Sotherly Hotels Inc. has entered into a master agreement with Newport Hospitality Group Inc. and Our Town Hospitality LLC for the management of ten of the Company’s hotels, effective January 1, 2020. Pursuant to the master agreement, Our Town, a newly formed wholly-owned subsidiary of NHG, will be headquartered in Williamsburg, Virginia and dedicated solely to the management of the Company’s hotels. Our Town will be governed by a board of directors which will include two directors selected by the Company. For additional details please reference the Company’s Form 8-K filed this morning with the Securities and Exchange Commission.
Dave Folsom, President and Chief Operating Officer of the Company, commented, “With the management contracts for the majority of our portfolio expiring at year-end, we set out to identify a partner that could develop and offer a customized management solution that would be solely dedicated to our portfolio and executing on our strategy; Our Town Hospitality is that solution. The team is uniquely equipped with the experience and expertise to implement the vision and strategic direction of Sotherly Hotels. We believe this change will provide the greatest opportunity for future success and creating value for our shareholders. We are excited to begin this new chapter.”
Wayne West, President and Chief Operating Officer of Newport Hospitality Group, added, “NHG has built its reputation on catering to our clients’ needs and delivering industry-leading results. Sotherly’s portfolio and strategy has unique characteristics that require a tailored management approach to maximize performance and realize sound execution over the long-term. We look forward to this new partnership and putting the Our Town solution into action.”