Acquisition
Kemmons Wilson Hospitality Partners and Ascendant Capital Partners' JV Completes Acquisition of Sotherly Hotels
•February 13, 2026
0
Participants
Why It Matters
The acquisition expands the partners' upscale hotel footprint in a resilient travel region and aligns ownership with a seasoned operator, positioning the portfolio for revenue growth and operational efficiencies.
Key Takeaways
- •Acquisition price $2.25 per share cash
- •Adds 10 full-service hotels in Southeast US
- •Schulte Hospitality Group now manages the portfolio
- •Debt financing from Apollo and Ascendant affiliates
- •Expands KWHP and Ascendant’s hospitality footprint
Pulse Analysis
The completion of the KW Kingfisher joint venture’s purchase of Sotherly Hotels marks a notable consolidation in the U.S. hospitality sector. Kemmons Wilson Hospitality Partners, with a two‑decade track record of investing in differentiated hotel assets, teamed with Ascendant Capital Partners to acquire all outstanding Sotherly shares at $2.25 per share. The deal adds ten full‑service properties across high‑demand submarkets in the Southeast, a region that has shown resilient travel demand despite broader economic headwinds. By expanding their combined portfolio, the partners position themselves to capture incremental revenue streams and benefit from economies of scale.
Operational control now passes to Schulte Hospitality Group, whose founders have also taken an equity stake alongside the acquiring investors. Managing ten full‑service hotels and a condo‑hotel agreement, Schulte brings advanced systems and a 25‑year legacy of operational excellence. This alignment of ownership and management is expected to streamline decision‑making, enhance brand consistency, and drive guest‑experience upgrades that can command higher average daily rates. The partnership also leverages Schulte’s technology platform to improve cost efficiencies and adapt quickly to shifting consumer preferences.
The transaction was financed through senior debt commitments from affiliates of Apollo and Ascendant, coordinated by Berkadia, Milbank LLP, and Piper Sandler. This capital structure provides the joint venture with sufficient liquidity to fund immediate renovations and future acquisitions while preserving equity upside for investors. Legal counsel from Bass, Berry & Sims and FBT Gibbons ensured compliance with shareholder approvals and regulatory requirements. Analysts view the acquisition as a catalyst for continued growth in the upscale hotel segment, especially as Southeast travel rebounds, positioning the JV to deliver strong returns in the coming years.
Deal Summary
Kemmons Wilson Hospitality Partners (KWHP) and Ascendant Capital Partners, through their joint venture KW Kingfisher LLC, completed the acquisition of Sotherly Hotels Inc., purchasing all outstanding shares at $2.25 per share in cash. The deal, approved by Sotherly shareholders on Jan. 22, 2026, expands the acquirers' hospitality portfolio in the southeastern United States. Schulte Hospitality Group will operate the acquired hotels and its founders invested alongside the buyer group.
Article
Source: Hotel Business
Kemmons Wilson Hospitality Partners (KWHP), together with Ascendant Capital Partners, through their joint venture, KW Kingfisher LLC, and Sotherly Hotels Inc. have completed the definitive merger pursuant to which Sotherly was acquired by the joint venture.
The joint venture first announced the signing of the merger agreement last October.
The previously announced definitive merger agreement, pursuant to which the joint venture acquired all outstanding shares of Sotherly common stock for $2.25 per share in cash, was approved by Sotherly stockholders at a special meeting of stockholders held on Jan. 22, 2026, following the prior unanimous approval of Sotherly’s full board of directors and unanimous recommendation from a special committee comprised of independent directors of the Sotherly board.
The acquisition meaningfully expands KWHP’s and Ascendant’s respective hospitality portfolios in strategic Southeastern U.S. submarkets with established demand.
In conjunction with the closing, Schulte Hospitality Group (SHG) will assume operations of Sotherly’s 10 full-service hotels and its single condo-hotel management agreement. In addition to hotel management, the founders of SHG have invested alongside the investor group acquiring Sotherly, further aligning SHG with the ownership of the Sotherly portfolio.
“Over two decades, the Sotherly team has built an attractive portfolio of assets in durable Southeastern travel destinations,” Webb Wilson, KWHP’s chief investment officer, said. “Guided by our ethos that ‘Everybody Deserves Hospitality,’ we have assembled a deeply experienced and talented team with Ascendant and Schulte to build on the portfolio’s compelling foundation. The Sotherly acquisition amplifies KWHP’s deep history of investing in differentiated hospitality, and we look forward to exercising our combined resources and expertise to make strategic enhancements that improve overall guest experience.”
Alex Halpern, chief investment officer, Ascendant, added, “This acquisition is a significant step forward in the ongoing execution of our hospitality strategy, which is focused squarely on high-quality assets in diverse submarkets with attractive underlying dynamics. Our team’s deep hospitality experience and close partnership with KWHP have allowed us to capitalize on this compelling opportunity, and the success of this deal is a testament to that collective effort. We look forward to working with our partners to continue delivering exceptional experiences for our guests.”
Darryl Schulte, SHG chairman/CEO, added, “For more than 25 years, SHG has combined the latest advanced operations systems with a relentless dedication to operational excellence. We are excited to deliver our suite of services and industry-leading practices to this portfolio, ensuring guests can enjoy these properties for many years to come. We are confident that our continued partnership with KWHP and Ascendant will enhance the experience of guests and employees, and drive growth for these upscale assets.”
Affiliates of Apollo and Ascendant provided debt financing commitments to the joint venture in connection with the transaction.
Bass, Berry & Sims PLC served as legal advisor to KWHP. Milbank LLP served as debt counsel and equity counsel to KWHP and debt counsel to the joint venture. Berkadia acted as sole financial advisor, arranging the financing for KWHP and the joint venture.
Piper Sandler & Co. served as exclusive financial advisor to the Sotherly Special Committee and FBT Gibbons LLP served as legal advisor to the Sotherly special committee.
The post Kemmons Wilson, Ascendant JV completes acquisition of Sotherly Hotels appeared first on hotelbusiness.com.
0
Comments
Want to join the conversation?
Loading comments...