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Section 1: 8-K (8-K)

soho-8k_20191112.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): November 12, 2019

 

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.)

 

 

 

410 W. Francis Street

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 November 12, 2019, 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 ended September 30, 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 November 12, 2019, reporting financial results for the quarter ended September 30, 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:  November 12, 2019

 

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

TUESDAY, NOVEMBER 12, 2019

 

SOTHERLY HOTELS INC. REPORTS FINANCIAL RESULTS

FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2019

Williamsburg, Virginia – November 12, 2019 – 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 third quarter ended September 30, 2019. The Company’s results include the following*:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2019

 

 

September 30, 2018

 

 

September 30, 2019

 

 

September 30, 2018

 

 

($ in thousands except per share data)

 

 

($ in thousands except per share data)

 

Total Revenue

$

42,552

 

 

$

41,418

 

 

$

141,483

 

 

$

134,707

 

Net (loss) income available to common stockholders

 

(107

)

 

 

(3,066

)

 

 

(2,492

)

 

 

(1,952

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

10,974

 

 

 

7,036

 

 

 

34,143

 

 

 

33,162

 

Hotel EBITDA

 

8,904

 

 

 

9,175

 

 

 

37,658

 

 

 

37,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

 

4,719

 

 

 

991

 

 

 

13,010

 

 

 

12,446

 

Adjusted FFO available to common stockholders and unitholders

 

4,258

 

 

 

946

 

 

 

16,213

 

 

 

14,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share

$

(0.01

)

 

$

(0.23

)

 

$

(0.18

)

 

$

(0.14

)

FFO per common share and unit

$

0.31

 

 

$

0.06

 

 

$

0.84

 

 

$

0.82

 

Adjusted FFO per common share and unit

$

0.28

 

 

$

0.06

 

 

$

1.05

 

 

$

0.92

 

 

(*)  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 program at the Hyde Resort & Residences, during the three-month period ending September 30, 2019, increased 0.3% over the three months ended September 30, 2018, to $100.06 reflecting a 1.1% increase in occupancy offset by a 0.7% decrease in average daily rate (“ADR”). For the nine-month period ending September 30, 2019, RevPAR increased 4.5% over the nine months ended September 30, 2018, to $116.57 driven by a 2.2% increase in occupancy and a 2.3% increase in ADR.  

 

Revenue.  For the three-month period ending September 30, 2019, total revenue increased 2.7% over the three-month period ending September 30, 2018.  For the nine-month period ending September 30, 2019, total revenue increased 5.0% or by approximately $6.8 million to approximately $141.5 million, as compared to approximately $134.7 million for the nine-month period ending September 30, 2018.  


 

Gain on Exercise of Development Right.  On September 26, 2019, the Company received title to a commercial condominium unit of the Hyde Beach House Resort & Residences, a newly constructed 342-unit condominium hotel located in Hollywood, Florida (“Hyde Beach House”) consisting of a 3,000 square foot ballroom and adjacent pre-function space.  The unit will be available for use as additional ballroom and function space for our adjacent hotel, the DoubleTree Resort by Hilton Hollywood Beach.  Conveyance of the ballroom condominium unit was required pursuant to an existing obligation on the part of the owner of the property as a condition to the development of the Hyde Beach House.  Accompanying the title to the ballroom condominium unit are dedicated rights to 200 parking spaces within the six-story parking structure adjacent to the ballroom.  The estimated fair value of the ballroom condominium unit and parking right is approximately $3.9 million.

 

Common Dividends. On October 29, 2019, 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 December 13, 2019, payable on January 10, 2020.

 

Hotel EBITDA. The Company generated hotel EBITDA of approximately $8.9 million during the three-month period ending September 30, 2019. Hotel EBITDA decreased 3.0%, or approximately $0.3 million, over the three months ended September 30, 2018. For the nine-month period ending September 30, 2019, hotel EBITDA increased 0.6%, or approximately $0.2 million, over the nine months ended September 30, 2018. 

