Toggle SGML Header (+)


Section 1: 8-K (8-K)

soho-8k_20200227.htm

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2020

 

SOTHERLY HOTELS INC.

SOTHERLY HOTELS LP

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland (Sotherly Hotels Inc.)

Delaware (Sotherly Hotels LP)

001-32379 (Sotherly Hotels Inc.)

001-36091 (Sotherly Hotels LP)

20-1531029 (Sotherly Hotels Inc.)

20-1965427 (Sotherly Hotels LP)

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

306 South Henry Street, Suite 100

Williamsburg, Virginia

 

23185

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (757) 229-5648

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Sotherly Hotels Inc.    Sotherly Hotels LP    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Sotherly Hotels Inc.    Sotherly Hotels LP    

 

Securities registered or to be registered pursuant to Section 12(b) of the Act.

 

 


Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

SOHO

The NASDAQ Stock Market LLC

8.0% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value

SOHOB

The NASDAQ Stock Market LLC

7.875% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value

SOHOO

The NASDAQ Stock Market LLC

8.25% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value

SOHON

The NASDAQ Stock Market LLC

 

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On February 27, 2020, Sotherly Hotels Inc., a Maryland corporation (the “Company”) and the sole general partner of Sotherly Hotels LP, a Delaware limited partnership, issued a press release (the “Press Release”) announcing the results of operations and financial condition of the Company for the quarter and year ended December 31, 2019.  A copy of the Press Release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

The Press Release contains “non-GAAP financial measures” as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  In the Press Release, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States.

In accordance with General Instruction B.2 and B.6 of Form 8-K, the information included in this Item 2.02 (including Exhibit 99.1 hereto), shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

 

Description

99.1

 

Press Release of Sotherly Hotels Inc. dated February 27, 2020, reporting financial results for the quarter and year ended December 31, 2019.

 

 

 

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

 

Date:  February 27, 2020

 

SOTHERLY HOTELS INC.

 

 

 

 

 

 

By:

/s/ Anthony E. Domalski

 

 

 

Anthony E. Domalski

 

 

 

Chief Financial Officer

 

 

 

SOTHERLY HOTELS LP

 

 

 

 

 

 

 

by its General Partner,

 

 

 

SOTHERLY HOTELS INC.

 

 

 

 

 

 

By:

/s/ Anthony E. Domalski

 

 

 

Anthony E. Domalski

 

 

 

Chief Financial Officer

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

soho-ex991_6.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

THURSDAY, FEBRUARY 27, 2020

 

SOTHERLY HOTELS INC. REPORTS FINANCIAL RESULTS

FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2019

Williamsburg, Virginia – February 27, 2020 – Sotherly Hotels Inc. (NASDAQ: SOHO), (“Sotherly” or the “Company”), a self-managed and self-administered lodging real estate investment trust (a “REIT”), today reported its consolidated results for the fourth quarter and year ended December 31, 2019. The Company’s results include the following*:

 

 

Three Months Ended

 

 

Year Ended

 

 

December 31, 2019

 

 

December 31, 2018

 

 

December 31, 2019

 

 

December 31, 2018

 

 

($ in thousands except per share data)

 

 

($ in thousands except per share data)

 

Total Revenue

$

44,305

 

 

$

43,466

 

 

$

185,788

 

 

$

178,173

 

Net (loss) income available to common stockholders

 

(3,600

)

 

 

(3,768

)

 

 

(6,093

)

 

 

(5,720

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

7,745

 

 

 

7,185

 

 

 

41,887

 

 

 

40,347

 

Hotel EBITDA

 

9,280

 

 

 

10,247

 

 

 

46,938

 

 

 

47,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

 

1,754

 

 

 

1,260

 

 

 

14,763

 

 

 

13,706

 

Adjusted FFO available to common stockholders and unitholders

 

951

 

 

 

1,877

 

 

 

17,164

 

 

 

15,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share

$

(0.27

)

 

$

(0.28

)

 

$

(0.45

)

 

$

(0.42

)

FFO per common share and unit

$

0.11

 

 

$

0.08

 

 

$

0.96

 

 

$

0.90

 

Adjusted FFO per common share and unit

$

0.06

 

 

$

0.12

 

 

$

1.11

 

 

$

1.04

 

 

(*)  Earnings before interest, taxes, depreciation and amortization (“EBITDA”), hotel EBITDA, funds from operations (“FFO”) available to common stockholders and unitholders, adjusted FFO available to common stockholders and unitholders, FFO per common share and unit and adjusted FFO per common share and unit are non-GAAP financial measures. See further discussion of these non-GAAP measures, including definitions related thereto, and reconciliations to net income (loss) later in this press release. The Company is the sole general partner of Sotherly Hotels LP, a Delaware limited partnership (the “Operating Partnership”), and all references in this release to the “Company”, “Sotherly”, “we”, “us” and “our” refer to Sotherly Hotels Inc., its Operating Partnership and its subsidiaries and predecessors, unless the context otherwise requires or it is otherwise indicated.

