Sotherly Hotels (SOHO) AI Stock Analysis

• Market Cap: $36.14M
• Dividend Yield: N/A
• Average Volume (3M): 33.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 3.82%
• EPS Growth: 18.62%
• Country: US
• Employees: 9
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.13
• Shares Outstanding: 20,490,501
• 10 Day Avg. Volume: 15,512
• 30 Day Avg. Volume: 33,450
• PEG Ratio: <0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.67
• Enterprise Value/Market Cap: 336.27
• Enterprise Value/Revenue: 21.48
• Enterprise Value/Gross Profit: 348.38
• Enterprise Value/Ebitda: 98.39
• 1Y Price Target: $1.00
• Price Target Upside: 13.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $1.00 ▲(13.64%Upside)

Sotherly Hotels' stock score reflects a mixed financial outlook with strengths in revenue growth and profitability improvements, overshadowed by significant financial leverage and valuation challenges. Technical indicators and earnings call sentiment provide some support, but corporate events highlight ongoing financial risks.

Sotherly Hotels Business Overview & Revenue Model

Company Description

Sotherly Hotels Inc. (SOHO) is a self-managed and self-administered real estate investment trust (REIT) focused on the acquisition, renovation, upbranding, and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. The company's portfolio consists primarily of full-service hotels, operating under well-known brands such as Hilton, Crowne Plaza, DoubleTree, and more. Sotherly Hotels aims to deliver high-quality lodging experiences to business and leisure travelers alike.

How the Company Makes Money

Sotherly Hotels makes money primarily through the ownership and operation of hotel properties. The company's revenue model centers on generating income from room bookings, food and beverage sales, and other hotel services and amenities. By owning and managing a portfolio of branded hotels, Sotherly Hotels capitalizes on the brand recognition and customer loyalty associated with major hotel chains. Additionally, the company seeks to increase profitability through strategic renovations and repositioning of its properties to enhance their market appeal. Sotherly Hotels may also engage in partnerships with hotel management companies to optimize operational efficiencies and guest experiences, further contributing to its revenue streams.

Sotherly Hotels Financial Statement Overview

Summary

Sotherly Hotels shows improved income and cash flow metrics with stable revenue growth and profitability enhancements, but high leverage remains a concern. The company must focus on debt management and cash flow stabilization to reduce financial risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	181.89M	173.84M	166.08M	127.59M	71.50M
Gross Profit	46.81M	44.79M	46.46M	30.89M	-3.22M
EBITDA	41.58M	39.88M	72.91M	14.08M	-10.70M
Net Income	1.30M	3.94M	32.54M	-26.22M	-49.19M
Balance Sheet
Total Assets	414.38M	393.44M	406.57M	436.05M	473.03M
Cash, Cash Equivalents and Short-Term Investments	7.33M	17.10M	21.92M	13.17M	25.30M
Total Debt	340.38M	317.53M	323.03M	377.91M	386.96M
Total Liabilities	372.78M	345.54M	355.05M	419.55M	428.83M
Stockholders Equity	43.05M	49.23M	52.25M	21.26M	49.08M
Cash Flow
Free Cash Flow	25.89M	21.40M	-1.31M	-854.34K	-15.28M
Operating Cash Flow	25.89M	21.40M	6.66M	2.32M	-11.26M
Investing Cash Flow	-14.14M	-6.73M	46.66M	-2.39M	-3.78M
Financing Cash Flow	-9.27M	-15.78M	-51.55M	-9.66M	22.36M

Sotherly Hotels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.88 is above the 20-day moving average (MA) of 0.88, below the 50-day MA of 0.88, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOHO.

Sotherly Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLDT	73 Outperform	$334.07M	118.40	1.42%	4.69%	1.75%	―
INN	69 Neutral	$668.97M	42.13	4.45%	6.13%	-1.86%	―
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%
BHR	55 Neutral	$147.50M	―	-0.90%	9.09%	-2.42%	23.64%
SOHO	54 Neutral	$36.14M	―	9.72%	―	3.82%	18.62%
AHT	47 Neutral	$37.27M	―	-25.85%	―	-11.83%	-4186.83%
IHT	41 Neutral	$22.23M	―	-25.86%	1.03%	-0.89%	-702.65%

Sotherly Hotels Corporate Events

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.

Sotherly Hotels Sets Deadline for Stockholder Proposals

Sotherly Hotels Inc. has announced that its 2025 Annual Meeting of Stockholders will be held on November 17, 2025, with a record date set for September 18, 2025. The company has set a new deadline for stockholder proposals for inclusion in the 2025 proxy statement, which must be submitted by July 28, 2025, to comply with Rule 14a-8 under the Securities Exchange Act of 1934. This announcement impacts stockholders by informing them of the necessary timelines and requirements for proposal submissions and director nominations.

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 Faces Notice of Default on Loan

On July 2, 2025, Sotherly Hotels Inc. announced it had received a Notice of Default from the special servicer for its mortgage loan secured by the Georgian Terrace in Atlanta. The default, which involves a financial obligation of approximately $38 million, was anticipated and is attributed to a maturity default rather than an inability to meet ongoing interest requirements. The company is negotiating for an extension of the loan and intends to continue making necessary payments in the interim. This situation highlights the challenges faced by the commercial real estate sector, particularly with tighter underwriting standards and higher interest rates, which have made maturity defaults more common.

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.