 

Adjusted FFO available to common stockholders and unitholders. For the three-month period ending September 30, 2019, adjusted FFO available to common stockholders and unitholders increased 349.9% from the three months ended September 30, 2018. For the nine-month period ending September 30, 2019, adjusted FFO available to common stockholders and unitholders increased 15.4% or approximately $2.2 million over the nine months ended September 30, 2018.

Andrew M. Sims, Chairman and Chief Executive Officer of Sotherly Hotels Inc., commented, “Operationally, we had a difficult quarter as a result of Hurricane Dorian.  While we did not experience any significant damage to our hotels located near Dorian’s path (South Florida, Tampa, Jacksonville, Savannah, Wilmington), we incurred a significant loss in revenue.  The hurricane languished for almost two weeks, washing out the Labor Day weekend and the following ten days.  On a positive note, we acquired two commercial condominium units in the Hyde Beach House in the quarter, which included the conveyance of a freestanding ballroom to our DoubleTree Resort by Hilton Hollywood Beach hotel.”

Balance Sheet/Liquidity

At September 30, 2019, the Company had approximately $35.3 million of available cash and cash equivalents, of which approximately $5.2 million was reserved for real estate taxes, insurance, capital improvements and certain other expenses or otherwise restricted. The Company had principal balances of approximately $363.0 million in outstanding debt at a weighted average interest rate of approximately 4.92%.

During the quarter, the Company sold and issued 202,469 shares of its 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock (the “Series C Preferred Stock”) through its at-the-market program, for aggregate net proceeds of approximately $4.9 million.

Portfolio Update

On September 26, 2019, we closed on the purchase of a commercial unit of the Hyde Beach House from 4000 South Ocean Property Owner, LLLP.  In connection with the closing, we (i) acquired commercial unit 2 of the Hyde Beach House, along with rights to certain limited common elements appurtenant to the commercial unit, for an adjusted purchase price of approximately $5.4 million; (ii) purchased inventories and equipment for additional consideration in the amount of approximately $0.7 million; (iii) entered into a Second Addendum to the purchase agreement; (iv) entered into a 20-year parking and cabana management agreement for the parking garage and poolside cabanas associated with the Hyde Beach House; (v) entered into a 20-year management agreement relating to the operation and management of the Hyde Beach House condominium association; and (vi) received a pre-opening services fee of $1.0 million.  We began operating a condominium unit rental program for residential units in this facility in November 2019.

As stated above, in connection with the closing of the Hyde Beach House acquisition, the DoubleTree Resort by Hilton Hollywood Beach acquired a commercial condominium unit consisting of a 3,000 square foot ballroom and adjacent pre-function space as well as 200 dedicated parking spaces within the parking garage adjacent to the hotel.

2019 Outlook

The Company is updating its previously issued guidance for 2019, accounting for current and expected performance within its portfolio, taking into account market conditions, weather-related events and the acquisition of the commercial units within the Hyde Beach House.  The updated guidance is predicated on estimates of occupancy and ADR that are consistent with the most recent 2019 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 2019, in thousands of dollars, except per share and RevPAR data:

 

 

Previous 2019 Guidance

 

 

Revised 2019 Guidance

 

 

Low Range

 

 

High Range

 

 

Low Range

 

 

High Range

 

 

 

 

 

 

 

Total revenue

$

184,247

 

 

$

187,053

 

 

$

184,274

 

 

$

185,755

 

Net income

 

1,708

 

 

 

2,295

 

 

 

1,613

 

 

 

1,980

 

Net loss available to common stockholders and unitholders

 

(5,899

)

 

 

(5,311

)

 

 

(6,208

)

 

 

(5,840

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

41,977

 

 

 

42,914

 

 

 

42,330

 

 

 

42,782

 

Hotel EBITDA

 

49,187

 

 

 

50,224

 

 

 

47,407

 

 

 

47,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

 

14,102

 

 

 

14,689

 

 

 

14,782

 

 

 

15,149

 

Adjusted FFO available to common stockholders and unitholders

 