HIGHLIGHTS:

 

RevPAR.  Room revenue per available room (“RevPAR”) for the Company’s composite portfolio, which includes the Hyatt Centric Arlington and the rooms participating in our rental programs at the Hyde Resort & Residences and the Hyde Beach House Resort and Residences, during the three-month period ending December 31, 2019, increased 2.2% over the three months ended December 31, 2018, to $102.27 reflecting a 1.6% increase in occupancy and a 0.6% increase in average daily rate (“ADR”). For the twelve-month period ending December 31, 2019, RevPAR increased 3.4% over the twelve months ended December 31, 2018, to $112.94 driven by a 1.4% increase in occupancy and a 2.0% increase in ADR.  

 

Revenue.  For the three-month period ending December 31, 2019, total revenue increased 1.9% over the three-month period ending December 31, 2018.  For the twelve-month period ending December 31, 2019, total revenue increased 4.3% or by approximately $7.6 million to approximately $185.8 million, as compared to approximately $178.2 million for the twelve-month period ending December 31, 2018.


 

Common Dividends. On January 28, 2020, the Company announced a quarterly dividend (distribution) on its common stock (and units) of $0.13 per share (and unit) to stockholders (and unitholders) of record as of March 13, 2020, payable on April 9, 2020.

 

Hotel EBITDA. The Company generated hotel EBITDA of approximately $9.3 million during the three-month period ending December 31, 2019. Hotel EBITDA decreased 9.4%, or approximately $1.0 million, over the three months ended December 31, 2018. For the twelve-month period ending December 31, 2019, hotel EBITDA decreased 1.6%, or approximately $0.7 million, over the twelve months ended December 31, 2018.  As discussed below, included in Hotel EBITDA is a charge associated with the termination of ten hotel management contracts with MHI Hotels Services, which does business as Chesapeake Hospitality.

 

Adjusted FFO available to common stockholders and unitholders. For the three-month period ending December 31, 2019, adjusted FFO available to common stockholders and unitholders decreased 49.4% from the three months ended December 31, 2018. For the twelve-month period ending December 31, 2019, adjusted FFO available to common stockholders and unitholders increased 7.8% or approximately $1.2 million over the twelve months ended December 31, 2018.

Andrew M. Sims, Chairman of the board of directors of Sotherly Hotels Inc., commented, “The fourth quarter of 2019 was one of the most active and memorable quarters in the company’s long history.  We executed on our plan to replace our management partner for the core portfolio with Our Town Hospitality.  We also completed a Succession Plan that saw the promotion of Dave Folsom to Chief Executive Officer and included two additional in-house promotions to our senior management team.  We believe this team is well-positioned to lead the Company moving forward.  We opened and commenced our rental program at the new Hyde Beach House Resort & Residences, a condominium hotel located in Hollywood, Florida, and we took possession of a new ballroom and structured parking at our DoubleTree Resort in Hollywood.  The completion of the renovations at our newly converted Hotel Alba Tampa represents the culmination of five years of significant capital improvements across our portfolio.  We believe all these events bode well for the future success of the company.”

Balance Sheet/Liquidity

At December 31, 2019, the Company had approximately $28.0 million of available cash and cash equivalents, of which approximately $4.2 million was reserved for real estate taxes, insurance, capital improvements and certain other expenses or otherwise restricted. The Company had principal balances of approximately $361.0 million in outstanding debt at a weighted average interest rate of approximately 4.89%.

Other Developments

On December 13, 2019, we entered into a series of agreements with Our Town Hospitality LLC, a Virginia limited liability company ("Our Town") relating to the retention of Our Town as the manager of ten of our hotels.  Our Town began managing these hotels on January 1, 2020.  Please reference our Current Report on Form 8-K filed with the Securities and Exchange Commission on December 16, 2019 for additional details.

