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SoTHERLY Hotels board approves dismissal of accounting firm

The audit committee of SoTHERLYHotels Inc.'s board of directors approved the dismissal of Grant ThorntonLLP as the independent registered public accounting firm of SoTHERLY Hotels Inc.and SoTHERLY Hotels LP, effective March 31.

SoTHERLY Hotels said in an April 6 filing that no accountant'sreport on the financial statements for either of the past two fiscal years containedan adverse opinion or a disclaimer of opinion, or was qualified or modified as touncertainty, audit scope or accounting principles.

However, as the company previously disclosed, as of Dec. 31,2014, a material weakness in SoTHERLY Hotels' internal control over financial reportingexisted relating to insufficient financial accounting policies and procedures andresources. In particular, the weakness pertained to the evaluation and contemporaneousdocumentation of income tax and property impairment accounting conclusions and certainSEC disclosure requirements related to significant subsidiaries.

SoTHERLY Hotels noted that it expects to appoint new auditorsin the near future and has authorized Grant Thornton to respond fully to the inquiriesof its new independent registered public accounting firm regarding all matters.