Sotherly Hotels Inc. Reports Financial Results for the Third Quarter Ended September 30, 2024

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]