On January 1, 2020, ten of our hotel management agreements with Chesapeake Hospitality expired.  In connection with the termination of those ten agreements, we are required to pay Chesapeake a termination fee of approximately $0.3 million.  The termination fee must be paid by March 30, 2020.

On February 14, 2020, we entered into a hotel purchase and sale agreement to sell the Sheraton Louisville Riverside hotel located in Jeffersonville, Indiana (the “Hotel”) to 808 Indiana LLC for a purchase price of $13.5 million.  Certain representations and warranties of the Seller under the purchase and sale agreement are unconditionally guaranteed by the Operating Partnership up to a maximum of $750,000.  The Company intends to use proceeds from the sale of the Hotel to repay the existing mortgage on the Hotel and for general corporate purposes.  The closing of the sale is subject to various customary closing conditions, including the satisfactory completion of a diligence review of the Hotel, the accuracy of representations and warranties through closing, conditions related to the operation and maintenance of the Hotel, and conditions related to franchise approval.

2020 Outlook

Set forth below is the Company’s guidance for 2020.  The guidance is predicated on estimates of occupancy and ADR that are consistent with the most recent 2020 calendar year forecasts by Smith Travel Research for the market segments in which the Company operates.  

The table below reflects the Company’s projections, within a range, of various financial measures for 2020, in thousands of dollars, except per share and RevPAR data:


 

 

2020 Guidance

 

 

Low Range

 

 

High Range

 

 

 

 

Total revenue

$

184,107

 

 

$

188,211

 

Net income

 

3,049

 

 

 

3,905

 

Net loss available to common stockholders and unitholders

 

(5,781

)

 

 

(4,925

)

 

 

 

 

 

 

 

 

EBITDA

 

42,224

 

 

 

43,170

 

Hotel EBITDA

 

49,074

 

 

 

50,170

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

 

15,219

 

 

 

16,075

 

Adjusted FFO available to common stockholders and unitholders

 

15,444

 

 

 

16,375

 

 

 

 

 

 

 

 

 

Net loss per share available to common stockholders

$

(0.38

)

 

$

(0.32

)

FFO per common share and unit

$

0.98

 

 

$

1.03

 

Adjusted FFO per common share and unit

$

1.00

 

 

$

1.06

 

Rev PAR

$

111.46

 

 

$

113.95

 

Hotel EBITDA margin

 

26.7

%

 

 

26.7

%

 

Earnings Call/Webcast

The Company will conduct its fourth quarter 2019 conference call for investors and other interested parties at 10:00 a.m. Eastern Time on Thursday, February 27, 2020. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 888-339-0107 (United States) or 855-669-9657 (Canada) or +1 412-902-4188 (International). To participate on the webcast, log on to www.sotherlyhotels.com at least 15 minutes before the call to download the necessary software. For those unable to listen to the call live, a taped rebroadcast will be available beginning one hour after completion of the live call on February 27 through February 27, 2021. To access the rebroadcast, dial 877-344-7529 and enter conference number 10138174.  A replay of the call also will be available on the Internet at www.sotherlyhotels.com until February 27, 2021.

About Sotherly Hotels Inc.

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Currently, the Company’s portfolio consists of investments in twelve hotel properties, comprising 3,156 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide, Hyatt Hotels Corporation, and Marriott International, Inc. brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.

Contact at the Company:

Mack Sims

Vice President – Operations & Investor Relations

Sotherly Hotels Inc.

306 South Henry Street, Suite 100

Williamsburg, Virginia 23185

757.229.5648

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable, these statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and many of which are beyond the Company’s control. Therefore, actual outcomes and results may differ materially from what is expressed, forecasted or implied in such forward-looking statements. Factors which could have a material adverse effect on the Company’s future results, performance and achievements, include, but are not limited to: national and local economic and business conditions that affect occupancy rates and revenues at the Company’s hotels and the demand for hotel products and services; risks associated with the hotel industry, including competition and new supply of hotel rooms, increases in wages, energy costs and other operating costs; risks associated with adverse


