Sotherly Hotels Inc. (NASDAQ: SOHO), a self-managed and self-administered lodging real estate investment trust, today reported its consolidated results for the second quarter ended June 30, 2023. The Company’s results include the following*:
Three Months Ended | Six Months Ended | |||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||
($ in thousands except per share data) | ($ in thousands except per share data) | |||||||||||
Total revenue | $ | 49,017 | $ | 47,170 | $ | 92,509 | $ | 85,523 | ||||
Net income attributable to common stockholders | 3,133 | 24,269 | 2,551 | 21,762 | ||||||||
EBITDA | 14,103 | 37,552 | 24,051 | 47,005 | ||||||||
Hotel EBITDA | 14,842 | 14,772 | 26,921 | 24,746 | ||||||||
FFO attributable to common stockholders and unitholders | 7,251 | 736 | 11,192 | 2,509 | ||||||||
Adjusted FFO attributable to common stockholders and unitholders |
7,031 | 6,225 | 11,689 | 7,471 | ||||||||
Net income per common share – diluted | $ | 0.16 | $ | 1.32 | $ | 0.13 | $ | 1.20 | ||||
FFO per common share and unit | $ | 0.37 | $ | 0.04 | $ | 0.57 | $ | 0.14 | ||||
Adjusted FFO per common share and unit | $ | 0.36 | $ | 0.33 | $ | 0.60 | $ | 0.40 |
(*) Earnings before interest, taxes, depreciation and amortization (“EBITDA”), hotel EBITDA, funds from operations (“FFO”) attributable to common stockholders and unitholders, adjusted FFO attributable 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
Dave Folsom, President and Chief Executive Officer of Sotherly Hotels Inc., commented, “Our portfolio delivered solid results for the quarter, highlighted by the continued improvement of fundamentals at our urban hotels, which saw further recovery from the corporate and group segments, as well as weekend leisure travel. The improvement in operating fundamentals for the portfolio was encouraging, especially considering difficult comps for our leisure segment and moderate market-related headwinds faced in Atlanta and South Florida during the quarter. We continued to see excellent performances at our hotels in Wilmington, Arlington, and Savannah, where we saw continued strong market demand. ADR for Q2 2023 was $185.82, a 3.4% increase over prior year. As of August 1, 2023, overall group booking pace was 24.0% ahead of prior year, while booking pace for business travel increased by 18.0% over prior year. The strength in both group and business traveler bookings reflects the market’s continued demand normalization for these revenue segments. In the quarter, we successfully refinanced the mortgage loan on our Laurel hotel, where we were able to extract net cash proceeds due to the hotel’s enviable profitably coming out of the pandemic. Lastly, during the quarter, the Company made an important step in repairing its balance sheet by approving a payment of approximately $1.9 million on its unpaid cumulative preferred dividends.”
Balance Sheet/Liquidity
As of June 30, 2023, the Company had approximately $32.2 million of available cash and cash equivalents, of which approximately $8.0 million was reserved for real estate taxes, insurance, capital improvements and certain other expenses or otherwise restricted. The Company had principal balances of approximately $322.7 million in outstanding debt, including mortgage and unsecured principal balances, at a weighted average interest rate of approximately 5.11%.
Other Events
On May 4, 2023, affiliates of the Company entered into loan documents to secure a $10.0 million mortgage loan on the DoubleTree by Hilton Laurel hotel located in Laurel, MD with Citi Real Estate Funding Inc. Pursuant to the loan documents, the mortgage loan: (i) has a principal balance of $10.0 million; (ii) has a maturity date of May 6, 2028; (iii) carries a fixed interest rate of 7.35%; (iv) requires payments of interest only; (v) cannot be prepaid until the last 4 months of the loan term; and (vi) contains customary representations, warranties, covenants and events of default for a mortgage loan.
