Kemmons Wilson Hospitality Partners and Ascendant Capital Partners Complete Acquisition of Sotherly Hotels

Leading Hotel Operator Schulte Hospitality to Assume Management of Sotherly Portfolio

Published on Feb. 12, 2026

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Kemmons Wilson Hospitality Partners (KWHP), a hospitality-focused investment firm, and Ascendant Capital Partners, a real estate investment platform, have completed the acquisition of Sotherly Hotels Inc. through their joint venture, KW Kingfisher LLC. Schulte Hospitality Group, a premier hospitality management company, will assume operations of Sotherly's 10 full-service hotels and its single condo-hotel management agreement.

Why it matters

The acquisition expands KWHP's and Ascendant's hospitality portfolios in strategic Southeastern U.S. submarkets, leveraging Schulte's expertise to enhance the guest experience and drive growth for the upscale Sotherly assets.

The details

The previously announced definitive merger agreement, pursuant to which the Joint Venture acquired all outstanding shares of Sotherly common stock for $2.25 per share in cash, was approved by Sotherly stockholders and the Sotherly Board. In conjunction with the closing, Schulte Hospitality Group will assume operations of Sotherly's 10 full-service hotels and its single condo-hotel management agreement. Schulte Hospitality Group oversees a premier portfolio of more than 250 hotels, restaurants, and other hospitality ventures.

  • The merger was completed on February 12, 2026.
  • Sotherly stockholders approved the merger agreement at a Special Meeting on January 22, 2026.

The players

Kemmons Wilson Hospitality Partners (KWHP)

A hospitality-focused investment management firm headquartered in Memphis, Tennessee, established by the founders of the iconic Holiday Inn brand.

Ascendant Capital Partners

A vertically integrated real estate investment firm headquartered in Los Angeles with a regional office in Dallas.

KW Kingfisher LLC

The joint venture between KWHP and Ascendant that acquired Sotherly Hotels.

Sotherly Hotels Inc.

A self-managed and self-administered lodging real estate investment trust (REIT) that owned 10 full-service, primarily upscale and upper-upscale hotels located in seven states with an aggregate of 2,786 hotel rooms, and interests in two condominium hotels and their associated rental programs.

Schulte Hospitality Group

A premier hospitality management and development company, overseeing a global portfolio of more than 250 hotels, restaurants, and other related hospitality ventures.

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What they’re saying

“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.”

— Webb Wilson, Chief Investment Officer, KWHP (GlobeNewswire)

“This acquisition is a significant step forward in the ongoing execution of our hospitality strategy, which is focused squarely on high-quality assets in diverse submarkets with attractive underlying dynamics. Our team's deep hospitality experience and close partnership with KWHP have allowed us to capitalize on this compelling opportunity, and the success of this deal is a testament to that collective effort. We look forward to working with our partners to continue delivering exceptional experiences for our guests.”

— Alex Halpern, Chief Investment Officer, Ascendant (GlobeNewswire)

“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. We are confident that our continued partnership with KWHP and Ascendant will enhance the experience of guests and employees, and drive growth for these upscale assets.”

— Darryl Schulte, Chairman and CEO, Schulte Hospitality Group (GlobeNewswire)

What’s next

The joint venture and Schulte Hospitality Group will work to integrate the Sotherly portfolio and implement operational enhancements to improve the overall guest experience.

The takeaway

This acquisition demonstrates the continued strength of the hospitality industry, as experienced operators like KWHP, Ascendant, and Schulte Hospitality Group leverage their expertise to acquire and optimize high-quality hotel assets in strategic markets.