Boston, MA 04/07/2014 (wallstreetpr) – Sotherly Hotels Inc (NASDAQ:SOHO) is a real estate investment trust. The company is mostly involved in acquiring and improving hotel buildings which it later operates through subsidiaries. This model of business is not just very unique in that it sets the company apart from other REITs, but has also enabled it to make gains where its peers are counting losses.
The company has taken over several hotel properties in the recent past and last week it announced completing a deal to add the iconic Georgian Terrace Hotel to its portfolio. For $61 million, the company acquired the 326-roomed full-service hotel, adding to itself some 698 parking structure as well as 0.6 acre parcel for development. Following the completion of the acquisition, Sotherly Hotels Inc (NASDAQ:SOHO) announced that it has passed over the mandate to manage the hotel to Chesapeake Hospitality.
Financing the acquisition
The company raised $41.5 million through bank loan in arrangement with Bank of Ozarks, to enable it fund the acquisition. According to the company’s CEO Drew Sims, Georgian Terrace Hotel acquisition is the latest significant deal that the company has landed. They hope that it will be a significant revenue earner and earnings booster for the company, in their efforts to returning big value to shareholders.
The hotel, by end of 2013, was operating at approximately 72 percent occupancy, with average revenue per room being $135.85.
Strong growth prospects
As the economy improves around the world, the hotel industry is in for a lot of gains as a lot of travel and room booking take place. That being the case, Sotherly Hotels Inc (NASDAQ:SOHO)’s move to add a legacy hotel facility to its portfolio is very much strategic at this time and into the future.
That Sotherly Hotels Inc (NASDAQ:SOHO) has presence in real estate business and hotel operations, two sectors which are ranked high among potential big performers this year and beyond, the company presents an attractive investment opportunity.
