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Sotherly Hotels Inc. Announces Dividend Tax Treatment

WILLIAMSBURG, Va., Feb. 01, 2019 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (SOHO) (the “Company”) today announced the estimated income tax classification of the Company’s 2018 distributions on its common shares (CUSIP #83600C103), Series B preferred shares (CUSIP #83600C301) and Series C preferred shares (CUSIP #83600C400). The income tax classification of the 2018 distributions as it is expected to be reported on Form 1099-DIV is set forth in the following table:

COMMON SHARES      
    Total Taxable Nontaxable
Record Paid Cash Distribution Ordinary Distribution
Date Date Per Share Income (Return of Capital)*
3/15/2018 4/11/2018    0.115000     -      0.115000  
6/15/2018 7/11/2018   0.120000     -      0.120000  
9/14/2018 10/11/2018    0.125000     -      0.125000  
12/14/2018 1/11/2019   0.125000     -      0.125000  
TOTAL     0.485000     -       0.485000  
Percent   100.0000 % 0.0000 % 100.0000 %
         
The CUSIP number for Sotherly Hotels Inc.'s Common Shares is 83600C103.
         
SERIES B PREFERRED SHARES    
    Total Taxable Nontaxable
Record Paid Cash Distribution Ordinary Distribution
Date Date Per Share Income (Return of Capital)*
3/29/2018 4/16/2018   0.500000     0.430038     0.069962  
6/29/2018 7/16/2018   0.500000     0.430038     0.069962  
9/28/2018 10/15/2018   0.500000     0.430038     0.069962  
12/31/2018 1/15/2019   0.500000     0.430038      0.069962  
TOTAL     2.000000     1.720153     0.279847  
Percent   100.0000 % 86.0076 % 13.9924 %
         
The CUSIP number for Sotherly Hotels Inc.'s Common Shares is 83600C301.
 
SERIES C PREFERRED SHARES    
    Total Taxable Nontaxable
Record Paid Cash Distribution Ordinary Distribution
Date Date Per Share Income (Return of Capital)*
3/29/2018 4/16/2018   0.492188     0.423319      0.068869  
6/29/2018 7/16/2018   0.492188     0.423319      0.068869  
9/28/2018 10/15/2018   0.492188     0.423319     0.068869  
12/31/2018 1/15/2019   0.492188     0.423319     0.068869  
TOTAL      1.968751     1.693276     0.275475  
Percent   100.0000 % 86.0076 % 13.9924 %
         
The CUSIP number for Sotherly Hotels Inc.'s Common Shares is 83600C400.
         
* Generally, distributions will reduce a shareholder's adjusted tax basis in its shares.  Any amount of the distribution that exceeds a shareholder's adjusted tax basis in its shares should be treated as gain from the sale or exchange of property.

No portion of the dividends declared in 2018 represented foreign taxes or qualified dividend income. Record holders of the Company’s common shares who received any of the dividends specified in the table above will receive an Internal Revenue Service (IRS) Form 1099-DIV from American Stock Transfer & Trust Company, the Company’s dividend paying agent. The Form 1099-DIV will report the dividends paid with respect to 2018. Shareholders whose shares are held in “street name” will receive an IRS Form 1099 from the bank, brokerage firm or other nominee holding their shares.

The information in the table above is based on the preliminary results of work on the tax filings of the Company and is subject to correction or adjustment when the filings are completed. No material change in these classifications is expected. The tax information above should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Shareholders are encouraged to consult with their own tax advisors regarding the specific federal, state, local, foreign and other tax consequences of ownership of the common shares of Sotherly Hotels Inc. and the specific tax treatment of distributions therefrom.

About Sotherly Hotels Inc.

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Currently, the Company’s portfolio consists of investments in twelve hotel properties, comprising 3,156 rooms, and an interest in the Hyde Resort & Residences, a luxury condo hotel. Most of the Company’s properties operate under the Hilton Worldwide, Hyatt Hotels Corporation, InterContinental Hotels Group and Marriott International, Inc. brands. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.

Contact at the Company:

Scott Kucinski
Sotherly Hotels Inc.
410 West Francis Street
Williamsburg, Virginia 23185 
(757) 229-5648