WILLIAMSBURG, Va., May 12, 2022 (GLOBE NEWSWIRE) — Sotherly Hotels Inc. (NASDAQ: SOHO), (“Sotherly” or the “Company”), a self-managed and self-administered lodging actual property funding belief (a “REIT”), at the moment reported its consolidated outcomes for the first quarter ended March 31, 2022. The Company’s outcomes embody the following*:
| Three Months Ended | |||||||||||
| March 31, 2022 | March 31, 2021 | March 31, 2019 | |||||||||
| ($ in 1000’s besides per share knowledge) | |||||||||||
| Total income | $ | 38,353 | $ | 22,636 | $ | 47,390 | |||||
| Net loss attributable to frequent stockholders | (2,508 | ) | (9,065 | ) | (1,654 | ) | |||||
| EBITDA | 9,453 | 3,290 | 11,163 | ||||||||
| Hotel EBITDA | 9,975 | 4,201 | 13,172 | ||||||||
| FFO attributable to frequent stockholders and unitholders | 1,773 | (4,800 | ) | 3,988 | |||||||
| Adjusted FFO attributable to frequent stockholders and unitholders | 1,246 | (4,688 | ) | 4,944 | |||||||
| Net loss per frequent share | $ | (0.15 | ) | $ | (0.62 | ) | $ | (0.12 | ) | ||
| FFO per frequent share and unit | $ | 0.10 | $ | (0.30 | ) | $ | 0.26 | ||||
| Adjusted FFO per frequent share and unit | $ | 0.07 | $ | (0.30 | ) | $ | 0.32 | ||||
(*) Earnings earlier than curiosity, taxes, depreciation and amortization (“EBITDA”), lodge EBITDA, funds from operations (“FFO”) accessible to frequent stockholders and unitholders, adjusted FFO accessible to frequent stockholders and unitholders, FFO per frequent share and unit and adjusted FFO per frequent share and unit are non-GAAP monetary measures. See additional dialogue of those non-GAAP measures, together with definitions associated thereto, and reconciliations to internet revenue (loss) later on this press launch. The Company is the sole normal accomplice of Sotherly Hotels LP, a Delaware restricted partnership (the “Operating Partnership”), and all references on this launch to the “Company”, “Sotherly”, “we”, “us” and “our” seek advice from Sotherly Hotels Inc., its Operating Partnership and its subsidiaries and predecessors, until the context in any other case requires or it’s in any other case indicated.
HIGHLIGHTS
- RevPAR. While room income per accessible room (“RevPAR”) for the Company’s composite portfolio, which incorporates the rooms taking part in our rental packages at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences, elevated to $100.89 for the three months ended March 31, 2022, from $66.14 in the comparable interval in 2021, it was 17.2% under RevPAR of $121.86 for the comparable interval in 2019. Changes in RevPAR have been pushed by a rise in the common each day charge (“ADR”) to $187.23 for the three months ended March 31, 2022, from $158.40 for the comparable interval in 2021. ADR for the three months ended March 31, 2022, was 7.5% increased than ADR for the comparable interval in 2019. RevPAR for the three months ended March 31, 2022, was additionally pushed by a rise in occupancy to 53.9% from 41.8% in the comparable 2021 interval. However, occupancy for the three months ended March 31, 2022, was nonetheless 16.0% under the 69.9% occupancy achieved throughout the comparable 2019 interval.
- Revenue. Total income elevated to roughly $38.4 million for the three months ended March 31, 2022 from roughly $22.6 million throughout the comparable interval in 2021. Total income for the three months ended March 31, 2022 was 19.1% under whole income of roughly $47.4 million throughout the comparable 2019 interval.
- Common Dividends. As authorised by its Board of Directors, the Company has suspended its common quarterly money dividend so as to protect liquidity. Accordingly, the Company didn’t pay a dividend on its frequent inventory and customary items for the quarter ended March 31, 2022. The Board of Directors will proceed to watch the state of affairs and assess future quarterly frequent dividend declarations. Per the phrases of the Company’s most well-liked inventory, the Company can not make any frequent dividend funds until full cumulative distributions have been declared and paid for previous distribution intervals for every collection of most well-liked inventory.
- Hotel EBITDA. The Company elevated manufacturing of Hotel EBITDA to roughly $10.0 million for the three months ended March 31, 2022, from roughly $4.2 million throughout the comparable interval in 2021. Hotel EBITDA for the three months ended March 31, 2022, was roughly $3.2 million under the Hotel EBITDA generated in the comparable 2019 interval.
