[Financial Results and Highlights](index=1&type=section&id=Financial%20Results%20and%20Highlights) [First Quarter 2025 Financial Summary](index=1&type=section&id=First%20Quarter%202025%20Financial%20Summary) Sotherly Hotels reported significant Q1 2025 growth, with total revenues reaching **$48.3 million**, net income rising to **$4.7 million**, and diluted EPS at **$0.13**, a notable improvement from Q1 2024 Q1 2025 vs. Q1 2024 Financial Results ($ in thousands except per share data) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenues** | $48,312 | $46,548 | | **Net income** | $4,734 | $1,323 | | **Net income (loss) attributable to common stockholders** | $2,691 | $(659) | | **EBITDA** | $15,032 | $10,785 | | **Hotel EBITDA** | $12,921 | $12,360 | | **Adjusted FFO attributable to common stockholders and unitholders** | $4,517 | $5,178 | | **Net income (loss) per common share - diluted** | $0.13 | $(0.03) | | **Adjusted FFO per common share and unit** | $0.22 | $0.26 | [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Q1 2025 highlights include a **5.0%** RevPAR increase to **$129.74**, driven by higher occupancy, alongside growth in total revenue and Hotel EBITDA, and improved net income - Composite portfolio RevPAR increased **5.0%** to **$129.74**, driven by a **3.9%** increase in occupancy to **68.8%**, while ADR decreased by **1.1%** to **$188.49**[3](index=3&type=chunk) - Total revenue for Q1 2025 increased to approximately **$48.3 million** from **$46.5 million** in Q1 2024[3](index=3&type=chunk) - Net income attributable to common stockholders improved by approximately **$3.3 million**, from a loss of **$0.7 million** in Q1 2024 to income of **$2.7 million** in Q1 2025[3](index=3&type=chunk) - Hotel EBITDA increased to approximately **$12.9 million** in Q1 2025 from **$12.4 million** in the same period of 2024[3](index=3&type=chunk) [Management Commentary and Outlook](index=2&type=section&id=Management%20Commentary%20and%20Outlook) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management expressed satisfaction with Q1 results, noting Hotel EBITDA and RevPAR growth, but adopted a cautious outlook for the year due to potential demand slowdowns and macroeconomic uncertainty - Q1 results exceeded budget, with Hotel EBITDA up **4.5%** and RevPAR up **6.4%** over the prior year, aided by improvements in urban properties and one-time events like the U.S. Presidential Inauguration[4](index=4&type=chunk) - The company is becoming more cautious for the second half of the year due to potential demand slowdowns, reduced international travel, and cancellations of bookings linked to government funding[5](index=5&type=chunk) - The company is dedicated to controlling costs, including maintaining a lean payroll structure, to manage profitability amid macroeconomic uncertainty[5](index=5&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, the company reported **$32.8 million** in cash and equivalents, with total outstanding debt at **$317.6 million** at a **5.88%** weighted average interest rate Liquidity and Debt as of March 31, 2025 | Metric | Value | | :--- | :--- | | Available cash and cash equivalents | ~$32.8 million | | Restricted cash | ~$21.3 million | | Outstanding debt principal | ~$317.6 million | | Weighted average interest rate | ~5.88% | [2025 Outlook](index=2&type=section&id=2025%20Outlook) The 2025 full-year guidance projects total revenues between **$183.4 million** and **$188.2 million**, Hotel EBITDA between **$48.8 million** and **$49.6 million**, and a net loss per share between **($0.43)** and **($0.39)** 2025 Full-Year Guidance | Metric | Low Range | High Range | | :--- | :--- | :--- | | Total revenues | $183,388k | $188,168k | | Hotel EBITDA | $48,829k | $49,619k | | Adjusted FFO attributable to common stockholders | $11,544k | $12,349k | | Net loss per share attributable to common stockholders | $(0.43) | $(0.39) | | Adjusted FFO per common share and unit | $0.57 | $0.61 | | RevPAR | $119.77 | $122.89 | | Hotel EBITDA margin | 26.1% | 26.4% | [Preferred Dividends](index=2&type=section&id=Preferred%20Dividends) On April 29, 2025, quarterly cash dividends were declared for Series B, C, and D preferred stock, payable June 16, 2025 - The company announced the following quarterly cash