SoTHERLY Hotels Inc. Announces at-the-Market Equity Offering

  SoTHERLY Hotels Inc. Announces at-the-Market Equity Offering

Business Wire

WILLIAMSBURG, Va. -- July 9, 2014

S^oTHERLY Hotels Inc. (NASDAQ: SOHO) (the “Company”) announced today that it
has filed a prospectus supplement with the Securities and Exchange Commission
(the “SEC”) and entered into a Sales Agency Agreement with its operating
partnership, Sotherly Hotels LP (the “Operating Partnership”), and Sandler
O’Neill & Partners, L.P., as the sales agent, under which it may, from time to
time, sell up to $23.4 million of its common stock pursuant to an
“at-the-market” equity offering program. The common stock may be offered and
sold through Sandler O’Neill at market prices or as otherwise agreed to with
Sandler O’Neill. The Company has no obligation to sell any of the common stock
under the Sales Agency Agreement, and may at any time suspend solicitation and

The Company, through its Operating Partnership, intends to use the net
proceeds from this offering for the repayment of outstanding indebtedness,
acquisition of additional hotels, capital expenditures, the improvement of
hotels in the Company’s portfolio, working capital and other general purposes.

The shares of common stock will be offered under the Company’s existing
effective shelf registration statement. A prospectus supplement and related
base prospectus describing the terms of the offering have been filed with the
SEC. Before you invest, you should read the prospectus supplement and the
related base prospectus and other documents the Company has filed with the SEC
for more complete information about the Company and the at-the-market offering
program. You may obtain the prospectus supplement and the related base
prospectus on the SEC website at or the sales agent will arrange
to send you the prospectus supplement and the related base prospectus if you
request it by contacting Sandler O’Neill & Partners, L.P., 1251 Avenue of the
Americas, 6th Floor, New York, New York 10020, or by phone at 1-866-805-4128.

This press release is for informational purposes only and is not an offer to
sell or the solicitation of an offer to sell any security of the Company, nor
will there be any sale of any security in any jurisdiction in which such
offer, solicitation or sale would be unlawful. The offering may be made only
by means of a prospectus supplement and related base prospectus.

This disclosure includes “forward-looking statements” within the meaning of
Section27A of the Securities Act of 1933 and Section21E of the Securities
Exchange Act of 1934. Although the Company believes that the expectations and
assumptions reflected in the forward-looking statements are reasonable, these
statements are not guarantees of future performance and involve certain risks,
uncertainties and assumptions which are difficult to predict and many of which
are beyond the Company’s control. Therefore, actual outcomes and results may
differ materially from what is expressed, forecasted or implied in such
forward-looking statements. Factors which could have a material adverse effect
on the Company’s future results, performance and achievements include, but are
not limited to: national and local economic and business conditions that
affect occupancy rates and revenues at the Company’s hotels and the demand for
hotel products and services; risks associated with the hotel industry,
including competition, increases in wages and other labor costs, energy costs
and other operating costs; the magnitude and sustainability of the economic
recovery in the hospitality industry and in the markets in which the Company
operates; the availability and terms of financing and capital and the general
volatility of the securities markets; risks associated with the level of the
Company’s indebtedness and its ability to meet covenants in its debt
agreements and, if necessary, to refinance or seek an extension of the
maturity of such indebtedness or modify such debt agreements; management and
performance of the Company’s hotels; risks associated with the conflicts of
interest of the Company’s officers and directors; risks associated with
redevelopment and repositioning projects, including delays and cost overruns;
supply and demand for hotel rooms in the Company’s current and proposed market
areas; the Company’s ability to acquire additional properties and the risk
that potential acquisitions may not perform in accordance with expectations;
the Company’s ability to successfully expand into new markets;
legislative/regulatory changes, including changes to laws governing taxation
of REITs; the Company’s ability to maintain its qualification as a REIT; and
the Company’s ability to maintain adequate insurance coverage. These risks and
uncertainties are described in greater detail under “Risk Factors” in the
Company’s Prospectus Supplement, filed with the SEC on July 9, 2014, Annual
Report on Form 10-K and subsequent reports filed with the SEC. The Company
undertakes no obligation to and does not intend to publicly update or revise
any forward-looking statement, whether as a result of new information, future
events or otherwise. Although the Company believes its current expectations to
be based upon reasonable assumptions, it can give no assurance that its
expectations will be attained or that actual results will not differ

About S^oTHERLY Hotels Inc.

S^oTHERLY Hotels Inc. 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 twelve hotel
properties, eleven of which are wholly-owned and comprise 2,698 rooms. The
Company also has a 25.0 percent interest in the Crowne Plaza Hollywood Beach
Resort. Most 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


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