Sotherly Hotels to delist preferred stock from Nasdaq; preferred holders convert 3.2M shares for $58.8M cash

Sotherly Hotels Inc.

Consulting agreement with KWC Management for $650K annual fee, initial term to Feb 11, 2027.
Voluntarily delisting Series B, C, D preferred stock from Nasdaq; last trading day ~April 17, 2026.
Preferred holders converted 1.188M Series B, 1.202M Series C, 0.820M Series D shares; paid $22.2M, $23.0M, $13.6M respectively.
Delisting follows Feb 12, 2026 merger closing; over 80% of preferred shares opted for cash conversion.
Company will continue as a REIT and begin trading on OTC market; SEC reporting maintained.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Sotherly Hotels Inc. entered into Consulting Agreement with KWC Management, LLC valued at $650,000 (effective 2026-02-12).

Action: entry
Counterparty: KWC Management, LLC
Value: $650,000
Effective: 2026-02-12

Exact text from the filing

On March 24, 2026, Sotherly Hotels, LP, a Delaware limited partnership (the “ Operating Partnership ”), entered into a consulting agreement effective February 12, 2026 (the “ Consulting Agreement ”) with KWC Management, LLC, a Delaware limited liability company and an affiliate of the Operating Partnership (“ KWC ”).

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299 material agreements filed in the last 30 days. Browse all material agreements →

Sotherly Hotels Inc. filing history →

Source: SEC EDGAR

accession 0001193125-26-128953

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