The following is a summary of the Sotherly Hotels Inc. (SOHO) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• In Q3 2024, Sotherly Hotels reported total revenue of approximately $40.7 million, a 3.9% increase over the same quarter in 2023.

• Year-to-date revenue reached approximately $137.9 million, up 4.7% from the previous year.

• Hotel EBITDA for Q3 was approximately $8.1 million, marking a 6.8% increase from Q3 2023.

• Adjusted FFO for the quarter showed a deficit of approximately $350,000, a decrease from the previous year, while year-to-date adjusted FFO was approximately $12.3 million, a 5% increase over the same period in 2023.

Business Progress:

• Sotherly Hotels continues to show promising growth in occupancy, particularly in urban markets like Philadelphia and Houston, which are nearing stabilization post-recovery.

• The company has started significant renovation projects including a complete transformation of the DoubleTree by Hilton Jacksonville Riverfront with a projected cost of $14.6 million and completion by January 2027.

Opportunities:

• The repositioning strategy of urban hotels, like the DoubleTree by Hilton Jacksonville Riverfront and the Hotel Alba in Tampa, is expected to enhance competitiveness in dynamic city markets.

• Strong group demand in coastal drive markets and sustained improvements in business travel present continued revenue opportunities.

Risks:

• Weather-related events, particularly hurricanes, posed significant challenges impacting operations and causing physical damage to properties, notably the Hotel Alba in Tampa.

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