Berkadia Arranges $353M Structured Capital Solution for Hotel Portfolio Acquisition
Washington, D.C. – February 18, 2026 –Berkadia, a leading commercial real estate advisor, announced today that it has arranged a highly structured $353 million capital solution on behalf of Kemmons Wilson Hospitality Partners (“Kemmons Wilson”) and Ascendant Capital Partners (“Ascendant”, and together with Kemmons Wilson, the “Sponsor”) in connection with the acquisition and privatization of Sotherly Hotels Inc., a publicly traded hotel company that owns a portfolio of ten assets across the Southeastern United States.
The capitalization includes a $308 million senior mortgage loan and a $45 million structured mezzanine facility, together supporting the private equity sponsor’s acquisition of the public entity and the execution of a value-add business plan for the assets it is retaining.
The Washington, D.C.-based Berkadia Hotels & Hospitality mortgage banking team, led by Managing Director Jennifer Dakin, Senior Director Lindsey deButts, Associate Director Katelyn Reynolds, and Analyst Jose Ison Cassab, arranged the debt and served as strategic capital markets advisor to Kemmons Wilson.
“This was a sophisticated, multi layered capital stack that required a bespoke solution and tightly coordinated execution,” said Dakin. “Our role was to act as a strategic capital markets partner—advising our client on how to get the deal done, how to finance it efficiently, and how to position the portfolio for long term value creation.”
The senior financing, provided by Apollo, is structured as a 36-month, SOFR based, floating rate loan with two one-year extension options and a future funding component designated for property improvement plans. A creatively structured financing was provided by Ascendant Capital Partners, totaling $45 million and features a customized, fixed rate structure tailored to the Sponsor’s business plan and projected hold period.
As part of the broader portfolio strategy, the Sponsor is implementing a disciplined value add program across the retained assets and has engaged Schulte Hospitality Group to manage the properties and execute the individual asset level business plans.
Berkadia Hotels & Hospitality combines best-in-industry innovation, knowledge, and experience with the most comprehensive suite of products and services. Berkadia Hotels & Hospitality serves clients across the country, offering capital markets advisory, investment sales, underwriting and loan origination services as well as Life Company, and Proprietary Bridge Lending. As specialized partners, we empower clients to capitalize on the right opportunities at the greatest value.