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Section 1: 8-K (8-K)

soho-8k_20181231.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 26, 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    

 

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On February 26, 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 and year ended December 31, 2018.  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 26, 2019, reporting financial results for the quarter and year ended December 31, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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 26, 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, FEBRUARY 26, 2019

 

SOTHERLY HOTELS INC. REPORTS FINANCIAL RESULTS

FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2018

Williamsburg, Virginia – February 26, 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 fourth quarter and year ended December 31, 2018. The Company’s results include the following*:

 

 

Three Months Ended

 

 

Year Ended

 

 

December 31, 2018

 

 

December 31, 2017

 

 

December 31, 2018

 

 

December 31, 2017

 

 

($ in thousands except per share data)

 

 

($ in thousands except per share data)

 

Total Revenue

$

43,466

 

 

$

38,160

 

 

$

178,173

 

 

$

154,267

 

Net loss available to common stockholders

 

(3,768

)

 

 

(3,937

)

 

 

(5,720

)

 

 

(3,339

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

7,185

 

 

 

7,363

 

 

 

40,347

 

 

 

34,276

 

Hotel EBITDA

 

10,247

 

 

 

10,003

 

 

 

47,684

 

 

 

40,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

 

1,357

 

 

 

107

 

 

 

14,041

 

 

 

12,418

 

Adjusted FFO available to common stockholders and unitholders

 

1,877

 

 

 

3,333

 

 

 

15,923

 

 

 

15,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share

$

(0.28

)

 

$

(0.29

)

 

$

(0.42

)

 

$

(0.24

)

FFO per common share and unit

$

0.09

 

 

$

0.01

 

 

$

0.92

 

 

$

0.80

 

Adjusted FFO per common share and unit

$

0.12

 

 

$

0.22

 

 

$

1.04

 

 

$

1.00

 

 

(*)  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 where otherwise indicated.

HIGHLIGHTS:

 

Revenue and RevPAR.  For the three-month period ending December 31, 2018, Total Revenue increased 13.9% over the three-month period ending December 31, 2017.  Room revenue per available room (“RevPAR”) for the Company’s composite portfolio, which includes the performance of the rooms participating in our rental program at the Hyde Resort & Residences, during the three-month period ending December 31, 2018, increased 6.0% over the three months ended December 31, 2017, to $100.10 reflecting a 3.8% increase in occupancy and a 2.2% increase in average daily rate (“ADR”). For the twelve-month period ending December 31, 2018, RevPAR increased 7.4% over the twelve months ended December 31, 2017, to $109.20 driven by a 0.4% increase in occupancy and a 6.9% increase in ADR.

 

Common Dividends. On January 29, 2019, the Company announced a quarterly dividend (distribution) on its common stock (and units) of $0.125 per share (and unit) to stockholders (and unitholders) of record as of March 15, 2019, payable on April 11, 2019.

 

Hotel EBITDA. The Company generated hotel EBITDA of approximately $10.2 million during the three-month period ending December 31, 2018, hotel EBITDA increased 2.4% or approximately $0.2 million, over the three months ended


 

December 31, 2017. For the twelve-month period ending December 31, 2018, hotel EBITDA increased 16.3%, or approximately $6.7 million, over the twelve months ended December 31, 2017.  

 

EBITDA. The Company generated EBITDA of approximately $7.2 million during the three-month period ending December 31, 2018, a decrease of 2.4% or approximately $(0.2) million compared to the three months ended December 31, 2017. For the twelve-month period ending December 31, 2018, EBITDA increased 17.7% or approximately $6.1 million from the twelve months ended December 31, 2017.

 

Adjusted FFO available to common stockholders and unitholders. For the three-month period ending December 31, 2018, Adjusted FFO available to common stockholders and unitholders decreased 43.7% or approximately $1.5 million from the three months ended December 31, 2017. For the twelve-month period ending December 31, 2018, adjusted FFO available to common stockholders and unitholders increased 1.6% or approximately $0.3 million from the twelve months ended December 31, 2017.

