Home » HOTEL NEWS » Sotherly Hotels Reports Strong 2024 Growth with Revenue Surge and Strategic Expansions in the U.S. Hospitality Market

Thursday, March 13, 2025

Sotherly Hotels Inc. (NASDAQ: SOHO), a leading self-managed lodging real estate investment trust (REIT), has released its financial results for the fourth quarter and full year ending December 31, 2024. The company’s latest earnings report highlights positive trends in revenue growth, hotel performance, and strategic property enhancements, signaling continued resilience in the hospitality industry.

Q4 2024 Key Financial Highlights

• Total Revenue Growth: Sotherly Hotels reported a total revenue of $43.95 million for Q4 2024, up from $42.14 million in Q4 2023, marking a steady increase in earnings.
• Annual Revenue Increase: The company achieved a 4.6% annual revenue increase, rising to $181.89 million in 2024 from $173.84 million in 2023.
• Hotel EBITDA Performance: Sotherly’s hotel EBITDA reached $10.67 million, reflecting a positive trend compared to $10.30 million in Q4 2023. For the full year, hotel EBITDA increased by $2.02 million to $46.81 million, showcasing operational efficiency and strong property performance.
• Revenue Per Available Room (RevPAR): RevPAR for the company’s composite portfolio increased 2.6% year-over-year, reaching $108.99 in Q4 2024, supported by higher occupancy levels.
• Occupancy Growth: The company saw a 4.1% increase in occupancy, improving to 64.1% in Q4 2024 compared to 60.0% in the same quarter last year.

Strategic Property Investments and Market Expansion

Sotherly Hotels continued to focus on property enhancements and strategic market expansions to strengthen its hospitality portfolio. In 2024, the company successfully refinanced or extended mortgages for several of its flagship properties, including:

• DoubleTree by Hilton Philadelphia Airport
• Hotel Alba Tampa, Tapestry Collection by Hilton
• DoubleTree by Hilton Jacksonville Riverfront

Additionally, the company has been executing comprehensive lifecycle improvements in partnership with Hilton, particularly at its DoubleTree locations in Philadelphia and Jacksonville. These enhancements are designed to elevate the guest experience, enhance brand positioning, and maintain competitive market share.

Hurricane Recovery and Resilience Measures

The company also provided updates on the recovery efforts at Hotel Alba Tampa, Tapestry Collection by Hilton, which sustained damage from Hurricane Helene. The property was fully operational in Q4 2024, with restoration efforts nearing completion. Insurance proceeds have covered most repair costs, with only final furniture, fixture, and equipment (FF&E) replacements and elevator upgrades pending.

Positive Outlook for 2025 and Market Optimism

Looking ahead, Sotherly Hotels remains optimistic about demand recovery across key markets, particularly in Houston, Atlanta, Hollywood (Florida), and Philadelphia. These markets have shown strong revenue and profitability gains as the hospitality sector rebounds from the pandemic’s long-term effects.

Projected 2025 Outlook:

• Total Revenue: Expected to range between $183.39 million and $188.17 million.
• RevPAR Growth: Estimated between $119.77 and $122.89.
• Hotel EBITDA: Anticipated between $48.83 million and $49.62 million.
• Adjusted FFO per Share: Forecasted at $0.57 to $0.61.

Investor and Earnings Call Information

Sotherly Hotels Inc. will host its Q4 2024 investor earnings call on March 13, 2025, at 10:00 AM Eastern Time. Interested participants can join via:

• Phone: Dial 833-470-1428 (US) and enter access code 538548.
• Replay Available: A recorded version will be accessible from March 13 through March 20, 2025, by dialing 866-813-9403 and entering access code 963139.

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