- Adjusted FFO attributable to frequent stockholders and unitholders. For the three-month interval ending March 31, 2022, adjusted FFO attributable to frequent stockholders and unitholders improved 126.6%, or roughly $5.9 million, over the three months ended March 31, 2021, from a deficit of roughly $4.7 million to a surplus of roughly $1.2 million.
Dave Folsom, President and Chief Executive Officer of Sotherly Hotels Inc., commented, “Although the first six weeks of the quarter were challenging, due to COVID-themed impacts, we have since seen a significant rebound in hotel demand across all of our markets, and as a result, quarterly operating performance for the first quarter of 2022 far exceeded our expectations. Leisure demand remained strong in the quarter and we also saw long dormant group and business travel bookings begin to improve. The pace of group bookings remains strong and we see future bookings stretching well into 2023. As demand continues to improve, room rates have proven to be an outsized component of RevPAR. In the quarter, our portfolio’s ADR increased 18.2% over the first quarter of 2021 and was 7.5% higher than ADR in the first quarter of 2019. We believe positive rate pressure will continue in the coming quarters and will help drive growth in hotel EBITDA margins. Given these factors, we remain optimistic about the pace of our industry’s recovery and the outlook for Sotherly.”
ESTIMATED CHANGE IN CASH
The Company estimates the money generated from its portfolio for the second quarter to vary between roughly $1.50 million to $1.80 million primarily based on the following assumptions:
- Hotel-level constructive money movement for the quarter of roughly $13.35 million to $13.60 million;
- Corporate-level G&A money use of $1.50 million;
- Capital expenditures of roughly $2.00 million to $2.05 million;
- Scheduled combination debt service of roughly $6.30 million for the quarter; and
- Other incremental reductions of principal and deferred curiosity of roughly $2.00 million.
Balance Sheet/Liquidity
As of March 31, 2022, the Company had roughly $30.3 million of obtainable money and money equivalents, of which roughly $10.1 million was reserved for actual property taxes, insurance, capital enhancements and sure different bills or in any other case restricted. The Company had principal balances, internet of roughly $365.7 million in excellent debt, together with mortgage and secured and unsecured principal balances, at a weighted common rate of interest of roughly 4.71%.
2022 Outlook
For the second quarter of 2022, the Company expects Composite RevPAR to be down roughly 1.0% in comparison with the second quarter of 2019, a lot improved from the second quarter of 2021. Due to the uncertainties associated to the COVID-19 pandemic and its affect on journey, the Company is unable to offer further steering for 2022.
Portfolio Update
On February 10, 2022, the Company closed the sale of the Sheraton Louisville Riverside lodge. There have been no internet proceeds from the sale.
On November 30, 2021, Raleigh Hotel Associates, LLC, a Delaware restricted legal responsibility firm and an affiliate of the Company, entered into an actual property sale settlement to promote the DoubleTree by Hilton Raleigh-Brownstone University lodge situated in Raleigh, North Carolina to CS Acquisition Vehicle, LLC, a Delaware restricted legal responsibility firm, for a purchase order value of $42.0 million. The Company intends to make use of any internet money proceeds from the sale of the lodge to repay the current mortgage on the property, repay a portion of the secured notes with Kemmons Wilson, make any required distribution on the Company’s most well-liked inventory associated to sustaining the Company’s REIT standing, and for normal company functions. The closing of the sale of the lodge is topic to numerous customary closing situations, together with the accuracy of representations and warranties via closing, and situations associated to the termination of lodge agreements and leases. On February 28, 2022, we entered into an modification to the actual property sale settlement whereby: (i) the due diligence interval expired efficient upon the execution of the modification; and (ii) the purchaser’s earnest cash deposit in the quantity of $800,000 in money was required to be deposited with the escrow agent no later than March 2, 2022. The purchaser exercised an possibility to increase closing for an extra 30 days in alternate for an extra money deposit of $800,000, with the cut-off date now set for June 1, 2022.
