Sotherly Hotels Beats Q1 Estimates, Projects $183M-$188M 2025 Revenue

Sotherly Hotels (SOHO) reported strong first-quarter 2025 results, with funds from operations (FFO) per share beating expectations at $0.19 to $0.22 and revenues rising about 3.8% year-over-year to $48.3 million. The company also saw a significant increase in net income to $4.7 million from $1.3 million the prior year, driven by a 5.0% increase in revenue per available room (RevPAR) to $129.74, despite a slight 1.1% decline in average daily rate (ADR). For 2025, Sotherly projects robust revenue growth between $183.4 million and $188.2 million but anticipates a net loss of $7.8 million to $8.7 million due to economic uncertainties and reduced international and government-related bookings. While Adjusted FFO attributable to common stockholders decreased by 12.8%, management emphasizes maintaining cost control amid challenges. Analyst sentiment remains cautious with an average 'Hold' rating and price targets suggesting a potential upside of around 26%, while GuruFocus projects a more optimistic valuation increase of over 140%. Preferred stock dividends were also announced, reflecting ongoing shareholder returns despite mixed financial metrics.