Andrew M. Sims, Chairman and Chief Executive Officer of Sotherly Hotels Inc., commented, “Sotherly had a solid fourth quarter, which resulted in Adjusted FFO of $1.04 per common share and unit for the year, which is within the Company’s original guidance issued in February 2018. Many of the financial metrics that we view as indicative of the Company’s performance showed positive year-over-year movement in the fourth quarter, including Total Revenue, RevPAR, EBITDA, Hotel EBITDA, and FFO. RevPAR outpaced the industry for the fourth quarter, with an increase of 6.0% over the same period in 2017.”

Balance Sheet/Liquidity

At December 31, 2018, the Company had approximately $37.9 million of available cash and cash equivalents, of which approximately $4.1 million was reserved for real estate taxes, insurance, capital improvements and certain other expenses or otherwise restricted. The Company had principal balances of approximately $392.6 million in outstanding debt at a weighted average interest rate of approximately 5.13%.

On August 31, 2018, we entered into a Sales Agency Agreement, with Sandler O’Neill & Partners, L.P. (“Sandler O’Neill”), under which the Company may sell from time to time through Sandler O’Neill, as sales agent, shares of the Company’s common stock, par value $0.01 per share, having an aggregate gross sales price of up to $5,000,000 and up to 400,000 shares of the Company’s 7.875% Series C Cumulative Redeemable Preferred Stock, $0.01 par value per share.  Through December 31, 2018, the Company sold 88,297 shares of common stock and 52,141 shares of Series C Preferred Stock, for aggregate proceeds of approximately $1.9 million.

On December 12, 2018, the Company authorized the extension of the Company’s stock repurchase program, which was originally announced in December 2016, authorizing the Company to purchase up to $10.0 million of its outstanding common stock, par value $0.01 per share, at prevailing prices on the open market or in privately negotiated transactions, at the discretion of management.  As of December 12, 2018, the Company had repurchased shares of the Company’s common stock at an aggregate cost of approximately $5.9 million pursuant to the stock repurchase program, leaving a balance of approximately $4.1 million of its common stock that may be repurchased.  As of December 31, 2018, the Company had approximately 14.2 million shares outstanding.

Portfolio Update

At the Company’s hotel in Tampa, Florida, renovations are underway for an estimated $11.3 million renovation project in anticipation of a planned conversion in June 2019 of the Crowne Plaza Tampa Westshore to Hotel Alba, which we expect to become a member of the Tapestry Collection by Hilton.  As of December 31, 2018, we incurred costs totaling approximately $7.5 million toward this renovation.

2019 Outlook

Set forth below is the Company’s guidance for 2019.  The guidance is predicated on estimates of occupancy and ADR that are consistent with the most recent 2019 calendar year forecasts by STR 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:


 

 

2019 Guidance

 

 

Low Range

 

 

High Range

 

 

 

 

Total revenue

$

184,247

 

 

$

187,053

 

Net income

 

1,511

 

 

 

2,099

 

Net loss available to common stockholders and unitholders

 

(4,631

)

 

 

(4,043

)

 

 

 

 

 

 

 

 

EBITDA

 

43,136

 

 

 

44,074

 

Hotel EBITDA

 

49,186

 

 

 

50,224

 

 

 

 

 

 

 

 

 

FFO available to common stockholders and unitholders

 

15,369

 

 

 

15,957

 

Adjusted FFO available to common stockholders and unitholders

 

15,939

 

 

 

16,877

 

 

 

 

 

 

 

 

 

Net loss per share available to common stockholders

$

(0.30

)

 

$

(0.26

)

FFO per common share and unit

$

0.98

 

 

$

1.02

 

Adjusted FFO per common share and unit

$

1.02

 

 

$

1.08

 

Rev PAR

$

109.60

 

 

$

110.49

 

Hotel EBITDA margin

 

26.7

%

 

 

26.9

%

 

