WILLIAMSBURG, Va., March 04, 2021 (GLOBE NEWSWIRE) — Sotherly Lodges Inc. (NASDAQ: SOHO), (“Sotherly” or the “Firm”), a self-managed and self-administered lodging actual property funding belief (a “REIT”), as we speak reported its consolidated outcomes for the fourth quarter and 12 months ended December 31, 2020. The Firm’s outcomes embrace the next*:
| Three Months Ended | 12 months Ended | ||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||
| ($ in 1000’s besides per share knowledge) | ($ in 1000’s besides per share knowledge) | ||||||||||||||
| Complete Income | $ | 14,586 | $ | 44,305 | $ | 71,503 | $ | 185,788 | |||||||
| Internet loss attributable to frequent stockholders | (14,707 | ) | (3,419 | ) | (58,415 | ) | (5,911 | ) | |||||||
| EBITDA | (4,109 | ) | 7,745 | (11,161 | ) | 41,887 | |||||||||
| Resort EBITDA | (1,921 | ) | 9,280 | (3,224 | ) | 46,938 | |||||||||
| FFO attributable to frequent stockholders and unitholders | (10,898 | ) | 1,754 | (43,159 | ) | 14,763 | |||||||||
| Adjusted FFO attributable to frequent stockholders and unitholders | (10,724 | ) | 951 | (36,207 | ) | 17,164 | |||||||||
| Internet loss per frequent share | $ | (1.02 | ) | $ | (0.25 | ) | $ | (4.08 | ) | $ | (0.43 | ) | |||
| FFO per frequent share and unit | $ | (0.70 | ) | $ | 0.11 | $ | (2.78 | ) | $ | 0.96 | |||||
| Adjusted FFO per frequent share and unit | $ | (0.69 | ) | $ | 0.06 | $ | (2.33 | ) | $ | 1.11 | |||||
(*) Earnings earlier than curiosity, taxes, depreciation and amortization (“EBITDA”), resort EBITDA, funds from operations (“FFO”) out there to frequent stockholders and unitholders, adjusted FFO out there to frequent stockholders and unitholders, FFO per frequent share and unit and adjusted FFO per frequent share and unit are non-GAAP monetary measures. See additional dialogue of those non-GAAP measures, together with definitions associated thereto, and reconciliations to web revenue (loss) later on this press launch. The Firm is the only normal associate of Sotherly Lodges LP, a Delaware restricted partnership (the “Working Partnership”), and all references on this launch to the “Firm”, “Sotherly”, “we”, “us” and “our” consult with Sotherly Lodges Inc., its Working Partnership and its subsidiaries and predecessors, until the context in any other case requires or it’s in any other case indicated.
COVID-19 UPDATE
The impression of the COVID-19 pandemic on the hospitality business has been vital, with demand for resort rooms in the entire markets the Firm operates considerably decreased and occupancy charges reaching historic lows. We continued to expertise a considerable decline in our revenues, profitability, and money flows from operations in the course of the fourth quarter of 2020 on a year-over-year foundation. Whereas the extent and period of the unfavorable results ensuing from COVID-19 on the Firm’s enterprise are extremely unsure and troublesome to foretell, we anticipate materially hostile results on our operations and monetary outcomes to proceed till journey and enterprise restrictions are eased, journey orders are lifted, client confidence is restored, and a restoration of the lodging sector takes maintain. The COVID-19 pandemic has additionally considerably elevated financial uncertainty and has led to disruption and volatility within the international capital markets, which has restricted our entry to capital and has elevated our price of capital. We proceed to observe the procedures and techniques that we launched on the outset of the pandemic, together with enhanced cleansing protocols in addition to a number of price discount initiatives.
SECURED NOTE FINANCING
On December 31, 2020, we closed a transaction with KWHP SOHO, LLC, a Delaware restricted legal responsibility firm (“KW”), as collateral agent and an investor, and MIG SOHO, LLC, a Delaware restricted legal responsibility firm (“MIG”, and along with KW, the “Buyers”), as an investor, whereby the Buyers bought $20.0 million in Notes from the Working Partnership with an choice to require the Buyers to buy a further $10.0 million in Senior Secured Notes. We entered into the next agreements: (i) a Word Buy Settlement; (ii) a Senior Secured Word with KW within the quantity of $10.0 million and a Senior Secured Word with MIG within the quantity of $10.0 million (collectively, the “Notes”); (iii) a Pledge and Safety Settlement; (iv) a Board Observer Settlement; and (v) different associated ancillary agreements. The Notes mature in 3 years and can be payable on or earlier than the maturity date on the fee of 1.47x the principal quantity borrowed in the course of the preliminary 3-year time period, with a 1-year extension at Firm’s choice. The Notes additionally carry a 6.0% present rate of interest, payable quarterly in the course of the preliminary 3-year time period.
ESTIMATED MONTHLY CASH USE
The Firm estimates the typical month-to-month money use throughout its portfolio for the primary quarter to be roughly $1.5 million primarily based on the next assumptions:
- Common hotel-level month-to-month optimistic money movement of roughly $0.50 to $0.60 million;
- Company-level month-to-month G&A money use of $0.50 to $0.55 million;
- Capital expenditures of roughly $0.30 million; and
- Company finance-related month-to-month money use of $1.5 million, which incorporates principal and curiosity funds on the Firm’s excellent mortgage debt.
HIGHLIGHTS
- RevPAR. Room income per out there room (“RevPAR”) for the Firm’s composite portfolio, which incorporates the Hyatt Centric Arlington and the rooms taking part in our rental packages on the Hyde Resort & Residences and the Hyde Seashore Home Resort and Residences, in the course of the three-month interval ending December 31, 2020, decreased 62.3% over the three months ended December 31, 2019, to $38.54 reflecting a 52.6% lower in occupancy and a 20.4% lower in common day by day fee (“ADR”). For the twelve-month interval ending December 31, 2020, RevPAR decreased 60.8% over the twelve months ended December 31, 2019, to $44.28 pushed by a 56.4% lower in occupancy and a ten.1% lower in ADR.
