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Sotherly Hotels Faces Notice of Default on Loan

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Sotherly Hotels Faces Notice of Default on Loan

Elevate Your Investing Strategy:

The latest announcement is out from Sotherly Hotels ( (SOHO) ).

On July 2, 2025, Sotherly Hotels Inc. announced it had received a Notice of Default from the special servicer for its mortgage loan secured by the Georgian Terrace in Atlanta. The default, which involves a financial obligation of approximately $38 million, was anticipated and is attributed to a maturity default rather than an inability to meet ongoing interest requirements. The company is negotiating for an extension of the loan and intends to continue making necessary payments in the interim. This situation highlights the challenges faced by the commercial real estate sector, particularly with tighter underwriting standards and higher interest rates, which have made maturity defaults more common.

The most recent analyst rating on (SOHO) stock is a Hold with a $1.00 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’ stock score is primarily influenced by its improving financial performance and positive market momentum. However, high debt levels, negative valuation metrics, and potential macroeconomic challenges present significant risks.

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

More about Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT that focuses on acquiring, renovating, upbranding, and repositioning upscale to upper-upscale full-service hotels in the Southern United States. The company also considers acquiring hotels throughout the United States and currently has a portfolio of ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels. Sotherly Hotels operates under brands such as Hilton Worldwide and Hyatt Hotels Corporation and is headquartered in Williamsburg, Virginia.

Average Trading Volume: 39,895

Technical Sentiment Signal: Sell

Current Market Cap: $38.2M

For detailed information about SOHO stock, go to TipRanks’ Stock Analysis page.

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