Earnings Call/Webcast
The Company will conduct its first quarter 2022 convention name for buyers and different events at 10:00 a.m. Eastern Time on Thursday, May 12, 2022. The convention name shall be accessible by phone and thru the Internet. Interested people are invited to hearken to the name by phone at 844-200-6205 (United States) or +1 929-526-1599 (International) and enter entry code 927367. To take part on the webcast, go online to www.sotherlyhotels.com at the least quarter-hour earlier than the name to obtain the essential software program. For these unable to hearken to the name reside, a taped rebroadcast shall be accessible starting one hour after completion of the reside name on May 12, 2022 via May 26, 2022. To entry the rebroadcast, dial 866-813-9403 or +44 204-525-0658 and enter entry code 855180.
About Sotherly Hotels Inc.
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT targeted on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service motels in the Southern United States. Sotherly may additionally opportunistically purchase motels all through the United States. Currently, the Company’s portfolio consists of investments in eleven lodge properties, comprising 2,976 rooms, in addition to pursuits in two condominium motels and their related rental packages. The Company owns motels that function underneath the Hilton Worldwide and Hyatt Hotels Corporation manufacturers, in addition to impartial motels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For extra data, please go to www.sotherlyhotels.com.
Forward-Looking Statements
This information launch consists of “forward-looking statements” inside the which means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as such could contain identified and unknown dangers, uncertainties and different elements which can trigger our precise outcomes, efficiency or achievements to be materially completely different from future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Forward-looking statements, that are primarily based on sure assumptions and describe our present methods, expectations, and future plans are typically recognized by our use of phrases, equivalent to “intend,” “plan,” “may,” “should,” “will,” “project,” “estimate,” “anticipate,” “believe,” “expect,” “continue,” “potential,” “opportunity,” and related expressions, whether or not in the damaging or affirmative, however the absence of those phrases doesn’t essentially imply {that a} assertion isn’t forward-looking. All statements relating to our anticipated monetary place, business and financing plans are forward-looking statements.
Factors which might have a fabric adversarial impact on the Company’s future outcomes, efficiency and achievements, embody, however are usually not restricted to: nationwide and native financial and business situations that have an effect on occupancy charges and revenues at our motels and the demand for lodge services; dangers related to the lodge trade, together with competitors and new provide of lodge rooms, will increase in wages, power prices and different working prices; dangers related to the stage of our indebtedness and our skill to satisfy covenants in our debt agreements, together with our lately negotiated forbearance agreements and mortgage modifications and, as essential, to refinance or search an extension of the maturity of such indebtedness or additional modification of such debt agreements; dangers related to adversarial climate situations, together with hurricanes; impacts on the journey trade from pandemic ailments, together with COVID-19; the availability and phrases of financing and capital and the normal volatility of the securities markets; administration and efficiency of our motels; dangers related to sustaining our system of inner controls; dangers related to the conflicts of curiosity of the Company’s officers and administrators; dangers related to redevelopment and repositioning initiatives, together with delays and value overruns; provide and demand for lodge rooms in our present and proposed market areas; dangers related to our skill to take care of our franchise agreements with our third celebration franchisors; our skill to accumulate further properties and the threat that potential acquisitions could not carry out in accordance with expectations; our skill to efficiently increase into new markets; legislative/regulatory modifications, together with modifications to legal guidelines governing taxation of actual property funding trusts (“REITs”); the Company’s skill to take care of its qualification as a REIT; and our skill to take care of sufficient insurance protection. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are cheap, any of the assumptions might be inaccurate, and due to this fact there might be no assurance that such statements included on this report will show to be correct. In gentle of the important uncertainties inherent in the forward-looking statements included herein, the inclusion of such data shouldn’t be thought to be a illustration by the Company or another person who the outcomes or situations described in such statements or the aims and plans of the Company shall be achieved.
Additional elements that might trigger precise outcomes to range from our forward-looking statements are set forth underneath the part titled “Risk Factors” in our Annual Report on Form 10-Okay, on this report and subsequent reviews filed with the Securities and Exchange Commission. The Company undertakes no obligation to and doesn’t intend to publicly replace or revise any forward-looking assertion, whether or not on account of new data, future occasions or in any other case. Although the Company believes its present expectations to be primarily based upon cheap assumptions, it can provide no assurance that its expectations shall be attained or that precise outcomes is not going to differ materially.
Financial Tables Follow
SOTHERLY HOTELS INC.