Q3 2023 Outlook
Set forth below is the Company’s guidance for Q3 2023. The table below reflects the Company’s projections, within a range, of various financial measures for Q3 2023, in thousands of dollars, except per share and RevPAR data:
Q3 2023 Guidance | |||||||
Low Range | High Range | ||||||
Total revenue | $ | 39,100 | $ | 41,044 | |||
Net loss | (2,272 | ) | (1,831 | ) | |||
Net loss available to common stockholders and unitholders | (4,267 | ) | (3,826 | ) | |||
EBITDA | 6,466 | 6,907 | |||||
Hotel EBITDA | 8,541 | 8,982 | |||||
FFO available to common stockholders and unitholders | 270 | 711 | |||||
Adjusted FFO available to common stockholders and unitholders | 636 | 1,077 | |||||
Net loss per share available to common stockholders | $ | (0.22 | ) | $ | (0.20 | ) | |
FFO per common share and unit | $ | 0.01 | $ | 0.04 | |||
Adjusted FFO per common share and unit | $ | 0.03 | $ | 0.06 | |||
Rev PAR | $ | 105.38 | $ | 110.62 | |||
Hotel EBITDA margin | 21.8 | % | 21.9 | % |
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. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company’s portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.
SOTHERLY HOTELS INC. | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
June 30, 2023 | December 31, 2022 | |||||
(unaudited) | ||||||
ASSETS | ||||||
Investment in hotel properties, net | $ | 360,056,196 | $ | 365,070,725 | ||
Cash and cash equivalents | 24,226,602 | 21,918,680 | ||||
Restricted cash | 7,962,807 | 5,422,950 | ||||
Accounts receivable, net | 5,247,324 | 5,844,904 | ||||
Prepaid expenses, inventory and other assets | 10,520,047 | 8,311,862 | ||||
TOTAL ASSETS | $ | 408,012,976 | $ | 406,569,121 | ||
LIABILITIES | ||||||
Mortgage loans, net | $ | 319,289,449 | $ | 320,482,103 | ||
Unsecured notes | 1,929,073 | 2,545,975 | ||||
Accounts payable and accrued liabilities | 25,516,483 | 25,704,835 | ||||
Advance deposits | 2,703,265 | 2,233,013 | ||||
Dividends and distributions payable | 4,082,472 | 4,082,472 | ||||
TOTAL LIABILITIES | $ | 353,520,742 | $ | 355,048,398 | ||
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, 1,464,100 and 1,464,100 shares issued and outstanding; aggregate liquidation preference $45,387,100 and $44,655,050, at June 30, 2023 and December 31, 2022, respectively. |
14,641 | 14,641 | ||||
7.875% Series C cumulative redeemable perpetual preferred stock, 1,346,110 and 1,346,110 shares issued and outstanding; aggregate liquidation preference $41,603,220 and $40,940,681, at June 30, 2023 and December 31, 2022, respectively. |
13,461 | 13,461 | ||||
8.25% Series D cumulative redeemable perpetual preferred stock, 1,163,100 and 1,163,100 shares issued and outstanding; aggregate liquidation preference $36,274,181 and $35,674,458, at June 30, 2023 and December 31, 2022, respectively. |
11,631 | 11,631 | ||||
Common stock, par value $0.01, 69,000,000 shares authorized, 19,310,803 shares issued and outstanding at June 30, 2023 and 18,951,525 shares issued and outstanding at December 31, 2022. |
193,108 | 189,515 | ||||
Additional paid-in capital | 176,258,261 | 175,611,370 | ||||
Unearned ESOP shares | (2,509,867 | ) | (2,601,134 | ) | ||
Distributions in excess of retained earnings | (118,434,462 | ) | (120,985,183 | ) | ||
Total Sotherly Hotels Inc. stockholders’ equity | 55,546,773 | 52,254,301 | ||||
Noncontrolling interest | (1,054,539 | ) | (733,578 | ) | ||
TOTAL EQUITY | 54,492,234 | 51,520,723 | ||||
TOTAL LIABILITIES AND EQUITY | $ | 408,012,976 | $ | 406,569,121 |
SOTHERLY HOTELS INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||
REVENUE | ||||||||||||
Rooms department | $ | 33,253,523 | $ | 32,545,588 | $ | 61,655,211 | $ | 57,398,973 | ||||
Food and beverage department | 9,500,974 | 7,712,310 | 18,249,700 | 13,330,046 | ||||||||
Other operating departments | 6,262,836 | 6,912,361 | 12,603,699 | 14,793,842 | ||||||||
Total revenue | 49,017,333 | 47,170,259 | 92,508,610 | 85,522,861 | ||||||||
EXPENSES | ||||||||||||
Hotel operating expenses | ||||||||||||
Rooms department | 7,016,339 | 7,205,585 | 13,429,434 | 13,155,343 | ||||||||
