Kemmons Wilson Hospitality Partners and Ascendant Capital Partners, through their joint venture (JV) KW Kingfisher, have announced the completion of the merger in which Sotherly Hotels was acquired by the JV.
The definitive agreement for the merger was announced in October 2025.
Under the deal, the JV acquired all outstanding shares of Sotherly common stock at $2.25 per share in cash.
Sotherly shareholders approved the transaction on 22 January 2026 at a special meeting, following unanimous approval from Sotherly’s board of directors and its special committee of independent members.
The acquisition significantly grows KWHP’s and Ascendant’s hospitality holdings within established Southeastern submarkets across the US. This is aligned with both groups’ strategies to target regions with consistent hospitality demand.
Following the closing, hospitality management and development firm Schulte Hospitality Group will operate Sotherly’s ten full-service hotels and manage a single condo-hotel management agreement.
The founders of Schulte Hospitality Group also invested alongside the acquiring investor group, thereby aligning their interests with ownership of the Sotherly portfolio. SHG is based in Louisville, Kentucky, and manages a portfolio exceeding 250 hotels, restaurants, and hospitality businesses.
Affiliates of Apollo and Ascendant contributed debt financing for the joint venture related to the transaction.
KWHP CEO Webb Wilson said: “Over two decades, the Sotherly team has built an attractive portfolio of assets in durable Southeastern travel destinations.
"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.”
Schulte Hospitality Group chairman and CEO Darryl Schulte said: “For more than 25 years, SHG has combined the latest advanced operations systems with a relentless dedication to operational excellence.
“We are very excited to deliver our suite of services and industry-leading practices to this portfolio and ensure guests can enjoy these properties for many years to come.”
In May 2025, KWHP’s Crestline Hotels & Resorts broadened its management portfolio after it assumed control of the Fairfield Inn & Suites hotel in New Orleans' French Quarter area.
