Revenue Performance - Total revenue for Q3 2024 increased by approximately $1.5 million, or 3.9%, to approximately $40.7 million compared to Q3 2023 revenue of approximately $39.2 million[199]. - Room revenue for Q3 2024 increased by approximately $0.9 million, or 3.4%, to approximately $27.2 million compared to Q3 2023 room revenue of approximately $26.3 million[201]. - Food and beverage revenues increased by approximately $0.2 million, or 3.1%, to approximately $7.7 million for Q3 2024 compared to $7.5 million in Q3 2023[202]. - Revenue from other operating departments increased by approximately $0.4 million, or 7.0%, to approximately $5.8 million for Q3 2024 compared to $5.4 million in Q3 2023[203]. - Total revenue for the nine months ended September 30, 2024, increased by approximately $6.2 million, or 4.7%, to approximately $137.9 million compared to $131.7 million for the same period in 2023[214]. - Room revenue increased approximately $3.6 million, or 4.1%, to approximately $91.5 million for the nine months ended September 30, 2024, compared to $87.9 million for the same period in 2023[215]. - Food and beverage revenues increased approximately $1.6 million, or 6.4%, to approximately $27.4 million for the nine months ended September 30, 2024, compared to $25.8 million for the same period in 2023[216]. Occupancy and RevPAR - RevPAR for Q3 2024 increased by 4.1% from $102.82 in 2023 to $107.02 in 2024, driven by a 4.8% increase in occupancy[201]. - Occupancy rate for Q3 2024 was 66.9%, up from 62.4% in Q3 2023[198]. - Composite portfolio occupancy rate for Q3 2024 was 66.3%, up from 61.5% in Q3 2023[198]. - Composite portfolio RevPAR for Q3 2024 was $107.02, compared to $102.82 in Q3 2023[198]. Expenses - Hotel operating expenses increased by approximately $1.0 million, or 3.2%, to approximately $32.6 million for Q3 2024 compared to $31.6 million in Q3 2023[204]. - Room expenses for Q3 2024 increased by approximately $0.2 million, or 2.5%, to approximately $6.6 million compared to $6.4 million in Q3 2023[205]. - Food and beverage expenses for the three months ended September 30, 2024, increased approximately $0.2 million, or 3.3%, to approximately $5.8 million compared to $5.6 million for the same period in 2023[206]. - Other operating department expenses for the three months ended September 30, 2024, increased approximately $0.1 million, or 5.5%, to approximately $2.3 million compared to $2.2 million for the same period in 2023[207]. - Corporate general and administrative expenses for the three months ended September 30, 2024, decreased approximately $0.2 million, or 12.8%, to approximately $1.5 million compared to $1.7 million for the same period in 2023[208]. - Hotel operating expenses increased approximately $4.6 million, or 4.7%, to approximately $101.8 million for the nine months ended September 30, 2024, compared to $97.2 million for the same period in 2023[218]. Net Loss and Financial Metrics - Net loss for the three months ended September 30, 2024, was approximately $3.7 million compared to a net loss of approximately $2.1 million for the same period in 2023[213]. - For the three months ended September 30, 2024, the net loss was $3,689,621 compared to a net loss of $2,065,826 for the same period in 2023, indicating an increase in losses of approximately 78.5%[235]. - FFO (Funds From Operations) for the three months ended September 30, 2024, was $1,123,585, down 46.0% from $2,079,893 in the same period of 2023[235]. - EBITDA for the three months ended September 30, 2024, was $6,424,154, a decrease of 1.7% compared to $6,538,547 for the same period in 2023[239]. - Hotel EBITDA for the nine months ended September 30, 2024, was $36,145,082, an increase of 4.8% from $34,487,941 for the same period in 2023[239]. Cash Flow and Capital Expenditures - The company had approximately $14.0 million in unrestricted cash and $18.5 million in restricted cash as of September 30, 2024[240]. - Net cash flow provided by operating activities for the nine months ended September 30, 2024, was approximately $21.4 million, attributed to increased occupancy rates[241]. - Cash used in investing activities for the nine months ended September 30, 2024, was approximately $9.8 million, primarily for capital expenditures of $10.1 million related to hotel improvements[243]. - The company expects total capital expenditures for 2024 to be approximately $7.2 million, maintaining a target of 4.0% of gross revenue[246]. - Total capital expenditures related to the renovation of the Philadelphia property are expected to be approximately $11.5 million over fiscal