Rollins Capital explores alternatives Sotherly Hotels merger deal

Rollins Capital, which owns 9.3% of Sotherly Hotels (SOHO)’ outstanding shares, believes the net value of the company’s property portfolio, if operated in a private context, is greater than its announced merger consideration. Accordingly, Rollins plans to explore potential alternatives to Sotherly’s merger with KW Kingfisher, which may include formulating an alternative acquisition proposal, either alone or in partnership with another hotel investor group, or initiating discussions with other potential acquirers. Rollins added that it may also seek to have discussions with officers and directors of Sotherly Hotels. Shares of Sotherly are up 1c to $2.17 in afternoon trading.