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Sotherly Hotels (SOHO)
NASDAQ:SOHO
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Sotherly Hotels
(NASDAQ:SOHO)
54Neutral
Sotherly Hotels (SOHO) vs. S&P 500 (SPY)
Market Cap
$25.47M
Dividend YieldN/A
Average Volume (3M)39.40K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth4.63%
EPS Growth-61.60%
CountryUS
Employees9
SectorReal Estate
Sector Strength78
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.34
Shares Outstanding20,126,415
10 Day Avg. Volume85,397
30 Day Avg. Volume39,395
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.08
Price to Cash Flow (P/CF)0.80
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.00Price Target Upside58.73% Upside
Rating ConsensusHold
Number of Analyst Covering1
Sotherly Hotels Business Overview & Revenue Model
Company DescriptionSotherly Hotels Inc. (SOHO) is a real estate investment trust (REIT) that specializes in the acquisition, renovation, branding, and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. The company's portfolio primarily consists of properties that operate under premium international brands, catering to both business and leisure travelers. Sotherly's strategy focuses on creating value through the active management of its hotel assets while delivering exceptional guest experiences.
How the Company Makes MoneySotherly Hotels Inc. generates revenue primarily through the operation of its hotel properties. The company's income is derived from room bookings, food and beverage services, and other ancillary services offered at its hotels, such as event hosting and recreational activities. As a REIT, Sotherly also benefits from favorable tax treatments, as long as it complies with certain regulatory requirements, including the distribution of a significant portion of its taxable income as dividends. Additionally, Sotherly's revenue is influenced by strategic partnerships with major hotel brands, which help drive occupancy rates and premium pricing. The company's active asset management approach, including property renovations and brand repositioning, further supports its revenue growth by enhancing the attractiveness and market competitiveness of its hotel properties.
Sotherly Hotels Financial Statement Overview
Summary
Sotherly Hotels faces mixed financial health, with challenges in profitability and high leverage risks. While there are improvements in cash flow operations, the negative net income and high debt levels remain concerning. The company needs to address operational efficiencies and leverage management to improve its financial standing.Income Statement
Sotherly Hotels has shown fluctuating revenue trends with a slight increase in the TTM period. Gross profit margin is under pressure, and net income turned negative in the TTM, indicating profitability challenges. The EBIT and EBITDA margins have decreased from the previous year, suggesting operational inefficiencies.45
Neutral
Balance Sheet
The company's high debt-to-equity ratio reflects significant leverage, which poses a risk in a volatile market. The equity ratio is relatively stable, but a decline in stockholders' equity indicates financial stress. Overall, the balance sheet shows moderate stability with potential risks from high leverage.50
Neutral
Cash Flow
Operating cash flow has improved in the TTM, showing good cash-generating capabilities despite a decline in net income. However, free cash flow has decreased compared to the previous year, highlighting concerns over capital expenditures and financing activities.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 180.09M | 173.84M | 166.08M | 127.59M | 71.50M | 185.79M | Gross Profit |
| 42.09M | 44.79M | 46.46M | 30.89M | -3.22M | 46.94M | EBIT |
| 20.33M | 18.93M | 20.55M | 4.72M | -29.75M | 18.35M | EBITDA |
| 39.39M | 39.88M | 39.78M | 14.08M | -10.70M | 40.08M | Net Income Common Stockholders |
| -332.48K | 3.94M | 24.97M | -28.54M | -54.18M | 1.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.74M | 17.10M | 21.92M | 13.17M | 25.30M | 23.74M | Total Assets |
| 212.65M | 393.44M | 405.01M | 436.05M | 473.03M | 487.23M | Total Debt |
| 152.42M | 317.53M | 323.03M | 377.91M | 386.96M | 358.63M | Net Debt |
| 150.03M | 300.42M | 301.11M | 364.74M | 361.66M | 334.90M | Total Liabilities |
| 159.78M | 345.54M | 353.49M | 419.55M | 429.33M | 385.82M | Stockholders Equity |
| 40.41M | 49.23M | 52.25M | 21.26M | 49.08M | 102.42M |
| Cash Flow | Free Cash Flow | ||||
| 14.14M | 21.40M | -1.31M | -854.34K | -15.28M | 9.80M | Operating Cash Flow |
| 24.26M | 21.40M | 6.66M | 2.32M | -11.26M | 22.46M | Investing Cash Flow |
| -9.67M | -6.73M | 46.66M | -2.39M | -3.78M | -18.71M | Financing Cash Flow |
| -9.28M | -15.78M | -51.55M | -9.66M | 22.36M | -13.64M |
Sotherly Hotels Technical Analysis
Negative
0.63
Price Trends
0.79
Negative
0.89
Negative
1.06
Negative
Market Momentum
-0.03
Positive
39.63
Neutral
33.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHO, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.79, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 33.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOHO.
