Sotherly Hotels Inc. (SOHO): history, ownership, mission, how it works & makes money

A Brief History of Sotherly Hotels Inc. (SOHO)

Company Formation and Early Years

Sotherly Hotels Inc. was established in 2004 and is headquartered in Williamsburg, Virginia. The company focuses on acquiring, developing, and managing upscale hotels in the United States.

Initial Public Offering

SOHO went public on the NASDAQ stock exchange under the ticker symbol "SOHO" on October 31, 2014, raising approximately $32 million through its IPO.

Acquisitions and Growth

Since its inception, Sotherly Hotels has strategically acquired multiple hotels. As of 2023, the company owns and operates 15 hotels across various markets. Notable acquisitions include:

Financial Performance

For the fiscal year ending December 31, 2022, Sotherly Hotels reported:

• Total Revenue: $75.2 million
• Net Income: $2.1 million
• Adjusted EBITDA: $18.6 million
• Occupancy Rate: 73%

COVID-19 Impact and Recovery

The COVID-19 pandemic significantly affected the hospitality industry. In 2020, Sotherly Hotels saw a revenue decline of approximately 50%, with occupancy rates dropping to around 30%. However, recovery initiatives and strategic partnerships helped the company rebound, with a 2021 occupancy rate of 60% as travel restrictions eased.

Current Market Position and Future Outlook

As of September 2023, Sotherly Hotels remains focused on expanding its portfolio and enhancing guest experiences. The company has projected an increase in revenue of approximately 10% for the fiscal year 2023, driven by the anticipated recovery in travel demand.

Corporate Governance

Sotherly Hotels is governed by a Board of Directors comprising industry veterans with extensive experience in hospitality and finance. The executive leadership team is committed to sustainable growth and adherence to best practices in corporate governance.

Conclusion on Current Status

Sotherly Hotels continues to adapt to changing market conditions and consumer preferences, positioning itself as a robust player in the hospitality sector.

A Who Owns Sotherly Hotels Inc. (SOHO)

Overview of Ownership Structure

As of the last fiscal year, Sotherly Hotels Inc. operates within a complex ownership structure predominantly characterized by institutional and individual investors.

Top Institutional Shareholders

The following table outlines the top institutional shareholders of Sotherly Hotels Inc.:

Major Individual Shareholders

The individual shareholder landscape is comprised of seasoned investors, as indicated in the following table:

Share Distribution and Trends

As of the latest reports, the total number of shares outstanding for Sotherly Hotels Inc. is approximately 6,300,000. The distribution of shares indicates a significant percentage held by institutional investors, primarily hedge funds and mutual funds, which is indicative of the company's appeal in the hospitality sector.

Recent Developments in Ownership

In the recent fiscal year, several institutions increased their stakes in Sotherly Hotels Inc., notably:

• BlackRock raised its position by 1.2%.
• Dimensional Fund Advisors LP increased their shares by 0.8%.
• The Vanguard Group added an additional 50,000 shares.

Market Capitalization

As of the latest trading data, Sotherly Hotels Inc. has a market capitalization of approximately $63 million. This value reflects the current trading price of its shares, which was around $10.00 per share at the time of reporting.

Conclusion on Ownership Insights

The ownership structure of Sotherly Hotels Inc. reveals a mix of institutional dominance and significant individual stakeholder participation. This is reflective of investor confidence in the company's strategies and market positioning within the hospitality industry.

Sotherly Hotels Inc. (SOHO) Mission Statement

Corporate Overview

Sotherly Hotels Inc. is a publicly traded company specializing in the ownership and operation of upscale, full-service hotels in the United States. As of October 2023, Sotherly operates a portfolio of 14 hotels across various locations.

Vision and Purpose

The mission of Sotherly Hotels Inc. is to provide exceptional guest experiences, foster a culture of dedication and excellence, and prioritize sustainable hospitality practices. Sotherly aims to enhance shareholder value while ensuring guest satisfaction and employee engagement.

Core Values

• Integrity: Conducting business with honesty and transparency.
• Innovation: Embracing new ideas and technologies to improve service.
• Excellence: Dedicating to the highest standards of quality and performance.
• Community: Contributing positively to the communities in which they operate.

Financial Performance

As of Q2 2023, Sotherly Hotels recorded a total revenue of approximately $30.5 million, representing a year-over-year increase of 12%. The Adjusted EBITDA for the same period was around $10.2 million, with a net income of $3.1 million.

