Sotherly Hotels Inc. (NASDAQ: SOHO) on Friday announced that the Company has executed a $10.0 million secured loan with Citi Real Estate Funding Inc., collateralized by a first mortgage on the DoubleTree by Hilton Laurel in Laurel, Maryland. The interest only loan, which has a principal balance of $10.0 million, matures in May 2028 and carries a fixed interest rate of 7.35%. Proceeds from the loan were used to repay the existing first mortgage and for general corporate purposes.
“We are pleased with the completion of the refinancing for this hotel, which allowed us to realize significant value created through the execution of a streamlined operating strategy,” commented Dave Folsom, Chief Executive Officer of the Company. “We view the favorable loan terms, which include payments nearly identical to the previous loan, as well as the considerable cash proceeds of approximately $2.7 million, as a positive outcome for the Company, particularly in the current lending environment.”