years 2024, 2025, and 2026[249]. Debt and Financing - As of September 30, 2024, the company secured a $35.0 million mortgage on the Hotel Alba, with a fixed interest rate of 8.49% and a maturity date of March 6, 2029[252]. - The company amended the mortgage loan agreement on the DoubleTree by Hilton Philadelphia Airport, extending the maturity to April 29, 2026, requiring interest-only payments at a floating rate of SOFR plus 3.50%, and a principal reduction of $3.0 million[253]. - A $26.25 million mortgage loan was secured for the DoubleTree by Hilton Jacksonville Riverfront, with an additional $9.49 million available for a product improvement plan, maturing on July 8, 2029[254]. - A $5.0 million second mortgage loan was secured on the DeSoto hotel in Savannah, GA, with a fixed interest rate of 7.50% and a maturity date of July 1, 2026[255]. - The company plans to refinance the mortgage on The Georgian Terrace, which matures in June 2025, potentially requiring a reduction of up to $5.25 million in indebtedness[256]. - The mortgage on the DoubleTree Resort by Hilton Hollywood Beach matures in October 2025, with a potential requirement to reduce indebtedness by up to $12.5 million[257]. - As of September 30, 2024, the company was in compliance with all debt covenants, except for a covenant default under the mortgage on the DoubleTree by Hilton Jacksonville Riverfront, which may require a prepayment of approximately $1.2 million[261]. - As of September 30, 2024, the company had approximately $245.4 million of fixed-rate debt with a weighted-average interest rate of 5.32% and $75.9 million of variable-rate debt[280]. - A one percent increase in SOFR and the Prime Rate would impact annual interest incurred and cash flows by approximately $0.6 million based on the variable-rate debt[280]. - The company expects to meet long-term liquidity requirements through various means, including additional issuances of common and preferred shares, secured and unsecured borrowings, and selective disposition of non-core assets[259]. - As of September 30, 2024, cumulative unpaid dividends on outstanding preferred shares were approximately $21.9 million, with expectations for "catch-up" distributions[269].

Sotherly Hotels Inc. (NASDAQ:SOHO) Q3 2024 Earnings Conference Call November 12, 2024 10:00 AM ET Company Participants Mack Sims - VP, Operations Scott Kucinski - EVP and COO Tony Domalski - CFO Dave Folsom - President and CEO Conference Call Participants Alexander Goldfarb - Piper Sandler Operator Good morning, all. And thank you for joining us at the Sotherly Hotels' Q3 2024 Conference Call and Webcast. My name is Carly and I'll be coordinating your call today. [Operator Instructions]. I'd now like to han ...

Revenue Performance - Total revenue for Q2 2024 increased by approximately $1.7 million, or 3.4%, to approximately $50.7 million compared to Q2 2023 revenue of approximately $49.0 million[170]. - Room revenue for Q2 2024 increased by approximately $1.3 million, or 4.0%, to approximately $34.6 million compared to Q2 2023 room revenue of approximately $33.3 million[171]. - RevPAR for Q2 2024 increased by 4.3% to $137.67, driven by a 4.0% increase in occupancy[171]. - Food and beverage revenues for Q2 2024 increased by approximately $0.4 million, or 4.2%, to approximately $9.9 million compared to Q2 2023 revenues of approximately $9.5 million[172]. - Total revenue for the six months ended June 30, 2024, increased by approximately $4.7 million, or 5.1%, to approximately $97.2 million compared to $92.5 million for the same period in 2023[184]. - Room revenue increased by approximately $2.6 million, or 4.3%, to approximately $64.3 million for the six months ended June 30, 2024, compared to $61.7 million for the same period in 2023[185]. - Food and beverage revenues increased by approximately $1.4 million, or 7.7%, to approximately $19.6 million for the six months ended June 30, 2024, compared to $18.2 million for the same period in 2023[186]. Operating Expenses - Hotel operating expenses for Q2 2024 increased by approximately $0.8 million, or 2.4%, to approximately $35.0 million compared to Q2 2023 expenses of approximately $34.2 million[174]. - Room expenses for Q2 2024 increased by approximately $0.4 million, or 6.2%, to approximately $7.4 million compared to Q2 2023 room expenses of approximately $7.0 million[175]. - Food and beverage expenses for the three months ended June 30, 2024, increased by approximately $0.1 million, or 2.4%, to approximately $6.5 million compared to $6.4 million for the same period in 2023[176]. - Expenses from other