weather conditions, including hurricanes; the availability and terms of financing and capital and the general volatility of the securities markets; the Company’s intent to repurchase shares from time to time; risks associated with the level of the Company’s indebtedness and its ability to meet covenants in its debt agreements and, if necessary, to refinance or seek an extension of the maturity of such indebtedness or modify such debt agreements; management and performance of the Company’s hotels; risks associated with maintaining our system of internal controls; risks associated with the conflicts of interest of the Company’s officers and directors; risks associated with redevelopment and repositioning projects, including delays and cost overruns; supply and demand for hotel rooms in the Company’s current and proposed market areas; risks associated with our ability to maintain our franchise agreements with our third party franchisors; the Company’s ability to acquire additional properties and the risk that potential acquisitions may not perform in accordance with expectations; the Company’s ability to successfully expand into new markets; legislative/regulatory changes, including changes to laws governing taxation of REITs; the Company’s ability to maintain its qualification as a REIT; and the Company’s ability to maintain adequate insurance coverage. These risks and uncertainties are described in greater detail under “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to and does not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although the Company believes its current expectations to be based upon reasonable assumptions, it can give no assurance that its expectations will be attained or that actual results will not differ materially.

Financial Tables Follow…


 

SOTHERLY HOTELS INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investment in hotel properties, net

 

$

443,267,448

 

 

$

435,725,814

 

Cash and cash equivalents

 

 

23,738,066

 

 

 

33,792,773

 

Restricted cash

 

 

4,246,170

 

 

 

4,075,508

 

Accounts receivable, net

 

 

4,812,479

 

 

 

6,766,696

 

Accounts receivable - affiliate

 

 

101,771

 

 

 

262,572

 

Prepaid expenses, inventory and other assets

 

 

5,648,772

 

 

 

5,262,884

 

Favorable lease assets, net

 

 

 

 

 

2,465,421

 

Deferred income taxes

 

 

5,412,084

 

 

 

5,131,179

 

TOTAL ASSETS

 

$

487,226,790

 

 

$

493,482,847

 

LIABILITIES

 

 

 

 

 

 

 

 

Mortgage loans, net

 

$

358,633,884

 

 

$

364,828,845

 

Unsecured notes, net

 

 

 

 

 

23,894,658

 

Accounts payable and accrued liabilities

 

 

20,189,903

 

 

 

16,268,096

 

Advance deposits

 

 

2,785,338

 

 

 

2,815,283

 

Dividends and distributions payable

 

 

4,210,494

 

 

 

3,409,593

 

TOTAL LIABILITIES

 

$

385,819,619

 

 

$

411,216,475

 

Commitments and contingencies

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Sotherly Hotels Inc. stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, 11,000,000 shares authorized:

 

 

 

 

 

 

 

 

8.0% Series B cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,610,000 shares each issued

   and outstanding at December 31, 2019 and 2018, respectively.

 

 

16,100

 

 

 

16,100

 

7.875% Series C cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,554,610 and 1,352,141 shares issued

   and outstanding at December 31, 2019 and 2018, respectively.

 

 

15,546

 

 

 

13,521

 

8.25% Series D cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,200,000 shares and none, issued

   and outstanding at December 31, 2019 and 2018, respectively.

 

 

12,000

 

 

 

 

Common stock, par value $0.01, 69,000,000 shares authorized, 14,272,378

   shares and 14,209,378 shares issued and outstanding at

   December 31, 2019 and 2018, respectively.

 

 

142,723

 

 

 

142,093

 

Additional paid-in capital

 

 

180,515,861

 

 

 

147,085,112

 

Unearned ESOP shares

 

 

(4,105,637

)

 

 

(4,379,742

)

Distributions in excess of retained earnings

 

 

(74,172,159

)

 

 

(61,052,418

)

Total Sotherly Hotels Inc. stockholders’ equity

 

 

102,424,434

 

 

 

81,824,666

 

Noncontrolling interest

 

 

(1,017,263

)

 

 

441,706

 

TOTAL EQUITY

 

 

101,407,171

 

 

 

82,266,372

 

TOTAL LIABILITIES AND EQUITY

 

$

487,226,790

 

 

$

493,482,847

 

 

 


 

SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

$

29,501,291

 

 

$

28,751,075

 

 

$

128,062,932

 

 

$

120,993,460

 

Food and beverage department

 

 

10,682,535

 

 

 

10,284,968

 

 

 

40,267,240

 

 

 

38,134,813

 

Other operating departments

 

 

4,121,127

 

 

 

4,429,933

 

 

 

17,457,961

 

 

 

19,044,848

 

Total revenue

 

 

44,304,953

 

 

 

43,465,976

 

 

 

185,788,133

 