Food and beverage department | 6,390,867 | 5,256,164 | 12,326,427 | 9,136,781 | ||||||||
Other operating departments | 2,305,755 | 2,599,372 | 4,621,603 | 5,083,479 | ||||||||
Indirect | 18,462,336 | 17,337,585 | 35,209,913 | 33,400,946 | ||||||||
Total hotel operating expenses | 34,175,297 | 32,398,706 | 65,587,377 | 60,776,549 | ||||||||
Depreciation and amortization | 4,763,193 | 4,619,743 | 9,341,504 | 9,184,815 | ||||||||
Loss on disposal of assets | — | 520,156 | — | 490,613 | ||||||||
Corporate general and administrative | 1,789,041 | 1,432,366 | 3,769,805 | 2,946,393 | ||||||||
Total hotel operating expenses | 40,727,531 | 38,970,971 | 78,698,686 | 73,398,370 | ||||||||
NET OPERATING INCOME | 8,289,802 | 8,199,288 | 13,809,924 | 12,124,491 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | (4,288,367 | (5,342,940 | ) | (8,401,964 | ) | (11,056,144 | ) | |||||
Interest income | 222,772 | 27,486 | 369,437 | 51,934 | ||||||||
Loss on early extinguishment of debt | — | (5,944,881 | ) | — | (5,944,881 | ) | ||||||
Unrealized gain (loss) on hedging activities | 286,831 | 572,497 | (155,632 | ) | 1,534,760 | |||||||
PPP debt forgiveness | — | — | 275,494 | — | ||||||||
Gain on sale of hotel properties | — | 30,053,977 | — | 30,053,977 | ||||||||
Gain on involuntary conversion of assets | 763,169 | 51,547 | 779,645 | 51,547 | ||||||||
Net income before income taxes | 5,274,207 | 27,616,974 | 6,676,904 | 26,815,684 | ||||||||
Income tax provision | (16,537 | (11,615 | ) | (31,719 | ) | (21,269 | ) | |||||
Net income | 5,257,670 | 27,605,359 | 6,645,185 | 26,794,415 | ||||||||
Add: Net income attributable to noncontrolling interest | (130,798 | (1,529,940 | ) | (105,838 | ) | (1,368,319 | ) | |||||
Net income attributable to the Company | 5,126,872 | 26,075,419 | 6,539,347 | 25,426,096 | ||||||||
Undeclared distributions to preferred stockholders | (1,994,313 | (1,889,470 | ) | (3,988,625 | ) | (3,826,086 | ) | |||||
Gain on extinguishment of preferred stock | — | 83,500 | — | 161,675 | ||||||||
Net income attributable to common stockholders | $ | 3,132,559 | $ | 24,269,449 | $ | 2,550,722 | $ | 21,761,685 | ||||
Net income per share attributable to common stockholders | ||||||||||||
Basic | $ | 0.17 | $ | 1.36 | $ | 0.13 | $ | 1.24 | ||||
Diluted | $ | 0.16 | $ | 1.32 | $ | 0.13 | $ | 1.20 | ||||
Weighted average number of common shares outstanding | ||||||||||||
Basic | 18,712,452 | 17,762,513 | 18,673,942 | 17,436,975 | ||||||||
Diluted | 19,064,550 | 18,304,508 | 19,029,433 | 18,031,381 |
SOTHERLY HOTELS INC.
KEY OPERATING METRICS
(unaudited)
The following tables illustrate the key operating metrics for the three and six months ended June 30, 2023, 2022 and 2021, respectively, for the Company’s wholly-owned properties (“actual” portfolio metrics), accordingly, the actual data does not include the participating condominium hotel rooms of the Hyde Resort & Residences and the Hyde Beach House Resort & Residences. The ten wholly-owned properties in the portfolio that were under the Company’s control during the three and six months ended June 30, 2023 and the corresponding periods in 2022 and 2021 are considered same-store properties (“same-store” portfolio metrics). Accordingly, the same-store data does not reflect the performances of the Sheraton Louisville Riverside which was sold in February 2022, or the DoubleTree by Hilton Raleigh-Brownstone University which was sold in June 2022. The composite portfolio metrics represent the Company’s wholly-owned properties and the participating condominium hotel rooms at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences, during the three and six months ended June 30, 2023 and the corresponding periods in 2022 and 2021. The same-store (composite) portfolio metrics includes all properties with the exceptions of the Sheraton Louisville Riverside, DoubleTree by Hilton Raleigh-Brownstone University and the Hyde Beach House Resort & Residences, during the three and six months ended June 30, 2023 and the corresponding periods in 2022 and 2021.
