Sotherly Hotels has recorded a total revenue of $39.18m in the third quarter (Q3) of 2023, down by 1% from $39.21m in the same quarter a year ago.
For the latest quarter ending 30 September 2023, the company reported a net loss of $2.06m as against a net income of $1.97m in the corresponding period of 2022.
Net income attributable to common stockholders fell by roughly $4m from an income of $0.11m in Q3 2022 to a net loss of approximately $3.90m in Q3 2023.
The net loss per share attributable to common stockholders in Q3 2023, both basic and diluted, was $0.20, as against a net income of $0.01 in Q3 2022.
Total hotel operating expenses were $38.01m in the latest quarter, compared to $35.92m in the third quarter of 2022.
Sotherly Hotels’ earnings before interest, taxes, depreciation and amortisation (EBITDA) was $6.53m compared with $10.87m in the same period a year earlier.
Room revenue per available room (RevPAR) for the hotel company’s composite portfolio fell to $102.82 in Q3 2023, from $104.19 in the same quarter of 2022.
The drop in RevPAR was due to a decline in the average daily rate (ADR) to $167.10 in Q3 2023 from $168.18 in Q3 2022, as well as a fall in occupancy to 61.5% in Q3 2023 from 62.0% in Q3 2022.
Sotherly Hotels president and CEO Dave Folsom said: “In the third quarter, we continued to witness RevPAR increases over the pre-pandemic results of 2019. Our wholly-owned portfolio’s overall RevPAR improvement over 2019 was 1.7%, with ADR up 15.0%.
“Occupancy still lags pre-pandemic levels, which we see as long-term upside potential for our portfolio. Revenue results for our wholly owned portfolio, compared to the prior year, showed RevPAR slightly up by 0.6% and ADR was up 1.5%. We continue to see improvement in the group and business travel segments.”
For the fourth quarter of 2023, the company anticipates its total revenue to be in the range of $40.49m and $41.97m and its EBITDA to be between $7.52m and $7.91m.
Sotherly’s portfolio features investments in ten hotel properties, consisting of 2,786 rooms, as well as interests in two condominium hotels and their related rental programmes.
It owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, along with independent hotels.
