Sotherly Hotels (SOHO) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 saw strong occupancy and revenue growth, with RevPAR up 2.9% in Q4 and 3.5% for the year, despite ADR declines and hurricane impacts in Tampa.

• Urban hotels in Houston and Philadelphia showed significant recovery, with The Whitehall in Houston posting nearly 50% RevPAR growth and DoubleTree Philadelphia Airport up 9.4% in Q4.

• Group business was the main growth driver, expanding 5.9% for the year, and portfolio performance exceeded budgeted expectations.

• Net loss attributable to common stockholders increased to $3.0M in Q4 2024 from $2.7M in Q4 2023; full-year net loss rose 65.4% to $6.7M from $4.0M year-over-year.

• Restoration at Hotel Alba (Tampa) post-Hurricane Helene is nearly complete, with the hotel fully operational in Q4.

Financial highlights

• Q4 total revenue was $44 million, up 4.3% year-over-year; full-year revenue reached $182 million, up 4.6%.

• Q4 Hotel EBITDA was $10.7 million (+3.6% YoY); full-year Hotel EBITDA was $46.8 million (+4.5% YoY).

• Q4 Adjusted FFO was $2 million (down 30.3% YoY); full-year Adjusted FFO was $14.3 million (down 1.7% YoY).

• Net loss per diluted share was $(0.16) for Q4 2024 and $(0.34) for the year.

• Hotel EBITDA margin improved by 150 bps YoY in Q4, excluding a prior-year one-time grant.

Outlook and guidance

• 2025 revenue guidance: $183.4–$188.2 million (midpoint +2.1% YoY).

• 2025 Hotel EBITDA guidance: $48.8–$49.6 million (midpoint +5.2% YoY).

• 2025 Adjusted FFO guidance: $11.5–$12.3 million (midpoint +16.4% YoY), or $0.57–$0.61 per share.

• 2025 RevPAR expected in the range of $119.77–$122.89.

• 2025 net loss guidance: $(8.7M)–$(7.8M).