Earnings Call/Webcast

The Company will conduct its fourth quarter 2018 conference call for investors and other interested parties at 10:00 a.m. Eastern Time on Tuesday, February 26, 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 February 26, 2019 through February 25, 2020. To access the rebroadcast, dial 877-344-7529 and enter conference number 10127127.  A replay of the call also will be available on the Internet at www.sotherlyhotels.com until February 25, 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, and an interest in the Hyde Resort & Residences, a luxury condo hotel. The Company owns hotels that operate under the Hilton Worldwide, InterContinental Hotels Group 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

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investment in hotel properties, net

 

$

435,725,814

 

 

$

357,799,512

 

Cash and cash equivalents

 

 

33,792,773

 

 

 

29,777,845

 

Restricted cash

 

 

4,075,508

 

 

 

3,651,197

 

Accounts receivable, net

 

 

6,766,696

 

 

 

5,587,077

 

Accounts receivable - affiliate

 

 

262,572

 

 

 

394,026

 

Prepaid expenses, inventory and other assets

 

 

5,262,884

 

 

 

7,292,565

 

Favorable lease assets, net

 

 

2,465,421

 

 

 

 

Deferred income taxes

 

 

5,131,179

 

 

 

5,451,118

 

TOTAL ASSETS

 

$

493,482,847

 

 

$

409,953,340

 

LIABILITIES

 

 

 

 

 

 

 

 

Mortgage loans, net

 

$

364,828,845

 

 

$

297,318,816

 

Unsecured notes, net

 

 

23,894,658

 

 

 

 

Accounts payable and accrued liabilities

 

 

16,268,096

 

 

 

13,813,623

 

Advance deposits

 

 

2,815,283

 

 

 

1,572,388

 

Dividends and distributions payable

 

 

3,409,593

 

 

 

3,073,483

 

TOTAL LIABILITIES

 

$

411,216,475

 

 

$

315,778,310

 

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 December 31, 2018 and 2017, respectively

 

 

16,100

 

 

 

16,100

 

7.875% Series C cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,352,141 and 1,300,000 shares issued

   and outstanding at December 31, 2018 and 2017, respectively

 

 

13,521

 

 

 

13,000

 

Common stock, par value $0.01, 49,000,000 shares authorized, 14,209,378

   shares and 14,078,831 shares issued and outstanding at December 31, 2018

   and 2017, respectively

 

 

142,093

 

 

 

140,788

 

Additional paid-in capital

 

 

147,281,247

 

 

 

146,249,339

 

Unearned ESOP shares

 

 

(4,379,742

)

 

 

(4,633,112

)

Distributions in excess of retained earnings

 

 

(61,248,553

)

 

 

(48,765,860

)

Total Sotherly Hotels Inc. stockholders’ equity

 

 

81,824,666

 

 

 

93,020,255

 

Noncontrolling interest

 

 

441,706

 

 

 

1,154,775

 

TOTAL EQUITY

 

 

82,266,372

 

 

 

94,175,030

 

TOTAL LIABILITIES AND EQUITY

 

$

493,482,847

 

 

$

409,953,340

 

 

 


 

SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

$

28,751,074

 

 

$

24,360,641

 

 

$

120,993,460

 

 

$

105,727,372

 

Food and beverage department

 

 

10,284,968

 

 

 

9,608,761

 

 

 

38,134,813

 

 

 

34,513,695

 

Other operating departments

 

 

4,429,933

 

 

 

4,190,302

 

 

 

19,044,848

 

 

 

14,025,626

 

Total revenue

 

 

43,465,975

 

 

 

38,159,704

 

 

 

178,173,121

 

 

 

154,266,693

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

7,583,927

 

 

 

6,420,838

 

 

 

30,334,309

 

 

 

26,673,727

 

Food and beverage department

 

 

7,341,457

 

 

 

6,666,781

 

 

 

28,090,145

 

 

 

24,585,923

 

Other operating departments

 

 

1,549,465

 

 

 

782,820

 

 

 

6,419,502

 

 

 

4,405,515

 

Indirect

 

 

16,744,463

 

 

 

14,286,495

 

 

 

65,645,500

 

 

 

57,612,203

 

Total hotel operating expenses

 

 

33,219,312

 

 

 

28,156,934

 

 

 

130,489,456

 

 

 

113,277,368

 

