Revenue contracted by 6.6% year-over-year in 2025Q3, while NOI margins compressed to 19.2% from a 31.0% peak in 2024Q2, reflecting persistent pressure on full-service operating models.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Revenue | 179.07M | 181.89M | 173.84M | 166.08M | 127.59M | 71.5M | 185.79M | 178.17M | 154.27M | 152.85M | 138.53M | 122.94M | 89.37M | 87.34M | 81.17M | 77.38M | 71.52M | 70.76M | 69.81M | 67.24M | 57.86M | 26.53M | 24.44M |
| Revenue Growth % | -0.57% | 4.63% | 4.67% | 30.17% | 78.44% | -61.51% | 4.27% | 15.5% | 0.93% | 10.33% | 12.68% | 37.56% | 2.33% | 7.6% | 4.9% | 8.2% | 1.07% | 1.36% | 3.83% | 16.22% | 118.07% | 8.58% | - |
| Property Operating Expenses | 134.3M | 135.08M | 129.05M | 119.61M | 96.69M | 74.73M | 138.85M | 130.49M | 113.28M | 112.83M | 101.89M | 90.18M | 65.47M | 64.3M | 61.78M | 59.06M | 56.05M | 55.87M | 51.88M | 50.21M | 45.15M | 0 | 0 |
| Net Operating Income (NOI) | 44.77M | 46.81M | 44.79M | 46.46M | 30.89M | -3.22M | 46.94M | 47.68M | 40.99M | 40.01M | 36.65M | 32.76M | 23.91M | 23.05M | 19.39M | 18.32M | 15.46M | 14.89M | 17.94M | 17.03M | 12.7M | 26.53M | 24.44M |
| NOI Margin % | 25% | 25.74% | 25.76% | 27.98% | 24.21% | -4.51% | 25.26% | 26.76% | 26.57% | 26.18% | 26.45% | 26.65% | 26.75% | 26.38% | 23.89% | 23.68% | 21.62% | 21.05% | 25.69% | 25.33% | 21.95% | 100% | 100% |
| Operating Expenses | 27.15M | 26.16M | 25.86M | 25.91M | 38.75M | 26.53M | 28.59M | 27.07M | 23.34M | 21.04M | 20.86M | 16.97M | 12.83M | 12.74M | 12.73M | 11.9M | 11.59M | 9.29M | 8.19M | 7.51M | 6.38M | 24.91M | 21.59M |
| G&A Expenses | 7.39M | 6.79M | 7.08M | 6.62M | 7M | 6.49M | 6.83M | 6.18M | 6.34M | 6.02M | 7.27M | 5.09M | 4.36M | 4.08M | 4.03M | 3.39M | 3.17M | 2.94M | 3.14M | 2.59M | 2.07M | 3.8M | 8.51M |
| EBITDA | 36.88M | 40.03M | 37.71M | 39.21M | 11.85M | -9.85M | 39.98M | 178.47M | 152.81M | 152.52M | 28.92M | 27.68M | 19.55M | 18.97M | 15.36M | 14.93M | 12.29M | 11.95M | 14.8M | 14.58M | 10.63M | 1.51M | 4.89M |
| EBITDA Margin % | 20.6% | 22.01% | 21.7% | 23.61% | 9.29% | -13.78% | 21.52% | 100.17% | 99.05% | 99.79% | 20.88% | 22.51% | 21.87% | 21.72% | 18.93% | 19.3% | 17.19% | 16.89% | 21.2% | 21.68% | 18.37% | 5.67% | 20.03% |
| Depreciation & Amortization | 19.76M | 19.38M | 18.79M | 18.65M | 19.91M | 19.9M | 21.64M | 158.36M | 136.64M | 133.91M | 13.59M | 11.88M | 8.47M | 8.66M | 8.7M | 8.51M | 8.42M | 6.35M | 5.05M | 5.05M | 4.31M | 1.89M | 2.05M |
| D&A / Revenue % | 11.03% | 10.66% | 10.81% | 11.23% | 15.6% | 27.83% | 11.65% | 88.88% | 88.57% | 87.61% | 9.81% | 9.67% | 9.47% | 9.92% | 10.72% | 10.99% | 11.77% | 8.97% | 7.23% | 7.52% | 7.45% | 7.11% | 8.37% |
| Operating Income | 17.12M | 20.65M | 18.93M | 20.55M | -8.06M | -29.75M | 18.35M | 20.11M | 16.16M | 18.61M | 15.33M | 15.79M | 11.08M | 10.3M | 6.66M | 6.42M | 3.87M | 5.61M | 9.75M | 9.52M | 6.32M | -382.07K | 2.85M |