- Income. For the three-month interval ending December 31, 2020, whole income decreased 67.1% over the three-month interval ending December 31, 2019. For the twelve-month interval ending December 31, 2020, whole income decreased 61.5% or by roughly $114.3 million to roughly $71.5 million, as in comparison with roughly $185.8 million for the twelve-month interval ending December 31, 2019.
- Widespread Dividends. As accredited by its Board of Administrators, the Firm has suspended its common quarterly money dividend in an effort to protect liquidity. Accordingly, the Firm didn’t pay a dividend on its frequent inventory and customary models for the quarter ended December 31, 2020. The Board of Administrators will proceed to watch the scenario and assess future quarterly frequent dividend declarations. Per the phrases of the Firm’s most popular inventory, the Firm can not make any frequent dividend funds until full cumulative distributions have been declared and paid for previous distribution durations for every collection of most popular inventory.
- Resort EBITDA. The Firm generated a deficit in resort EBITDA of roughly $1.9 million in the course of the three-month interval ending December 31, 2020. Resort EBITDA decreased 120.7%, or roughly $11.2 million, over the three months ended December 31, 2019. For the twelve-month interval ending December 31, 2020, resort EBITDA decreased 106.9%, or roughly $50.2 million, over the twelve months ended December 31, 2019.
- Adjusted FFO attributable to frequent stockholders and unitholders. For the three-month interval ending December 31, 2020, adjusted FFO attributable to frequent stockholders and unitholders decreased 1,228.2%, or roughly $11.7 million, over the three months ended December 31, 2019. For the twelve-month interval ending December 31, 2020, adjusted FFO attributable to frequent stockholders and unitholders decreased 311.0% or roughly $53.4 million over the twelve months ended December 31, 2019.
Dave Folsom, President and Chief Government Officer, of Sotherly Lodges Inc., commented, “The previous 12 months was essentially the most troublesome 12 months in historical past for the lodging business in addition to our Firm. Regardless of 2020’s unprecedented working setting, we remained devoted to successfully managing the elements inside our management, together with mitigating danger, minimizing losses, and capitalizing on out there alternatives. With the decision of the presidential election and the rollout of the COVID-19 vaccine, we noticed, and proceed to see, materials upticks in our enterprise. Hospitalizations and an infection charges, which proceed to plummet, function optimistic indicators for the economic system and the lodging markets. On the finish of the 12 months, we executed on a mortgage with an affiliate of the Kemmons Wilson Corporations and a co-investor that offered a lot wanted liquidity to Sotherly’s steadiness sheet. The transaction permits Sotherly to proceed to handle by means of the pandemic and positions us properly for potential alternatives because the restoration progresses.”
Steadiness Sheet/Liquidity
As of December 31, 2020, the Firm had roughly $35.3 million of obtainable money and money equivalents, of which roughly $10.0 million was reserved for actual property taxes, insurance coverage, capital enhancements and sure different bills or in any other case restricted. The Firm had principal balances of roughly $387.0 million in excellent debt, web, together with mortgage and secured and unsecured principal balances, at a weighted common rate of interest of roughly 4.66%.
Different Developments
We’ve entered into numerous forbearance and mortgage modification agreements with our lenders for the mortgage loans secured by our inns situated in Laurel, MD, Savannah, GA, Wilmington, NC, Philadelphia, PA, Houston, TX, Jeffersonville, IN, Raleigh, NC, Tampa, FL, and Arlington, VA. These agreements usually permit us to defer funds of principal and curiosity for durations that started in April 2020 and that reach by means of to numerous dates ending between February 2021 and December 2021. We’re at the moment in negotiations with the lender for the mortgage mortgage secured by the DoubleTree Resort by Hilton Hollywood Seashore, through which we’re in default, and will search further concessions from our lenders as current fee extensions and deferrals expire, to the extent warranted by market circumstances and the monetary efficiency of our inns. There could be no assurance that we can attain settlement with all of our lenders or that further concessions, if wanted, could be negotiated on phrases which are acceptable.
On October 14, 2020 we entered right into a resort administration settlement with Our City Hospitality, LLC (“Our City”) for the administration of the Hyatt Centric Arlington. Following the transition of the Hyatt Centric Arlington resort to Our City on November 15, 2020, Our City manages every of the Firm’s twelve wholly-owned inns, in addition to our two condominium resort rental packages.
2021 Outlook
Because of the uncertainties associated to the COVID-19 pandemic and its impression on journey, the Firm is unable to offer steering for 2021.
Earnings Name/Webcast
The Firm will conduct its fourth quarter 2020 convention name for traders and different events at 10:00 a.m. Jap Time on Thursday, March 4, 2021. The convention name can be accessible by phone and thru the Web. people are invited to hearken to the decision by phone at 888-339-0107 (United States) or 855-669-9657 (Canada) or +1 412-902-4188 (Worldwide). To take part on the webcast, go online to www.sotherlyhotels.com not less than quarter-hour earlier than the decision to obtain the mandatory software program. For these unable to hearken to the decision reside, a taped rebroadcast can be out there starting one hour after completion of the reside name on March 4, 2021 by means of March 4, 2022. To entry the rebroadcast, dial 877-344-7529 and enter convention quantity 10150991. A replay of the decision additionally can be out there on the Web at www.sotherlyhotels.com till March 4, 2022.
About Sotherly Lodges Inc.
Sotherly Lodges Inc. is a self-managed and self-administered lodging REIT centered on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service inns within the Southern United States. At present, the Firm’s portfolio consists of investments in twelve resort properties, comprising 3,156 rooms, in addition to pursuits in two condominium inns and their related rental packages. The Firm owns inns that function underneath the Hilton Worldwide, Hyatt Lodges Company, and Marriott Worldwide, Inc. manufacturers, in addition to impartial inns. Sotherly Lodges Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For extra info, please go to www.sotherlyhotels.com.
