Sotherly Hotels Inc. Announces Notice of Default on Mortgage Loan Secured by the Georgian Terrace Hotel in Atlanta

Core Viewpoint - Sotherly Hotels Inc. has received a Notice of Default regarding its mortgage loan secured by the Georgian Terrace in Atlanta, indicating financial distress with an estimated obligation of approximately $38.0 million as of July 2, 2025 [1][2][3] Financial Situation - The Company is currently in default due to failure to pay amounts due under the loan documents, with the lender indicating potential foreclosure actions [1][3] - A consultant has been engaged to negotiate an extension of the mortgage loan, and the Company plans to continue making interest payments and required reserve payments during this period [2][3] Management Commentary - The Chairman noted that extensions of CMBS loans typically involve a formal process, and the Company is currently in the negotiation phase with assistance from a CMBS consultant [3] - The President and CEO acknowledged that the default was anticipated and emphasized that it is a maturity default, which does not affect the Company's ability to meet ongoing interest payments [3] Company Overview - Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on acquiring, renovating, and repositioning upscale hotels primarily in the Southern United States, with a portfolio of ten hotel properties comprising 2,786 rooms [7]