Sotherly acquiring hotel part of Florida development
Williamsburg-based Sotherly Hotels Inc. has entered into an agreement to purchase the hotel part of a Florida development for $4.25 million.
The agreement includes the hotel commercial unit of Hyde Resort & Residences, a condominium-hotel project slated to open in January in Hollywood, Fla. The hotel unit will include the lobby and front desk areas, offices and other spaces.
In addition, the company will lease the hotel’s 400-space parking garage and meeting rooms. Sotherly also will operate and manage the condominium association.
“The Hyde Resort & Residences is a first-class luxury development that we are thrilled to add to the Sotherly portfolio,” Drew Sims, Sotherly’s CEO, said in a statement,. “Our management team has experience with the condo-hotel model and we believe it is an attractive opportunity to turn a modest investment into tremendous value for our shareholders.”
The Hyde project will have 407 units, including 367 use-restricted units and 40 residences.
The units feature one-, two- and three bedroom layouts with kitchens, floor-to-ceiling glass doors with private terraces and ocean views.
Founded in 2004, Sotherly Hotels is a real estate investment trust focused on full-service hotels in the Southern U.S. Currently, the company’s portfolio includes investments in 12 properties with a total of 3,011 rooms.
Most of Sotherly’s properties operate under the Hilton Worldwide, InterContinental Hotels Group and Starwood Hotels and Resorts brands