NasdaqGM:SOHO

Stock Analysis Report

Executive Summary

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States.

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.

Risks

  • Sotherly Hotels is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Sotherly Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.5%

NasdaqGM:SOHO

0.2%

US REITs

-1.0%

US Market


1 Year Return

-5.3%

NasdaqGM:SOHO

8.2%

US REITs

-0.4%

US Market

SOHO underperformed the REITs industry which returned 8.2% over the past year.

SOHO underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

SOHOIndustryMarket
7 Day-4.5%0.2%-1.0%
30 Day-2.4%2.0%-3.3%
90 Day-6.1%2.9%0.4%
1 Year1.8%-5.3%13.0%8.2%1.8%-0.4%
3 Year39.2%13.3%25.0%8.7%39.4%30.4%
5 Year10.5%-18.1%58.7%25.0%54.2%37.1%

Price Volatility Vs. Market

How volatile is Sotherly Hotels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sotherly Hotels undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sotherly Hotels's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sotherly Hotels's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sotherly Hotels is loss making, we can't compare its value to the US REITs industry average.

Sotherly Hotels is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sotherly Hotels, we can't assess if its growth is good value.


Price Based on Value of Assets

Sotherly Hotels is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Sotherly Hotels expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

66.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sotherly Hotels's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Sotherly Hotels is not considered high growth as it is expected to be loss making for the next 1-3 years.

Sotherly Hotels's revenue growth is positive but not above the United States of America market average.

Unable to compare Sotherly Hotels's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Sotherly Hotels's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sotherly Hotels will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sotherly Hotels performed over the past 5 years?

-61.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sotherly Hotels does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Sotherly Hotels's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Sotherly Hotels's 1-year growth to the US REITs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Sotherly Hotels has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Sotherly Hotels used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Sotherly Hotels improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Sotherly Hotels's financial position?


Financial Position Analysis

Sotherly Hotels is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sotherly Hotels's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sotherly Hotels's level of debt (343.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (741.3% vs 343.3% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Sotherly Hotels has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Sotherly Hotels has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -16.6% per year.


Next Steps

Dividend

What is Sotherly Hotels's current dividend yield, its reliability and sustainability?

7.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sotherly Hotels before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Sotherly Hotels's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Sotherly Hotels's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Sotherly Hotels's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average management tenure


CEO

Drew Sims (62yo)

15.0yrs

Tenure

US$834,673

Compensation

Mr. Andrew M. Sims, also known as Drew, has been the Chairman and Chief Executive Officer at Sotherly Hotels Inc. since August 8, 2004. Previously, he was the President from December 2004 to December 31, 2 ...


CEO Compensation Analysis

Drew's remuneration is higher than average for companies of similar size in United States of America.

Drew's compensation has increased whilst company is loss making.


Management Age and Tenure

7.6yrs

Average Tenure

58yo

Average Age

The average tenure for the Sotherly Hotels management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

57yo

Average Age

The tenure for the Sotherly Hotels board of directors is about average.


Insider Trading

Sotherly Hotels individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$129,98315 Aug 19
Andrew Sims
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares19,126
Max PriceUS$6.87
SellUS$28,67221 Jun 19
Andrew Sims
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares4,000
Max PriceUS$7.17
SellUS$64,73814 Jun 19
David Folsom
EntityIndividual
Role
President
Member of the Board of Directors
Shares8,517
Max PriceUS$7.60
SellUS$52,84113 Jun 19
Andrew Sims
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares7,000
Max PriceUS$7.57

Ownership Breakdown


Management Team

  • Dave Folsom (54yo)

    President

    • Tenure: 8.6yrs
    • Compensation: $582.89k
  • Dave Surette (59yo)

    Corporate Controller

    • Tenure: 5.6yrs
  • Drew Sims (62yo)

    Chairman & CEO

    • Tenure: 15.0yrs
    • Compensation: $834.67k
  • Tony Domalski (57yo)

    VP, Secretary & CFO

    • Tenure: 6.6yrs
    • Compensation: $605.86k
  • Scott Kucinski

    Vice President of Operations & Investor Relations

    • Tenure: 10.1yrs
  • Ashley Kirkland

    Corporate Counsel & Operations Analyst

  • Bert Kirkland

    Compliance Officer

    • Tenure: 6.2yrs

Board Members

  • Anthony Zinni (76yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: $42.47k
  • Dave Folsom (54yo)

    President

    • Tenure: 8.3yrs
    • Compensation: $582.89k
  • Herschel Walker (57yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: $42.47k
  • Ed Stein (72yo)

    Lead Independent Director

    • Compensation: $54.97k
  • Drew Sims (62yo)

    Chairman & CEO

    • Tenure: 15.0yrs
    • Compensation: $834.67k
  • George Gibson (53yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $47.72k
  • Maria Caldwell (55yo)

    Director

    • Tenure: 0.3yrs

Company Information

Sotherly Hotels Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sotherly Hotels Inc.
  • Ticker: SOHO
  • Exchange: NasdaqGM
  • Founded: 1957
  • Industry: hotel and resort reits
  • Sector: real estate
  • Implied Market Cap: US$102.234m
  • Market Cap: US$90.427m
  • Shares outstanding: 15.40m
  • Website: Click here

Number of Employees


Location

  • Sotherly Hotels Inc.
  • 410 West Francis Street
  • Williamsburg
  • Virginia
  • 23185
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOHONasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 2004
MCLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2004
SOHO.BNasdaqGM (Nasdaq Global Market)PFD SER BUSUSDAug 2016
SOHO.ONasdaqGM (Nasdaq Global Market)7.875% PFD SER CUSUSDOct 2017
SOHO.NNasdaqGM (Nasdaq Global Market)8.25% CM PFD DUSUSDApr 2019

Biography

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Souther ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 00:02
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.