Three Months Ended |
Three Months Ended |
Three Months Ended |
Six Months Ended |
Six Months Ended |
Six Months Ended |
|||||||||||||
June 30, 2023 |
June 30, 2022 |
June 30, 2021 |
June 30, 2023 |
June 30, 2022 |
June 30, 2021 |
|||||||||||||
Actual Portfolio Metrics | ||||||||||||||||||
Occupancy % | 70.6 | % | 68.8 | % | 58.6 | % | 65.6 | % | 61.1 | % | 49.9 | % | ||||||
ADR | $ | 185.82 | $ | 179.18 | $ | 142.79 | $ | 186.45 | $ | 174.22 | $ | 138.70 | ||||||
RevPAR | $ | 131.16 | $ | 123.29 | $ | 83.73 | $ | 122.27 | $ | 106.49 | $ | 69.22 | ||||||
Same-Store Portfolio Metrics | ||||||||||||||||||
Occupancy % | 70.6 | % | 69.5 | % | 59.3 | % | 65.6 | % | 62.0 | % | 50.4 | % | ||||||
ADR | $ | 185.82 | $ | 179.75 | $ | 147.37 | $ | 186.45 | $ | 176.25 | $ | 143.47 | ||||||
RevPAR | $ | 131.16 | $ | 124.97 | $ | 87.34 | $ | 122.27 | $ | 109.22 | $ | 72.33 | ||||||
Composite Portfolio Metrics | ||||||||||||||||||
Occupancy % | 69.4 | % | 68.0 | % | 59.0 | % | 64.9 | % | 60.8 | % | 50.4 | % | ||||||
ADR | $ | 190.15 | $ | 189.09 | $ | 161.00 | $ | 193.35 | $ | 188.25 | $ | 159.93 | ||||||
RevPAR | $ | 131.94 | $ | 128.63 | $ | 94.93 | $ | 125.53 | $ | 114.46 | $ | 80.54 | ||||||
Same-Store (Composite) Portfolio Metrics | ||||||||||||||||||
Occupancy % | 70.1 | % | 69.4 | % | 59.8 | % | 65.3 | % | 62.0 | % | 51.0 | % | ||||||
ADR | $ | 188.24 | $ | 185.61 | $ | 158.79 | $ | 190.45 | $ | 184.41 | $ | 157.48 | ||||||
RevPAR | $ | 131.94 | $ | 128.73 | $ | 94.88 | $ | 124.41 | $ | 114.31 | $ | 80.24 |
SOTHERLY HOTELS INC.
SUPPLEMENTAL DATA
(unaudited)
The following tables illustrate the key operating metrics for the three and six months ended June 30, 2023, 2022 and 2021, respectively, for each of the Company’s wholly-owned properties during each respective reporting period, irrespective of ownership percentage during any period.
