Sotherly Hotels Inc. and Sotherly Hotels LP are real estate investment trusts (REITs) focused on owning, managing, and operating hotel properties, with a portfolio of 10 hotels managed across various locations.

# Company Summary: Sotherly Hotels Inc. and Sotherly Hotels LP

## Business Overview
- **Type of Company:** Real Estate Investment Trust (REIT) specializing in hotel properties.
- **Core Business:** Ownership, management, and operation of hotel properties.
- **Management Structure:** Operated by Our Town Hospitality LLC under management agreements; the company manages a portfolio of multiple hotel properties across various locations.

## Key Operations
- **Number of Hotels Managed:** 10 hotel properties under management agreements.
- **Property Types:** Hotels owned directly and managed, including resort and urban hotels.
- **Management Agreements:** Expire in 2035, with options to extend. Management fees are based on a percentage of gross revenues.

## Financial and Operational Data
- **Employees:** The company has a total of 8 full-time employees, excluding executive officers.
- **Customer Base:** The company operates hotels that serve business and leisure travelers, but specific customer counts are not provided.
- **Revenue & Income:** The exact total revenue, net income, or other financial metrics are not detailed in the given excerpt.
- **Stockholders:** As of April 25, 2025, there are 20,126,415 shares of common stock issued and outstanding.
- **Market Capitalization:** The aggregate market value of common stock held by non-affiliates was approximately $22.8 million as of June 30, 2024, based on the NASDAQ closing price.

## Asset Portfolio
- **Type of Assets:** Commercial real estate mainly consisting of hotel properties.
- **Ownership:** Properties are owned either directly by Sotherly Hotels Inc. or through a partnership (Sotherly Hotels LP).

## Additional Details
- **Customer Interaction:** The company does not specify direct customer counts but manages hotels that serve a broad customer base.
- **Revenue Sources:** Hotel management fees, rental income, and possibly other hospitality-related revenues.
- **Employee and Management Team:** Consists of a small core team with an executive staff, including a President/CEO, CFO, COO, and General Counsel.

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*Note: Specific financial figures such as total revenue, net income, and customer counts are not provided in the given excerpt, so this summary focuses on operational structure, management, and ownership details.*

Sotherly Hotels Inc. is a self-managed and self-administered lodging Real Estate Investment Trust (REIT) focused on upscale hotel properties primarily located in the southern United States.

# Sotherly Hotels Inc. Overview

## Business Structure
- **Type**: Self-managed and self-administered lodging Real Estate Investment Trust (REIT)
- **Formation**: August 2004
- **Public Offering**: Initial public offering completed on December 21, 2004
- **Operating Partnership**: Conducts primary business through Sotherly Hotels LP, with Sotherly Hotels Inc. as the general partner, owning approximately 98.2% of partnership units.

## Portfolio
- **Total Hotels**: 10
- **Total Rooms**: 2,786
- **Geographic Focus**: Primarily concentrated in the mid-Atlantic and southern United States, specifically in Florida, Georgia, Maryland, Virginia, North Carolina, Pennsylvania, and Texas.
- **Management**: All hotels managed by Our Town Hospitality, LLC on a day-to-day basis.

## Hotel Properties
1. **Hotel DeSoto, Savannah, Georgia** - 246 rooms
2. **DoubleTree by Hilton Jacksonville Riverfront, Florida** - 293 rooms
3. **DoubleTree by Hilton Laurel, Maryland** - 208 rooms
4. **DoubleTree by Hilton Philadelphia Airport, Pennsylvania** - 331 rooms
5. **DoubleTree Resort by Hilton Hollywood Beach, Florida** - 311 rooms
6. **Georgian Terrace, Atlanta, Georgia** - 326 rooms
7. **Hotel Alba Tampa, Tapestry Collection by Hilton, Florida** - 222 rooms
8. **Hotel Ballast Wilmington, Tapestry Collection by Hilton, North Carolina** - 272 rooms
9. **Hyatt Centric Arlington, Virginia** - 318 rooms
10. **The Whitehall, Houston, Texas** - 259 rooms

### Condominium Hotels
- **Hyde Resort & Residences** - 65 units  
- **Hyde Beach House Resort & Residences** - 75 units

**Total Hotel & Participating Condominium Hotel Rooms**: 2,926

## Business Strategy
- **Acquisition Focus**: Target full-service, upscale, and upper-upscale hotel properties, with strategic acquisitions in key growth markets.
- **Investment Criteria**:
  - Geographical focus on major southern markets
  - Preference for properties with significant barriers to entry
  - Target underperforming assets with potential for value enhancement
- **Management**: Engaged Our Town Hospitality for hotel management services. 

## Financial Information
- **Employee Count**: As of December 31, 2023, employed 9 full-time staff in corporate roles, with hotel employees being managed indirectly through Our Town.
- **Revenue Generation**: Primarily through rents from hotel operations, with revenue derived from management agreements and hotel guest services.

## Key Performance Metrics
- **Occupancy Rates**: Varied across properties, with notable percentages:
  - The DeSoto - 69.2%
  - DoubleTree by Hilton Jacksonville - 70.0%
  - Georgian Terrace - 52.2%
- **Average Daily Rate (ADR)**: Rates per property, e.g., 
  - The DeSoto - $211.26 
  - DoubleTree by Hilton Jacksonville - $148.42
- **Revenue Per Available Room (RevPAR)**: Rates which indicate financial performance, e.g.,
  - The DeSoto - $146.23
  - DoubleTree by Hilton Jacksonville - $103.90

## Legal and Compliance
- Sotherly Hotels Inc. must maintain compliance with REIT regulations, making qualifying distributions of at least 90.0% of taxable income to shareholders, which impacts cash flow and financial strategy.

In summary, Sotherly Hotels Inc. operates a focused portfolio of upscale and upper-upscale full-service hotels in the southern United States and pursues a growth strategy through disciplined acquisition of hotel properties, driving revenue through effective property management and strategic positioning in key markets.

Sotherly Hotels Inc.

10-K / April 30, 2025

10-K / March 22, 2024

10-K / April 30, 2025

Company Summary: Sotherly Hotels Inc. and Sotherly Hotels LP

Business Overview

Key Operations

Financial and Operational Data

Asset Portfolio

Additional Details