Contact on the Firm:
Mack Sims
Vice President – Operations & Investor Relations
Sotherly Lodges Inc.
306 South Henry Avenue, Suite 100
Williamsburg, Virginia 23185
757.229.5648
Ahead-Wanting Statements
This information launch contains “forward-looking statements” inside the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended, and as such might contain recognized and unknown dangers, uncertainties and different elements which can trigger our precise outcomes, efficiency or achievements to be materially totally different from future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Ahead-looking statements, that are primarily based on sure assumptions and describe our present methods, expectations, and future plans are usually recognized by our use of phrases, reminiscent of “intend,” “plan,” “might,” “ought to,” “will,” “undertaking,” “estimate,” “anticipate,” “consider,” “anticipate,” “proceed,” “potential,” “alternative,” and comparable expressions, whether or not within the unfavorable or affirmative, however the absence of those phrases doesn’t essentially imply {that a} assertion will not be forward-looking. All statements concerning our anticipated monetary place, enterprise and financing plans are forward-looking statements.
At present, probably the most vital elements that might trigger precise outcomes to vary materially from the Firm’s forward-looking statements is the potential elevated hostile impact of COVID-19 on the Firm’s enterprise, monetary efficiency and situation, working outcomes and money flows, the actual property market and the hospitality business particularly, and the worldwide economic system and monetary markets. The importance, extent and period of the impacts attributable to the COVID-19 outbreak on the Firm will rely upon future developments, that are extremely unsure and can’t be predicted with confidence presently, together with the scope, severity and period of the pandemic, the extent and effectiveness of the actions mandated and brought to comprise the pandemic or mitigate its impression, the Firm’s means to barter forbearance and/or modifications agreements with its lenders on acceptable phrases, or in any respect, and the direct and oblique financial results of the pandemic and containment measures, amongst others. Furthermore, traders are cautioned to interpret lots of the dangers recognized underneath the part titled “Threat Elements” within the Firm’s Annual Report on Kind 10-Ok for the fiscal 12 months ended December 31, 2019 as being heightened on account of the continued and quite a few hostile impacts of COVID-19. Such further elements embrace, however will not be restricted to, the power of the Firm to successfully purchase and get rid of properties; the power of the Firm to implement its working technique; adjustments typically political, financial and aggressive circumstances and particular market circumstances; decreased enterprise and leisure journey because of travel-related well being issues, together with the widespread outbreak of COVID-19 or another infectious or contagious ailments within the U.S. or overseas; hostile adjustments in the actual property and actual property capital markets; financing dangers; litigation dangers; regulatory proceedings or inquiries; and adjustments in legal guidelines or rules or interpretations of present legal guidelines and rules that impression the Firm’s enterprise, belongings or classification as a REIT. Though the Firm believes that the assumptions underlying the forward-looking statements contained herein are affordable, any of the assumptions might be inaccurate, and due to this fact there could be no assurance that such statements included on this report will show to be correct. In gentle of the numerous uncertainties inherent within the forward-looking statements included herein, the inclusion of such info shouldn’t be considered a illustration by the Firm or another person who the outcomes or circumstances described in such statements or the goals and plans of the Firm can be achieved. Extra elements which might have a fabric hostile impact on our operations and future prospects embrace, however will not be restricted to: nationwide and native financial and enterprise circumstances that have an effect on occupancy charges and revenues at our inns and the demand for resort services and products; the hostile impact of the novel coronavirus on the U.S., regional and international economies, journey, the hospitality business, and the monetary situation and outcomes of operation of the Firm; dangers related to civil unrest or dysfunction that might adversely impression demand for resort rooms in our markets or lead to injury to our inns; dangers related to the resort business, together with competitors and new provide of resort rooms, will increase in wages, vitality prices and different working prices; dangers related to hostile climate circumstances, together with hurricanes; the supply and phrases of financing and capital and the overall volatility of the securities markets; dangers related to the extent of our indebtedness and our means to satisfy covenants in our debt agreements and, if crucial, to refinance or search an extension of the maturity of such indebtedness or modify such debt agreements; administration and efficiency of our inns; dangers related to sustaining our system of inside controls; dangers related to the conflicts of curiosity of the Firm’s officers and administrators; dangers related to redevelopment and repositioning initiatives, together with delays and value overruns; provide and demand for resort rooms in our present and proposed market areas; dangers related to our means to keep up our franchise agreements with our third celebration franchisors; and our means to keep up ample insurance coverage protection.
Extra elements that might trigger precise outcomes to differ from our forward-looking statements are set forth underneath the part titled “Threat Elements” in our Annual Report on Kind 10-Ok, on this report and subsequent reviews filed with the Securities and Alternate Fee. The Firm undertakes no obligation to and doesn’t intend to publicly replace or revise any forward-looking assertion, whether or not on account of new info, future occasions or in any other case. Though the Firm believes its present expectations to be primarily based upon affordable assumptions, it may give no assurance that its expectations can be attained or that precise outcomes is not going to differ materially.
Monetary Tables Observe…
SOTHERLY HOTELS INC.