dividends per share: - **8.0% Series B:** **$0.50** - **7.875% Series C:** **$0.492188** - **8.25% Series D:** **$0.515625**[8](index=8&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=SOTHERLY%20HOTELS%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were **$418.1 million**, total liabilities **$373.4 million**, and total equity **$44.7 million**, showing slight increases from year-end 2024 Consolidated Balance Sheets Highlights ($ in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $11,511 | $7,328 | | Restricted cash | $21,300 | $21,383 | | **TOTAL ASSETS** | **$418,088** | **$414,376** | | **LIABILITIES** | | | | Mortgage loans, net | $315,290 | $316,516 | | **TOTAL LIABILITIES** | **$373,428** | **$372,777** | | **EQUITY** | | | | Total Sotherly Hotels Inc. stockholders' equity | $46,066 | $43,053 | | **TOTAL EQUITY** | **$44,660** | **$41,599** | | **TOTAL LIABILITIES AND EQUITY** | **$418,088** | **$414,376** | [Consolidated Statements of Operations](index=6&type=section&id=SOTHERLY%20HOTELS%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 total revenues reached **$48.3 million**, with net operating income at **$6.1 million** and net income significantly increasing to **$4.7 million**, partly due to a **$3.9 million** gain Consolidated Statements of Operations Highlights ($ in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenue** | **$48,312** | **$46,548** | | Total hotel operating expenses | $35,392 | $34,188 | | **NET OPERATING INCOME** | **$6,113** | **$5,674** | | Interest expense | $(5,448) | $(4,889) | | Gain on involuntary conversion of assets | $3,874 | $122 | | **Net income** | **$4,734** | **$1,323** | | **Net income (loss) attributable to common stockholders** | **$2,691** | **$(659)** | [Supplemental Data and Non-GAAP Reconciliations](index=7&type=section&id=Supplemental%20Data%20and%20Non-GAAP%20Reconciliations) [Key Operating Metrics](index=7&type=section&id=SOTHERLY%20HOTELS%20INC.%20KEY%20OPERATING%20METRICS) Q1 2025 composite portfolio RevPAR increased **5.0%** to **$129.74**, driven by **68.8%** occupancy, with the actual portfolio also showing **6.4%** RevPAR growth Q1 2025 vs. Q1 2024 Key Operating Metrics | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Actual Portfolio Metrics** | | | | Occupancy % | 68.3% | 64.2% | | ADR | $182.74 | $182.75 | | RevPAR | $124.83 | $117.30 | | **Composite Portfolio Metrics** | | | | Occupancy % | 68.8% | 64.9% | | ADR | $188.49 | $190.50 | | RevPAR | $129.74 | $123.59 | [Property-Level Supplemental Data](index=8&type=section&id=SOTHERLY%20HOTELS%20INC.%20SUPPLEMENTAL%20DATA) This section details Q1 2025, 2024, and 2023 property-level Occupancy, ADR, and RevPAR, highlighting significant performance changes across the hotel portfolio - The following tables break down key operating metrics by individual property for the first quarter of the last three years, showing performance trends at the asset level[23](index=23&type=chunk) [Occupancy](index=8&type=section&id=Occupancy) Weighted average occupancy for all properties rose to **68.8%** in Q1 2025, with notable gains at DoubleTree Philadelphia Airport and The Whitehall Occupancy by Property | Property | Q1 2025 | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | :--- | | The DeSoto | 71.0% | 70.9% | 64.4% | | DoubleTree by Hilton Philadelphia Airport | 62.7% | 45.2% | 54.5% | | DoubleTree Resort by Hilton Hollywood Beach | 84.4% | 75.5% | 64.9% | | The Whitehall | 71.2% | 59.1% | 48.6% | | **All properties weighted average** | **68.8%** | **64.9%** | **60.4%** | [Average Daily Rate (ADR)](index=9&type=section&id=ADR) Weighted average ADR slightly decreased to **$188.49** in Q1 2025, with some properties seeing increases and others, like Lyfe Resort & Residences, experiencing declines ADR by Property | Property | Q1 2025 | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | :--- | | Hyatt Centric Arlington | $212.47 | $198.85 | $193.53 | | Hotel Alba Tampa | $221.35 | $215.30 | $214.33 | | Lyfe Resort & Residences | $322.04 | $368.11 | $443.65 | | **All properties weighted average** | **$188.49** | **$190.50** | **$197.07** | [Revenue Per Available Room (RevPAR)](index=10&type=section&id=RevPAR) Weighted average RevPAR grew to **$129.74** in Q1 2025, driven by strong performance at DoubleTree Philadelphia Airport, The Whitehall, and DoubleTree Resort Hollywood Beach RevPAR by Property | Property | Q1 2025 | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | :--- | | DoubleTree by Hilton Philadelphia Airport | $75.12 | $55.92 | $69.51 | | DoubleTree Resort by Hilton Hollywood Beach | $194.86 | $174.07 | $172.66 | | The Whitehall | $115.37 | $96.60 | $80.03 | | **All properties weighted average** | **$129.74** | **$123.59** | **$119.06** | [Reconciliation of Non-GAAP Measures](index=11&type=section&id=SOTHERLY%20HOTELS%20INC.