Sotherly Hotels Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of approximately $48.8 million, a decrease of 3.7% from $50.7 million in the same period last year. The decline was primarily attributed to a 5.9% drop in rooms revenue, which fell to $32.5 million, driven by a decrease in occupancy rates and average daily rates (ADR). The company’s net income for the quarter was approximately $1.6 million, down from $4.7 million in the prior year, reflecting the impact of reduced revenue and increased operating expenses.
In terms of operational metrics, the company reported a revenue per available room (RevPAR) of $128.34, down from $136.38 in the previous year. The occupancy rate also decreased to 71.0% from 74.0%. Despite these challenges, food and beverage revenue showed resilience, with a slight decrease to $9.6 million, while revenue from other operating departments increased by 7.1% to $6.6 million, largely due to business interruption insurance proceeds related to Hurricane Helene's impact on the Hotel Alba.
Sotherly Hotels has made strategic moves to enhance its portfolio, including securing a $35 million mortgage loan for the Hotel Alba and amending existing loans to extend maturities and improve cash flow management. The company also reported a total cash and cash equivalents balance of approximately $10.6 million, alongside $16 million in restricted cash, indicating a stable liquidity position despite the challenges faced in the current fiscal period.
Looking ahead, Sotherly Hotels is focused on addressing its upcoming debt maturities, with approximately $87.3 million due in 2025 and $68.4 million in 2026. The company is actively seeking extensions and refinancing options to manage these obligations. Additionally, it plans to continue investing in capital improvements across its properties, with an estimated $7.3 million earmarked for routine maintenance and upgrades. The company remains committed to maintaining its status as a real estate investment trust (REIT) while navigating the complexities of the hospitality market.
About Sotherly Hotels Inc.
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