CONSOLIDATED BALANCE SHEETS
| December 31, 2020 | December 31, 2019 | |||||||
| ASSETS | ||||||||
| Funding in resort properties, web | $ | 427,824,585 | $ | 443,267,448 | ||||
| Money and money equivalents | 25,297,771 | 23,738,066 | ||||||
| Restricted money | 10,002,775 | 4,246,170 | ||||||
| Accounts receivable, web | 1,779,776 | 4,812,479 | ||||||
| Accounts receivable – affiliate | 401,924 | 101,771 | ||||||
| Pay as you go bills, stock and different belongings | 7,726,980 | 5,648,772 | ||||||
| Deferred revenue taxes | — | 5,412,084 | ||||||
| TOTAL ASSETS | $ | 473,033,811 | $ | 487,226,790 | ||||
| LIABILITIES | ||||||||
| Mortgage loans, web | $ | 357,545,977 | $ | 358,633,884 | ||||
| Secured notes, web | 18,694,355 | — | ||||||
| Unsecured notes, web | 10,719,100 | — | ||||||
| Accounts payable and accrued liabilities | 36,133,642 | 20,189,903 | ||||||
| Advance deposits | 1,964,073 | 2,785,338 | ||||||
| Dividends and distributions payable | 4,277,070 | 4,210,494 | ||||||
| TOTAL LIABILITIES | $ | 429,334,217 | $ | 385,819,619 | ||||
| Commitments and contingencies | — | — | ||||||
| EQUITY | ||||||||
| Sotherly Lodges Inc. stockholders’ fairness | ||||||||
| Most well-liked inventory, $0.01 par worth, 11,000,000 shares approved: | ||||||||
| 8.0% Sequence B cumulative redeemable perpetual most popular inventory, liquidation choice $25 per share, 1,610,000 shares issued and every excellent at December 31, 2020 and 2019, respectively. |
16,100 | 16,100 | ||||||
| 7.875% Sequence C cumulative redeemable perpetual most popular inventory, liquidation choice $25 per share, 1,554,610 shares issued and every excellent at December 31, 2020 and 2019, respectively. |
15,546 | 15,546 | ||||||
| 8.25% Sequence D cumulative redeemable perpetual most popular inventory, liquidation choice $25 per share, 1,200,000 shares issued and every excellent at December 31, 2020 and 2019, respectively. |
12,000 | 12,000 | ||||||
| Widespread inventory, par worth $0.01, 69,000,000 shares approved, 15,023,850 shares issued and excellent at December 31, 2020 and 14,272,378 shares issued and excellent at December 31, 2019. |
150,238 | 142,723 | ||||||
| Extra paid-in capital | 180,189,699 | 180,515,861 | ||||||
| Unearned ESOP shares | (3,636,026 | ) | (4,105,637 | ) | ||||
| Distributions in extra of retained earnings | (127,663,127 | ) | (73,990,690 | ) | ||||
| Complete Sotherly Lodges Inc. stockholders’ fairness | 49,084,430 | 102,605,903 | ||||||
| Noncontrolling curiosity | (5,384,836 | ) | (1,198,732 | ) | ||||
| TOTAL EQUITY | 43,699,594 | 101,407,171 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 473,033,811 | $ | 487,226,790 | ||||
SOTHERLY HOTELS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
| REVENUE | ||||||||||||||||
| Rooms division | $ | 10,234,681 | $ | 29,501,291 | $ | 49,192,589 | $ | 128,062,932 | ||||||||
| Meals and beverage division | 1,211,466 | 10,682,535 | 10,676,646 | 40,267,240 | ||||||||||||
| Different working departments | 3,139,579 | 4,121,127 | 11,633,341 | 17,457,961 | ||||||||||||
| Complete income | 14,585,726 | 44,304,953 | 71,502,576 | 185,788,133 | ||||||||||||
| EXPENSES | ||||||||||||||||
| Resort working bills | ||||||||||||||||
| Rooms division | 3,531,401 | 7,877,548 | 15,565,313 | 32,142,171 | ||||||||||||
| Meals and beverage division | 1,000,176 | 7,560,029 | 8,531,411 | 29,355,080 | ||||||||||||
| Different working departments | 1,098,540 | 1,949,674 | 5,142,853 | 6,957,325 | ||||||||||||
| Oblique | 10,876,907 | 17,638,106 | 45,487,308 | 70,395,633 | ||||||||||||
| Complete resort working bills | 16,507,024 | 35,025,357 | 74,726,885 | 138,850,209 | ||||||||||||
| Depreciation and amortization | 4,961,039 | 5,520,038 | 19,896,772 | 21,637,316 | ||||||||||||
| (Achieve) loss on disposal of belongings | (500 | ) | 91,650 | 136,063 | 123,739 | |||||||||||
| Company normal and administrative | 2,225,386 | 1,822,063 | 6,492,526 | 6,830,354 | ||||||||||||
| Complete resort working bills | 23,692,949 | 42,459,108 | 101,252,246 | 167,441,618 | ||||||||||||
| NET OPERATING (LOSS) INCOME | (9,107,223 | ) | 1,845,845 | (29,749,670 | ) | 18,346,515 | ||||||||||
| Different revenue (expense) | ||||||||||||||||
| Curiosity expense | (4,537,372 | ) | (4,652,502 | ) | (18,056,874 | ) | (19,768,193 | ) | ||||||||
| Curiosity revenue | 31,943 | 86,883 | 210,426 | 444,459 | ||||||||||||
| Loss on early extinguishment of debt | — | — | — | (1,152,356 | ) | |||||||||||
| Unrealized (loss) achieve on hedging actions | (102,871 | ) | 377,053 | (1,487,911 | ) | (1,177,871 | ) | |||||||||
| Achieve on train of improvement proper | — | — | — | 3,940,000 | ||||||||||||
| Achieve on involuntary conversion of belongings | 139,731 | 1,630 | 179,856 | 293,534 | ||||||||||||
| Internet (loss) revenue earlier than revenue taxes | (13,575,792 | ) | (2,341,091 | ) | (48,904,173 | ) | 926,088 | |||||||||
| Revenue tax (provision) profit | 63,721 | 688,803 | (5,280,443 | ) | 249,480 | |||||||||||
| Internet (loss) revenue | (13,512,071 | ) | (1,652,288 | ) | (54,184,616 | ) | 1,175,568 | |||||||||
| Much less: Internet loss attributable to noncontrolling curiosity |
994,358 | 422,235 | 4,525,414 | 733,876 | ||||||||||||
| Internet (loss) revenue attributable to the Firm | (12,517,713 | ) | (1,230,053 | ) | (49,659,202 | ) | 1,909,444 | |||||||||
| Declared and undeclared distributions to most popular stockholders |
(2,188,910 | ) | (2,188,897 | ) | (8,755,642 | ) | (7,820,695 | ) | ||||||||
| Internet loss attributable to frequent stockholders | $ | (14,706,623 | ) | $ | (3,418,950 | ) | $ | (58,414,844 | ) | $ | (5,911,251 | ) | ||||
| Internet loss per share attributable to frequent stockholders |
||||||||||||||||
| Fundamental | $ | (1.02 | ) | $ | (0.25 | ) | $ | (4.08 | ) | $ | (0.43 | ) | ||||
| Weighted common variety of frequent shares excellent |
||||||||||||||||
| Fundamental | 14,366,399 | 13,695,964 | 14,312,049 | 13,642,573 | ||||||||||||
SOTHERLY HOTELS INC.