CONSOLIDATED BALANCE SHEETS
| March 31, 2022 | December 31, 2021 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Investment in lodge properties, internet | $ | 372,629,466 | $ | 375,885,224 | ||||
| Investment in lodge properties held for sale, internet | 11,806,536 | 22,870,487 | ||||||
| Cash and money equivalents | 20,184,327 | 13,166,883 | ||||||
| Restricted money | 10,137,452 | 12,411,654 | ||||||
| Accounts receivable, internet | 3,959,215 | 4,822,187 | ||||||
| Prepaid bills, stock and different property | 7,129,479 | 6,894,228 | ||||||
| TOTAL ASSETS | $ | 425,846,475 | $ | 436,050,663 | ||||
| LIABILITIES | ||||||||
| Mortgage loans, internet | $ | 338,831,497 | $ | 351,170,883 | ||||
| Secured notes, internet | 19,237,289 | 19,128,330 | ||||||
| Unsecured notes, internet | 7,609,934 | 7,609,934 | ||||||
| Accounts payable and accrued liabilities | 38,087,621 | 35,960,293 | ||||||
| Advance deposits | 1,842,634 | 1,552,942 | ||||||
| Dividends and distributions payable | 4,114,176 | 4,125,351 | ||||||
| TOTAL LIABILITIES | $ | 409,723,151 | $ | 419,547,733 | ||||
| Commitments and contingencies | — | — | ||||||
| EQUITY | ||||||||
| Sotherly Hotels Inc. stockholders’ fairness | ||||||||
| Preferred inventory, $0.01 par worth, 11,000,000 shares approved: | ||||||||
| 8.0% Series B cumulative redeemable perpetual most well-liked inventory, 1,497,100 and 1,510,000 shares issued and excellent; combination liquidation desire $43,415,900 and $43,035,000, at March 31, 2022 and December 31, 2021, respectively. | 14,971 | 15,100 | ||||||
| 7.875% Series C cumulative redeemable perpetual most well-liked inventory, 1,375,010 and 1,384,610 shares issued and excellent; combination liquidation desire $39,789,357 and $39,385,669, at March 31, 2022 and December 31, 2021, respectively. | 13,750 | 13,846 | ||||||
| 8.25% Series D cumulative redeemable perpetual most well-liked inventory, 1,165,000 and 1,165,000 shares issued and excellent; combination liquidation desire $33,930,625 and $33,329,922, at March 31, 2022 and December 31, 2021, respectively. | 11,650 | 11,650 | ||||||
| Common inventory, par worth $0.01, 69,000,000 shares approved, 17,849,101 shares issued and excellent at March 31, 2022 and 17,441,058 shares issued and excellent at December 31, 2021. | 178,491 | 174,410 | ||||||
| Additional paid-in capital | 178,028,889 | 177,651,954 | ||||||
| Unearned ESOP shares | (3,032,851 | ) | (3,083,398 | ) | ||||
| Distributions in extra of retained earnings | (154,171,027 | ) | (153,521,704 | ) | ||||
| Total Sotherly Hotels Inc. stockholders’ fairness | 21,043,873 | 21,261,858 | ||||||
| Noncontrolling curiosity | (4,920,549 | ) | (4,758,928 | ) | ||||
| TOTAL EQUITY | 16,123,324 | 16,502,930 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 425,846,475 | $ | 436,050,663 | ||||
SOTHERLY HOTELS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended | Three Months Ended | |||||||
| March 31, 2022 | March 31, 2021 | |||||||
| REVENUE | ||||||||
| Rooms division | $ | 24,853,385 | $ | 15,493,604 | ||||
| Food and beverage division | 5,617,736 | 1,543,240 | ||||||
| Other working departments | 7,881,482 | 5,598,688 | ||||||
| Total income | 38,352,603 | 22,635,532 | ||||||
| EXPENSES | ||||||||
| Hotel working bills | ||||||||
| Rooms division | 5,949,757 | 3,996,617 | ||||||
| Food and beverage division | 3,880,617 | 910,264 | ||||||
| Other working departments | 2,484,107 | 1,938,877 | ||||||
| Indirect | 16,063,361 | 11,589,077 | ||||||
| Total lodge working bills | 28,377,842 | 18,434,835 | ||||||
| Depreciation and amortization | 4,565,072 | 4,982,015 | ||||||
| Gain on disposal of property | (29,542 | ) | — | |||||
| Corporate normal and administrative | 1,514,027 | 1,300,958 | ||||||
| Total lodge working bills | 34,427,399 | 24,717,808 | ||||||
