upper-upscale full-service hotels in the Southern United States. The company owns 10 full-service hotels totaling 2,786 rooms across seven states (Georgia, Florida, Texas, North Carolina, Virginia, Maryland, and Pennsylvania) plus interests in two condominium hotels in South Florida. Hotels operate primarily under Hilton Worldwide brands (DoubleTree, Tapestry Collection) and Hyatt Hotels Corporation (Hyatt Centric), generating revenue through room rentals, food and beverage, and meeting and event space.
Product overview
Sotherly Hotels Inc. is a self-managed lodging REIT that owns and operates a portfolio of 10 full-service upscale to upper-upscale hotels across the Southern United States, plus interests in two condo-hotel properties. The portfolio includes hotels operating under Hilton Worldwide brands (DoubleTree, Tapestry Collection) and Hyatt Hotels Corporation (Hyatt Centric), as well as independent hotels. Properties span major metropolitan markets including Atlanta, Houston, Savannah, Wilmington, Miami, Jacksonville, Tampa, Washington D.C., Baltimore, and Philadelphia. The company also operates rental programs at Lyfe Resort & Residences and Hyde Beach House in South Florida. In February 2026, the company was acquired by KW Kingfisher LLC (a joint venture of Kemmons Wilson Hospitality Partners and Ascendant Capital Partners) for $2.25 per share, with Schulte Hospitality Group assuming operations.
Differentiator
Problem solved
Functional benefit
Products and services
- The DeSoto Savannah Historic full-service hotel in Savannah's Historic District with 245 luxurious guestrooms, 20,000 square feet of meeting space, pool terrace, and two chef-driven restaurants (Edgar's Proof & Provision and 1540 Room). Acquired in 2004 during the IPO and repositioned through major renovations.
- Hotel Alba Tampa Boutique hotel in Tampa's Westshore district, part of Hilton's Tapestry Collection. Features 222 guest rooms, 10,000 square feet of meeting space, signature restaurant The Spaniard, and completed an $11.3 million renovation in 2019.
- Hyatt Centric Arlington Upper-upscale full-service property in Rosslyn, Virginia near Washington D.C. with 318 recently refreshed guestrooms and 300-space subterranean parking garage.
- DoubleTree Jacksonville Riverfront Full-service hotel on the St. Johns River in downtown Jacksonville with 292 guest rooms and 12,000 square feet of meeting space.
- DoubleTree by Hilton Hollywood Beach Resort Oceanfront resort on the Intracoastal Waterway near Miami with 311 modern guest rooms, 10,000 square feet of meeting space, resort-style pool, and three food and beverage outlets.
- Hotel Ballast Wilmington Premier full-service hotel in downtown Wilmington, NC along the Riverwalk. Part of Hilton's Tapestry Collection with 272 guest rooms and 20,000 square feet of meeting space. Largest convention hotel in Eastern North Carolina.
- The Whitehall Houston Downtown Houston hotel built in 1963 with 259 guest rooms and 12,000 square feet of meeting space. Connected via skywalk to 2 million square feet of Class-A office space.
- The Georgian Terrace Atlanta Historic hotel in Atlanta's Midtown Mile built in 1911, known as 'The Grande Dame of Atlanta.' Features 326 rooms, 16,000+ square feet of business facilities, three classic ballrooms, and restaurants including Livingston Restaurant + Bar and Edgar's Proof & Provision.
- DoubleTree Philadelphia Airport Hotel adjacent to Philadelphia International Airport with 331 well-appointed rooms and 10,000 square feet of meeting space.
- DoubleTree by Hilton Laurel Hotel between Baltimore and Washington D.C. with 207 guest rooms and 8,000 square feet of meeting space.
- Lyfe Resort & Residences and Hyde Beach House (Condo-Hotel Rental Program) Oceanfront resort properties in Hollywood Beach, Florida offering luxury suites with one, two, and three bedroom layouts, gourmet kitchens, rooftop pools, spa, tennis court, and movie theatre. Sotherly operates rental programs for the hotel commercial units of both properties.
Quantifiable outcome
- Portfolio of 10 full-service hotels with 2,786 rooms across 7 states
- +1 more outcomes
Companies that use Sotherly Hotels
Customer profileNamed customers1 record
Segments3 records
Ideal customer profiles3 records
Sotherly Hotels technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Sotherly Hotels partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core.
- Schulte Hospitality GroupcoreAssumed operations of Sotherly's 10 full-service hotels and single condo-hotel management agreement after the acquisition. SHG founders co-invested alongside the acquiring group to align interests.
- Hilton WorldwidecoreBrand affiliation partner for multiple properties including DoubleTree by Hilton, Crowne Plaza, and Tapestry Collection hotels in Sotherly's portfolio.
- Hyatt Hotels CorporationcoreBrand affiliation partner for Hyatt Centric Arlington property in Sotherly's portfolio.
