Sotherly Hotels Inc. announces refinancing and relaunch plans for DoubleTree by Hilton Jacksonville

JACKSONVLLE, Fla. — Sotherly Hotels Inc. announced today the execution of a secured loan with Fifth Third Bank, collateralized by the DoubleTree by Hilton Jacksonville Riverfront Hotel (the “Hotel”) in Jacksonville.

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The loan, which carries a floating interest rate based on SOFR plus 3.0%, has an initial principal balance of approximately $26.25 million, with an additional $9.49 million available to fund a product improvement plan at the Hotel.

n the downtown Jacksonville market. We believe our repositioning strategy, coupled with the strength of the Hilton reservation system, will position the Hotel for success for years to come.”

The Company also announced a new 10-year franchise agreement with Hilton Worldwide to relicense the Hotel as a soft-branded DoubleTree by Hilton under the name Hotel Bellamy.

As part of its relaunch efforts, the Company will undertake a complete renovation of the property, costing approximately $14.6 million, with an estimated completion date of January 2027. The renovation will include a complete reimagining of its guestrooms, public spaces, building exterior, pool and sun deck, existing food and beverage offerings, as well as the addition of a new riverfront dining concept.

“We are pleased to announce the completed refinance as well as the relaunch plans for our Jacksonville asset. Given the current lending environment, we view the completion of the refinancing of the mortgage loan for this Hotel with Fifth Third Bank as a positive outcome for the Company,” commented Dave Folsom, Chief Executive Officer of the Company. “The Hotel’s direct riverfront location is perfectly suited to reposition the Hotel as the first full-service lifestyle concept in the downtown Jacksonville market. We believe our repositioning strategy, coupled with the strength of the Hilton reservation system, will position the Hotel for success for years to come.”

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