Sotherly Hotels (SOHO) AI Stock Analysis

• Market Cap: $35.91M
• Dividend Yield: N/A
• Average Volume (3M): 336.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 1.78%
• EPS Growth: -33.00%
• Country: US
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.02
• Shares Outstanding: 20,490,501
• 10 Day Avg. Volume: 86,021
• 30 Day Avg. Volume: 336,677
• PEG Ratio: 0.25
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 0.70
• Enterprise Value/Market Cap: 9.35
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 8.28
• Enterprise Value/Ebitda: 7.84
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $1.00 ▲(8.70% Upside)

Sotherly Hotels' overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and declining profitability. Technical analysis provides some positive signals, but the valuation remains a significant concern with a negative P/E ratio. The earnings call highlighted both challenges and some areas of strength, but overall, the outlook remains cautious.

Sotherly Hotels Business Overview & Revenue Model

Company Description

Sotherly Hotels (SOHO) is a real estate investment trust (REIT) that specializes in the acquisition, development, and management of upscale, full-service hotels in key U.S. markets. The company focuses on properties that cater to both business and leisure travelers, providing a range of amenities and services, such as dining, meeting spaces, and recreational facilities. Sotherly Hotels aims to enhance guest experiences while maximizing returns for its investors through strategic property management and operational efficiency.

How the Company Makes Money

Sotherly Hotels generates revenue primarily through the operation of its hotel properties, which include room rentals, food and beverage sales, and event hosting services. The core revenue streams consist of occupancy rates and average daily rates (ADR) achieved through effective pricing strategies and marketing initiatives. Additionally, Sotherly may earn income from management fees associated with properties it manages for third-party owners. Key partnerships with travel agencies, online travel platforms, and corporate clients also contribute to its revenue, enabling the company to attract a steady flow of guests. Seasonal demand fluctuations, local economic conditions, and strategic property acquisitions further influence the company's earnings potential.

Sotherly Hotels Financial Statement Overview

Summary

Sotherly Hotels shows a recovery trajectory with improved income and cash flow metrics, but high leverage remains a concern. Stable revenue growth and profitability improvements are positive, yet financial risks from high debt levels persist.

Income Statement

Sotherly Hotels' income statement shows a steady revenue growth trend with a TTM revenue increase from $181.89M to $183.66M. Gross profit margin remains solid at approximately 25.8%, with an EBIT margin of 11.5% and an EBITDA margin of 24.9%. However, the net profit margin has been volatile, with the TTM net income showing improvement to $4.65M. Despite past challenges, profitability is on an upward trajectory.

Balance Sheet

The balance sheet indicates high leverage with a significant debt-to-equity ratio of over 500, reflecting potential financial risk. The equity ratio stands at approximately 11%, indicating limited equity relative to total assets. Return on equity is improving, shown by the TTM net income growth. Despite high debt levels, the company's financial position has shown gradual recovery.

Cash Flow

Cash flow analysis shows positive operating cash flow with a TTM value of $26M, consistent with historical data. Free cash flow has improved with a positive TTM figure, indicating better cash management. However, the free cash flow to net income ratio suggests that cash flow generation relative to net income could be more robust. Overall, cash flows are stabilizing but remain an area to monitor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	181.76M	181.89M	173.84M	166.08M	127.59M	71.50M
Gross Profit	40.55M	46.81M	44.79M	46.46M	30.69M	-3.22M
EBITDA	42.83M	41.58M	39.88M	72.91M	14.08M	-10.70M
Net Income	1.61M	1.30M	3.94M	32.54M	-26.22M	-49.19M
Balance Sheet
Total Assets	411.12M	414.38M	393.44M	406.57M	436.05M	473.03M
Cash, Cash Equivalents and Short-Term Investments	26.53M	7.33M	17.10M	21.92M	13.17M	25.30M
Total Debt	362.21M	340.38M	317.53M	323.03M	377.91M	386.96M
Total Liabilities	366.84M	372.78M	345.54M	355.05M	419.55M	428.83M
Stockholders Equity	44.28M	43.05M	49.23M	52.25M	21.26M	49.55M
Cash Flow
Free Cash Flow	15.06M	25.89M	21.40M	-1.31M	-854.34K	-15.28M
Operating Cash Flow	19.36M	25.89M	21.40M	6.66M	2.32M	-11.26M
Investing Cash Flow	-13.94M	-14.14M	-6.73M	46.66M	-2.39M	-3.78M
Financing Cash Flow	-16.21M	-9.27M	-15.78M	-51.55M	-9.66M	22.36M

Sotherly Hotels Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHO, the sentiment is Positive. The current price of 0.92 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.82, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 56.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOHO.