 

 

178,173,121

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

7,877,548

 

 

 

7,583,927

 

 

 

32,142,171

 

 

 

30,334,309

 

Food and beverage department

 

 

7,560,029

 

 

 

7,341,457

 

 

 

29,355,080

 

 

 

28,090,145

 

Other operating departments

 

 

1,949,674

 

 

 

1,549,465

 

 

 

6,957,325

 

 

 

6,419,502

 

Indirect

 

 

17,638,106

 

 

 

16,744,463

 

 

 

70,395,633

 

 

 

65,645,500

 

Total hotel operating expenses

 

 

35,025,357

 

 

 

33,219,312

 

 

 

138,850,209

 

 

 

130,489,456

 

Depreciation and amortization

 

 

5,520,038

 

 

 

5,101,469

 

 

 

21,637,316

 

 

 

20,884,643

 

Loss on disposal of assets

 

 

91,650

 

 

 

515,565

 

 

 

123,739

 

 

 

511,749

 

Corporate general and administrative

 

 

1,822,063

 

 

 

1,614,705

 

 

 

6,830,354

 

 

 

6,180,962

 

Total hotel operating expenses

 

 

42,459,108

 

 

 

40,451,051

 

 

 

167,441,618

 

 

 

158,066,810

 

NET OPERATING INCOME

 

 

1,845,845

 

 

 

3,014,925

 

 

 

18,346,515

 

 

 

20,106,311

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,652,502

)

 

 

(5,382,604

)

 

 

(19,768,193

)

 

 

(19,953,746

)

Interest income

 

 

86,883

 

 

 

116,258

 

 

 

444,459

 

 

 

352,951

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

(1,152,356

)

 

 

(753,133

)

Unrealized (loss) gain on hedging activities

 

 

377,053

 

 

 

(950,928

)

 

 

(1,177,871

)

 

 

(808,958

)

Gain on exercise of development right

 

 

 

 

 

 

 

 

3,940,000

 

 

 

 

Gain on involuntary conversion of assets

 

 

1,630

 

 

 

19,202

 

 

 

293,534

 

 

 

917,767

 

Net income (loss) before income taxes

 

 

(2,341,091

)

 

 

(3,183,147

)

 

 

926,088

 

 

 

(138,808

)

Income tax benefit (provision)

 

 

688,803

 

 

 

412,696

 

 

 

249,480

 

 

 

(469,349

)

Net income (loss)

 

 

(1,652,288

)

 

 

(2,770,451

)

 

 

1,175,568

 

 

 

(608,157

)

Less: Net loss attributable to noncontrolling interest

 

 

240,766

 

 

 

472,794

 

 

 

552,407

 

 

 

718,093

 

Net (loss) income attributable to the Company

 

 

(1,411,522

)

 

 

(2,297,657

)

 

 

1,727,975

 

 

 

109,936

 

Distributions to preferred stockholders

 

 

(2,188,897

)

 

 

(1,470,507

)

 

 

(7,820,695

)

 

 

(5,829,914

)

Net loss available to common stockholders

 

$

(3,600,419

)

 

$

(3,768,164

)

 

$

(6,092,720

)

 

$

(5,719,978

)

Net loss per share available to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.27

)

 

$

(0.28

)

 

$

(0.45

)

 

$

(0.42

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,695,964

 

 

 

13,594,651

 

 

 

13,642,573

 

 

 

13,517,488

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SOTHERLY HOTELS INC.

KEY OPERATING METRICS

(unaudited)

The following tables illustrate the key operating metrics for the three and twelve months ended December 31, 2019 and 2018, respectively, for the Company’s twelve wholly-owned properties (“actual” portfolio metrics), as well as the eleven wholly-owned properties in the portfolio that were under the Company’s control during the three and twelve months ended December 31, 2019 and the corresponding periods in 2018 (“same-store” portfolio metrics). Accordingly, the actual data does not include the participating condominium hotel rooms at the Hyde Resort & Residences or the Hyde Beach House Resort & Residences, and the same-store data does not include the performance of the Hyatt Centric Arlington which we acquired in March 2018 or the participating condominium hotel rooms at the Hyde Resort & Residences or the Hyde Beach House Resort & Residences.  The composite portfolio metrics represent the Company’s twelve wholly-owned properties and the participating condominium hotel rooms at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences during the three and twelve months ended December 31, 2019 and the corresponding period in 2018.  