| NET OPERATING INCOME (LOSS) | 3,925,204 | (2,082,276 | ) | |||||
| Other revenue (expense) | ||||||||
| Interest expense | (5,713,205 | ) | (5,919,523 | ) | ||||
| Interest revenue | 24,448 | 38,599 | ||||||
| Unrealized achieve on hedging actions | 962,263 | 390,185 | ||||||
| Net loss earlier than revenue taxes | (801,290 | ) | (7,573,015 | ) | ||||
| Income tax provision | (9,654 | ) | (2,609 | ) | ||||
| Net loss | (810,944 | ) | (7,575,624 | ) | ||||
| Less: Net loss attributable to noncontrolling curiosity | 161,621 | 699,539 | ||||||
| Net loss attributable to the Company | (649,323 | ) | (6,876,085 | ) | ||||
| Declared and undeclared distributions to most well-liked stockholders | (1,936,617 | ) | (2,188,910 | ) | ||||
| Gain on extinguishment of most well-liked inventory | 78,175 | — | ||||||
| Net loss attributable to frequent stockholders | $ | (2,507,765 | ) | $ | (9,064,995 | ) | ||
| Net loss per share attributable to frequent stockholders | ||||||||
| Basic | $ | (0.15 | ) | $ | (0.62 | ) | ||
| Weighted common variety of frequent shares excellent | ||||||||
| Basic | 17,169,532 | 14,615,720 | ||||||
SOTHERLY HOTELS INC.
KEY OPERATING METRICS
(unaudited)
The following tables illustrate the key working metrics for the three months ended March 31, 2022, 2021 and 2019, respectively, for the Company’s wholly-owned properties (“actual” portfolio metrics), accordingly, the precise knowledge doesn’t embody the taking part condominium lodge rooms of the Hyde Resort & Residences and the Hyde Beach House Resort & Residences. The eleven wholly-owned properties in the portfolio that have been underneath the Company’s management throughout the three months ended March 31, 2022 and the corresponding intervals in 2021 and 2019 are thought-about same-store properties (“same-store” portfolio metrics). Accordingly, the same-store knowledge doesn’t replicate the efficiency of the Sheraton Louisville Riverside which was bought in February 2022. The composite portfolio metrics characterize the Company’s wholly-owned properties and the taking part condominium lodge rooms at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences, throughout the three months ended March 31, 2022 and the corresponding intervals in 2021 and 2019. The same-store (composite) portfolio metrics consists of all properties with the exceptions of the Sheraton Louisville Riverside and the Hyde Beach House Resort & Residences, throughout the three months ended March 31, 2022 and the corresponding intervals in 2021 and 2019.
| Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||
| March 31, 2022 | March 31, 2021 | March 31, 2019 | |||||||||||
| Actual Portfolio Metrics | |||||||||||||
| Occupancy % | 53.7 | % | 41.1 | % | 70.1 | % | |||||||
| ADR | $ | 168.12 | $ | 132.78 | $ | 165.57 | |||||||
| RevPAR | $ | 90.36 | $ | 54.55 | $ | 116.01 | |||||||
| Same-Store Portfolio Metrics | |||||||||||||
| Occupancy % | 53.9 | % | 40.7 | % | 71.0 | % | |||||||
| ADR | $ | 170.01 | $ | 135.82 | $ | 167.98 | |||||||
| RevPAR | $ | 91.60 | $ | 55.23 | $ | 119.33 | |||||||
| Composite Portfolio Metrics | |||||||||||||
| Occupancy % | 53.9 | % | 41.8 | % | 69.9 | % | |||||||
| ADR | $ | 187.23 | $ | 158.40 | $ | 174.24 | |||||||
| RevPAR | $ | 100.89 | $ | 66.14 | $ | 121.86 | |||||||
| Same-Store (Composite) Portfolio Metrics | |||||||||||||
| Occupancy % | 54.1 | % | 41.3 | % | 70.8 | % | |||||||
| ADR | $ | 180.61 | $ | 152.95 | $ | 176.90 | |||||||
| RevPAR | $ | 97.72 | $ | 63.23 | $ | 125.32 | |||||||
SOTHERLY HOTELS INC.
SUPPLEMENTAL DATA
(unaudited)
The following tables illustrate the key working metrics for the three months ended March 31, 2022, 2021 and 2019, respectively, for every of the Company’s wholly-owned properties throughout every respective reporting interval, no matter possession share throughout any interval.
