Sotherly Hotels is a lodging REIT that owns ten full-service, upscale and upper-upscale hotels totaling 2,786 rooms, concentrated in the mid-Atlantic and southeastern U.S. across seven states. Key properties include The Georgian Terrace in Atlanta, Hotel Ballast in Wilmington, The Whitehall in Houston, and DoubleTree Resort Hollywood Beach. Properties operate under Hilton and Hyatt franchise brands, plus three independent hotels. In February 2026, Sotherly was taken private via a merger with KW Kingfisher. As a REIT, Sotherly cannot directly operate its hotels — instead, it leases properties to taxable REIT subsidiaries, which contract with Schulte Hospitality Group to manage day-to-day operations. Revenue flows from room sales, food and beverage, and ancillary hotel services. RevPAR (revenue per available room) is the primary performance metric, and profitability is driven by occupancy, average daily rates, and cost discipline, particularly on labor. Many hotel costs are semi-fixed, so RevPAR swings have an outsized impact on margins. Debt is a significant part of the capital structure, making interest expense a key driver of adjusted FFO (funds from operations, the standard REIT earnings metric). Sotherly's customer mix spans business transient, group and meeting, and leisure travelers, varying by property type. Near-term priorities are transitioning to Schulte as manager, renovating guestrooms and public spaces, and reducing leverage through potential asset sales.