Occupancy
Q2 2023 | Q2 2022 | Q2 2021 | ||||||
YTD | YTD | YTD | ||||||
The DeSoto Savannah, Georgia |
78.8 | % | 76.4 | % | 70.3 | % | ||
71.6 | % | 69.2 | % | 55.9 | % | |||
DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
75.1 | % | 76.2 | % | 78.8 | % | ||
73.1 | % | 70.4 | % | 67.7 | % | |||
DoubleTree by Hilton Laurel Laurel, Maryland |
77.1 | % | 71.9 | % | 48.1 | % | ||
62.2 | % | 59.9 | % | 47.5 | % | |||
DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
70.8 | % | 76.0 | % | 63.6 | % | ||
62.7 | % | 66.1 | % | 52.9 | % | |||
DoubleTree Resort by Hilton Hollywood Beach Hollywood, Florida |
63.1 | % | 75.5 | % | 71.6 | % | ||
64.0 | % | 69.5 | % | 56.3 | % | |||
Georgian Terrace Atlanta, Georgia |
52.6 | % | 47.8 | % | 50.0 | % | ||
49.7 | % | 48.4 | % | 43.4 | % | |||
Hotel Alba Tampa, Tapestry Collection by Hilton Tampa, Florida |
77.6 | % | 80.2 | % | 77.2 | % | ||
80.5 | % | 80.6 | % | 73.1 | % | |||
Hotel Ballast Wilmington, Tapestry Collection by Hilton Wilmington, North Carolina |
81.1 | % | 73.0 | % | 55.9 | % | ||
68.5 | % | 58.1 | % | 44.8 | % | |||
Hyatt Centric Arlington Arlington, Virginia |
83.5 | % | 78.2 | % | 42.7 | % | ||
77.0 | % | 61.1 | % | 39.9 | % | |||
The Whitehall Houston, Texas |
51.0 | % | 42.0 | % | 35.6 | % | ||
49.8 | % | 39.2 | % | 25.8 | % | |||
Hyde Resort & Residences (1) Hollywood Beach, Florida |
48.8 | % | 63.1 | % | 73.1 | % | ||
54.6 | % | 62.6 | % | 64.4 | % | |||
Hyde Beach House Resort & Residences (1) Hollywood Beach, Florida |
40.7 | % | 48.9 | % | 54.8 | % | ||
48.7 | % | 50.1 | % | 49.1 | % | |||
All properties weighted average | 70.1 | % | 69.4 | % | 59.8 | % | ||
65.3 | % | 62.0 | % | 51.0 | % |
(1)Reflects only those condominium units participating in our rental program for the period.
ADR
Q2 2023 | Q2 2022 | Q2 2021 | |||||||
YTD | YTD | YTD | |||||||
The DeSoto Savannah, Georgia |
$ | 226.05 | $ | 228.94 | $ | 192.53 | |||
$ | 219.76 | $ | 216.47 | $ | 176.46 | ||||
DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
$ | 142.14 | $ | 146.36 | $ | 133.42 | |||
$ | 151.07 | $ | 147.23 | $ | 128.77 | ||||
DoubleTree by Hilton Laurel Laurel, Maryland |
$ | 134.12 | $ | 122.39 | $ | 90.27 | |||
$ | 128.90 | $ | 115.69 | $ | 92.93 | ||||
DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
$ | 151.42 | $ | 149.15 | $ | 115.77 | |||
$ | 141.08 | $ | 134.66 | $ | 108.00 | ||||
DoubleTree Resort by Hilton Hollywood Beach Hollywood, Florida |
$ | 206.75 | $ | 215.92 | $ | 184.23 | |||
$ | 236.62 | $ | 233.12 | $ | 191.48 | ||||
Georgian Terrace Atlanta, Georgia |
$ | 191.87 | $ | 195.32 | $ | 172.37 | |||
$ | 198.86 | $ | 193.42 | $ | 173.28 | ||||
Hotel Alba Tampa, Tapestry Collection by Hilton Tampa, Florida |
$ | 176.32 | $ | 167.44 | $ | 135.29 | |||
$ | 195.91 | $ | 177.50 | $ | 149.27 | ||||
Hotel Ballast Wilmington, Tapestry Collection by Hilton Wilmington, North Carolina |
$ | 202.92 | $ | 196.93 | $ | 182.91 | |||
$ | 187.09 | $ | 185.35 | $ | 163.41 | ||||
Hyatt Centric Arlington Arlington, Virginia |
$ | 235.80 | $ | 202.29 | $ | 106.66 | |||
$ | 216.59 | $ | 186.51 | $ | 105.47 | ||||
The Whitehall Houston, Texas |
$ | 167.78 | $ | 149.69 | $ | 122.28 | |||
$ | 166.21 | $ | 147.82 | $ | 119.53 | ||||
Hyde Resort & Residences (1) Hollywood Beach, Florida |
$ | 338.68 | $ | 417.95 | $ | 411.01 | |||
$ | 396.59 | $ | 462.92 | $ | 432.78 | ||||
Hyde Beach House Resort & Residences (1) Hollywood Beach, Florida |
$ | 324.00 | $ | 367.23 | $ | 432.82 | |||
$ | 349.96 | $ | 413.99 | $ | 430.05 | ||||
All properties weighted average | $ | 188.24 | $ | 185.61 | $ | 158.79 | |||
$ | 190.45 | $ | 184.41 | $ | 157.48 |
(1)Reflects only those condominium units participating in our rental program for the period.