%20RECONCILIATION%20OF%20NET%20(LOSS)%20INCOME%20TO%20FFO,%20Adjusted%20FFO,%20EBITDA%20and%20Hotel%20EBITDA) This section reconciles Net Income to non-GAAP measures like FFO, Adjusted FFO, EBITDA, and Hotel EBITDA for Q1 2025 and full-year 2025 guidance Q1 2025 Reconciliation of Net Income to FFO and Adjusted FFO ($ in thousands) | | Three Months Ended March 31, 2025 | | :--- | :--- | | Net income | $4,734 | | Depreciation and amortization - real estate | $4,904 | | Gain on involuntary conversion of assets | $(3,874) | | **FFO** | **$5,764** | | Distributions to preferred stockholders | $(1,994) | | **FFO attributable to common stockholders and unitholders** | **$3,769** | | Adjustments (ESOP, amortization, etc.) | $748 | | **Adjusted FFO attributable to common stockholders and unitholders** | **$4,517** | Q1 2025 Reconciliation of Net Income to EBITDA and Hotel EBITDA ($ in thousands) | | Three Months Ended March 31, 2025 | | :--- | :--- | | Net income | $4,734 | | Interest expense | $5,448 | | Depreciation and amortization | $4,919 | | **EBITDA** | **$15,032** | | Adjustments (Gain on conversion, Corp G&A, etc.) | $(2,112) | | **Hotel EBITDA** | **$12,921** | - The report also includes reconciliations for the full-year 2025 guidance, converting projected Net (Loss) Income to EBITDA, Hotel EBITDA, FFO, and Adjusted FFO[29](index=29&type=chunk)[30](index=30&type=chunk) [Definition of Non-GAAP Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company defines and explains its key non-GAAP financial measures: FFO, Adjusted FFO, EBITDA, and Hotel EBITDA, as supplemental tools for performance evaluation - FFO is a standard REIT performance measure calculated per NAREIT guidelines, excluding items like real estate depreciation and gains/losses from property sales to better represent operating performance[32](index=32&type=chunk)[33](index=33&type=chunk) - Adjusted FFO further removes items not in the NAREIT definition, such as unrealized gains/losses on hedging, loan modification fees, and stock compensation, to provide a clearer view of ongoing business performance[34](index=34&type=chunk) - Hotel EBITDA focuses on property-level operational performance by excluding corporate-level expenses, financing costs, and other non-property specific items from net income[36](index=36&type=chunk)

Core Viewpoint - Sotherly Hotels Inc. reported strong financial results for Q1 2025, with significant increases in net income and total revenues compared to the same period in 2024, despite some challenges in the hotel industry. Financial Performance - Total revenues for Q1 2025 were approximately $48.3 million, up from approximately $46.5 million in Q1 2024, representing a growth of 3.8% [2][3] - Net income attributable to common stockholders increased from a loss of approximately $0.7 million in Q1 2024 to income of approximately $2.7 million in Q1 2025, a change of about $3.4 million [2][3] - EBITDA for Q1 2025 was approximately $15.0 million, compared to approximately $10.8 million in Q1 2024, marking a significant increase [2][3] Key Operating Metrics - RevPAR for the composite portfolio increased by 5.0% to $129.74 in Q1 2025 from $123.59 in Q1 2024, driven by a 3.9% increase in occupancy to 68.8% [2][3] - Hotel EBITDA rose to approximately $12.9 million in Q1 2025, up from approximately $12.4 million in Q1 2024, reflecting a 4.5% increase [2][3] Balance Sheet and Liquidity - As of March 31, 2025, the company had approximately $32.8 million in available cash, with $21.3 million reserved for various expenses [5] - The company had outstanding debt of approximately $317.6 million at a weighted average interest rate of 5.88% [5] 2025 Outlook - The company provided guidance for 2025, projecting total revenues between $183.4 million and $188.2 million, with a net loss attributable to common stockholders ranging from $8.7 million to $7.8 million [6] - The guidance reflects macroeconomic uncertainties and potential volatility in hotel demand [6] Preferred Dividends - The company announced quarterly cash dividends for its preferred stock series, with payments scheduled for June 16, 2025 [3]