Sotherly Hotels Risk Analysis
Sotherly Hotels disclosed 67 risk factors in its most recent earnings report. Sotherly Hotels reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sotherly Hotels Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $4.44B | 16.16 | -3.31% | 11.40% | 5.81% | -21.40% | |
60 Neutral | $148.84M | ― | -0.23% | 9.01% | -1.48% | 32.04% | |
58 Neutral | $1.12B | ― | -0.16% | 0.47% | 2.35% | 57.81% | |
58 Neutral | $1.08B | 25.98 | 2.94% | 8.08% | 3.31% | -15.16% | |
54 Neutral | $25.47M | ― | 2.79% | ― | 4.63% | -61.60% | |
54 Neutral | $1.07B | 68.33 | 1.24% | 4.75% | 1.33% | -10.65% | |
44 Neutral | $38.40M | ― | -25.85% | ― | -14.26% | 84.97% |
* Real Estate Sector Average
Performance Comparison
SOHO
Sotherly Hotels
0.63
-0.75
-54.35%
PEB
Pebblebrook Hotel
8.43
-7.29
-46.37%
AHT
Ashford Hospitality
6.49
-7.21
-52.63%
RLJ
RLJ Lodging
6.81
-4.40
-39.25%
BHR
Braemar Hotels & Resorts
2.22
0.26
13.27%
XHR
Xenia Hotels & Resorts
9.81
-5.02
-33.85%
Sotherly Hotels Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -22.22% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a positive outlook with RevPAR and revenue growth, strong performance in key hotels, and strategic corporate activities. However, challenges such as the impact of Hurricane Helene and increased interest costs due to refinancing offset some of the positive aspects. The projected growth in revenue and EBITDA for 2025, along with strategic renovations, supports a cautiously optimistic sentiment.Highlights
RevPAR Growth
Fourth quarter RevPAR increased by 2.9% year-over-year, driven by a 7% increase in occupancy, despite a 3.7% decrease in ADR. Excluding Tampa due to hurricane impact, RevPAR increased to 5.8%.
Strong Performance in Key Hotels
The DoubleTree Resort in Hollywood, Florida, and The Whitehall in Houston posted significant RevPAR growth of 13.8% and nearly 50%, respectively, driven by occupancy and rate improvements.
Corporate Activity and Renovations
Executed new ten-year franchise agreements with Hilton for properties in Philadelphia and Jacksonville, with significant renovation budgets planned for these locations.
Revenue Growth
Total revenue for the fourth quarter increased by 4.3% year-over-year, and 4.6% for the full year 2024, with Hotel EBITDA for the quarter increasing by 3.6%.
Positive Guidance for 2025
Projected total revenue for 2025 is expected to increase by 2.1%, with Hotel EBITDA projected to grow by 5.2%, and Adjusted FFO anticipated to rise by 16.4%.
Lowlights
Impact of Hurricane Helene
Hotel Alba in Tampa sustained significant damage from Hurricane Helene, causing operational impacts that are expected to continue through the second quarter of 2025.
Decrease in Adjusted FFO
Year-to-date, Adjusted FFO decreased by approximately $250,000 compared to the prior year, despite increases in revenue and EBITDA.
Interest Rate Pressures
The refinancing of legacy loans at higher interest rates is expected to increase interest costs, impacting FFO despite operational improvements.
Company Guidance
During the Sotherly Hotels Inc. Q4 2024 conference call, key guidance metrics for 2025 were shared, projecting total revenue in the range of $183.4 million to $188.2 million, indicating a 2.1% increase over 2024 at the midpoint. Hotel EBITDA is expected to range between $48.8 million and $49.6 million, reflecting a 5.2% increase, while adjusted FFO is projected between $11.5 million and $12.3 million, or $0.57 to $0.61 per share, marking a 16.4% rise. These projections consider the impact of refinancing activities as interest costs rise due to loans originated at lower rates. The call also highlighted ongoing recovery and growth across their portfolio, particularly at urban hotels in Houston and Philadelphia, with significant occupancy growth noted in several locations, despite challenges like Hurricane Helene's impact on Hotel Alba. The guidance anticipates stable operating costs and includes assumptions of normal operations, with insurance proceeds expected to cover any shortfalls for impacted hotels.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.