KEY OPERATING METRICS
(unaudited)
The next tables illustrate the important thing working metrics for the three and twelve months ended December 31, 2020 and 2019, respectively, for the Firm’s twelve wholly-owned properties (“precise” portfolio metrics), Accordingly, the precise knowledge doesn’t embrace the taking part condominium resort rooms of the Hyde Resort & Residences and the Hyde Seashore Home Resort & Residences. The composite portfolio metrics signify the Firm’s twelve wholly-owned properties and the taking part condominium resort rooms on the Hyde Resort & Residences and the Hyde Seashore Home Resort & Residences in the course of the three and twelve months ended December 31, 2020 and the corresponding durations in 2019.
| Three Months Ended | Three Months Ended | 12 months Ended | 12 months Ended | |||||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||||
| Precise Portfolio Metrics | ||||||||||||||||||||
| Occupancy % | 31.9 | % | 67.5 | % | 31.7 | % | 71.3 | % | ||||||||||||
| ADR | $ | 110.48 | $ | 150.50 | $ | 134.48 | $ | 155.92 | ||||||||||||
| RevPAR | $ | 35.25 | $ | 101.61 | $ | 42.59 | $ | 111.17 | ||||||||||||
| Composite Portfolio Metrics | ||||||||||||||||||||
| Occupancy % | 31.1 | % | 65.7 | % | 30.6 | % | 70.1 | % | ||||||||||||
| ADR | $ | 123.89 | $ | 155.57 | $ | 144.88 | $ | 161.17 | ||||||||||||
| RevPAR | $ | 38.54 | $ | 102.27 | $ | 44.28 | $ | 112.94 | ||||||||||||
SOTHERLY HOTELS INC.
SUPPLEMENTAL DATA
(unaudited)
The next tables illustrate the important thing working metrics for the three and twelve months ended December 31, 2020, 2019 and 2018, respectively, for every of the Firm’s wholly-owned properties throughout every respective reporting interval, regardless of possession proportion throughout any interval.
Occupancy
| This autumn 2020 | This autumn 2019 | This autumn 2018 | |||||||||
| YTD | YTD | YTD | |||||||||
| The DeSoto Savannah, Georgia |
38.3 | % | 62.9 | % | 56.5 | % | |||||
| 29.3 | % | 65.4 | % | 61.6 | % | ||||||
| DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
38.4 | % | 75.4 | % | 78.2 | % | |||||
| 38.3 | % | 78.5 | % | 81.6 | % | ||||||
| DoubleTree by Hilton Laurel Laurel, Maryland |
32.0 | % | 65.2 | % | 66.4 | % | |||||
| 31.9 | % | 69.9 | % | 66.8 | % | ||||||
| DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
35.3 | % | 73.9 | % | 74.0 | % | |||||
| 36.4 | % | 76.6 | % | 78.2 | % | ||||||
| DoubleTree by Hilton Raleigh Brownstone – College Raleigh, North Carolina |
25.8 | % | 72.5 | % | 71.0 | % | |||||
| 27.0 | % | 76.3 | % | 74.8 | % | ||||||
| DoubleTree Resort by Hilton Hollywood Seashore Hollywood, Florida |
44.0 | % | 69.5 | % | 62.6 | % | |||||
| 35.3 | % | 70.5 | % | 69.2 | % | ||||||
| Georgian Terrace Atlanta, Georgia |
29.8 | % | 67.5 | % | 63.9 | % | |||||
| 25.1 | % | 70.0 | % | 67.9 | % | ||||||
| Resort Alba Tampa, Tapestry Assortment by Hilton Tampa, Florida |
36.9 | % | 61.8 | % | 64.7 | % | |||||
| 34.8 | % | 66.2 | % | 71.9 | % | ||||||
| Resort Ballast Wilmington, Tapestry Assortment by Hilton Wilmington, North Carolina |
25.0 | % | 60.3 | % | 64.2 | % | |||||
| 33.1 | % | 68.5 | % | 63.9 | % | ||||||
| Hyatt Centric Arlington (1) Arlington, Virginia |
20.7 | % | 74.8 | % | 74.8 | % | |||||
| 26.1 | % | 79.1 | % | 83.8 | % | ||||||
| Sheraton Louisville Riverside Jeffersonville, Indiana |
42.8 | % | 65.0 | % | 58.5 | % | |||||
| 43.6 | % | 67.9 | % | 60.6 | % | ||||||
| The Whitehall Houston, Texas |
15.8 | % | 56.0 | % | 54.6 | % | |||||
| 21.8 | % | 62.2 | % | 57.5 | % | ||||||
| Hyde Resort & Residences (2) Hollywood Seashore, Florida |
24.8 | % | 44.6 | % | 39.3 | % | |||||
| 24.1 | % | 50.5 | % | 49.8 | % | ||||||
| Hyde Seashore Home Resort & Residences (2) Hollywood Seashore, Florida |
18.7 | % | 15.0 | % | – | ||||||
| 11.7 | % | 15.0 | % | – | |||||||
| All properties weighted common (1) | 31.1 | % | 65.7 | % | 64.7 | % | |||||
| 30.6 | % | 70.1 | % | 69.1 | % | ||||||
| (1 | ) | Contains working outcomes underneath earlier possession. Outcomes for durations previous to the Firm’s possession had been offered by prior house owners of the resort and haven’t been audited or confirmed by the Firm. |
| (2 | ) | Displays solely these condominium models taking part in our rental program for the interval. |
ADR
| This autumn 2020 | This autumn 2019 | This autumn 2018 | |||||||||
| YTD | YTD | YTD | |||||||||
| The DeSoto Savannah, Georgia |
$ | 134.31 | $ | 169.52 | $ | 173.37 | |||||
| $ | 150.24 | $ | 174.75 | $ | 177.19 | ||||||
| DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
$ | 122.35 | $ | 137.96 | $ | 134.76 | |||||
| $ | 135.19 | $ | 139.53 | $ | 139.84 | ||||||
| DoubleTree by Hilton Laurel Laurel, Maryland |
$ | 84.16 | $ | 103.73 | $ | 104.12 | |||||
| $ | 89.92 | $ | 107.34 | $ | 107.98 | ||||||
| DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
