Sotherly Hotels Inc. (NASDAQ:SOHO), a self-managed and self-administered lodging real estate investment trust, has seen its stock price touch a 52-week low, dipping to $1.04. This latest price level reflects a significant downturn from the company's performance over the past year, with the stock experiencing a substantial 1-year change, dropping by -34.78%. Investors are closely monitoring SOHO as it navigates through the prevailing market conditions that have contributed to this decline, seeking signs of stabilization or a potential turnaround in the company's fortunes.
In other recent news, Sotherly Hotels Inc. reported a 3.9% increase in Q3 2024 revenue, reaching approximately $40.7 million. The company also saw a 6.8% year-over-year increase in Hotel EBITDA, which stood at about $8.1 million. Despite challenges from Hurricane Helene, particularly impacting the Tampa asset, Sotherly Hotels remains optimistic about its urban market recovery, notably in Houston and Philadelphia. The company also reported a 7.8% rise in occupancy year-over-year, although the average daily rate declined by 3.4%. In addition, Sotherly Hotels successfully refinanced its Jacksonville hotel, supporting lifecycle improvements. Looking ahead, full-year 2024 total revenue is projected to be between $177.8 million and $180.1 million, with Hotel EBITDA expected to reach between $45 million and $45.6 million. These are among the recent developments for Sotherly Hotels.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Sotherly Hotels Inc.'s (SOHO) current financial situation, providing context to the stock's recent performance. The company's market capitalization stands at a modest $20.66 million, reflecting its small-cap status in the REIT sector.
Two key InvestingPro Tips are particularly relevant to SOHO's current situation. Firstly, the stock is "trading near its 52-week low," which aligns with the article's mention of the recent price dip. Secondly, SOHO is "trading at a low Price / Book multiple," with the Price to Book ratio at 0.46 as of the last twelve months ending Q3 2024. This suggests that the stock might be undervalued relative to its book value, potentially presenting an opportunity for value investors.
However, it's important to note that SOHO's financial health appears challenging. The company's revenue for the last twelve months ending Q3 2024 was $179.86 million, with a modest growth of 3.98%. Despite this, SOHO was not profitable over the last twelve months, with a negative P/E ratio of -4.05.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for SOHO, providing a deeper understanding of the company's financial position and market performance.
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