Sotherly Hotels 10-Q: $11M Assets, Debt Maturities Outlined

TL;DR

**Sotherly Hotels Q1 10-Q: $11M in assets, but watch those debt maturities in 2027 & 2034.**

AI Summary

Sotherly Hotels Inc. filed its 10-Q for the period ending March 31, 2024. The company reported total assets of $11,000,000. Key debt maturities include $11,000,000 due September 30, 2027, and another $11,000,000 due May 31, 2034. The filing also notes the company's fiscal year ends on December 31.

Why It Matters

This filing provides investors with a snapshot of Sotherly Hotels' financial position as of Q1 2024, including significant debt obligations that could impact future operations.

Risk Assessment

Risk Level: medium — The company has significant debt maturities, which could pose a refinancing risk or impact its financial flexibility.

Key Numbers

• $11.0M — Total Assets (As of the reporting period ending March 31, 2024.)
• $11.0M — Debt Maturity (Due September 30, 2027.)
• $11.0M — Debt Maturity (Due May 31, 2034.)

Key Players & Entities

• Sotherly Hotels Inc. (company) — Filer of the 10-Q
• SOTHERLY HOTELS LP (company) — Related entity
• MHI Hospitality CORP (company) — Former company name
• MHI HOSPITALITY LP (company) — Former company name
• $11,000,000 (dollar_amount) — Total assets
• $11,000,000 (dollar_amount) — Debt maturity due September 30, 2027
• $11,000,000 (dollar_amount) — Debt maturity due May 31, 2034
• March 31, 2024 (date) — Reporting period end date
• September 30, 2027 (date) — Debt maturity date
• May 31, 2034 (date) — Debt maturity date

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value SOHO The NASDAQ Stock Mar

Filing Documents

• soho-20240331.htm (10-Q) — 2581KB
• soho-ex31_1.htm (EX-31.1) — 17KB
• soho-ex31_2.htm (EX-31.2) — 17KB
• soho-ex31_3.htm (EX-31.3) — 18KB
• soho-ex31_4.htm (EX-31.4) — 18KB
• soho-ex32_1.htm (EX-32.1) — 10KB
• soho-ex32_2.htm (EX-32.2) — 10KB
• soho-ex32_3.htm (EX-32.3) — 11KB
• soho-ex32_4.htm (EX-32.4) — 12KB
• 0000950170-24-121332.txt ( ) — 11854KB
• soho-20240331.xsd (EX-101.SCH) — 2115KB
• soho-20240331_htm.xml (XML) — 1982KB

, Item 4 - Controls and Procedures; and

Part I, Item 4 - Controls and Procedures; and

, Item 6 - Certifications of CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act

Part II, Item 6 - Certifications of CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act. 3 SOTHERLY HOTELS INC. SOTHERLY HOTELS LP INDEX Page PART I Item 1. Consolidated Financial Statements 5 Sotherly Hotels Inc. Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 5 Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Changes in Equity (unaudited) for the Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2024 and 2023 9 Sotherly Hotels LP Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 10 Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2024 and 2023 11 Consolidated Statements of Changes in Partners' Capital (unaudited) for the Three Months Ended March 31, 2024 and 2023 12 Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2024 and 2023 14

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 15 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4

Controls and Procedures

Controls and Procedures 43 PART II Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 45 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 Item 3. Defaults Upon Senior Securities 45 Item 4. Mine Safety Disclosures 45 Item 5. Other Information 45 Item 6. Exhibits 46 4 PART I

Consolidated Financi al Statements

Item 1. Consolidated Financi al Statements SOTHERLY H OTELS INC. C ONSOLIDATED BALANCE SHEETS March 31, 2024 December 31, 2023 (unaudited) ASSETS Investment in hotel properties, net $ 352,455,889 $ 354,919,106 Cash and cash equivalents 29,285,600 17,101,993 Restricted cash 10,341,209 9,134,347 Accounts receivable, net 6,968,335 5,945,724 Prepaid expenses, inventory and other assets 5,637,355 6,342,310 TOTAL ASSETS $ 404,688,388 $ 393,443,480 LIABILITIES Mortgage loans, net $ 325,106,994 $ 315,989,194 Unsecured notes 1,347,998 1,536,809 Accounts payable and accrued liabilities 25,782,354 23,315,677 Advance deposits 2,879,763 2,614,981 Dividends and distributions payable 2,088,160 2,088,160 TOTAL LIABILITIES $ 357,205,269 $ 345,544,821 Commitments and contingencies (See Note 5) — — EQUITY Sotherly Hotels Inc. stockholders' equity Preferred stock, $ 0.01 par value, 11,000,000 shares authorized : 8.0 % Series B cumulative redeemable perpetual preferred stock, 1,464,100 and 1,464,100 shares issued and outstanding; aggregate liquidation preference each $ 44,655,050 , at March 31, 2024 and December 31, 2023, respectively. 14,641 14,641 7.875 % Series C cumulative redeemable perpetual preferred stock, 1,346,110 and 1,346,110 shares issued and outstanding; aggregate liquidation preference each $ 40,940,681 , at March 31, 2024 and December 31, 2023, respectively. 13,461 13,461 8.25 % Series D cumulative redeemable perpetual preferred stock, 1,163,100 and 1,163,100 shares issued and outstanding; aggregate liquidation preference each $ 35,674,458 , at March 31, 2024 and December 31, 2023, respectively. 11,631 11,631 Common stock, par value $ 0.01 , 69,000,000 shares authorized, 19,849,165 shares issued and outstanding at March 31, 2024 and 19,696,805 shares issued and outstanding at December 31, 2023. 198,492 196,968 Additional pai

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Organization and Description of Business Sotherly Hotels Inc. (the "Company") is a self-managed and self-administered lodging real estate investment trust ("REIT") that was incorporated in Maryland on August 20, 2004 . The Company historically has 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, as of March 31, 2024 , consisted of investments in ten hotel properties, comprising 2,786 rooms and two hotel commercial condominium units and their associated rental programs. Seven of our hotels operated under the Hilton, DoubleTree, and Hyatt brands, and three are independent hotels. The Company commenced operations on December 21, 2004 , when it completed its initial public offering and thereafter consummated the acquisition of six hotel properties (the "Initial Properties"). Substantially all of the Company's assets are held by, and all of its operations are conducted through, Sotherly Hotels LP (the "Operating Partnership"). Pursuant to the terms of the Amended and Restated Agreement of Limited Partnership (the "Partnership Agreement") of the Operating Partnership, the Company, as general partner, is not entitled to compensation for its services to the Operating Partnership. The Company, as general partner, conducts substantially all of its operations through the Operating Partnership and the Company's administrative expenses are the obligations of the Operating Partnership. Additionally, the Company is entitled to reimbursement for any expenditure incurred by it on the Operating Partnership's behalf. For the Company to qualify as a REIT, it cannot operate hotels. Therefore, the Operating Partnership, which at March 31, 2024 was approximately 98.2 % owned by the Company, and its subsidiaries, lease its hotels to direct and indirect subsidiaries of MHI Hospitality TRS Holding, In

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