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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