Sotherly Hotels acquires hotel commercial unit in Florida
Sotherly Hotels announced that the company has acquired the hotel commercial unit of the Hyde Beach House Resort & Residences located in Hollywood, Florida for $5.35M. In connection with the closing, the company acquired the hotel commercial unit, which consists of the designated lobby and front desk area, offices, and other spaces. The company also entered into a 20-year management agreement for the parking garage and poolside cabanas of the resort, as well as an agreement to operate and manage the condominium association. Pursuant to a pre-opening services agreement, the company received a fee of $1.0M in connection with certain pre-opening preparations. Also in connection with the closing, the company's DoubleTree Resort by Hilton Hollywood Beach received a construction disruption fee of $1.2M and the company acquired commercial unit 3 of the Resort, a +/- 3,000 square foot ballroom that was constructed and conveyed as required pursuant to an existing covenant and easement agreement.