$ | 100.27 | $ | 145.10 | $ | 139.61 | |||||
| $ | 110.37 | $ | 143.95 | $ | 139.25 | ||||||
| DoubleTree by Hilton Raleigh Brownstone – College Raleigh, North Carolina |
$ | 80.44 | $ | 140.45 | $ | 134.17 | |||||
| $ | 113.86 | $ | 139.73 | $ | 134.26 | ||||||
| DoubleTree Resort by Hilton Hollywood Seashore Hollywood, Florida |
$ | 90.64 | $ | 159.34 | $ | 168.37 | |||||
| $ | 162.97 | $ | 173.25 | $ | 175.18 | ||||||
| Georgian Terrace Atlanta, Georgia |
$ | 166.36 | $ | 193.56 | $ | 193.65 | |||||
| $ | 186.04 | $ | 204.60 | $ | 186.28 | ||||||
| Resort Alba Tampa, Tapestry Assortment by Hilton Tampa, Florida |
$ | 110.27 | $ | 124.16 | $ | 116.92 | |||||
| $ | 137.75 | $ | 129.91 | $ | 124.72 | ||||||
| Resort Ballast Wilmington, Tapestry Assortment by Hilton Wilmington, North Carolina |
$ | 133.55 | $ | 157.48 | $ | 158.77 | |||||
| $ | 148.48 | $ | 161.50 | $ | 153.04 | ||||||
| Hyatt Centric Arlington (1) Arlington, Virginia |
$ | 82.12 | $ | 176.80 | $ | 170.31 | |||||
| $ | 133.75 | $ | 188.15 | $ | 181.38 | ||||||
| Sheraton Louisville Riverside Jeffersonville, Indiana |
$ | 91.15 | $ | 106.39 | $ | 112.16 | |||||
| $ | 96.84 | $ | 114.92 | $ | 122.62 | ||||||
| The Whitehall Houston, Texas |
$ | 108.50 | $ | 142.79 | $ | 147.60 | |||||
| $ | 132.01 | $ | 143.33 | $ | 146.01 | ||||||
| Hyde Resort & Residences (2) Hollywood Seashore, Florida |
$ | 341.56 | $ | 284.03 | $ | 299.46 | |||||
| $ | 332.86 | $ | 295.49 | $ | 299.30 | ||||||
| Hyde Seashore Home Resort & Residences (2) Hollywood Seashore, Florida |
$ | 341.76 | $ | 341.58 | $ | – | |||||
| $ | 330.14 | $ | 341.58 | $ | – | ||||||
| All properties weighted common (1) | $ | 123.89 | $ | 155.57 | $ | 154.60 | |||||
| $ | 144.88 | $ | 161.17 | $ | 158.02 | ||||||
| (1 | ) | Contains working outcomes underneath earlier possession. Outcomes for durations previous to the Firm’s possession had been offered by prior house owners of the resort and haven’t been audited or confirmed by the Firm. |
| (2 | ) | Displays solely these condominium models taking part in our rental program for the interval. |
RevPAR
| This autumn 2020 | This autumn 2019 | This autumn 2018 | |||||||||
| YTD | YTD | YTD | |||||||||
| The DeSoto Savannah, Georgia |
$ | 51.45 | $ | 106.56 | $ | 97.91 | |||||
| $ | 44.03 | $ | 114.34 | $ | 109.21 | ||||||
| DoubleTree by Hilton Jacksonville Riverfront Jacksonville, Florida |
$ | 46.95 | $ | 104.03 | $ | 105.33 | |||||
| $ | 51.77 | $ | 109.53 | $ | 114.06 | ||||||
| DoubleTree by Hilton Laurel Laurel, Maryland |
$ | 26.97 | $ | 67.67 | $ | 69.16 | |||||
| $ | 28.69 | $ | 75.06 | $ | 72.09 | ||||||
| DoubleTree by Hilton Philadelphia Airport Philadelphia, Pennsylvania |
$ | 35.37 | $ | 107.16 | $ | 103.34 | |||||
| $ | 40.22 | $ | 110.20 | $ | 108.88 | ||||||
| DoubleTree by Hilton Raleigh Brownstone – College Raleigh, North Carolina |
$ | 20.79 | $ | 101.80 | $ | 95.29 | |||||
| $ | 30.69 | $ | 106.63 | $ | 100.36 | ||||||
| DoubleTree Resort by Hilton Hollywood Seashore Hollywood, Florida |
$ | 39.87 | $ | 110.76 | $ | 105.47 | |||||
| $ | 57.45 | $ | 122.22 | $ | 121.19 | ||||||
| Georgian Terrace Atlanta, Georgia |
$ | 49.64 | $ | 130.56 | $ | 123.79 | |||||
| $ | 46.73 | $ | 143.15 | $ | 126.56 | ||||||
| Resort Alba Tampa, Tapestry Assortment by Hilton Tampa, Florida |
$ | 40.71 | $ | 76.79 | $ | 75.68 | |||||
| $ | 47.98 | $ | 85.97 | $ | 89.73 | ||||||
| Resort Ballast Wilmington, Tapestry Assortment by Hilton Wilmington, North Carolina |
$ | 33.44 | $ | 94.93 | $ | 101.94 | |||||
| $ | 49.19 | $ | 110.58 | $ | 97.75 | ||||||
| Hyatt Centric Arlington (1) Arlington, Virginia |
$ | 16.96 | $ | 132.25 | $ | 127.39 | |||||
| $ | 34.91 | $ | 148.77 | $ | 152.04 | ||||||
| Sheraton Louisville Riverside Jeffersonville, Indiana |
$ | 39.02 | $ | 69.13 | $ | 65.60 | |||||
| $ | 42.20 | $ | 78.02 | $ | 74.25 | ||||||
| The Whitehall Houston, Texas |
$ | 17.10 | $ | 79.96 | $ | 80.55 | |||||
| $ | 28.81 | $ | 89.18 | $ | 83.95 | ||||||
| Hyde Resort & Residences (2) Hollywood Seashore, Florida |
$ | 84.59 | $ | 126.79 | $ | 117.83 | |||||
| $ | 80.10 | $ | 149.36 | $ | 149.15 | ||||||
| Hyde Seashore Home Resort & Residences (2) Hollywood Seashore, Florida |
$ | 63.79 | $ | 51.36 | $ | – | |||||
| $ | 38.67 | $ | 51.36 | $ | – | ||||||
| All properties weighted common (1) | $ | 38.54 | $ | 102.27 | $ | 100.10 | |||||
| $ | 44.28 | $ | 112.94 | $ | 109.20 | ||||||
| (1 | ) | Contains working outcomes underneath earlier possession. Outcomes for durations previous to the Firm’s possession had been offered by prior house owners of the resort and haven’t been audited or confirmed by the Firm. |
| (2 | ) | Displays solely these condominium models taking part in our rental program for the interval. |
SOTHERLY HOTELS INC.
RECONCILIATION OF NET LOSS TO
FFO, Adjusted FFO, EBITDA and Resort EBITDA
