Bankruptcy: SOTHERLY HOTELS LP

Form Type: 8-K

Filing Date: 2025-07-02

Corporate Action: Bankruptcy

Type: Update

Accession Number: 000095017025092920

Filing Summary: On June 26, 2025, Sotherly Hotels LP's subsidiary, SOHO Atlanta LLC, received a Notice of Default from Wilmington Trust regarding a Mortgage Loan secured on its Georgian Terrace hotel. The Notice indicates that the subsidiary failed to meet its payment obligations, prompting the lender to consider foreclosure to protect its interests. As of July 2, 2025, the direct financial obligation is estimated at approximately $38.0 million. The Company has engaged a consultant to negotiate an extension of the loan and intends to continue making interest and required reserve payments while discussions are ongoing. Additionally, a press release was issued on the same day announcing the default.