operating departments for the three months ended June 30, 2024, increased by approximately $0.2 million, or 8.7%, to approximately $2.5 million compared to $2.3 million for the same period in 2023[177]. - Hotel operating expenses increased by approximately $3.6 million, or 5.5%, to approximately $69.2 million for the six months ended June 30, 2024, compared to $65.6 million for the same period in 2023[188]. Interest and Income - Interest expense for the three months ended June 30, 2024, increased by approximately $0.7 million, or 16.6%, to approximately $5.0 million compared to $4.3 million for the same period in 2023[180]. - Interest expense for the six months ended June 30, 2024, increased by approximately $1.5 million, or 17.7%, to approximately $9.9 million compared to $8.4 million for the same period in 2023[195]. - Net income for the six months ended June 30, 2024, was approximately $6.0 million, compared to approximately $6.6 million for the same period in 2023[199]. - Net income for the three months ended June 30, 2024, was $4,664,232, a decrease of 11.3% compared to $5,257,670 for the same period in 2023[206]. - FFO (Funds From Operations) for the three months ended June 30, 2024, was $9,349,904, slightly up from $9,244,823 in 2023, indicating a 1.1% increase[206]. - Adjusted FFO attributable to common stockholders for the three months ended June 30, 2024, was $7,503,096, compared to $7,031,038 in 2023, reflecting a 6.7% increase[206]. - Hotel EBITDA for the three months ended June 30, 2024, was $15,697,679, an increase of 5.8% from $14,842,036 in the same period of 2023[210]. Cash Flow and Capital Expenditures - Cash flow from operating activities for the six months ended June 30, 2024, was approximately $16.7 million, attributed to increased occupancy rates[212]. - Total capital expenditures for 2024 are expected to be approximately $7.0 million, maintaining a historical target of 4.0% of gross revenue[216]. - Cash used in investing activities for the six months ended June 30, 2024, was approximately $5.0 million, primarily for capital improvements[213]. - The company expects to incur approximately $11.5 million in capital expenditures for renovations in Philadelphia, funded through reserve accounts and working capital[219]. Debt and Liquidity - As of June 30, 2024, the company had approximately $18.9 million in unrestricted cash and $18.4 million in restricted cash, ensuring adequate liquidity for operations[221]. - The company secured a $35.0 million mortgage on the Hotel Alba in Tampa, Florida, with a fixed interest rate of 8.49%[222]. - The company amended the mortgage loan agreement on the DoubleTree by Hilton Philadelphia Airport, extending the maturity to April 29, 2026, requiring interest-only payments at a floating rate of SOFR plus 3.50%, and a principal reduction of $3.0 million[223]. - A $26.25 million mortgage loan was secured for the DoubleTree by Hilton Jacksonville Riverfront, with an additional $9.49 million available for a product improvement plan, maturing on July 8, 2029[224][225]. - A $5.0 million second mortgage loan was secured on the DeSoto hotel in Savannah, GA, with a fixed interest rate of 7.50% and a maturity date of July 1, 2026[226]. - As of June 30, 2024, the company was in compliance with all debt covenants except for a covenant default under the mortgage on the DoubleTree by Hilton Philadelphia Airport, for which waivers were obtained[232]. - As of September 30, 2024, the company failed to maintain compliance with financial covenants under the mortgage on the DoubleTree by Hilton Jacksonville Riverfront, potentially requiring a prepayment of approximately $1.2 million[233]. - The company plans to continue investing in hotel properties as opportunities arise, but access to additional capital may be limited due to economic changes in the travel industry post-COVID-19[229]. - The company expects to meet long-term liquidity requirements through various means, including additional issuances of common and preferred shares, secured and unsecured borrowings, and selective disposition of non-core assets[230]. - As of June 30, 2024, cumulative unpaid dividends on outstanding preferred shares were approximately $21.9 million, with future distributions subject to board approval[240]. - The company had approximately $273.4 million of fixed-rate debt as of June 30, 2024, with a weighted-average interest rate of 5.28%[251]. - A one percent increase in SOFR and the Prime Rate would impact annual interest incurred and cash flows by approximately $0.3 million based on the variable-rate debt outstanding[251].