Occupancy
| Q1 2022 | Q1 2021 | Q1 2019 | |||||||||
| The DeSoto Savannah, Georgia |
62.0 | % | 41.4 | % | 63.8 | % | |||||
| DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
64.5 | % | 56.5 | % | 83.0 | % | |||||
| DoubleTree by Hilton Laurel Laurel, Maryland |
47.8 | % | 46.9 | % | 61.3 | % | |||||
| DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
56.0 | % | 42.2 | % | 64.9 | % | |||||
| DoubleTree by Hilton Raleigh Brownstone – University Raleigh, North Carolina |
47.3 | % | 28.8 | % | 71.9 | % | |||||
| DoubleTree Resort by Hilton Hollywood Beach Hollywood, Florida |
63.4 | % | 40.9 | % | 78.3 | % | |||||
| Georgian Terrace Atlanta, Georgia |
48.9 | % | 36.7 | % | 75.3 | % | |||||
| Hotel Alba Tampa, Tapestry Collection by Hilton Tampa, Florida |
81.1 | % | 69.0 | % | 79.7 | % | |||||
| Hotel Ballast Wilmington, Tapestry Collection by Hilton Wilmington, North Carolina |
43.1 | % | 33.6 | % | 62.4 | % | |||||
| Hyatt Centric Arlington Arlington, Virginia |
43.8 | % | 37.1 | % | 73.0 | % | |||||
| The Whitehall Houston, Texas |
36.3 | % | 15.9 | % | 64.6 | % | |||||
| Hyde Resort & Residences (1) Hollywood Beach, Florida |
62.2 | % | 58.5 | % | 67.7 | % | |||||
| Hyde Beach House Resort & Residences (1) Hollywood Beach, Florida |
51.3 | % | 43.4 | % | – | ||||||
| All properties weighted common | 54.1 | % | 41.3 | % | 70.8 | % | |||||
| (1) Reflects solely these condominium items taking part in our rental program for the interval. | |||||||||||
ADR
| Q1 2022 | Q1 2021 | Q1 2019 | |||||||||
| The DeSoto Savannah, Georgia |
$ | 200.95 | $ | 148.92 | $ | 180.28 | |||||
| DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
$ | 148.26 | $ | 122.22 | $ | 146.30 | |||||
| DoubleTree by Hilton Laurel Laurel, Maryland |
$ | 105.50 | $ | 95.68 | $ | 109.61 | |||||
| DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
$ | 114.79 | $ | 96.15 | $ | 125.43 | |||||
| DoubleTree by Hilton Raleigh Brownstone – University Raleigh, North Carolina |
$ | 141.13 | $ | 93.29 | $ | 136.22 | |||||
| DoubleTree Resort by Hilton Hollywood Beach Hollywood, Florida |
$ | 253.85 | $ | 204.31 | $ | 231.09 | |||||
| Georgian Terrace Atlanta, Georgia |
$ | 191.54 | $ | 174.55 | $ | 249.49 | |||||
| Hotel Alba Tampa, Tapestry Collection by Hilton Tampa, Florida |
$ | 187.56 | $ | 165.07 | $ | 143.83 | |||||
| Hotel Ballast Wilmington, Tapestry Collection by Hilton Wilmington, North Carolina |
$ | 165.53 | $ | 130.64 | $ | 137.75 | |||||
| Hyatt Centric Arlington Arlington, Virginia |
$ | 158.05 | $ | 104.09 | $ | 176.47 | |||||
| The Whitehall Houston, Texas |
$ | 145.64 | $ | 113.31 | $ | 146.15 | |||||
| Hyde Resort & Residences (1) Hollywood Beach, Florida |
$ | 505.41 | $ | 456.89 | $ | 334.37 | |||||
| Hyde Beach House Resort & Residences (1) Hollywood Beach, Florida |
$ | 455.52 | $ | 426.82 | $ | – | |||||
| All properties weighted common | $ | 176.90 | $ | 152.95 | $ | 174.24 | |||||
| (1) Reflects solely these condominium items taking part in our rental program for the interval. | |||||||||||
RevPAR
| Q1 2022 | Q1 2021 | Q1 2019 | |||||||||
| The DeSoto Savannah, Georgia |
$ | 124.54 | $ | 61.72 | $ | 114.94 | |||||
| DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
$ | 95.60 | $ | 69.09 | $ | 121.38 | |||||
| DoubleTree by Hilton Laurel Laurel, Maryland |
$ | 50.46 | $ | 44.83 | $ | 67.21 | |||||
| DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
$ | 64.31 | $ | 40.53 | $ | 81.45 | |||||
| DoubleTree by Hilton Raleigh Brownstone – University Raleigh, North Carolina |
$ | 66.71 | $ | 26.89 | $ | 97.91 | |||||
| DoubleTree Resort by Hilton Hollywood Beach Hollywood, Florida |