Company Overview - Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding, and repositioning of upscale to upper-upscale full-service hotels in the Southern United States [3] - The company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs [3] - Sotherly Hotels operates hotels under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels [3] - The company was organized in 2004 and is headquartered in Williamsburg, Virginia [3] Upcoming Financial Results - The company will report financial results for the first quarter of 2025 prior to the market opening on Tuesday, May 13, 2025 [1] - A conference call for investors and other interested parties is scheduled for 10:00 a.m. Eastern Time (ET) on the same day to discuss the results [1] - The earnings release will be available on the company's website in the Investors section under Financial Information [1] Conference Call Details - The conference call will be accessible by telephone at 833-470-1428 (United States) with access code 808300 [2] - Individuals can also participate via webcast by visiting the Investor Relations section on the company's website at least 15 minutes before the call [2] - A taped rebroadcast will be available approximately one hour after the live call through March 20, 2025, accessible by dialing 866-813-9403 with access code 926357 [2]

Portfolio and Acquisition Strategy - As of December 31, 2024, the portfolio consisted of ten full-service hotels with a total of 2,786 hotel rooms located in seven states[28] - The company focuses on acquiring full-service, upscale and upper-upscale hotel properties primarily in the southern United States, with no limitations on the amount invested in any one property[32] - The company intends to pursue acquisitions of underperforming hotels to improve revenue and cash flow, with a focus on achieving total investments substantially less than replacement costs[35] - The company has identified significant barriers to entry in prime locations as a key factor in its acquisition strategy[37] - The company competes for investment opportunities with entities that have greater financial resources, potentially limiting growth prospects[102] Management and Operations - The management strategy aims to maximize revenue per available room (RevPAR) and optimize hotel earnings before interest, taxes, depreciation, and amortization (Hotel EBITDA)[39] - The company’s hotels are managed by an independent contractor, Our Town Hospitality, LLC, which is responsible for day-to-day operations[29] - The company actively monitors operating expenses and seeks ancillary revenue opportunities, such as leasing rooftop space and engaging parking management companies[40] - The company relies on its hotel management company for operations, limiting its ability to influence daily management decisions[90] Financial Performance and Risks - The company faces risks related to increased hotel operating expenses and decreased hotel revenues, which can significantly impact earnings and cash flow[88] - The company’s ability to make distributions is subject to fluctuations in financial performance, operating results, and capital improvement requirements[93] - The company may face significant losses or reduced income in the future due to economic downturns, which could adversely affect cash flow and distributions to stockholders[109] - The company faces significant upcoming debt maturities, with approximately $110.5 million (30.2% of total debt) maturing in 2025 and approximately $111.5 million (30.5% of total debt) maturing in 2026[149] - The company has substantial financial leverage, which may limit its ability to fund operations and could adversely affect its financial results[145] Regulatory and Compliance Issues - The company must distribute at least 90.0% of its taxable income to maintain its REIT status, adhering to this requirement since its formation