Market Strategy

Sotherly focuses on developing strategic partnerships with local businesses, enhancing customer loyalty programs, and marketing unique local experiences to attract both leisure and business travelers.

Sustainability Initiatives

The company is committed to implementing sustainable practices, aiming for a 25% reduction in water consumption and a 15% decrease in energy usage by 2025.

Recent Developments

In 2023, Sotherly Hotels acquired two upscale properties located in Virginia and North Carolina, adding approximately 300 rooms to its portfolio, with an investment of $45 million.

Employee Engagement

As of 2023, Sotherly Hotels employs over 800 staff members across its properties. The company emphasizes employee training programs, with a budget of approximately $1 million annually dedicated to professional development.

Guest Satisfaction

According to recent surveys, Sotherly Hotels maintains a guest satisfaction rating of 4.5 out of 5 stars. The company strives to achieve a net promoter score (NPS) of 50 or higher.

Conclusion

Sotherly Hotels Inc. aims to balance profitability with sustainable growth while providing memorable and high-quality experiences for their guests.

How Sotherly Hotels Inc. (SOHO) Works

Corporate Structure

Sotherly Hotels Inc. is a publicly traded real estate investment trust (REIT) that focuses on owning, operating, and developing upscale, full-service hotels. The company primarily targets properties in the southeastern and southwestern United States.

Business Model

The company's revenue is generated through hotel room rentals, food and beverage services, and other ancillary services. In 2022, Sotherly Hotels reported a total revenue of $104.5 million.

Property Portfolio

• Total number of hotels: 12
• Total number of rooms: 1,688
• Average occupancy rate in 2022: 67%
• Geographic focus: Southeastern and Southwestern United States

Financial Performance

In 2022, Sotherly Hotels Inc. reported the following financial metrics:

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $39 million
• Net income: $1.2 million
• Funds From Operations (FFO): $11.5 million
• Dividend per share: $0.60

Market Position

The market capitalization of Sotherly Hotels Inc. as of October 2023 stands at approximately $56 million. The company is listed on the NASDAQ under the ticker symbol SOHO.

Strategic Initiatives

Sotherly Hotels focuses on strategic acquisitions and renovations of properties to enhance value and drive profitability. Major renovations completed in 2022 included:

• Lobby redesigns
• Room upgrades
• Enhanced food and beverage services

Challenges and Opportunities

Challenges include rising operational costs and competition within the hospitality sector. However, opportunities for growth exist in expanding tourism in the southeastern U.S. and increasing the number of properties under management.

How Sotherly Hotels Inc. (SOHO) Makes Money

Revenue Streams

Sotherly Hotels Inc. generates revenue primarily through the following avenues:

• Room Revenue
• Food and Beverage Sales
• Other Ancillary Services

Room Revenue

The majority of Sotherly Hotels' income comes from room bookings. For the fiscal year 2022, the net revenue from rooms was approximately $73 million. The occupancy rate across the portfolio averaged 75%. In addition, the average daily rate (ADR) was reported to be $150.

Food and Beverage Sales

Food and beverage services contribute significantly, with annual revenues reaching around $25 million. This includes:

• On-site restaurants
• Room service
• Banquet and catering services

Ancillary Services

Additional revenue stems from various ancillary services, including:

• Event hosting
• Parking fees
• Wi-Fi and other guest services

In 2022, ancillary services accounted for approximately $10 million.

Operating Expenses

Operating expenses are a critical component of the financial structure. For 2022, total operating expenses were approximately $70 million. Key cost areas included:

• Labor costs
• Maintenance and utilities
• Marketing and sales

Net Income

The net income for Sotherly Hotels has fluctuated over the years, affected by both market conditions and management strategies. The net income for the fiscal year 2022 was approximately $5 million. The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $12 million.

Debt and Financing

Sotherly Hotels maintains financial health through a combination of equity and debt financing. As of the end of 2022, total debt was reported at $80 million. The company has a debt-to-equity ratio of approximately 1.5.

Recent Performance Metrics

As of Q2 2023, Sotherly Hotels reported:

• Revenue per Available Room (RevPAR): $112
• Gross Operating Profit Margin: 30%

Market Position and Growth Strategy

Sotherly Hotels focuses on properties in urban and resort markets across the United States. The company aims to expand its footprint by targeting acquisitions in key growth regions, anticipating an overall growth rate of 5% annually.

Investment and Shareholder Returns

The company has historically maintained a focus on returning value to shareholders. In 2022, Sotherly Hotels paid out dividends amounting to $2 million. The dividend yield for the year was approximately 3%.