RevPAR
Q2 2023 | Q2 2022 | Q2 2021 | |||||||
YTD | YTD | YTD | |||||||
The DeSoto Savannah, Georgia |
$ | 178.02 | $ | 174.80 | $ | 135.28 | |||
$ | 157.34 | $ | 149.81 | $ | 98.70 | ||||
DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
$ | 106.76 | $ | 111.54 | $ | 105.16 | |||
$ | 110.38 | $ | 103.61 | $ | 87.22 | ||||
DoubleTree by Hilton Laurel Laurel, Maryland |
$ | 103.41 | $ | 87.94 | $ | 43.38 | |||
$ | 80.19 | $ | 69.31 | $ | 44.10 | ||||
DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
$ | 107.13 | $ | 113.35 | $ | 73.64 | |||
$ | 88.43 | $ | 88.97 | $ | 57.17 | ||||
DoubleTree Resort by Hilton Hollywood Beach Hollywood, Florida |
$ | 130.46 | $ | 163.12 | $ | 131.82 | |||
$ | 151.44 | $ | 162.04 | $ | 107.84 | ||||
Georgian Terrace Atlanta, Georgia |
$ | 100.97 | $ | 93.40 | $ | 86.17 | |||
$ | 98.82 | $ | 93.52 | $ | 75.20 | ||||
Hotel Alba Tampa, Tapestry Collection by Hilton Tampa, Florida |
$ | 136.82 | $ | 134.30 | $ | 104.44 | |||
$ | 157.71 | $ | 143.15 | $ | 109.17 | ||||
Hotel Ballast Wilmington, Tapestry Collection by Hilton Wilmington, North Carolina |
$ | 164.53 | $ | 143.69 | $ | 102.28 | |||
$ | 128.20 | $ | 107.72 | $ | 73.27 | ||||
Hyatt Centric Arlington Arlington, Virginia |
$ | 196.89 | $ | 158.21 | $ | 45.52 | |||
$ | 166.67 | $ | 113.98 | $ | 42.11 | ||||
The Whitehall Houston, Texas |
$ | 85.54 | $ | 62.94 | $ | 43.49 | |||
$ | 82.80 | $ | 57.94 | $ | 30.80 | ||||
Hyde Resort & Residences (1) Hollywood Beach, Florida |
$ | 165.25 | $ | 263.75 | $ | 300.54 | |||
$ | 216.68 | $ | 289.97 | $ | 278.73 | ||||
Hyde Beach House Resort & Residences (1) Hollywood Beach, Florida |
$ | 131.96 | $ | 179.45 | $ | 237.04 | |||
$ | 170.55 | $ | 207.43 | $ | 211.29 | ||||
All properties weighted average | $ | 131.94 | $ | 128.73 | $ | 94.88 | |||
$ | 124.41 | $ | 114.31 | $ | 80.24 |
(1)Reflects only those condominium units participating in our rental program for the period.
SOTHERLY HOTELS INC. | ||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO | ||||||||||||
FFO, Adjusted FFO, EBITDA and Hotel EBITDA | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended |
Three Months Ended |
Six Months Ended | Six Months Ended | |||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||
Net income | $ | 5,257,670 | $ | 27,605,359 | $ | 6,645,185 | $ | 26,794,415 | ||||
Depreciation and amortization – real estate | 4,750,322 | 4,605,649 | 9,314,947 | 9,156,025 | ||||||||
Distributions to preferred stockholders | (1,994,313 | ) | (1,889,470 | ) | (3,988,625 | ) | (3,826,086 | ) | ||||
Gain on disposal of assets | — | (29,533,821 | ) | — | (29,563,364 | ) | ||||||
Gain on involuntary conversion of assets | (763,169 | ) | (51,547 | ) | (779,645 | ) | (51,547 | ) | ||||
FFO attributable to common stockholders and unitholders | 7,250,510 | 736,170 | 11,191,862 | 2,509,443 | ||||||||
Amortization | 12,871 | 14,094 | 26,557 | 28,790 | ||||||||
ESOP and stock – based compensation | 54,488 | 102,528 | 314,951 | 522,689 | ||||||||
Loss on early debt extinguishment | — | 5,944,881 | — | 5,944,881 | ||||||||
Unrealized loss (gain) on hedging activities | (286,831 | ) | (572,497 | ) | 155,632 | (1,534,760 | ) | |||||