Depreciation and amortization

 

 

5,101,469

 

 

 

4,291,071

 

 

 

20,884,643

 

 

 

16,999,619

 

Loss on disposal of assets

 

 

515,565

 

 

 

1,438,323

 

 

 

511,749

 

 

 

1,489,892

 

Corporate general and administrative

 

 

1,614,705

 

 

 

1,453,385

 

 

 

6,180,962

 

 

 

6,335,926

 

Total operating expenses

 

 

40,451,051

 

 

 

35,339,713

 

 

 

158,066,810

 

 

 

138,102,805

 

NET OPERATING INCOME

 

 

3,014,924

 

 

 

2,819,991

 

 

 

20,106,311

 

 

 

16,163,888

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(5,382,604

)

 

 

(3,900,567

)

 

 

(19,953,746

)

 

 

(15,727,628

)

Interest income

 

 

116,258

 

 

 

92,415

 

 

 

352,951

 

 

 

218,656

 

Loss on early extinguishment of debt

 

 

 

 

 

(950,261

)

 

 

(753,133

)

 

 

(1,178,348

)

Unrealized gain (loss) on hedging activities

 

 

(950,928

)

 

 

2,364

 

 

 

(808,958

)

 

 

(28,384

)

Gain (loss) on sale of assets

 

 

 

 

 

(1,574

)

 

 

 

 

 

76,233

 

Gain on involuntary conversion of assets

 

 

19,202

 

 

 

1,201,061

 

 

 

917,767

 

 

 

2,242,876

 

Net (loss) income before income taxes

 

 

(3,183,148

)

 

 

(736,571

)

 

 

(138,808

)

 

 

1,767,293

 

Income tax benefit (provision)

 

 

412,696

 

 

 

(2,319,694

)

 

 

(469,349

)

 

 

(1,737,804

)

Net (loss) income

 

 

(2,770,452

)

 

 

(3,056,265

)

 

 

(608,157

)

 

 

29,489

 

Less: Net loss attributable to the noncontrolling interest

 

 

472,794

 

 

 

486,379

 

 

 

718,093

 

 

 

413,014

 

Net (loss) income attributable to the Company

 

 

(2,297,658

)

 

 

(2,569,886

)

 

 

109,936

 

 

 

442,503

 

Distributions to preferred stockholders

 

 

(1,470,507

)

 

 

(1,366,639

)

 

 

(5,829,914

)

 

 

(3,781,639

)

Net loss available to common stockholders

 

$

(3,768,165

)

 

$

(3,936,525

)

 

$

(5,719,978

)

 

$

(3,339,136

)

Net loss per share available to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.28

)

 

$

(0.29

)

 

$

(0.42

)

 

$

(0.24

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,594,651

 

 

 

13,699,225

 

 

 

13,517,488

 

 

 

13,829,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SOTHERLY HOTELS INC.

KEY OPERATING METRICS

(unaudited)

The following tables illustrate the key operating metrics for the three and twelve months ended December 31, 2018 and 2017, respectively, for the Company’s wholly-owned properties (“actual” portfolio metrics), as well as the ten wholly-owned properties in the portfolio that were under the Company’s control during the three and twelve months ended December 31, 2018 and the corresponding periods in 2017 (“same-store” portfolio metrics). Accordingly, the same-store data does not reflect the performance of the Crowne Plaza Hampton Marina which was sold in February 2017, our interest in the Hyde Resort & Residences which was acquired on January 30, 2017, or the Hyatt Centric Arlington which we acquired in March 2018.  The composite portfolio metrics represent all of the Company’s wholly-owned properties and the participating condominium hotel rooms at the Hyde Resort & Residences during the three and twelve months ended December 31, 2018 and the corresponding periods in 2017.

