SOTHERLY HOTELS INC.

SOTHERLY HOTELS LP

SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION

AS OF DECEMBER 31, 2015

(in thousands)

							Costs Capitalized																	Life on
			Initial Costs				Subsequent to Acquisition						Gross Amount At End of Year						Accumulated					Which
					Building &					Building &					Building &				Depreciation			Date of	Date	Depreciation
Description	Encumbrances		Land		Improvements		Land			Improvements			Land		Improvements		Total		& Impairment			Construction	Acquired	is Computed
Crowne Plaza Hampton Marina – Hampton, Virginia	$	3,513	$	1,061	$	6,733	$	36			3,726		$	1,097	$	10,459	$	11,556	$	(6,751	)	1988	2008	3-39 years
Crowne Plaza Hollywood Beach Resort - Hollywood Beach, Florida		59,796		24,008		67,660		-			(2,762	)		24,008		64,898		88,906		(745	)	1972	2015	3-39 years
Crowne Plaza Houston Downtown – Houston, Texas		20,459		7,374		22,185		44			3,249			7,418		25,434		32,852		(1,522	)	1963	2013	3-39 years
Crowne Plaza Tampa Westshore – Tampa, Florida		13,016		4,153		9,670		283			22,188			4,436		31,858		36,294		(7,215	)	1973	2007	3-39 years
DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida		19,775		7,090		14,604		73			6,990			7,163		21,594		28,757		(5,005	)	1970	2005	3-39 years
DoubleTree by Hilton Laurel – Laurel, Maryland		9,500	900			9,443		175			5,120			1,075		14,563		15,638		(3,430	)	1985	2004	3-39 years
DoubleTree by Hilton Philadelphia Airport – Philadelphia, Pennsylvania		32,376		2,100		22,031		190			5,443			2,290		27,474		29,764		(7,580	)	1972	2004	3-39 years
DoubleTree by Hilton Raleigh Brownstone – University – Raleigh, North Carolina		15,029	815			7,416		203			5,436			1,018		12,852		13,870		(4,422	)	1971	2004	3-39 years
Georgian Terrace – Atlanta, Georgia		46,579		10,128		45,386		(1,336	)		3,612			8,792		48,998		57,790		(2,241	)	1911	2014	3-39 years
Hilton Savannah DeSoto – Savannah, Georgia		20,523	600			13,562		14			11,732			614		25,294		25,908		(7,850	)	1968	2004	3-39 years
Hilton Wilmington Riverside – Wilmington, North Carolina		19,826	785			16,829		222			11,984			1,007		28,813		29,820		(10,568	)	1970	2004	3-39 years
Sheraton Louisville Riverside – Jeffersonville, Indiana		11,346	782			6,891		210			14,592			992		21,483		22,475		(4,712	)	1972	2006	3-39 years
	$	271,738	$	59,796	$	242,410	$	114		$	91,310		$	59,910	$	333,720	$	393,630	$	(62,041	)

(1)For the year ending December 31, 2015, the aggregate cost of our real estate assets for federal income tax purposes was approximately $391.1 million.

RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION

RECONCILIATION OF REAL ESTATE

Balance at December 31, 2013	$	233,060
Acquisitions		55,514
Improvements		6,430
Disposal of Assets		(177	)
Balance at December 31, 2014	$	294,827
Acquisitions		91,669
Improvements		11,105
Disposal of Assets		(3,971	)
Balance at December 31, 2015	$	393,630

RECONCILIATION OF ACCUMULATED DEPRECIATION

Balance at December 31, 2013	$	42,557
Current Expense		7,602
Impairment		3,175
Disposal of Assets		(101	)
Balance at December 31, 2014	$	53,233
Current Expense		8,790
Impairment		500
Disposal of Assets		(482	)
Balance at December 31, 2015	$	62,041

F-1