SoTHERLY Hotels Inc. Announces Closing of Public Offering of Common Stock , Proceeds $19.8M

SoTHERLY Hotels Inc.

(the "Company") today announced it has closed its previously announced underwritten public offering of 3,000,000 shares of its common stock, for net proceeds of approximately $19.8 million, after deducting estimated offering-related expenses. The Company has granted the underwriters a 30-day option to purchase up to an additional 450,000 shares of its common stock. The Company contributed the net proceeds from the offering to Sotherly Hotels LP, its operating partnership, which will use the net proceeds to partially fund the cash portion of the purchase price for the acquisition of the remaining 75.0% interest in the Crowne Plaza™ Hollywood Beach Resort that the Company does not already own and related transaction expenses and for general corporate purposes, and, if such acquisition is not completed, to fund other potential acquisitions, for repayment of existing debt and/or for general corporate purposes, including capital expenditures. Sandler O'Neill + Partners, L.P. and JMP Securities LLC acted as joint book-runners for the offering. Ladenburg Thalmann & Co. Inc. acted as lead manager and Boenning & Scattergood, Inc. and J.J.B. Hilliard, W.L. Lyons, LLC acted as co-managers. This press