MEMPHIS, Tennessee, and LOS ANGELES, California, and WILLIAMSBURG, Virginia—Kemmons Wilson Hospitality Partners (KWHP), together with Ascendant Capital Partners (Ascendant), through their joint venture, KW Kingfisher LLC, and Sotherly Hotels Inc. (Sotherly), announced the completion of the definitive merger pursuant to which Sotherly was acquired by the joint venture. The previously announced definitive merger agreement, pursuant to which the joint venture acquired all outstanding shares of Sotherly common stock for $2.25 per share in cash, was approved by Sotherly stockholders at a special meeting of stockholders held on January 22, 2026, following the prior unanimous approval of Sotherly’s full board of directors and unanimous recommendation from a special committee comprised of independent directors of the Sotherly Board.
The acquisition expands KWHP’s and Ascendant’s respective hospitality portfolios in strategic Southeastern U.S. submarkets with established demand.
Transaction Details
In conjunction with the closing, Schulte Hospitality Group will assume operations of Sotherly’s 10 full-service hotels and its single condo-hotel management agreement. In addition to hotel management, the founders of SHG have invested alongside the investor group acquiring Sotherly, further aligning SHG with the ownership of the Sotherly portfolio.
“Over two decades, the Sotherly team has built an attractive portfolio of assets in durable Southeastern travel destinations,” Webb Wilson, KWHP’s chief investment officer, said. “Guided by our ethos that ‘Everybody Deserves Hospitality’, we have assembled a deeply experienced and talented team with Ascendant and Schulte to build on the portfolio’s compelling foundation. The Sotherly acquisition amplifies KWHP’s deep history of investing in differentiated hospitality, and we look forward to exercising our combined resources and expertise to make strategic enhancements that improve overall guest experience.”
Alex Halpern, chief investment officer of Ascendant, added, “This acquisition is a significant step forward in the ongoing execution of our hospitality strategy, which is focused squarely on high-quality assets in diverse submarkets with attractive underlying dynamics. Our team’s deep hospitality experience and close partnership with KWHP have allowed us to capitalize on this compelling opportunity, and the success of this deal is a testament to that collective effort. We look forward to working with our partners to continue delivering exceptional experiences for our guests.”
“For more than 25 years, SHG has combined the latest advanced operations systems with a relentless dedication to operational excellence,” said Darryl Schulte, SHG chairman and chief executive officer. “We are very excited to deliver our suite of services and industry-leading practices to this portfolio and ensure guests can enjoy these properties for many years to come. We are confident that our continued partnership with KWHP and Ascendant will enhance the experience of guests and employees, and drive growth for these upscale assets.”
Affiliates of Apollo and Ascendant provided debt financing commitments to the joint venture in connection with the transaction.
