Sotherly Hotels(SOHO) - 2024 Q4 - Annual Results

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]