in 2004[65] - The company is subject to various restrictions as a REIT, which limits its ability to engage in certain business activities and may require conducting some activities through MHI Holding, a taxable C corporation[108] - Compliance with the Americans with Disabilities Act (ADA) and other governmental regulations may require significant modifications to hotel properties, potentially impacting financial results[129] - The company must satisfy a 75.0% gross income test and a 95.0% gross income test each taxable year to qualify as a REIT[202] Environmental and Market Conditions - The company believes its hotels comply with all environmental regulations, with no material noncompliance reported[69] - The company faces risks associated with natural disasters and climate change, including potential increases in storm intensity and rising sea levels, which could lead to significant losses and repair costs[107] - The hotel industry is highly competitive, with brand recognition and location being key competitive factors affecting performance[62][63] Debt and Financing - As of December 31, 2024, the company's total debt obligations amounted to approximately $1.05 billion, with $319.3 million in mortgages and unsecured debt[144] - The company may need to raise capital through debt or equity financing to address maturing debt obligations, which could result in unfavorable terms and impact financial flexibility[150] - The company’s floating rate debt is tied to SOFR and the New York Prime Rate, exposing it to interest rate fluctuations[152] Shareholder and Stock Issues - The company received a deficiency letter from Nasdaq on February 11, 2025, indicating that its common stock closing bid price was below the required $1.00 for 30 consecutive business days[168] - The company has a 9.9% aggregate share ownership limit to maintain its REIT qualification, preventing control by five or fewer individuals[171] - The company’s charter allows the board of directors to issue up to 69 million shares of common stock and 11 million shares of preferred stock without stockholder approval[157] Cybersecurity and Technology - The Company maintains cybersecurity insurance coverage to mitigate financial exposure from potential cybersecurity incidents[224] - As of December 31, 2024, no material cybersecurity threats have affected the Company's business strategy or financial condition[224] - The Company relies on third-party technology providers for cybersecurity risk management and conducts annual reviews with the Audit Committee[223]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was approximately $44 million, representing an increase of 4.3% over Q4 2023 [20] - Year-to-date total revenue was approximately $182 million, reflecting a 4.6% increase over the full year 2023 [20] - Hotel EBITDA for Q4 was approximately $10.7 million, up 3.6% from the same quarter last year [20] - Year-to-date hotel EBITDA was approximately $46.8 million, representing a 4.5% increase over the full year 2023 [20] - Adjusted FFO for Q4 was approximately $2 million, an increase of about $850,000 from Q4 2023 [21] - Year-to-date adjusted FFO was approximately $14.3 million, a decrease of approximately $250,000 from the prior year [21] Business Line Data and Key Metrics Changes - RevPAR for Q4 increased by 2.9%, driven by a 7% increase in occupancy, despite a 3.7% decrease in ADR [7] - For the full year 2024, RevPAR performance increased by 3.5% over 2023, driven by a 6.1% increase in occupancy and a 2.5% decrease in rate [8] - The DoubleTree Resort in Hollywood, Florida, saw a RevPAR increase of 13.8%, fueled by a 13.4% increase in occupancy [13] - The Whitehall in Houston experienced nearly 50% RevPAR growth, driven by occupancy growth of 46.1% [14] - Hotel Ballast in Wilmington posted a RevPAR increase of 7.1%, supported by a 1.9% increase in occupancy and a 5% increase in rate [15] Market Data and Key Metrics Changes - The portfolio's occupancy growth was particularly strong in slower-to-recover urban markets, indicating normalization of lodging fundamentals post-pandemic [9] - Preliminary January RevPAR showed a 12.8% improvement over the prior year, driven by strong demand in urban and South Florida hotels [35] Company Strategy and Development Direction - The company is planning two upcoming PIP renovations, with a focus on enhancing properties to drive increased profitability [18] - A new ten-year franchise agreement with Hilton for the DoubleTree flag in Philadelphia has been executed, with an $11.5 million renovation budget [18] - The company aims to manage cash and portfolio structure effectively, considering refinancing options and potential asset sales [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's performance, highlighting improved operating fundamentals and occupancy growth [27] - Despite challenges in the debt markets, the company is focused on refinancing legacy loans to improve financial outcomes [33] - The company remains cautiously optimistic about the lodging industry, with expectations for continued occupancy growth [34] Other Important Information - Hurricane Helene impacted operations at Hotel Alba, but restoration efforts allowed the hotel to remain operational [11] - The company anticipates routine capital expenditures of approximately $7.2 million for 2025, with significant projects planned for the DoubleTree locations [24] Q&A Session Summary Question: Clarification on FFO trajectory despite revenue and EBITDA growth - Management indicated that rising interest costs from refinancing legacy loans are impacting FFO, despite improvements in revenue and EBITDA [38][39] Question: Thoughts on stock trading below a dollar and potential reverse split - Management confirmed they have 180 days to address the deficiency, potentially through a reverse split or if the stock price rises above a dollar [41] Question: Guidance on insurance recoveries related to hotel repairs - Management stated that guidance assumes normal operations and minimal business interruption impacts, with insurance proceeds already accounted for [44] Question: Consideration of selling assets to improve leverage - Management is exploring options for managing cash and portfolio structure but has not focused heavily on asset sales for this purpose [49][50]

分组1 - Sotherly Hotels (SOHO) reported quarterly funds from operations (FFO) of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.10 per share a year ago, representing an FFO surprise of 166.67% [1] - The company posted revenues of $43.95 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.69%, compared to year-ago revenues of $42.15 million [2] - Sotherly Hotels has outperformed consensus FFO estimates two times over the last four quarters [2] 分组2 - The stock has underperformed the market, losing about 13% since the beginning of the year, while the S&P 500 declined by 4.8% [3] - The company's FFO outlook is crucial for investors, as it includes current consensus FFO expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus FFO estimate for the coming quarter is $0.19 on revenues of $47.7 million, and for the current fiscal year, it is $0.76 on revenues of $191.1 million [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 48% of over 250 Zacks industries, which may impact stock performance [8] - The estimate revisions trend for Sotherly Hotels is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Total revenues for Q4 2024 increased to approximately $44.0 million, up 4.3% from $42.1 million in Q4 2023[3] - Net loss attributable to common stockholders for Q4 2024 was approximately $3.0 million, compared to a loss of approximately $2.7 million in Q4 2023, representing a 12.9% increase in loss[4] - Adjusted FFO attributable to common stockholders and unitholders decreased 30.3% to approximately $2.0 million in Q4 2024 from approximately $2.8 million in Q4 2023[7] - Net loss attributable to common stockholders for the twelve months ended December 31, 2024, was $(6,674,881), compared to $(4,035,829) in 2023[19] - The company reported a net loss per share attributable to common stockholders of $(0.34) for the twelve months ended December 31, 2024, compared to $(0.22) in 2023[19] - The net loss for the three months ended December 31, 2024, was $1,117,578 compared to a net loss of $769,646 for the same period in 2023[29] Revenue Metrics - RevPAR for the composite portfolio increased 2.6% to $108.99 in Q4 2024, driven by a 4.1% increase in occupancy to 64.1%[3] - Total revenue for the three months ended December 31, 2024, was $43,951,508, an increase of 4.3% compared to $42,148,085 for the same period in 2023[19] - Net operating income for the twelve months ended December 31, 2024, was $20,643,462, up from $18,925,431 in 2023, reflecting a growth of 9.6%[19] - Revenue per Available Room (RevPAR) for the actual portfolio increased to $107.68 for the three months ended December 31, 2024, compared to $104.69 in 2023, an increase of 2.8%[22] - Revenue per available room (RevPAR) increased to $108.99 in Q4 2024, up from $106.25 in Q4 2023, reflecting a year-over-year growth of 2.6%[27] Operational Metrics - Hotel EBITDA for the full year 2024 increased by $2.0 million to approximately $46.8 million, a 4.5% increase compared to 2023[5] - Hotel EBITDA for the three months ended December 31, 2024, was $10,667,747, compared to $10,299,762 in the same period of 2023, showing an increase of approximately 3.6%[30] - The company projects a 2025 EBITDA guidance range of $41,879 to $42,704, indicating a stable outlook for operational performance[31] - The 2025 guidance for Hotel EBITDA is projected to be between $48,829 and $49,619, suggesting continued growth in hotel operations[31] Cash and Assets - The company had approximately $28.7 million in available cash as of December 31, 2024, with $21.4 million reserved for various expenses[6] - Total assets as of December 31, 2024, were $414,375,920, an increase from $393,443,480 as of December 31, 2023[17] - Cash and cash equivalents decreased to $7,327,880 as of December 31, 2024, from $17,101,993 as of December 31, 2023[17] Debt and Expenses - Total liabilities increased to $372,777,154 as of December 31, 2024, compared to $345,544,821 in 2023, reflecting a growth of 7.9%[17] - Interest expense increased to $5,651,055 for the three months ended December 31, 2024, compared to $4,719,497 in the same period of 2023, representing a rise of about 19.7%[30] - Corporate general and administrative expenses for the three months ended December 31, 2024, were $1,819,995, compared to $1,619,882 in the same period of 2023, an increase of approximately 12.3%[30] - The company experienced a loss on early debt extinguishment of $241,878 during the year ended December 31, 2024, indicating potential restructuring efforts[30] Future Projections - For 2025, the company projects total revenues between $183.4 million and $188.2 million, with a net loss attributable to common stockholders ranging from $8.7 million to $7.8 million[8] - Adjusted FFO attributable to common stockholders and unitholders is projected to range from $11,544 to $12,349 for 2025, reflecting a positive outlook for cash flow generation[32] Market Performance - The company is encouraged by ongoing improvements in demand in key markets such as Houston, Atlanta, and Philadelphia as it transitions into Q1 2025[5] - The average occupancy rate for The DeSoto in Savannah, Georgia, improved to 71.2% in Q4 2024 from 63.9% in Q4 2023, an increase of 7.3 percentage points[25] - The ADR for The DeSoto decreased to $198.93 in Q4 2024 from $213.38 in Q4 2023, a drop of 6.8%[26] - The RevPAR for The DeSoto increased to $141.57 in Q4 2024, up from $136.46 in Q4 2023, reflecting a growth of 3.2%[27]

Core Viewpoint Sotherly Hotels Inc. reported its financial results for the fourth quarter and full year of 2024, showing an increase in total revenues and Hotel EBITDA, despite a net loss attributable to common stockholders. The company is optimistic about ongoing improvements in demand across its hotel portfolio as it transitions into 2025. Financial Performance - Total revenues for Q4 2024 were approximately $44.0 million, up from $42.1 million in Q4 2023, representing a 4.2% increase [2][3] - For the full year 2024, total revenues increased to approximately $181.9 million, compared to $173.8 million in 2023, marking a 4.6% growth [2][3] - Net loss attributable to common stockholders for Q4 2024 was approximately $3.0 million, compared to a loss of $2.7 million in Q4 2023, reflecting a 12.4% increase in loss [5] - For the full year, net loss attributable to common stockholders increased by 65.4% to approximately $6.7 million from $4.0 million in 2023 [5] Key Metrics - RevPAR for Q4 2024 was $108.99, a 2.6% increase from $106.25 in Q4 2023, driven by a 4.1% increase in occupancy [2][3] - For the full year, RevPAR increased by 3.7% to $119.26 from $114.96 in 2023 [2] - Hotel EBITDA for Q4 2024 was approximately $10.7 million, up from $10.3 million in Q4 2023, a 3.9% increase [5] - Adjusted FFO for Q4 2024 decreased by 30.3% to approximately $2.0 million from $2.8 million in Q4 2023 [5] Balance Sheet and Liquidity - As of December 31, 2024, the company had approximately $28.7 million in available cash, with $21.4 million reserved for various expenses [4] - The company had outstanding debt of approximately $319.3 million at a weighted average interest rate of 5.88% [4] 2025 Outlook - The company is encouraged by improvements in demand in markets that were slow to recover post-pandemic, particularly in Houston, Atlanta, Hollywood (Florida), and Philadelphia [3] - Guidance for 2025 includes expectations for continued revenue growth and profitability improvements across its portfolio [5]

Core Viewpoint - Sotherly Hotels Inc. is amending the estimated income tax classification information for its 2024 distributions on Series D preferred shares due to previously incorrect "paid" and "record" dates [1] Distribution Summary Series B Preferred Shares - Total cash distribution per share is $0.500000 for each of the four payment dates, resulting in a total of $2.000000 for 2024, all classified as ordinary income [2] - 100% of the distribution is taxable [2] Series C Preferred Shares - Total cash distribution per share is $0.492188 for each of the four payment dates, leading to a total of $1.968752 for 2024, all classified as ordinary income [3] - 100% of the distribution is taxable [3] Series D Preferred Shares - Total cash distribution per share is $0.515625 for three payment dates, with a total of $2.062500 for 2024, all classified as ordinary income [4] - 100% of the distribution is taxable [4] Tax Reporting - No portion of the dividends declared in 2024 represented foreign taxes or qualified dividend income [5] - Shareholders will receive IRS Form 1099-DIV from Equiniti Trust Company, reporting the dividends paid for 2024 [6] Company Overview - Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on acquiring, renovating, and repositioning upscale to upper-upscale full-service hotels in the Southern United States [8] - The company's portfolio includes twelve hotel properties with a total of 2,786 rooms, as well as interests in two condominium hotels [8] - The company operates hotels under brands such as Hilton, Marriott, and Hyatt, and was organized in 2004, headquartered in Williamsburg, Virginia [8]

Core Viewpoint - Sotherly Hotels Inc. has announced the estimated income tax classification for its 2024 distributions on Series B, C, and D preferred shares, which will be reported on Form 1099-DIV [1]. Group 1: Series B Preferred Shares - The total cash distribution per share for Series B preferred shares is $0.50, with 100% classified as ordinary income [2]. - The total distribution for Series B preferred shares for 2024 amounts to $2.00 [2]. Group 2: Series C Preferred Shares - The total cash distribution per share for Series C preferred shares is $0.492188, also classified entirely as ordinary income [3]. - The total distribution for Series C preferred shares for 2024 is $1.968752 [3]. Group 3: Series D Preferred Shares - The total cash distribution per share for Series D preferred shares is $0.515625, with 100% classified as ordinary income [4]. - The total distribution for Series D preferred shares for 2024 is $2.062500 [4]. Group 4: Tax Reporting Information - No portion of the dividends declared in 2024 represented foreign taxes or qualified dividend income [5]. - Shareholders will receive IRS Form 1099-DIV from Equiniti Trust Company, LLC, reporting the dividends paid for 2024 [5][6]. - The tax information provided is preliminary and subject to correction, but no material changes are expected [7]. Group 5: Company Overview - Sotherly Hotels Inc. is a self-managed lodging REIT focused on acquiring, renovating, and repositioning upscale hotels in the Southern United States, with a portfolio of twelve hotel properties totaling 2,786 rooms [8]. - The company operates hotels under major brands such as Hilton, Marriott, and Hyatt, and was organized in 2004, headquartered in Williamsburg, Virginia [8].