Sotherly Hotels Secures Forbearance Agreement Amid Challenges

Sotherly Hotels ( (SOHO) ) just unveiled an update.

Sotherly Hotels Inc. announced that its subsidiary, SOHO Atlanta LLC, received a Notice of Default on June 26, 2025, related to a mortgage loan for the Georgian Terrace Hotel. The lender, Wilmington Trust, National Association, pursued measures to protect its interests, including potential foreclosure. However, on December 16, 2025, the company entered a Forbearance Agreement, preventing foreclosure until June 1, 2026, while agreeing to reduce the loan principal by $3.8 million, continue monthly payments of $236,000, and meet specific reserve funding requirements. These measures aim to stabilize the company’s financial standing and mitigate impacts on stakeholders.

The most recent analyst rating on (SOHO) stock is a Hold with a $2.00 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’ overall stock score reflects significant financial challenges, including high leverage and negative earnings, impacting its valuation. Despite strong technical momentum, the high RSI suggests caution. Corporate events highlight financial strain but also potential future value from a merger. The earnings call underscores mixed performance with some positive property results but overall revenue challenges.

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

More about Sotherly Hotels

Sotherly Hotels Inc. is a hospitality company and the sole general partner of Sotherly Hotels LP, specializing in the acquisition, renovation, and management of upscale full-service hotels in the United States.

Average Trading Volume: 385,473

Technical Sentiment Signal: Buy

Current Market Cap: $44.74M

For a thorough assessment of SOHO stock, go to TipRanks’ Stock Analysis page.