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

December 31, 2018

 

 

December 31, 2017

 

Actual Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

66.3

%

 

 

64.0

%

 

 

 

70.3

%

 

 

70.4

%

ADR

 

$

149.38

 

 

$

145.71

 

 

 

$

151.93

 

 

$

144.03

 

RevPAR

 

$

99.02

 

 

$

93.30

 

 

 

$

106.77

 

 

$

101.44

 

Same-Store Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

65.3

%

 

 

64.0

%

 

 

 

69.0

%

 

 

70.6

%

ADR

 

$

146.69

 

 

$

145.71

 

 

 

$

148.57

 

 

$

144.21

 

RevPAR

 

$

95.84

 

 

$

93.30

 

 

 

$

102.52

 

 

$

101.88

 

Composite Portfolio Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy %

 

 

64.7

%

 

 

62.4

%

 

 

 

69.1

%

 

 

68.8

%

ADR

 

$

154.60

 

 

$

151.21

 

 

 

$

158.02

 

 

$

147.77

 

RevPAR

 

$

100.10

 

 

$

94.42

 

 

 

$

109.20

 

 

$

101.70

 

 

 


 

SOTHERLY HOTELS INC.

SUPPLEMENTAL DATA

(unaudited)

The following tables illustrate the key operating metrics for the three and twelve months ended December 31, 2018, 2017 and 2016, respectively, for each of the Company’s wholly-owned properties during each respective reporting period, irrespective of ownership percentage during any period.

Occupancy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2018

 

 

Q4 2017

 

 

Q4 2016

 

 

YTD

 

 

YTD

 

 

YTD

 

Crowne Plaza Tampa Westshore

Tampa, Florida

 

64.7

%

 

 

78.7

%

 

 

67.2

%

 

 

71.9

%

 

 

79.1

%

 

 

74.6

%

The DeSoto

Savannah, Georgia

 

56.5

%

 

 

61.6

%

 

 

63.0

%

 

 

61.6

%

 

 

66.6

%

 

 

71.5

%

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

 

78.2

%

 

 

78.0

%

 

 

72.0

%

 

 

81.6

%

 

 

79.9

%

 

 

77.4

%

DoubleTree by Hilton Laurel

Laurel, Maryland

 

66.4

%

 

 

57.8

%

 

 

52.7

%

 

 

66.8

%

 

 

64.9

%

 

 

60.5

%

DoubleTree by Hilton Philadelphia Airport

Philadelphia, Pennsylvania

 

74.0

%

 

 

72.2

%

 

 

67.7

%

 

 

78.2

%

 

 

75.5

%

 

 

77.0

%

DoubleTree by Hilton Raleigh Brownstone – University

Raleigh, North Carolina

 

71.0

%

 

 

69.9

%

 

 

66.9

%

 

 

74.8

%

 

 

74.2

%

 

 

70.0

%

DoubleTree Resort by Hilton Hollywood Beach

Hollywood, Florida

 

62.6

%

 

 

61.0

%

 

 

73.2

%

 

 

69.2

%

 

 

72.1

%

 

 

79.6

%

Georgian Terrace

Atlanta, Georgia

 

63.9

%

 

 

67.0

%

 

 

70.2

%

 

 

67.9

%

 

 

70.6

%

 

 

70.8

%

Hotel Ballast Wilmington, Tapestry Collection by Hilton

Wilmington, North Carolina

 

64.2

%

 

 

61.8

%

 

 

61.9

%

 

 

63.9

%

 

 

68.3

%

 

 

70.5

%

Hyatt Centric Arlington (1)

Arlington, Virginia

 

74.8

%

 

 

76.0

%

 

 

65.7

%

 

 

83.8

%

 

 

84.0

%

 

 

79.5

%

Sheraton Louisville Riverside

Jeffersonville, Indiana

 

58.5

%

 

 

48.6

%

 

 

53.8

%

 

 

60.6

%

 

 

63.8

%

 

 

63.1

%

The Whitehall

Houston, Texas

 

54.6

%

 

 

41.2

%

 

 

52.3

%

 

 

57.5

%

 

 

58.1

%

 

 

54.4

%

Hyde Resort & Residences (2)

Hollywood Beach, Florida

 

39.3

%

 

 

38.4

%

 

N/A

 

 

 

49.8

%

 

 

37.9

%

 

N/A

 

All properties weighted average (1)

 

65.6

%

 

 