Sotherly Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INN	67 Neutral	$662.69M	―	0.93%	5.99%	-1.91%	-256.67%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CLDT	61 Neutral	$320.32M	246.79	1.22%	5.20%	-0.87%	―
SOHO	49 Neutral	$35.91M	-2.80	3.37%	―	1.78%	-33.00%
BHR	46 Neutral	$184.87M	―	-0.07%	7.12%	-3.68%	38.92%
IHT	42 Neutral	$16.89M	-9.31	-28.89%	1.38%	-2.96%	-154.58%
AHT	41 Neutral	$31.27M	―	―	―	-11.83%	-4186.83%

Sotherly Hotels Corporate Events

Sotherly Hotels Director Herschel Walker Resigns

On October 17, 2025, Herschel J. Walker resigned from the board of directors of Sotherly Hotels Inc. His resignation was not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (SOHO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sotherly Hotels stock, see the SOHO Stock Forecast page.

Sotherly Hotels Secures $42 Million Mortgage Loan

On September 12, 2025, Sotherly Hotels Inc. secured a $42.0 million mortgage loan with Citi Real Estate Funding Inc. for The DeSoto hotel in Savannah, GA. The loan, maturing on October 6, 2030, carries a fixed interest rate of 7.13% and is interest-only. The proceeds were used to repay the existing first mortgage and for general corporate purposes. This refinancing marks the completion of Sotherly’s repositioning strategy for the DeSoto hotel, which began in 2017, enhancing value for both the hotel and shareholders.

The most recent analyst rating on (SOHO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sotherly Hotels stock, see the SOHO Stock Forecast page.

Sotherly Hotels Rescinds Termination of Sale Agreement

On July 24, 2025, Sotherly Hotels Inc., through its affiliate SOHO Atlanta, LLC, entered into an agreement to sell a parking garage associated with the Georgian Terrace hotel in Atlanta, Georgia, to Banyan Street Capital LLC for $17.75 million. However, after the buyer initially terminated the agreement on September 5, 2025, the parties amended the agreement on September 9, 2025, to rescind the termination and extend the investigation period until September 30, 2025, or a mutually agreed later date.

The most recent analyst rating on (SOHO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sotherly Hotels stock, see the SOHO Stock Forecast page.

Sotherly Hotels’ Earnings Call: Mixed Signals Amid Challenges

Sotherly Hotels’ recent earnings call painted a mixed picture, with strong performances in certain properties like Hyde Beach House and Hotel Ballast being overshadowed by broader negative trends. The company is grappling with RevPAR declines, significant impacts from reduced government travel, and overall revenue decreases. While there is proactive management of debt and some optimism for the latter half of the year, the challenges in the current economic climate are substantial.

Sotherly Hotels Granted Extension for Nasdaq Compliance

On August 12, 2025, Sotherly Hotels Inc. received a notification from Nasdaq granting an additional 180 days, until February 9, 2026, to meet the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Capital Market. The company’s stock will move from the Nasdaq Global Select Market to the Nasdaq Capital Market, effective August 14, 2025, as part of this compliance effort. If the company fails to meet the requirement by the deadline, its stock may face delisting, although the company can appeal such a decision. Sotherly Hotels plans to monitor its stock price and consider options like a reverse stock split to regain compliance.

The most recent analyst rating on (SOHO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sotherly Hotels stock, see the SOHO Stock Forecast page.

Sotherly Hotels Reports Decline in Q2 2025 Earnings

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.

Sotherly Hotels Sells Parking Garage for $17.75M

On July 24, 2025, Sotherly Hotels Inc., through its affiliate SOHO Atlanta, LLC, entered into an agreement to sell the parking garage associated with the Georgian Terrace hotel in Atlanta, Georgia, to Banyan Street Capital LLC for $17.75 million. The proceeds from this sale are intended to reduce the principal balance on the existing mortgage for the hotel, following a Notice of Default received from the special servicer for its mortgage loan. The transaction is expected to close in the fourth quarter of 2025, pending various closing conditions.

The most recent analyst rating on (SOHO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Sotherly Hotels stock, see the SOHO Stock Forecast page.