Sotherly Hotels Inc. Reports Financial Results for the Fourth Quarter Ended December 31, 2024

WILLIAMSBURG, Va., March 13, 2025 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO), ("Sotherly” or the "Company”), a self-managed and self-administered lodging real estate investment trust (a "REIT”), today reported its consolidated results for the fourth quarter and year ended December 31, 2024. The Company's results include the following*:

HIGHLIGHTS

• RevPAR. Room revenue per available room ("RevPAR”) for the Company's composite portfolio, which includes the rooms participating in our rental programs at the Lyfe Resort & Residences (f/k/a Hyde Resort & Residences) and the Hyde Beach House Resort & Residences, increased 2.6% to $108.99, for the three months ended December 31, 2024, from $106.25 in the comparable period in 2023. Changes in RevPAR were driven by a 4.1% increase in occupancy to 64.1% from 60.0% in the comparable 2023 period, and a 3.9% decrease in the average daily rate ("ADR”) to $170.10 for the three months ended December 31, 2024, from $177.07 for the comparable period in 2023. For the twelve months ended December 31, 2024, RevPAR increased 3.7% to $119.26, from $114.96 in the comparable period in 2023. Changes in RevPAR were driven by an increase in the occupancy to 67.2% for the twelve months ended December 31, 2024, from 62.8% for the comparable period in 2023 and by a 3.0% decrease in ADR to $177.56 from $182.97 in the comparable 2023 period.
• Revenue. Total revenue increased to approximately $44.0 million, from approximately $42.1 million, for the three months ended December 31, 2024 and 2023, respectively. For the twelve months ended December 31, 2024, total revenue increased to approximately $181.9 million, from approximately $173.8 million during the comparable period in 2023.
• Net loss attributable to common stockholders. For the three months ended December 31, 2024, net loss attributable to common stockholders increased approximately $0.4 million, compared to the three months ended December 31, 2023, from a loss of approximately $2.7 million to a loss of approximately $3.0 million. For the twelve months ended December 31, 2024, net loss attributable to common stockholders increased 65.4%, or approximately $2.7 million, over the twelve months ended December 31, 2023, from a loss of approximately $4.0 million to a loss of approximately $6.7 million. 
• Hotel EBITDA. Hotel EBITDA increased to approximately $10.7 million for the three months ended December 31, 2024, from approximately $10.3 million for the comparable period in 2023. Hotel EBITDA for the twelve months ended December 31, 2024 increased approximately $2.0 million to approximately $46.8 million, from approximately $44.8 million generated in the comparable 2023 period.
• Adjusted FFO attributable to common stockholders and unitholders. For the three months ended December 31, 2024, Adjusted FFO attributable to common stockholders and unitholders decreased 30.3%, or approximately $0.8 million, over the three months ended December 31, 2023, from approximately $2.8 million to approximately $2.0 million. For the twelve months ended December 31, 2024, adjusted FFO attributable to common stockholders and unitholders decreased 1.7%, or by approximately $0.2 million, over the twelve months ended December 31, 2023, from approximately $14.5 million to approximately $14.3 million.
• Preferred Dividends. On January 28, 2025 the Company announced a quarterly cash dividend of $0.50 per share of beneficial interest of the Company's 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock; a quarterly cash dividend of $0.492188 per share of beneficial interest of the Company's 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock; and a quarterly cash dividend of $0.515625 per share of beneficial interest of the Company's 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock. Each of the Series B, Series C and Series D preferred dividends will be paid on March 14, 2025 to shareholders of record as of February 28, 2025.

Balance Sheet/Liquidity

As of December 31, 2024, the Company had approximately $28.7 million of available cash and cash equivalents, of which approximately $21.4 million was reserved for real estate taxes, insurance, capital improvements and certain other expenses or otherwise restricted. The Company had principal balances of approximately $319.3 million in outstanding debt, including mortgage and unsecured principal balances, at a weighted average interest rate of approximately 5.88%.

2025 Outlook

Set forth below is the Company's guidance for 2025. The table below reflects the Company's projections, within a range, of various financial measures for 2025, in thousands of dollars, except per share and RevPAR data:

The Company will conduct its fourth quarter 2024 conference call for investors and other interested parties at 10:00 a.m. Eastern Time on Thursday, March 13, 2025. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 833-470-1428 (United States) and enter access code 538548. To participate on the webcast, log on to www.sotherlyhotels.com at least 15 minutes before the call to download the necessary software. For those unable to listen to the call live, a taped rebroadcast will be available beginning one hour after completion of the live call on March 13, 2025 through March 20, 2025. To access the rebroadcast, dial 866-813-9403 and enter access code 963139.

About Sotherly Hotels Inc.

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. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, 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. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.

Forward-Looking Statements

This news release includes "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe our current strategies, expectations, and future plans are generally identified by our use of words, such as "intend,” "plan,” "may,” "should,” "will,” "project,” "estimate,” "anticipate,” "believe,” "expect,” "continue,” "potential,” "opportunity,” and similar expressions, whether in the negative or affirmative, but the absence of these words does not necessarily mean that a statement is not forward-looking. We also sometimes refer to our booking pace. Booking pace is an industry term that we define as the estimated value of committed future bookings at a given point in time. Booking pace can be further separated into various segments, including group booking pace or business travel booking pace. All statements regarding our expected financial position, booking pace, business and financing plans are forward-looking statements.

Factors which could have a material adverse effect on the Company's future operations, results, performance and prospects, include, but are not limited to: national and local economic and business conditions that affect occupancy rates and revenues at our hotels and the demand for hotel products and services; risks associated with the hotel industry, including competition and new supply of hotel rooms, increases in wages, energy costs and other operating costs; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements, including loan modifications and, as necessary, to refinance or seek an extension of the maturity of such indebtedness or further modification of such debt agreements; risks associated with adverse weather conditions, including hurricanes; impacts on the travel industry from pandemic diseases, including COVID-19; the availability and terms of financing and capital and the general volatility of the securities markets; management and performance of our hotels; risks associated with maintaining our system of internal controls; risks associated with the conflicts of interest of the Company's officers and directors; risks associated with redevelopment and repositioning projects, including delays and cost overruns; supply and demand for hotel rooms in our current and proposed market areas; risks associated with our ability to maintain our franchise agreements with our third party franchisors; our ability to acquire additional properties and the risk that potential acquisitions may not perform in accordance with expectations; our ability to successfully expand into new markets; legislative/regulatory changes, including changes to laws governing taxation of real estate investment trusts ("REITs”); the Company's ability to maintain its qualification as a REIT; and our ability to maintain adequate insurance coverage. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved.

Additional factors that could cause actual results to vary from our forward-looking statements are set forth under the section titled "Risk Factors” in our Annual Report on Form 10-K, in this press release and subsequent reports filed with the Securities and Exchange Commission. Except as required by law, the Company undertakes no obligation to and does not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although the Company believes its current expectations to be based upon reasonable assumptions, it can give no assurance that its expectations will be attained or that actual results will not differ materially.

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