Sotherly Hotels Inc. Refinances DoubleTree By Hilton Philadelphia Airport With $35.9M Loan

The DoubleTree by Hilton Philadelphia Airport, located at 4509 Island Avenue, Philadelphia, was the subject of a refinancing deal. The property, owned by Dave Folsom of Sotherly Hotels Inc., secured a loan amount of $35.9 million from TD Bank. The loan terms include interest-only payments with an extended maturity date set for April 2026. Additionally, the loan features a floating interest rate based on SOFR plus 3.5%.

Summary of transaction details:

• Property Type: Hotel
• Transaction Amount: $35,900,000
• Lender: TD Bank
• Landlord: Dave Folsom - Sotherly Hotels Inc.
• Loan Type: Refinance
• Loan Terms: Interest-only

As part of the refinancing agreement, Sotherly Hotels Inc. also secured a new 10-year franchise agreement with Hilton Worldwide for the hotel. This agreement entails an $11.5 million renovation project aimed at enhancing various aspects of the property, including guestrooms, public spaces, food and beverage areas, and the building exterior. The renovation is scheduled for completion by April 2026, aligning strategically with Hilton's brand standards. Dave Folsom, the CEO, expressed optimism about the future prospects of the hotel amidst post-pandemic market challenges.