Sotherly Hotels Privatization Portfolio

Case Study: Hotels & Hospitality

Property Info

Property Type: Hotels & Hospitality

Date Closed: February 2026

City, State: Southeastern U.S.

Loan Amount: $353M

Purpose: Acquisition & Privatization

Property Objectives

Kemmons Wilson Hospitality Partners aimed to acquire and privatize Sotherly Hotels LP, a publicly traded platform with a portfolio of ten hotels across the Southeastern United States. Their objective was to secure a highly flexible capital structure to support both the acquisition and the execution of a significant value-add business plan. This required financing that would address immediate transactional needs while also laying the foundation for ongoing property improvements and long-term portfolio growth. Given the complexity and scale of the transaction, it was essential to partner with an advisory team deeply familiar with both their business plan and the intricacies of hospitality capital markets.

Berkadia Solution

Berkadia’s Hotels & Hospitality group, led by Jennifer Dakin and supported by Lindsey deButts, Katelyn Reynolds, and Jose Ison Cassab, represented an ideal strategic partner for Kemmons Wilson, thanks to an established track record of successful collaboration. Leveraging their understanding of Kemmons Wilson’s priorities, the Berkadia team proactively identified challenges and structured a sophisticated $353 million capital stack, combining a $308 million SOFR-based senior mortgage with a $45 million fixed-rate mezzanine facility. Seamless coordination across lenders, legal teams, and counterparties ensured the transaction was executed efficiently. The financing solution was designed to balance immediate acquisition needs with long-term flexibility and included features tailored to the sponsor’s ongoing value-add initiatives.

Client Results

Through Berkadia’s advisory expertise and collaborative approach, Kemmons Wilson Hospitality Partners successfully closed on the acquisition and privatization of Sotherly Hotels LP. The capital structure provided the necessary funding for closing as well as dedicated capital for future property improvements to be implemented by Schulte Hospitality Group. This outcome demonstrates the value of working with a team that fully understands the client’s business, ultimately delivering a successful transaction and creating a foundation for continued partnership and future growth.

Berkadia Hotels & Hospitality

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