Effective as of October 29, 2023, an affiliate of Sotherly Hotels Inc. the sole general partner of Sotherly Hotels LP, entered into a loan amendment to extend the maturity date on the existing mortgage on the DoubleTree by Hilton Philadelphia Airport hotel with the existing lender, TD Bank, N.A. Pursuant to the Loan Amendment: (i) the maturity date was extended to December 29, 2023 and (ii) the interest rate was increased to SOFR plus 3.50%. Concurrent with the execution of the Loan Amendment, the Company also received a waiver of non-compliance with financial covenants for the period ended June 30, 2023, conditioned upon the increase in a reserve account maintained by the Lender of $450,000, which the Company made. The Loan continues to be guaranteed by the Operating Partnership.

The Company is in negotiations with the Lender to further modify and extend the mortgage loan.