15,832

 

 

 

16,769

 

 

 

17,559

 

 

 

18,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share available to common stockholders

$

(0.38

)

 

$

(0.34

)

 

$

(0.40

)

 

$

(0.38

)

FFO per common share and unit

$

0.91

 

 

$

0.95

 

 

$

0.96

 

 

$

0.98

 

Adjusted FFO per common share and unit

$

1.02

 

 

$

1.08

 

 

$

1.14

 

 

$

1.17

 

Rev PAR

$

109.60

 

 

$

110.49

 

 

$

110.02

 

 

$

110.91

 

Hotel EBITDA margin

 

26.7

%

 

 

26.9

%

 

 

25.7

%

 

 

25.7

%

 

Earnings Call/Webcast

The Company will conduct its third quarter 2019 conference call for investors and other interested parties at 10:00 a.m. Eastern Time on Tuesday, November 12, 2019. 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 November 7, 2019 through November 7, 2020. To access the rebroadcast, dial 877-344-7529 and enter conference number 10135555.  A replay of the call also will be available on the Internet at www.sotherlyhotels.com until November 7, 2020.

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:

Scott Kucinski

Vice President – Operations & Investor Relations

Sotherly Hotels Inc.

410 West Francis Street

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

 

 

 

September 30, 2019

 

 

December 31, 2018

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investment in hotel properties, net

 

$

446,839,580

 

 

$

435,725,814

 

Cash and cash equivalents

 

 

30,059,697

 

 

 

33,792,773

 

Restricted cash

 

 

5,192,730

 

 

 

4,075,508

 

Accounts receivable, net

 

 

6,298,119

 

 

 

6,766,696

 

Accounts receivable - affiliate

 

 

86,663

 

 

 

262,572

 

Prepaid expenses, inventory and other assets

 

 

5,494,165

 

 

 

5,262,884

 

Favorable lease assets, net

 

 

 

 

 

2,465,421

 

Deferred income taxes

 

 

4,679,010

 

 

 

5,131,179

 

TOTAL ASSETS

 

$

498,649,964

 

 

$

493,482,847

 

LIABILITIES

 

 

 

 

 

 

 

 

Mortgage loans, net

 

$

360,549,890

 

 

$

364,828,845

 

Unsecured notes, net

 

 

 

 

 

23,894,658

 

Accounts payable and accrued liabilities

 

 

24,308,930

 

 

 

16,268,096

 

Advance deposits

 

 

2,397,095

 

 

 

2,815,283

 

Dividends and distributions payable

 

 

4,210,494

 

 

 

3,409,593

 

TOTAL LIABILITIES

 

$

391,466,409

 

 

$

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 issued

   and outstanding at September 30, 2019 and December 31, 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 September 30, 2019 and December 31, 2018, respectively.

 

 

15,546

 

 

 

13,521

 

8.25% Series D cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,200,000 shares issued

   and outstanding at September 30, 2019 and none at December 31, 2018.

 

 

12,000

 

 

 

 

Common stock, par value $0.01, 49,000,000 shares authorized, 14,222,378

   shares and 14,209,378 shares issued and outstanding at September 30, 2019

   and December 31, 2018, respectively.

 

 

142,223

 

 

 

142,093

 

Additional paid-in capital

 

 

180,415,231

 

 

 

147,085,112

 

Unearned ESOP shares

 

 

(4,175,564

)

 

 

(4,379,742

)

Distributions in excess of retained earnings

 

 

(68,687,461

)

 

 

(61,052,418

)

Total Sotherly Hotels Inc. stockholders’ equity

 

 

107,738,075

 

 

 

81,824,666

 

Noncontrolling interest

 

 

(554,520

)

 

 

441,706

 

TOTAL EQUITY

 

 

107,183,555

 

 

 

82,266,372

 

TOTAL LIABILITIES AND EQUITY

 

$

498,649,964

 

 

$

493,482,847

 

 

 


 

SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

 

September 30, 2019

 

 

September 30, 2018

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

$

29,253,447

 