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

December 31, 2019

 

 

December 31, 2018

 

Actual Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

67.5

%

 

 

66.3

%

 

 

71.3

%

 

 

70.3

%

ADR

 

$

150.50

 

 

$

149.38

 

 

$

155.92

 

 

$

151.93

 

RevPAR

 

$

101.61

 

 

$

99.02

 

 

$

111.17

 

 

$

106.77

 

Same-Store Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

66.7

%

 

 

65.3

%

 

 

70.4

%

 

 

69.0

%

ADR

 

$

147.20

 

 

$

146.69

 

 

$

151.87

 

 

$

148.57

 

RevPAR

 

$

98.17

 

 

$

95.84

 

 

$

106.96

 

 

$

102.52

 

Composite Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

65.7

%

 

 

64.7

%

 

 

70.1

%

 

 

69.1

%

ADR

 

$

155.57

 

 

$

154.60

 

 

$

161.17

 

 

$

158.02

 

RevPAR

 

$

102.27

 

 

$

100.10

 

 

$

112.94

 

 

$

109.20

 

 

 


 

SOTHERLY HOTELS INC.

SUPPLEMENTAL DATA

(unaudited)

The following tables illustrate the key operating metrics for the three and twelve months ended December 31, 2019, 2018 and 2017, respectively, for each of the Company’s wholly-owned properties during each respective reporting period, irrespective of ownership percentage during any period.

Occupancy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2019

 

 

Q4 2018

 

 

Q4 2017

 

 

YTD

 

 

YTD

 

 

YTD

 

The DeSoto

Savannah, Georgia

 

62.9

%

 

 

56.5

%

 

 

61.6

%

 

 

65.4

%

 

 

61.6

%

 

 

66.6

%

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

 

75.4

%

 

 

78.2

%

 

 

78.0

%

 

 

78.5

%

 

 

81.6

%

 

 

79.9

%

DoubleTree by Hilton Laurel

Laurel, Maryland

 

65.2

%

 

 

66.4

%

 

 

57.8

%

 

 

69.9

%

 

 

66.8

%

 

 

64.9

%

DoubleTree by Hilton Philadelphia Airport

Philadelphia, Pennsylvania

 

73.9

%

 

 

74.0

%

 

 

72.2

%

 

 

76.6

%

 

 

78.2

%

 

 

75.5

%

DoubleTree by Hilton Raleigh Brownstone – University

Raleigh, North Carolina

 

72.5

%

 

 

71.0

%

 

 

69.9

%

 

 

76.3

%

 

 

74.8

%

 

 

74.2

%

DoubleTree Resort by Hilton Hollywood Beach

Hollywood, Florida

 

69.5

%

 

 

62.6

%

 

 

61.0

%

 

 

70.5

%

 

 

69.2

%

 

 

72.1

%

Georgian Terrace

Atlanta, Georgia

 

67.5

%

 

 

63.9

%

 

 

67.0

%

 

 

70.0

%

 

 

67.9

%

 

 

70.6

%

Hotel Alba Tampa, Tapestry Collection by Hilton

Tampa, Florida

 

61.8

%

 

 

64.7

%

 

 

78.7

%

 

 

66.2

%

 

 

71.9

%

 

 

79.1

%

Hotel Ballast Wilmington, Tapestry Collection by Hilton

Wilmington, North Carolina

 

60.3

%

 

 

64.2

%

 

 

61.8

%

 

 

68.5

%

 

 

63.9

%

 

 

68.3

%

Hyatt Centric Arlington (1)

Arlington, Virginia

 

74.8

%

 

 

74.8

%

 

 

76.0

%

 

 

79.1

%

 

 

83.8

%

 

 

84.0

%

Sheraton Louisville Riverside

Jeffersonville, Indiana

 

65.0

%

 

 

58.5

%

 

 

48.6

%

 

 

67.9

%

 

 

60.6

%

 

 

63.8

%

The Whitehall

Houston, Texas

 

56.0

%

 

 

54.6

%

 

 

41.2

%

 

 

62.2

%

 

 

57.5

%

 

 

58.1

%

Hyde Resort & Residences (2)

Hollywood Beach, Florida

 

44.6

%

 

 

39.3

%

 

 

38.4

%

 

 

50.5

%

 

 

49.8

%

 

 

37.9

%

Hyde Beach House Resort & Residences (2)

Hollywood Beach, Florida

 

15.0

%

 

-

 

 

-

 

 

 

15.0

%

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

All properties weighted average (1)

 

65.7

%

 

 

64.7

%

 

 

58.4

%

 

 

70.1

%

 

 

69.1

%

 

 

68.8

%

 


 

(1)

Includes operating results under previous ownership.  Results for periods prior to the Company’s ownership were provided by prior owners of the hotel and have not been audited or confirmed by the Company.

