Sotherly Hotels Inc. has announced its decision to voluntarily withdraw the listing of its shares of 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock, 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock, and 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock from The Nasdaq Stock Market LLC. This decision was approved by the company's Board of Directors and is expected to take effect with the filing of a Form 25 with the SEC on or about April 7, 2026. The last day of trading for the Preferred Stock on Nasdaq is anticipated to be around April 17, 2026. Despite this transition, Sotherly Hotels Inc. will maintain its status as a real estate investment trust (REIT) for U.S. federal income tax purposes and will continue to operate as such. The company believes that this move is in the best interests of its stockholders, especially following the recent merger with KW Kingfisher LLC, which resulted in significant changes to the ownership structure. Additionally, Sotherly Hotels LP has entered into a consulting agreement with KWC Management, LLC, effective February 12, 2026, to provide management services for its assets. The consulting agreement has an initial term of twelve months, with an annual asset management fee set at $650,000, payable in monthly installments. This strategic shift reflects Sotherly's ongoing efforts to streamline operations and enhance shareholder value amidst a changing market landscape.

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