 

$

28,626,265

 

 

$

98,561,643

 

 

$

92,242,385

 

Food and beverage department

 

 

8,997,948

 

 

 

8,417,293

 

 

 

29,584,705

 

 

 

27,849,844

 

Other operating departments

 

 

4,300,780

 

 

 

4,374,504

 

 

 

13,336,834

 

 

 

14,614,915

 

Total revenue

 

 

42,552,175

 

 

 

41,418,062

 

 

 

141,483,182

 

 

 

134,707,144

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

8,064,771

 

 

 

7,873,836

 

 

 

24,264,623

 

 

 

22,750,381

 

Food and beverage department

 

 

7,036,887

 

 

 

6,680,563

 

 

 

21,795,051

 

 

 

20,748,688

 

Other operating departments

 

 

1,352,205

 

 

 

1,661,128

 

 

 

5,007,651

 

 

 

4,870,037

 

Indirect

 

 

17,194,148

 

 

 

16,027,496

 

 

 

52,757,527

 

 

 

48,901,037

 

Total hotel operating expenses

 

 

33,648,011

 

 

 

32,243,023

 

 

 

103,824,852

 

 

 

97,270,143

 

Depreciation and amortization

 

 

4,980,168

 

 

 

4,547,043

 

 

 

16,117,278

 

 

 

15,783,174

 

Loss (gain) on disposal of assets

 

 

4,918

 

 

 

(7,555

)

 

 

32,088

 

 

 

(3,816

)

Corporate general and administrative

 

 

1,768,912

 

 

 

1,516,408

 

 

 

5,008,290

 

 

 

4,566,258

 

Total hotel operating expenses

 

 

40,402,009

 

 

 

38,298,919

 

 

 

124,982,508

 

 

 

117,615,759

 

NET OPERATING INCOME

 

 

2,150,166

 

 

 

3,119,143

 

 

 

16,500,674

 

 

 

17,091,385

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,722,456

)

 

 

(5,306,641

)

 

 

(15,115,690

)

 

 

(14,571,142

)

Interest income

 

 

102,768

 

 

 

88,484

 

 

 

357,576

 

 

 

236,693

 

Loss on early extinguishment of debt

 

 

-

 

 

 

(753,133

)

 

 

(1,152,356

)

 

 

(753,133

)

Unrealized (loss) gain on hedging activities

 

 

(226,491

)

 

 

123,443

 

 

 

(1,554,924

)

 

 

141,970

 

Gain on exercise of development right

 

 

3,940,000

 

 

 

 

 

 

3,940,000

 

 

 

 

Gain on involuntary conversion of assets

 

 

130,569

 

 

 

 

 

 

291,902

 

 

 

898,565

 

Net (loss) income before income taxes

 

 

1,374,556

 

 

 

(2,728,704

)

 

 

3,267,182

 

 

 

3,044,338

 

Income tax benefit (provision)

 

 

694,190

 

 

 

746,924

 

 

 

(439,323

)

 

 

(882,045

)

Net (loss) income

 

 

2,068,746

 

 

 

(1,981,780

)

 

 

2,827,859

 

 

 

2,162,293

 

Less: Net loss attributable to noncontrolling interest

 

 

13,337

 

 

 

385,616

 

 

 

311,642

 

 

 

245,298

 

Net (loss) income attributable to the Company

 

 

2,082,083

 

 

 

(1,596,164

)

 

 

3,139,501

 

 

 

2,407,591

 

Distributions to preferred stockholders

 

 

(2,188,910

)

 

 

(1,469,719

)

 

 

(5,631,799

)

 

 

(4,359,407

)

Net loss available to common stockholders

 

$

(106,827

)

 

$

(3,065,883

)

 

$

(2,492,298

)

 

$

(1,951,816

)

Net loss per share available to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

(0.23

)

 

$

(0.18

)

 

$

(0.14

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,636,706

 

 

 

13,513,996

 

 

 

13,624,760

 

 

 

13,491,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SOTHERLY HOTELS INC.