(2)

Reflects only those condominium units participating in our rental program for the period those units participated in our rental program.

 

 

ADR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2019

 

 

Q4 2018

 

 

Q4 2017

 

 

YTD

 

 

YTD

 

 

YTD

 

The DeSoto

Savannah, Georgia

$

169.52

 

 

$

173.37

 

 

$

157.93

 

 

$

174.75

 

 

$

177.19

 

 

$

159.50

 

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

$

137.96

 

 

$

134.76

 

 

$

140.34

 

 

$

139.53

 

 

$

139.84

 

 

$

132.19

 

DoubleTree by Hilton Laurel

Laurel, Maryland

$

103.73

 

 

$

104.12

 

 

$

104.74

 

 

$

107.34

 

 

$

107.98

 

 

$

107.77

 

DoubleTree by Hilton Philadelphia Airport

Philadelphia, Pennsylvania

$

145.10

 

 

$

139.61

 

 

$

138.64

 

 

$

143.95

 

 

$

139.25

 

 

$

135.54

 

DoubleTree by Hilton Raleigh Brownstone – University

Raleigh, North Carolina

$

140.45

 

 

$

134.17

 

 

$

131.29

 

 

$

139.73

 

 

$

134.26

 

 

$

133.24

 

DoubleTree Resort by Hilton Hollywood Beach

Hollywood, Florida

$

159.34

 

 

$

168.37

 

 

$

167.71

 

 

$

173.25

 

 

$

175.18

 

 

$

170.76

 

Georgian Terrace

Atlanta, Georgia

$

193.56

 

 

$

193.65

 

 

$

186.21

 

 

$

204.60

 

 

$

186.28

 

 

$

175.06

 

Hotel Alba Tampa, Tapestry Collection by Hilton

Tampa, Florida

$

124.16

 

 

$

116.92

 

 

$

116.39

 

 

$

129.91

 

 

$

124.72

 

 

$

119.85

 

Hotel Ballast Wilmington, Tapestry Collection by Hilton

Wilmington, North Carolina

$

157.48

 

 

$

158.77

 

 

$

143.62

 

 

$

161.50

 

 

$

153.04

 

 

$

148.69

 

Hyatt Centric Arlington (1)

Arlington, Virginia

$

176.80

 

 

$

170.31

 

 

$

173.07

 

 

$

188.15

 

 

$

181.38

 

 

$

176.31

 

Sheraton Louisville Riverside

Jeffersonville, Indiana

$

106.39

 

 

$

112.16

 

 

$

138.65

 

 

$

114.92

 

 

$

122.62

 

 

$

133.86

 

The Whitehall

Houston, Texas

$

142.79

 

 

$

147.60

 

 

$

154.94

 

 

$

143.33

 

 

$

146.01

 

 

$

147.66

 

Hyde Resort & Residences (2)

Hollywood Beach, Florida

$

284.03

 

 

$

299.46

 

 

$

289.66

 

 

$

295.49

 

 

$

299.30

 

 

$

282.20

 

Hyde Beach House Resort & Residences (2)

Hollywood Beach, Florida

$

341.58

 

 

$

-

 

 

$

-

 

 

$

341.58

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

All properties weighted average (1)

$

155.57

 

 

$

154.60

 

 

$

153.03

 

 

$

161.17

 

 

$

158.02

 

 

$

147.77

 

 

 


(1)

Includes operating results under previous ownership.  Results for periods prior to the Company’s ownership were provided by prior owners of the hotel and have not been audited or confirmed by the Company.

(2)

Reflects only those condominium units participating in our rental program for the period those units participated in our rental program.

 

 

RevPAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2019

 

 

Q4 2018

 

 

Q4 2017

 

 

YTD

 

 

YTD

 

 

YTD

 

The DeSoto

Savannah, Georgia

$

106.56

 

 

$

97.91

 

 

$

97.22

 

 

$

114.34

 

 

$

109.21

 

 

$

106.15

 

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

$

104.03