Sotherly Hotels Announces Voluntary Delisting
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
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Source: Newsfilter
- Voluntary Delisting Decision: Sotherly Hotels Inc. has announced the voluntary withdrawal of its 8.0% Series B, 7.875% Series C, and 8.25% Series D preferred stocks from Nasdaq, with trading expected to cease around April 17, 2026, which may impact investor liquidity and market confidence.
- Merger Transaction Impact: This delisting is linked to the merger completed on February 12, 2026, where over 80% of preferred stockholders opted for cash consideration, indicating a strategic adjustment in the company's capital structure and shareholder interests.
- Continued REIT Status: Despite the delisting of preferred stocks, Sotherly will continue to operate as a Real Estate Investment Trust (REIT), ensuring its status for U.S. federal tax purposes remains unaffected, demonstrating the company's commitment to its core business model.
- Future Outlook: The company plans to file Form 25 with the SEC on April 7, 2026, to formally initiate the delisting process, and despite facing market volatility, Sotherly remains focused on optimizing its capital structure to support long-term growth.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