KEY OPERATING METRICS

(unaudited)

The following tables illustrate the key operating metrics for the three and nine months ended September 30, 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 nine months ended September 30, 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, 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.  The composite portfolio metrics represent the Company’s twelve wholly-owned properties and the participating condominium hotel rooms at the Hyde Resort & Residences during the three and nine months ended September 30, 2019 and the corresponding period in 2018.  No metrics are reflected for the results of the Hyde Beach House because the condominium unit rental program did not begin until November 2019.

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

 

September 30, 2019

 

 

September 30, 2018

 

Actual Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

70.6

%

 

 

69.3

%

 

 

72.7

%

 

 

71.6

%

ADR

 

$

142.75

 

 

$

142.26

 

 

$

157.36

 

 

$

152.75

 

RevPAR

 

$

100.75

 

 

$

98.59

 

 

$

114.40

 

 

$

109.44

 

Same-Store Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

69.1

%

 

 

67.4

%

 

 

71.7

%

 

 

70.2

%

ADR

 

$

139.98

 

 

$

140.71

 

 

$

153.33

 

 

$

149.16

 

RevPAR

 

$

96.77

 

 

$

94.89

 

 

$

109.92

 

 

$

104.77

 

Composite Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

68.8

%

 

 

68.0

%

 

 

71.7

%

 

 

70.1

%

ADR

 

$

145.51

 

 

$

146.54

 

 

$

162.69

 

 

$

159.10

 

RevPAR

 

$

100.06

 

 

$

99.72

 

 

$

116.57

 

 

$

111.60

 

 

 


 

SOTHERLY HOTELS INC.

SUPPLEMENTAL DATA

(unaudited)

The following tables illustrate the key operating metrics for the three and nine months ended September 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2019

 

 

Q3 2018

 

 

Q3 2017

 

 

YTD

 

 

YTD

 

 

YTD

 

The DeSoto

Savannah, Georgia

 

60.1

%

 

 

58.8

%

 

 

62.8

%

 

 

66.3

%

 

 

63.4

%

 

 

68.2

%

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

 

72.9

%

 

 

79.1

%

 

 

79.7

%

 

 

79.5

%

 

 

82.7

%

 

 

80.5

%

DoubleTree by Hilton Laurel

Laurel, Maryland

 

72.9

%

 

 

70.3

%

 

 

68.5

%

 

 

71.5

%

 

 

66.9

%

 

 

67.3

%

DoubleTree by Hilton Philadelphia Airport

Philadelphia, Pennsylvania

 

82.1

%

 

 

81.3

%

 

 

77.4

%

 

 

77.5

%

 

 

79.6

%

 

 

76.6

%

DoubleTree by Hilton Raleigh Brownstone – University

Raleigh, North Carolina

 

79.6

%

 

 

74.7

%

 

 

74.3

%

 

 

77.6

%

 

 

76.0

%

 

 

75.7

%

DoubleTree Resort by Hilton Hollywood Beach

Hollywood, Florida

 

60.8

%

 

 

63.0

%

 

 

68.7

%

 

 

70.9

%

 

 

71.4

%

 

 

75.8

%

Georgian Terrace

Atlanta, Georgia

 

66.4

%

 

 

69.4

%

 

 

69.4

%

 

 

70.8

%

 

 

69.3

%

 

 

71.9

%

Hotel Alba Tampa, Tapestry Collection by Hilton

Tampa, Florida

 

53.0

%

 

 

56.1

%

 

 

72.2

%

 

 

67.6

%

 

 

74.4

%

 

 

79.3

%

Hotel Ballast Wilmington, Tapestry Collection by Hilton

Wilmington, North Carolina

 

73.0

%

 

 

69.8

%

 

 

70.0

%

 

 

71.2

%

 

 

63.8

%

 

 

70.5

%

Hyatt Centric Arlington (1)

Arlington, Virginia

 

83.6

%

 

 

86.0

%

 

 

87.5

%

 

 

81.7

%

 

 