$ | 160.95 | $ | 83.59 | $ | 180.89 | |||||
| Georgian Terrace Atlanta, Georgia |
$ | 93.64 | $ | 64.12 | $ | 187.75 | |||||
| Hotel Alba Tampa, Tapestry Collection by Hilton Tampa, Florida |
$ | 152.11 | $ | 113.94 | $ | 114.67 | |||||
| Hotel Ballast Wilmington, Tapestry Collection by Hilton Wilmington, North Carolina |
$ | 71.35 | $ | 43.93 | $ | 86.00 | |||||
| Hyatt Centric Arlington Arlington, Virginia |
$ | 69.27 | $ | 38.66 | $ | 128.87 | |||||
| The Whitehall Houston, Texas |
$ | 52.88 | $ | 17.97 | $ | 94.37 | |||||
| Hyde Resort & Residences (1) Hollywood Beach, Florida |
$ | 314.39 | $ | 267.47 | $ | 226.23 | |||||
| Hyde Beach House Resort & Residences (1) Hollywood Beach, Florida |
$ | 233.50 | $ | 185.08 | $ | – | |||||
| $ | 97.72 | $ | 63.23 | $ | 125.32 | ||||||
| (1) Reflects solely these condominium items taking part in our rental program for the interval. | |||||||||||
SOTHERLY HOTELS INC.
RECONCILIATION OF NET LOSS TO
FFO, Adjusted FFO, EBITDA and Hotel EBITDA
(unaudited)
| Three Months Ended | Three Months Ended | |||||||
| March 31, 2022 | March 31, 2021 | |||||||
| Net loss | $ | (810,944 | ) | $ | (7,575,624 | ) | ||
| Depreciation and amortization – actual property | 4,550,376 | 4,964,515 | ||||||
| Distributions to most well-liked stockholders | (1,936,617 | ) | (2,188,910 | ) | ||||
| Gain on disposal of property | (29,542 | ) | — | |||||
| FFO attributable to frequent stockholders and unitholders | $ | 1,773,273 | $ | (4,800,019 | ) | |||
| Amortization | 14,696 | 17,500 | ||||||
| ESOP and inventory – primarily based compensation | 420,161 | 485,047 | ||||||
| Unrealized achieve on hedging actions | (962,263 | ) | (390,185 | ) | ||||
| Adjusted FFO attributable to frequent stockholders and unitholders | $ | 1,245,867 | $ | (4,687,657 | ) | |||
| Weighted common variety of shares excellent, fundamental |
17,169,532 | 14,615,720 | ||||||
| Weighted common variety of non-controlling items | 1,133,720 | 1,166,440 | ||||||
| Weighted common variety of shares and items excellent, fundamental |
18,303,252 | 15,782,160 | ||||||
| FFO per frequent share and unit | $ | 0.10 | $ | (0.30 | ) | |||
| Adjusted FFO per frequent share and unit | $ | 0.07 | $ | (0.30 | ) | |||
| Three Months Ended | Three Months Ended | |||||||
| March 31, 2022 | March 31, 2021 | |||||||
| Net loss | $ | (810,944 | ) | $ | (7,575,624 | ) | ||
| Interest expense | 5,713,205 | 5,919,523 | ||||||
| Interest revenue | (24,448 | ) | (38,599 | ) | ||||
| Income tax provision (profit) | 9,654 | 2,609 | ||||||
| Depreciation and amortization | 4,565,072 | 4,982,015 | ||||||
| EBITDA | 9,452,539 | 3,289,924 | ||||||
| Gain on disposal of property | (29,542 | ) | — | |||||
| Subtotal | 9,422,997 | 3,289,924 | ||||||
| Corporate normal and administrative | 1,514,027 | 1,300,958 | ||||||
| Unrealized achieve on hedging actions | (962,263 | ) | (390,185 | ) | ||||
| Hotel EBITDA | $ | 9,974,761 | $ | 4,200,697 | ||||
Non-GAAP Financial Measures
The Company considers the non-GAAP monetary measures of FFO (together with FFO per share), Adjusted FFO, EBITDA and lodge EBITDA to be key supplemental measures of the Company’s efficiency and might be thought-about together with, not options to, internet revenue (loss) as a measure of the Company’s efficiency. These measures don’t characterize money generated from working actions decided by typically accepted accounting ideas (“GAAP”) or quantities accessible for the Company’s discretionary use and shouldn’t be thought-about various measures of internet revenue, money flows from operations or another working efficiency measure prescribed by GAAP.