(unaudited)
| Three Months Ended | Three Months Ended | 12 months Ended | 12 months Ended | |||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
| Internet loss attributable to frequent stockholders | $ | (14,706,623 | ) | $ | (3,418,950 | ) | $ | (58,414,844 | ) | $ | (5,911,251 | ) | ||||
| Add: Internet loss attributable to noncontrolling curiosity | (994,358 | ) | (422,235 | ) | (4,525,414 | ) | (733,876 | ) | ||||||||
| Depreciation and amortization – actual property | 4,943,329 | 5,504,805 | 19,825,382 | 21,578,309 | ||||||||||||
| Achieve on involuntary conversion of belongings | (139,731 | ) | (1,630 | ) | (179,856 | ) | (293,534 | ) | ||||||||
| (Achieve) loss on disposal of belongings | (500 | ) | 91,650 | 136,063 | 123,739 | |||||||||||
| FFO attributable to frequent stockholders and unitholders | $ | (10,897,883 | ) | $ | 1,753,640 | $ | (43,158,669 | ) | $ | 14,763,387 | ||||||
| Lower (improve) in deferred revenue taxes | — | (733,074 | ) | 5,412,084 | (280,905 | ) | ||||||||||
| Amortization | 17,710 | 15,233 | 71,390 | 59,007 | ||||||||||||
| Termination charge (refund) | 53,251 | 291,841 | (19,709 | ) | 291,841 | |||||||||||
| Loss on early extinguishment of debt | — | — | — | 1,152,356 | ||||||||||||
| Unrealized loss (achieve) on hedging actions | 102,871 | (377,053 | ) | 1,487,911 | 1,177,871 | |||||||||||
| Adjusted FFO attributable to frequent stockholders and unitholders | $ | (10,724,051 | ) | $ | 950,587 | $ | (36,206,993 | ) | $ | 17,163,557 | ||||||
| Weighted common variety of shares excellent, fundamental |
14,366,399 | 13,695,964 | 14,312,049 | 13,642,573 | ||||||||||||
| Weighted common variety of non-controlling models | 1,166,501 | 1,728,140 | 1,199,343 | 1,765,537 | ||||||||||||
| Weighted common variety of shares and models excellent, fundamental |
15,532,900 | 15,424,104 | 15,511,392 | 15,408,110 | ||||||||||||
| FFO per frequent share and unit | $ | (0.70 | ) | $ | 0.11 | $ | (2.78 | ) | $ | 0.96 | ||||||
| Adjusted FFO per frequent share and unit | $ | (0.69 | ) | $ | 0.06 | $ | (2.33 | ) | $ | 1.11 | ||||||
| Three Months Ended | Three Months Ended | 12 months Ended | 12 months Ended | |||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
| Internet loss attributable to frequent stockholders | $ | (14,706,623 | ) | $ | (3,418,950 | ) | $ | (58,414,844 | ) | $ | (5,911,251 | ) | ||||
| Add: Internet loss attributable to noncontrolling curiosity |
(994,358 | ) | (422,235 | ) | (4,525,414 | ) | (733,876 | ) | ||||||||
| Curiosity expense | 4,537,372 | 4,652,502 | 18,056,874 | 19,768,193 | ||||||||||||
| Curiosity revenue | (31,943 | ) | (86,883 | ) | (210,426 | ) | (444,459 | ) | ||||||||
| Revenue tax profit (provision) | (63,721 | ) | (688,803 | ) | 5,280,443 | (249,480 | ) | |||||||||
| Depreciation and amortization | 4,961,039 | 5,520,038 | 19,896,772 | 21,637,316 | ||||||||||||
| Distributions to most popular stockholders | 2,188,910 | 2,188,897 | 8,755,642 | 7,820,695 | ||||||||||||
| EBITDA | (4,109,324 | ) | 7,744,566 | (11,160,953 | ) | 41,887,138 | ||||||||||
| (Achieve) loss on disposal of belongings | (500 | ) | 91,650 | 136,063 | 123,739 | |||||||||||
| Loss on early extinguishment of debt | — | — | — | 1,152,356 | ||||||||||||
| Achieve on train of improvement proper | — | — | — | (3,940,000 | ) | |||||||||||
| Achieve on involuntary conversion of belongings |
(139,731 | ) | (1,630 | ) | (179,856 | ) | (293,534 | ) | ||||||||
| Subtotal | (4,249,555 | ) | 7,834,586 | (11,204,746 | ) | 38,929,699 | ||||||||||
| Company normal and administrative | 2,225,386 | 1,822,063 | 6,492,526 | 6,830,354 | ||||||||||||
| Unrealized loss (achieve) on hedging actions |
102,871 | (377,053 | ) | 1,487,911 | 1,177,871 | |||||||||||
| Resort EBITDA | $ | (1,921,298 | ) | $ | 9,279,596 | $ | (3,224,309 | ) | $ | 46,937,924 | ||||||
Non-GAAP Monetary Measures
The Firm considers the non-GAAP monetary measures of FFO (together with FFO per share), Adjusted FFO, EBITDA and resort EBITDA to be key supplemental measures of the Firm’s efficiency and might be thought-about together with, not alternate options to, web revenue (loss) as a measure of the Firm’s efficiency. These measures don’t signify money generated from working actions decided by usually accepted accounting ideas (“GAAP”) or quantities out there for the Firm’s discretionary use and shouldn’t be thought-about different measures of web revenue, money flows from operations or another working efficiency measure prescribed by GAAP.
FFO
