SoTHERLY Hotels Inc. Announces Redemption of Warrant

  SoTHERLY Hotels Inc. Announces Redemption of Warrant

Business Wire

WILLIAMSBURG, Va. -- December 27, 2013

S^oTHERLY Hotels Inc. (NASDAQ: SOHO) (the“Company”)  today announced that the
Company has entered into a Warrant Redemption Agreement with Essex Illiquid,
LLC and Richmond Hill Capital Partners, LP (the “Holders”) to redeem the
remaining portion of the Warrant corresponding to an aggregate of 1,000,000
Issuable Warrant Shares for an aggregate cash redemption price of $3.975
million.

Drew Sims, Chief Executive Officer of the Company, commented, “The redemption
of the remaining portion of the Warrant further reduces the dilution exposure
for our existing shareholders while also removing the complexity that this
derivative has added to our quarterly earnings results. While the redemption
price represents a modest premium to our current stock price, it is a
substantial discount to the intrinsic value of the Warrant. This transaction
efficiently executes the buy back of a significant portion of potential shares
at a considerable discount to their inherent value.”

About S^oTHERLY Hotels Inc.

S^oTHERLY Hotels Inc., formerly MHI Hospitality Corporation, is a self-managed
and self-administered lodging REIT focused on the acquisition, renovation,
upbranding and repositioning of upscale and upper upscale full-service hotels
in the Southern United States. Currently, the Company’s portfolio consists of
investments in eleven hotel properties, ten of which are wholly-owned and
comprise 2,372 rooms. The Company also has a 25.0 percent interest in the
Crowne Plaza Hollywood Beach Resort. All of the Company’s properties operate
under the Hilton Worldwide, InterContinental Hotels Group and Starwood Hotels
and Resorts brands. S^oTHERLY Hotels Inc.  was organized in 2004 and is
headquartered in Williamsburg, Virginia. For more information, please visit
www.sotherlyhotels.com.

Contact:

S^oTHERLY Hotels Inc.
Scott Kucinski, 757-229-5648
 
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