Sotherly Hotels Faces Mortgage Default Notice

Tip Ranks
2025.11.14 17:58
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Sotherly Hotels Inc. is facing financial difficulties, receiving a Notice of Default on a $49.3 million mortgage for the DoubleTree Resort by Hilton Hollywood Beach and a termination notice for a $17.75 million sale of a parking garage. The company is negotiating a mortgage extension amid a 'cash trap' situation. Analysts rate SOHO stock as Hold with a $2.00 target, noting high leverage and declining profitability. Despite some positive momentum, the overall outlook remains cautious due to weak valuation metrics.

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An update from Sotherly Hotels ( (SOHO) ) is now available.

Sotherly Hotels Inc. faced two significant financial developments in late 2025. First, on November 13, 2025, the company received a termination notice from Banyan Street Capital LLC regarding the sale of a parking garage associated with the Georgian Terrace hotel in Atlanta, Georgia, initially agreed upon for $17.75 million. Second, on November 12, 2025, the company received a Notice of Default on a mortgage loan for the DoubleTree Resort by Hilton Hollywood Beach hotel, with a debt obligation of approximately $49.3 million. The company is currently negotiating an extension of the mortgage loan while dealing with a ‘cash trap’ situation, where hotel revenues are directed to a lender-controlled account.

The most recent analyst rating on (SOHO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Sotherly Hotels stock, see the SOHO Stock Forecast page.

Spark’s Take on SOHO Stock

According to Spark, TipRanks’ AI Analyst, SOHO is a Neutral.

Sotherly Hotels’ overall stock score is primarily impacted by its financial performance, which is challenged by high leverage and declining profitability. Technical analysis shows some positive momentum, but valuation metrics are weak with a negative P/E ratio. The earnings call highlighted both strengths in specific properties and significant challenges, contributing to a cautious outlook.

To see Spark’s full report on SOHO stock, click here.

More about Sotherly Hotels

Sotherly Hotels Inc. is a Maryland corporation that operates as the sole general partner of Sotherly Hotels LP, a Delaware limited partnership. The company is involved in the hospitality industry, focusing on hotel ownership and management.

Average Trading Volume: 441,860

Technical Sentiment Signal: Buy

Current Market Cap: $44.7M

For an in-depth examination of SOHO stock, go to TipRanks’ Overview page.

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