Trade analysts and traders use Funds from Operations (“FFO”), as a supplemental working efficiency measure of an fairness REIT. FFO is calculated in accordance with the definition adopted by the Board of Governors of the Nationwide Affiliation of Actual Property Funding Trusts (“NAREIT”). FFO, as outlined by NAREIT, represents web revenue or loss decided in accordance with GAAP, excluding extraordinary objects as outlined underneath GAAP and beneficial properties or losses from gross sales of beforehand depreciated working actual property belongings, plus sure non-cash objects reminiscent of actual property asset depreciation and amortization, and after adjustment for any noncontrolling curiosity from unconsolidated partnerships and joint ventures. Historic price accounting for actual property belongings in accordance with GAAP implicitly assumes that the worth of actual property belongings diminishes predictably over time. Since actual property values as an alternative have traditionally risen or fallen with market circumstances, many traders and analysts have thought-about the presentation of working outcomes for actual property firms that use historic price accounting to be inadequate by itself.
The Firm considers FFO to be a helpful measure of adjusted web revenue (loss) for reviewing comparative working and monetary efficiency as a result of we consider FFO is most immediately akin to web revenue (loss), which stays the first measure of efficiency, as a result of by excluding beneficial properties or losses associated to gross sales of beforehand depreciated working actual property belongings and excluding actual property asset depreciation and amortization, FFO assists in evaluating the working efficiency of an organization’s actual property between durations or as in comparison with totally different firms. Though FFO is meant to be a REIT business customary, different firms might not calculate FFO in the identical method as we do, and traders shouldn’t assume that FFO as reported by us is akin to FFO as reported by different REITs.
Adjusted FFO
The Firm presents adjusted FFO, together with adjusted FFO per share and unit, which adjusts for sure further objects that aren’t in NAREIT’s definition of FFO together with adjustments in deferred revenue taxes, any unrealized achieve (loss) on hedging devices or warrant spinoff, mortgage impairment losses, losses on early extinguishment of debt, aborted providing prices, mortgage modification charges, franchise termination prices, prices related to the departure of govt officers, litigation settlement, over-assessed actual property taxes on enchantment, administration contract termination prices, working asset depreciation and amortization, change in management beneficial properties or losses, and acquisition transaction prices. We exclude these things as we consider it permits for significant comparisons between durations and amongst different REITs and is extra indicative than FFO of the on-going efficiency of our enterprise and belongings. Our calculation of adjusted FFO could also be totally different from comparable measures calculated by different REITs.
EBITDA
The Firm believes that excluding the impact of non-operating bills and non-cash costs, and the portion of these objects associated to unconsolidated entities, all of that are additionally primarily based on historic price accounting and could also be of restricted significance in evaluating present efficiency, may help get rid of the accounting results of depreciation and financing selections and facilitate comparisons of core working profitability between durations and between REITs, although EBITDA additionally doesn’t signify an quantity that accrued on to shareholders.
Resort EBITDA
The Firm defines resort EBITDA as web revenue or loss excluding: (1) curiosity expense, (2) curiosity revenue, (3) revenue tax provision or profit, (4) fairness within the revenue or lack of fairness investees, (5) unrealized beneficial properties and losses on spinoff devices not included in different complete revenue, (6) beneficial properties and losses on disposal of belongings, (7) realized beneficial properties and losses on investments, (8) impairment of long-lived belongings or investments, (9) loss on early debt extinguishment, (10) beneficial properties or losses on change in management, (11) achieve on train of improvement proper, (12) company normal and administrative expense, (13) depreciation and amortization, (14) beneficial properties and losses on involuntary conversions of belongings, (15) distributions to most popular stockholders and (16) different working income not associated to our wholly-owned portfolio. We consider this offers a extra full understanding of the working outcomes over which our wholly-owned inns and its operators have direct management. We consider resort EBITDA offers traders with supplemental info on the on-going operational efficiency of our inns and the effectiveness of third-party administration firms working our enterprise on a property-level foundation. The Firm’s calculation of resort EBITDA could also be totally different from comparable measures calculated by different REITs.