58.4

%

 

 

64.7

%

 

 

70.2

%

 

 

67.4

%

 

 

71.6

%

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2018

 

 

Q4 2017

 

 

Q4 2016

 

 

YTD

 

 

YTD

 

 

YTD

 

Crowne Plaza Tampa Westshore

Tampa, Florida

$

116.92

 

 

$

116.39

 

 

$

115.81

 

 

$

124.72

 

 

$

119.85

 

 

$

116.15

 

The DeSoto

Savannah, Georgia

$

173.37

 

 

$

157.93

 

 

$

151.81

 

 

$

177.19

 

 

$

159.50

 

 

$

155.87

 

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

$

134.76

 

 

$

140.34

 

 

$

143.00

 

 

$

139.84

 

 

$

132.19

 

 

$

126.67

 

DoubleTree by Hilton Laurel

Laurel, Maryland

$

104.12

 

 

$

104.74

 

 

$

105.18

 

 

$

107.98

 

 

$

107.77

 

 

$

104.35

 

DoubleTree by Hilton Philadelphia Airport

Philadelphia, Pennsylvania

$

139.61

 

 

$

138.64

 

 

$

137.14

 

 

$

139.25

 

 

$

135.54

 

 

$

144.92

 

DoubleTree by Hilton Raleigh Brownstone – University

Raleigh, North Carolina

$

134.17

 

 

$

131.29

 

 

$

140.87

 

 

$

134.26

 

 

$

133.24

 

 

$

134.74

 

DoubleTree Resort by Hilton Hollywood Beach

Hollywood, Florida

$

168.37

 

 

$

167.71

 

 

$

156.61

 

 

$

175.18

 

 

$

170.76

 

 

$

170.57

 

Georgian Terrace

Atlanta, Georgia

$

193.65

 

 

$

186.21

 

 

$

160.31

 

 

$

186.28

 

 

$

175.06

 

 

$

160.89

 

Hotel Ballast Wilmington, Tapestry Collection by Hilton

Wilmington, North Carolina

$

158.77

 

 

$

143.62

 

 

$

141.37

 

 

$

153.04

 

 

$

148.69

 

 

$

147.14

 

Hyatt Centric Arlington (1)

Arlington, Virginia

$

170.31

 

 

$

173.07

 

 

$

169.42

 

 

$

181.38

 

 

$

176.31

 

 

$

170.19

 

Sheraton Louisville Riverside

Jeffersonville, Indiana

$

112.16

 

 

$

138.65

 

 

$

125.95

 

 

$

122.62

 

 

$

133.86

 

 

$

137.34

 

The Whitehall

Houston, Texas

$

147.60

 

 

$

154.94

 

 

$

136.22

 

 

$

146.01

 

 

$

147.66

 

 

$

140.70

 

Hyde Resort & Residences (2)

Hollywood Beach, Florida

$

299.46

 

 

$

289.66

 

 

N/A

 

 

$

299.30

 

 

$

282.20

 

 

N/A

 

All properties weighted average (1)

$

156.15

 

 

$

153.03

 

 

$

143.64

 

 

$

160.11

 

 

$

150.73

 

 

$

145.78

 

 

(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.

 

 

 


RevPAR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2018

 

 

Q4 2017

 

 

Q4 2016

 

 

YTD

 

 

YTD

 

 

YTD

 

Crowne Plaza Tampa Westshore

Tampa, Florida

$

75.68

 

 

$

91.57

 

 

$

77.81

 

 

$

89.73

 

 

$

94.81

 

 

$

86.69

 

The DeSoto

Savannah, Georgia

$

97.91

 

 

$

97.22

 

 

$

95.67

 

 

$

109.21

 

 

$

106.15

 

 

$

111.48

 

DoubleTree by Hilton Jacksonville Riverfront

Jacksonville, Florida

$

105.33

 

 

$

109.41

 

 

$

102.93

 

 

$

114.06

 

 

$

105.56

 

 

$

98.06

 

DoubleTree by Hilton Laurel

Laurel, Maryland

$

69.16

 

 

$

60.57