82.5

%

 

 

86.7

%

Sheraton Louisville Riverside

Jeffersonville, Indiana

 

76.7

%

 

 

63.1

%

 

 

73.7

%

 

 

68.9

%

 

 

61.2

%

 

 

69.0

%

The Whitehall

Houston, Texas

 

63.9

%

 

 

50.2

%

 

 

65.0

%

 

 

64.3

%

 

 

58.5

%

 

 

63.8

%

Hyde Resort & Residences (2)

Hollywood Beach, Florida

 

35.3

%

 

 

48.4

%

 

 

46.3

%

 

 

52.3

%

 

 

47.9

%

 

 

38.4

%

 

 

 

 

 

 

 

 

 

 

 

 

All properties weighted average (1)

 

68.8

%

 

 

69.6

%

 

 

75.7

%

 

 

71.7

%

 

 

71.4

%

 

 

74.0

%

 

(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 the condominium units at the Hyde Resort & Residences participating in our rental program for the period those units participated in our rental program.

 

 

ADR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2019

 

 

Q3 2018

 

 

Q3 2017

 

 

YTD

 

 

YTD

 

 

YTD

 

The DeSoto

Savannah, Georgia

$

155.52

 

 

$

161.68

 

 

$

146.76

 

 

$

176.43

 

 

$

178.34

 

 

$

159.98

 

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

$

133.71

 

 

$

136.77

 

 

$

125.14

 

 

$

140.04

 

 

$

141.46

 

 

$

129.54

 

DoubleTree by Hilton Laurel

Laurel, Maryland

$

102.79

 

 

$

104.26

 

 

$

104.72

 

 

$

108.45

 

 

$

109.28

 

 

$

108.64

 

DoubleTree by Hilton Philadelphia Airport

Philadelphia, Pennsylvania

$

137.37

 

 

$

138.80

 

 

$

131.76

 

 

$

143.58

 

 

$

139.14

 

 

$

134.55

 

DoubleTree by Hilton Raleigh Brownstone – University

Raleigh, North Carolina

$

135.64

 

 

$

131.28

 

 

$

130.42

 

 

$

139.50

 

 

$

134.28

 

 

$

133.85

 

DoubleTree Resort by Hilton Hollywood Beach

Hollywood, Florida

$

130.16

 

 

$

131.74

 

 

$

134.83

 

 

$

177.85

 

 

$

177.20

 

 

$

171.58

 

Georgian Terrace

Atlanta, Georgia

$

180.82

 

 

$

183.46

 

 

$

173.31

 

 

$

208.14

 

 

$

183.98

 

 

$

171.56

 

Hotel Alba Tampa, Tapestry Collection by Hilton

Tampa, Florida

$

117.74

 

 

$

112.25

 

 

$

110.98

 

 

$

131.68

 

 

$

127.01

 

 

$

121.00

 

Hotel Ballast Wilmington, Tapestry Collection by Hilton

Wilmington, North Carolina

$

173.57

 

 

$

159.76

 

 

$

155.41

 

 

$

162.65

 

 

$

151.09

 

 

$

150.19

 

Hyatt Centric Arlington (1)

Arlington, Virginia

$

163.14

 

 

$

153.12

 

 

$

154.90

 

 

$

188.93

 

 

$

178.06

 

 

$

177.27

 

Sheraton Louisville Riverside

Jeffersonville, Indiana

$

106.70

 

 

$

113.70

 

 

$

117.55

 

 

$

117.64

 

 

$

125.99

 

 

$

132.72

 

The Whitehall

Houston, Texas

$

137.58

 

 

$

141.85

 

 

$

135.55

 

 

$

143.49

 

 

$

145.51

 

 

$

146.08

 

Hyde Resort & Residences (2)

Hollywood Beach, Florida

$

247.31

 

 

$

242.62

 

 

$

256.68

 

 

$

300.07

 

 

$

299.26

 

 

$

278.60

 

 

 

 

 

 

 

 

 

 

 

 

 

All properties weighted average (1)