Adjusted FFO attributable to common stockholders and unitholders | $ | 7,031,038 | $ | 6,225,176 | $ | 11,689,002 | $ | 7,471,043 | ||||
Weighted average number of shares outstanding, basic | 18,712,452 | 17,762,513 | 18,673,942 | 17,436,975 | ||||||||
Weighted average number of non-controlling units | 772,441 | 1,110,093 | 798,668 | 1,121,841 | ||||||||
Weighted average number of shares and units outstanding, basic | 19,484,893 | 18,872,606 | 19,472,610 | 18,558,816 | ||||||||
FFO per common share and unit | $ | 0.37 | $ | 0.04 | $ | 0.57 | $ | 0.14 | ||||
Adjusted FFO per common share and unit | $ | 0.36 | $ | 0.33 | $ | 0.60 | $ | 0.40 |
Three Months Ended |
Three Months Ended |
Six Months Ended | Six Months Ended | |||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||
Net income | $ | 5,257,670 | $ | 27,605,359 | $ | 6,645,185 | $ | 26,794,415 | ||||
Interest expense | 4,288,367 | 5,342,940 | 8,401,964 | 11,056,144 | ||||||||
Interest income | (222,772 | ) | (27,486 | ) | (369,437 | ) | (51,934 | ) | ||||
Income tax provision | 16,537 | 11,615 | 31,719 | 21,269 | ||||||||
Depreciation and amortization | 4,763,193 | 4,619,743 | 9,341,504 | 9,184,815 | ||||||||
EBITDA | 14,102,995 | 37,552,171 | 24,050,935 | 47,004,709 | ||||||||
PPP loan forgiveness | — | — | (275,494 | ) | — | |||||||
Loss on early debt extinguishment | — | 5,944,881 | — | 5,944,881 | ||||||||
Gain on disposal of assets | — | (29,533,821 | ) | — | (29,563,364 | ) | ||||||
Gain on involuntary conversion of assets | (763,169 | ) | (51,547 | ) | (779,645 | ) | (51,547 | ) | ||||
Subtotal | 13,339,826 | 13,911,684 | 22,995,796 | 23,334,679 | ||||||||
Corporate general and administrative | 1,789,041 | 1,432,366 | 3,769,805 | 2,946,393 | ||||||||
Unrealized loss (gain) on hedging activities | (286,831 | ) | (572,497 | ) | 155,632 | (1,534,760 | ) | |||||
Hotel EBITDA | $ | 14,842,036 | $ | 14,771,553 | $ | 26,921,233 | $ | 24,746,312 |
Tables below are reflected in thousands of dollars:
Reconciliation of Outlook of Net Income to EBITDA and Hotel EBITDA | ||||||
Q3 2023 Guidance | ||||||
Low Range | High Range | |||||
Net loss | $ | (2,272 | ) | $ | (1,831 | ) |
Interest expense | 4,308 | 4,308 | ||||
Interest income | (150 | ) | (150 | ) | ||
Income tax provision | 30 | 30 | ||||
Depreciation and amortization | 4,550 | 4,550 | ||||
EBITDA | 6,466 | 6,907 | ||||
Unrealized loss on hedging activities | 300 | 300 | ||||
Corporate general and administrative | 1,775 | 1,775 | ||||
Hotel EBITDA | $ | 8,541 | $ | 8,982 | ||
Reconciliation of Outlook of Net Income to FFO and Adjusted FFO | ||||||
Q3 2023 Guidance | ||||||
Low Range | High Range | |||||
Net loss | $ | (2,272 | ) | $ | (1,831 | ) |
Depreciation and amortization | 4,537 | 4,537 | ||||
FFO | 2,265 | 2,706 | ||||
Distributions to preferred stockholders | (1,995 | ) | (1,995 | ) | ||
FFO attributable to common stockholders and unitholders | 270 | 711 | ||||
Amortization | 13 | 13 | ||||
Unrealized loss on hedging activities | 300 | 300 | ||||
ESOP stock based compensation | 53 | 53 | ||||
Adjusted FFO attributable to common stockholders and unitholders | $ | 636 | $ | 1,077 | ||