Scale indicators5 records
Recent moves8 records
Expansion highlights4 records
Sotherly Hotels competitors and assessment
Company assessmentDirect peers
- Pebblebrook Hotel Trust: Self-advised lodging REIT focused on upper-upscale urban and resort hotels, explicitly cited in Sotherly's market data. Both operate full-service hotel portfolios with similar brand affiliation strategies (Hilton, Hyatt, Marriott flags).
- Sunstone Hotel Investors: Lodging REIT that acquires, owns, and operates upper-upscale and luxury full-service hotels under major brand families. Directly comparable to Sotherly's upscale-to-upper-upscale full-service strategy with similar group/business mix.
- Park Hotels & Resorts: Lodging REIT focused on upper-upscale and luxury full-service hotels in major US markets including Southern gateway cities. Operates a similar full-service hotel model with comparable meeting space and group demand exposure.
- DiamondRock Hospitality: Lodging REIT that owns upper-upscale and luxury full-service hotels in major US cities and destination resorts. Closely matches Sotherly's full-service, brand-affiliated portfolio strategy and target guest segments.
- Host Hotels & Resorts: Largest lodging REIT in the US, focused on luxury and upper-upscale full-service hotels primarily under Marriott brands. Provides peer benchmarking on full-service portfolio operations, leverage, and brand strategy in the same Southern markets.
- Xenia Hotels & Resorts: Lodging REIT focused on upper-upscale and luxury full-service hotels with significant meeting space. Similar in scale and brand mix to Sotherly with comparable group/event demand exposure and capital structure profile.
- Ryman Hospitality Properties: Specialized lodging REIT focused on group-oriented, full-service convention and resort hotels. Comparable to Sotherly's significant meeting/event space inventory and emphasis on group and corporate demand.
- Schulte Hospitality Group: Hotel management company that assumed operations of Sotherly's 10 full-service hotels post-acquisition. Highly comparable as an operator of upper-upscale full-service Hilton, Hyatt, and Marriott properties in the Southern US.
Broad incumbents
- Hilton Worldwide: Global lodging franchisor and operator; Sotherly's portfolio operates under multiple Hilton brands. Not a direct competitor but a critical partner that determines franchise economics, distribution access, and brand standards across the portfolio.
- Hyatt Hotels Corporation: Global lodging company and Sotherly's brand partner for the Hyatt Centric Arlington property. Comparable as a broad incumbent whose franchising decisions materially affect Sotherly's flag mix, loyalty distribution, and pricing power.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat3 records
Key risks6 records
Key highlights6 records
Customer concentration
Sotherly Hotels social profiles
Digital presenceSotherly Hotels financial estimates
Financial estimateRevenue estimate
Valuation estimate
Sotherly Hotels leadership team
Management profileNumber of profiles
Profiles5 records
Sotherly Hotels funding detail
Funding detailFunding overview
Funding rounds2 records
Investors2 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Sotherly Hotels M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Sotherly Hotels
What does Sotherly Hotels do?
Sotherly Hotels Inc. is a self-managed lodging REIT that acquires, renovates, upbrands, and repositions upscale to upper-upscale full-service hotels in the Southern United States. The company owns 10 full-service hotels totaling 2,786 rooms across seven states (Georgia, Florida, Texas, North Carolina, Virginia, Maryland, and Pennsylvania) plus interests in two condominium hotels in South Florida. Hotels operate primarily under Hilton Worldwide brands (DoubleTree, Tapestry Collection) and Hyatt Hotels Corporation (Hyatt Centric), generating revenue through room rentals, food and beverage, and meeting and event space.
Is Sotherly Hotels a public or private company?
Sotherly Hotels is a private company. It is classified as private equity controlled and is currently acquired.
When was Sotherly Hotels founded?
Sotherly Hotels was founded in 2004. It employs 11 to 50 people.
Where is Sotherly Hotels based?
Sotherly Hotels is headquartered in Williamsburg, United States, in the North America region.
How does Sotherly Hotels make money?
Two revenue lines are on record. Hotel Operations are the primary driver. The others are condo-hotel rental programs.
Who are Sotherly Hotels's main competitors?
Direct peers on record are Pebblebrook Hotel Trust, Sunstone Hotel Investors, Park Hotels & Resorts, DiamondRock Hospitality, Host Hotels & Resorts, Xenia Hotels & Resorts, Ryman Hospitality Properties and Schulte Hospitality Group. Broad incumbents are Hilton Worldwide and Hyatt Hotels Corporation.
Does Sotherly Hotels have an API?
No public API is recorded for Sotherly Hotels.
What industry is Sotherly Hotels in?
Sotherly Hotels's product category is Lodging REIT (Hotel Real Estate Investment). Its primary akta.pro industry code is THAGAAAE, Business & Corporate Full-Service Hotels, with a secondary code of THAGAAAD, Resort-Area Full-Service Hotels (Non–All-Inclusive). Its NAICS code is 72111 and its SIC code is 7000.