Sotherly Hotels Inc (NASDAQ:SOHO) shares soared 133.4% in premarket trading on Monday after the company revealed it had entered into a definitive merger agreement to be acquired by a joint venture led by Kemmons Wilson Hospitality Partners.
Under the agreement, the joint venture will purchase all outstanding shares of Sotherly’s common stock for $2.25 per share in cash — a premium of 152.7% over the company’s closing price on October 24, 2025, and 126.4% above the 30-day volume weighted average price.
The merger deal was unanimously approved by Sotherly’s board of directors following the recommendation of a special committee composed of independent directors. Andrew Sims, the company’s Chairman and one of its largest shareholders, has committed to voting all of his shares in favor of the transaction.
The acquiring joint venture is led by Kemmons Wilson Hospitality Partners with Ascendant Capital Partners acting as a strategic partner. Debt financing commitments for the deal were provided by affiliates of Apollo Global Management (NYSE:APO) and Ascendant.
The transaction is expected to close in the first quarter of 2026, subject to shareholder approval and customary closing conditions. Holders of Sotherly’s preferred stock will be able to convert their shares to common stock and receive the same merger consideration, in line with the company’s charter terms.
Following the announcement, Sotherly canceled its planned quarterly conference call for the period ended September 30, 2025, and confirmed it will not issue a separate earnings release for that quarter.