Group 1: Financial Performance - Sotherly Hotels reported a quarterly loss of $0.04 per share, missing the Zacks Consensus Estimate of $0.01, compared to break-even FFO per share a year ago, representing an FFO surprise of -500% [1] - The company posted revenues of $40.7 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.10%, and showing an increase from year-ago revenues of $39.18 million [2] - The current consensus FFO estimate for the coming quarter is $0.10 on $44.4 million in revenues, and for the current fiscal year, it is $0.69 on $183.7 million in revenues [7] Group 2: Market Performance - Sotherly Hotels shares have lost about 18.1% since the beginning of the year, while the S&P 500 has gained 25.8% [3] - The company has surpassed consensus FFO estimates two times over the last four quarters [2] Group 3: Future Outlook - The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call [3] - The estimate revisions trend for Sotherly Hotels is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - The outlook for the REIT and Equity Trust - Other industry is currently in the top 27% of the Zacks industries, suggesting potential for outperformance [8]

Exhibit 99.1 FOR IMMEDIATE RELEASE TUESDAY, NOVEMBER 12, 2024 SOTHERLY HOTELS INC. REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2024 Williamsburg, Virginia – November 12, 2024 – Sotherly Hotels Inc. (NASDAQ: SOHO), ("Sotherly" or the "Company"), a selfmanaged and self-administered lodging real estate investment trust (a "REIT"), today reported its consolidated results for the third quarter ended September 30, 2024. The Company's results include the following*: | --- | --- | --- | --- ...

Core Insights - Sotherly Hotels Inc. reported a net loss attributable to common stockholders of approximately $5.6 million for Q3 2024, an increase from a loss of approximately $3.9 million in Q3 2023, reflecting a year-over-year decline in profitability [1][3] - Total revenue for Q3 2024 was approximately $40.7 million, up from approximately $39.2 million in Q3 2023, indicating a positive trend in revenue generation [2][3] - The company experienced a 4.1% increase in RevPAR to $107.02 for Q3 2024, driven by a 7.8% increase in occupancy [2][19] Financial Performance - For the three months ended September 30, 2024, total revenue was $40.7 million compared to $39.2 million for the same period in 2023 [1][2] - Net loss attributable to common stockholders for the nine months ended September 30, 2024, was approximately $3.6 million, a significant increase of 169.2% from a loss of approximately $1.4 million in the same period of 2023 [3] - Hotel EBITDA increased to approximately $8.1 million for Q3 2024, up from approximately $7.6 million in Q3 2023 [3][4] Operational Metrics - The company's composite portfolio achieved a RevPAR of $107.02 for Q3 2024, up from $102.82 in Q3 2023, with occupancy rising to 66.3% from 61.5% [2][19] - Average daily rate (ADR) decreased by 3.4% to $161.37 for Q3 2024, down from $167.10 in Q3 2023 [2][19] - For the nine months ended September 30, 2024, RevPAR increased to $122.71 from $117.89 in the comparable period of 2023 [2][19] Balance Sheet and Liquidity - As of September 30, 2024, the company had approximately $32.5 million in available cash, with $18.5 million reserved for various expenses [5] - The company reported outstanding debt of approximately $321.3 million at a weighted average interest rate of 5.95% [5] Future Outlook - The company updated its 2024 guidance, projecting total revenue between $177.8 million and $180.1 million, with a net loss attributable to common stockholders expected to range from approximately $8.5 million to $7.9 million [8][9] - The updated guidance reflects current market conditions and the impact of refinancing activities and weather-related events [8][9] Recent Developments - The company successfully refinanced the mortgage on its Jacksonville Doubletree location, securing nearly $9.5 million for capital improvements [4] - Hurricane Helene impacted the Hotel Alba in Tampa, but the hotel remained operational and is expected to recover lost revenues through business interruption insurance [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . | --- | --- | --- | |----------------------------------------------------------------------------------------------------|------------------------------------------ ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

WILLIAMSBURG, Va., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO) (the "Company") announced that the Company will report financial results for the third quarter 2024 prior to the market opening on Tuesday, November 12, 2024. A conference call for investors and other interested parties is scheduled for 10:00 a.m. Eastern Time (ET) that same day, at which time management will discuss the Company's third quarter 2024 results. The information to be discussed on the call will be contained ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phas ...