Sotherly Hotels Inc.: Business Overview, Financials & Competitive Analysis
Sotherly Hotels Inc. scores 3/10 on the AskCyborg Cyborg Score (Challenged). REIT facing material operational challenges, now in acquisition transition with significant dividend deferrals and negative returns. Recent earnings showed ($0.37) EPS missing consensus by ($0.28) with negative net margin and negative return on equity. The company deferred preferred stock dividends and suspended future preferred dividends. The pending acquisition at.
What is Sotherly Hotels Inc.'s industry? Sotherly Hotels Inc. (sotherlyhotels.com) operates in Hotel REITs / Lodging Real Estate Investment Trusts. AskCyborg classifies Sotherly Hotels Inc. under Hotel REITs / Lodging Real Estate Investment Trusts in its company registry.
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 Sta...
Cyborg Score thesis
REIT facing material operational challenges, now in acquisition transition with significant dividend deferrals and negative...
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Get Current Report FreeSotherly Hotels Inc. Overview
Pro stress-test →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. The company's portfolio consists of investments in ten hotel properties with 2,786 rooms, as well as interests in two condominium hotels, operating under Hilton Worldwide, Hyatt Hotels Corporation brands, and independent hotels.
Strategic Profile
Pro stress-test →Sotherly Hotels agreed to be acquired by a joint venture led by Kemmons Wilson Hospitality Partners with Ascendant Capital Partners for $2.25 per share in cash. The merger is expected to close during the first quarter of 2026. The company has faced headwinds with declining hotel demand, with Q2 2025 revenue falling to $48.8M from $50.7M YoY and RevPAR declining 5.4%, prompting management to revise 2025 guidance downward.
Competitive Landscape
Pro stress-test →Sotherly operates in the small-cap hotel REIT segment competing with similarly-sized lodging REITs like Apple Hospitality REIT, Summit Hotel Properties, Xenia Hotels & Resorts, and Braemar Hotels & Resorts. The company positions itself on upscale brand assets (Hilton, Hyatt) in secondary/tertiary Southern markets, though faces headwinds from broader hospitality softness and capital market access constraints typical of micro-cap REITs.
Industry Context
Sotherly Hotels Inc. operates in Hotel REITs / Lodging Real Estate Investment Trusts.
Key facts
Founded: 2004 · Headquarters: Williamsburg, Virginia · Revenue: $48.8M (Q2 2025) · Market cap: $87.1M