Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (78405)	10/29/2025 9:28:02 AM
From: E_K_S	Respond to of 78777

Yes that is the conundrum . . I NEVER trust these "take private" hedge funds. They have their own interest and not the shareholder. In this case We Just Do Not Know Their Exit strategy. I will have to do a history search for this 'take private' group to see what other deals they have done, what investments they hold/own and who are their past partners. Remember, they are only putting up $47 million to control almost $500 million ------------------------------------------------------------------------------- The entity KW Kingfisher LLC is a joint venture specifically created for the purpose of acquiring Sotherly Hotels Inc. (SOHO). Therefore, its history, portfolio, and other deals are derived from its two parent companies. The joint venture is led and sponsored by affiliates of: Kemmons Wilson Hospitality Partners (KWHP) Ascendant Capital Partners (Ascendant) Here is the history and portfolio overview of the two main groups: ?? Kemmons Wilson Hospitality Partners (KWHP) KWHP is a hospitality-focused investment management firm with a deep lineage in the hotel industry. History and Legacy: KWHP is an affiliate of the Kemmons Wilson family, the founding family of the iconic Holiday Inn brand. They have a long history of investing in hospitality, particularly in the Southeast U.S. Focus: They are a Memphis-headquartered firm that manages funds and focuses on acquiring, renovating, and repositioning hotels, resorts, timeshares, and short-term rentals across the U.S. Key Asset/Partnership: Their current portfolio includes ownership and/or management of a variety of hotel assets, leveraging their expertise in the industry. For this deal, KWHP's Chief Investment Officer stated they have had a relationship with Sotherly's team previously, suggesting a history of working with similar assets or people in the region. ??? Ascendant Capital Partners Ascendant is a vertically integrated real estate investment and operating platform that focuses on "stay" assets. Focus: Ascendant is a Los Angeles-based firm with a thesis-driven approach to operationally intensive real estate, primarily across three core verticals: hospitality, next-generation multifamily, and special situations. Portfolio and Notable Deals: Hotels/Hospitality: They have extensive hospitality experience. For instance, Ascendant partnered with Oaktree Capital Management in 2020 to provide significant preferred equity financing to the non-traded hotel REIT Watermark Lodging Trust (which was later acquired by Brookfield). They also acquired the Monterey Tides Hotel with Centerbridge Partners in 2022 and are involved with the Newbury Hotel in Boston, MA. Residential/Flex-Living: They are active in residential and flex-living, including investments in companies like Sentral (a flexible-living operator) and the acquisition of a multifamily portfolio (The Elle Collection). Other Deals: They have also been involved in financing projects like the Cipriani Residences Miami and the development of Tailgate Park in San Diego. In summary, KW Kingfisher LLC combines the long-term legacy and regional expertise of Kemmons Wilson in hospitality with the hybrid financing and operational expertise of Ascendant Capital Partners to acquire and manage the Sotherly Hotels portfolio. The Sotherly acquisition is the first major transaction announced under the specific KW Kingfisher LLC entity. -------------------------------------------------------------- At least the "Take Private" group has experience in the sector and may/could bring value to SOHO's hospitality assets. Their Exit strategy may be to consolidate SOHO's assets w/ other assets this group owns, refinance and then take public and/or sell to a much larger Hospitality REIT Sale to a Larger REIT/Strategic Buyer (Most Common): A simpler, and often more profitable, exit is to sell the entire, now high-performing, portfolio to a larger, existing public REIT or a major institutional investor (like a sovereign wealth fund or pension fund). This allows the private equity group to realize its profits efficiently without the cost and regulatory burden of an IPO.