FFO
Industry analysts and buyers use Funds from Operations (“FFO”), as a supplemental working efficiency measure of an fairness REIT. FFO is calculated in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO, as outlined by NAREIT, represents internet revenue or loss decided in accordance with GAAP, excluding extraordinary objects as outlined underneath GAAP and beneficial properties or losses from gross sales of beforehand depreciated working actual property property, plus sure non-cash objects equivalent to actual property asset depreciation and amortization or impairment, inventory compensation prices and after adjustment for any noncontrolling curiosity from unconsolidated partnerships and joint ventures. Historical price accounting for actual property property in accordance with GAAP implicitly assumes that the worth of actual property property diminishes predictably over time. Since actual property values as a substitute have traditionally risen or fallen with market situations, many buyers and analysts have thought-about the presentation of working outcomes for actual property firms that use historic price accounting to be inadequate by itself.
The Company considers FFO to be a helpful measure of adjusted internet revenue (loss) for reviewing comparative working and monetary efficiency as a result of we consider FFO is most immediately similar to internet revenue (loss), which stays the main measure of efficiency, as a result of by excluding beneficial properties or losses associated to gross sales of beforehand depreciated working actual property property and excluding actual property asset depreciation and amortization, FFO assists in evaluating the working efficiency of an organization’s actual property between intervals or as in comparison with completely different firms. Although FFO is meant to be a REIT trade normal, different firms could not calculate FFO in the similar method as we do, and buyers mustn’t assume that FFO as reported by us is similar to FFO as reported by different REITs.
Adjusted FFO
The Company presents adjusted FFO, together with adjusted FFO per share and unit, which adjusts for sure further objects that aren’t in NAREIT’s definition of FFO together with modifications in deferred revenue taxes, any unrealized achieve (loss) on hedging devices or warrant by-product, mortgage impairment losses, losses on early extinguishment of debt, beneficial properties on extinguishment of most well-liked inventory, aborted providing prices, mortgage modification charges, franchise termination prices, prices related to the departure of govt officers, litigation settlement, over-assessed actual property taxes on attraction, administration contract termination prices, working asset depreciation and amortization, change in management beneficial properties or losses, ESOP and inventory compensation bills and acquisition transaction prices. We exclude these things as we consider it permits for significant comparisons between intervals and amongst different REITs and is extra indicative than FFO of the on-going efficiency of our business and property. Our calculation of adjusted FFO could also be completely different from related measures calculated by different REITs.
EBITDA
The Company believes that excluding the impact of non-operating bills and non-cash prices, and the portion of these objects associated to unconsolidated entities, all of that are additionally primarily based on historic price accounting and could also be of restricted significance in evaluating present efficiency, might help get rid of the accounting results of depreciation and financing choices and facilitate comparisons of core working profitability between intervals and between REITs, although EBITDA additionally doesn’t characterize an quantity that accrued on to shareholders.
Hotel EBITDA
The Company defines lodge EBITDA as internet revenue or loss excluding: (1) curiosity expense, (2) curiosity revenue, (3) revenue tax provision or profit, (4) depreciation and amortization, (5) impairment of long-lived property or investments, (6) beneficial properties and losses on disposal of property, (7) beneficial properties and losses on involuntary conversions of property, (8) unrealized beneficial properties and losses on by-product devices not included in different complete revenue, (9) loss on early debt extinguishment, (10) achieve on train of improvement proper, (11) company normal and administrative expense, and (12) different working income not associated to our wholly-owned portfolio. We consider this gives a extra full understanding of the working outcomes over which our wholly-owned motels and its operators have direct management. We consider lodge EBITDA gives buyers with supplemental data on the on-going operational efficiency of our motels and the effectiveness of third-party administration firms working our business on a property-level foundation. The Company’s calculation of lodge EBITDA could also be completely different from related measures calculated by different REITs.
