Sotherly Hotels ( (SOHO) ) has released its Q2 earnings. Here is a breakdown of the information Sotherly Hotels presented to its investors.
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Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust (REIT) focused on acquiring, renovating, and repositioning upscale to upper-upscale full-service hotels primarily in the Southern United States.
In its latest earnings report for the second quarter ending June 30, 2025, Sotherly Hotels Inc. reported a decrease in total revenues to $48.8 million compared to $50.7 million in the same period last year. The company also experienced a decline in net income attributable to common stockholders, reporting a loss of $0.4 million compared to an income of $2.6 million in the previous year.
Key financial metrics highlighted in the report include a 5.4% decrease in RevPAR to $130.20, driven by a 3.5% decrease in occupancy and a 1.9% decrease in the average daily rate. Hotel EBITDA also saw a decline to $13.9 million from $15.7 million in the previous year. Additionally, adjusted funds from operations (FFO) attributable to common stockholders and unitholders decreased by 36.6% to $4.8 million for the quarter.
Looking ahead, Sotherly Hotels Inc. remains cautious about the demand within the lodging markets, citing macroeconomic uncertainties such as interest rates and tariffs. The company is actively working on refinancing and extending mortgages across its portfolio and expects to close the sale of a parking garage in Atlanta, Georgia, in the fourth quarter, which is anticipated to enhance liquidity.
Overall, Sotherly Hotels Inc. is navigating a challenging economic environment with strategic initiatives aimed at maintaining financial stability and positioning itself for potential growth as market conditions improve.