SoTHERLY Hotels Inc. (NASDAQ:
SOHO) (the “Company”) today announced that the Company
has entered into a Warrant Redemption Agreement with Essex Illiquid, LLC
and Richmond Hill Capital Partners, LP (the “Holders”) to redeem the
remaining portion of the Warrant corresponding to an aggregate of
1,000,000 Issuable Warrant Shares for an aggregate cash redemption price
of $3.975 million.
Drew Sims, Chief Executive Officer of the Company, commented, “The
redemption of the remaining portion of the Warrant further reduces the
dilution exposure for our existing shareholders while also removing the
complexity that this derivative has added to our quarterly earnings
results. While the redemption price represents a modest premium to our
current stock price, it is a substantial discount to the intrinsic value
of the Warrant. This transaction efficiently executes the buy back of a
significant portion of potential shares at a considerable discount to
their inherent value.”
About SoTHERLY
Hotels Inc.
SoTHERLY
Hotels Inc., formerly MHI Hospitality Corporation, is a self-managed
and self-administered lodging REIT focused on the acquisition,
renovation, upbranding and repositioning of upscale and upper upscale
full-service hotels in the Southern United States. Currently, the
Company’s portfolio
consists of investments in eleven hotel properties, ten of which are
wholly-owned and comprise 2,372 rooms. The Company also has a 25.0
percent interest in the Crowne Plaza Hollywood Beach Resort. All of the
Company’s properties operate under the Hilton Worldwide,
InterContinental Hotels Group and Starwood Hotels and Resorts brands. SoTHERLY
Hotels Inc. was organized in 2004 and is headquartered in
Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.
Copyright Business Wire 2013