| Operating Margin % | 9.56% | 11.35% | 10.89% | 12.38% | -6.31% | -41.61% | 9.87% | 11.28% | 10.48% | 12.17% | 11.07% | 12.85% | 12.39% | 11.8% | 8.21% | 8.3% | 5.42% | 7.92% | 13.97% | 14.16% | 10.92% | -1.44% | 11.66% |
| Interest Expense | 4M | 20.88M | 17.59M | 19.77M | 22.69M | 18.06M | 19.77M | 19.95M | 15.73M | 17.74M | 16.52M | 14.64M | 9.61M | 10.4M | 10.82M | 10.03M | 9.66M | 6.81M | 4.21M | 4.26M | 2.8M | 0 | 2.37M |
| Interest Coverage | - | 1.06x | 1.20x | 2.74x | -0.26x | -1.68x | 1.05x | 0.99x | 1.11x | 0.97x | 1.31x | 0.83x | 0.69x | 0.60x | 0.49x | 0.70x | 0.50x | 0.65x | 1.86x | 2.23x | 2.37x | - | 8.31x |
| Non-Operating Income | -4.72M | -1.55M | -2.17M | -33.7M | -2.23M | 595.92K | -2.35M | 291.37K | -1.33M | 1.34M | -6.25M | 334.69K | 4.45M | 3.93M | 1.41M | -568.42K | -969.92K | 1.19M | 1.9M | 0 | 0 | -18.53M | -16.92M |
| Pretax Income | -324.72K | 1.31M | 3.5M | 34.48M | -28.51M | -48.4M | 926.09K | -138.81K | 1.77M | -467.49K | 5.06M | 638.13K | -2.3M | -4.03M | -5.57M | -3.04M | -4.82M | -2.4M | 3.64M | 5.39M | 3.41M | -2.76M | 2.51M |
| Pretax Margin % | -0.18% | 0.72% | 2.02% | 20.76% | -22.35% | -67.69% | 0.5% | -0.08% | 1.15% | -0.31% | 3.65% | 0.52% | -2.58% | -4.61% | -6.86% | -3.93% | -6.74% | -3.39% | 5.21% | 8.01% | 5.89% | -10.39% | 10.25% |
| Income Tax | 36.84K | 132.49K | -304.95K | 522.36K | 27.39K | 5.28M | -249.48K | 469.35K | 1.74M | -1.37M | -1.34M | -2.09M | 1.52M | 1.3M | 905.46K | 214.34K | -1.81M | -1.48M | -187.89K | 253.97K | 508.1K | -200K | 2.71M |
| Effective Tax Rate % | -11.35% | 10.1% | -8.7% | 1.51% | -0.1% | -10.91% | -26.94% | -338.13% | 98.33% | 292.55% | -26.4% | -327.23% | -66.05% | -32.32% | -16.26% | -7.06% | 37.51% | 61.6% | -5.17% | 4.71% | 14.9% | 7.26% | 108.12% |
| Net Income | -310.42K | 1.3M | 3.94M | 32.54M | -26.22M | -49.19M | 1.91M | 109.94K | 442.5K | 926.72K | 5.36M | 2.16M | -2.98M | -4.1M | -4.84M | -2.38M | -1.97M | -597.89K | 2.46M | 3.18M | 2.48M | -1.54M | 139.84K |
| Net Margin % | -0.17% | 0.72% | 2.27% | 19.59% | -20.55% | -68.8% | 1.03% | 0.06% | 0.29% | 0.61% | 3.87% | 1.76% | -3.33% | -4.7% | -5.97% | -3.08% | -2.76% | -0.84% | 3.53% | 4.73% | 4.29% | -5.81% | 0.57% |
| Net Income Growth % | -118.78% | -66.96% | -87.89% | 224.08% | 46.7% | -2676.33% | 1636.87% | -75.16% | -52.25% | -82.7% | 148.18% | 172.48% | 27.45% | 15.27% | -103.3% | -20.73% | -230.13% | -124.29% | -22.63% | 28.19% | 261.03% | -1201.97% | - |
| Funds From Operations (FFO) | 19.45M | 20.68M | 22.73M | 51.19M | -6.31M | -29.3M | 23.55M | 158.47M | 137.08M | 134.84M | 18.95M | 14.04M | 5.49M | 4.56M | 3.86M | 6.12M | 6.45M | 5.75M | 7.51M | 8.23M | 6.79M | 346.69K | 2.19M |
| FFO Margin % | 10.86% | 11.37% | 13.08% | 30.82% | -4.95% | -40.97% | 12.67% | 88.94% | 88.86% | 88.22% | 13.68% | 11.42% | 6.14% | 5.22% | 4.75% | 7.91% | 9.01% | 8.12% | 10.76% | 12.25% | 11.74% | 1.31% | 8.94% |
| FFO Growth % | -128.11% | -9.01% | -55.59% | 910.91% | 78.45% | -224.42% | -85.14% | 15.6% | 1.67% | 611.61% | 34.94% | 155.81% | 20.46% | 18.11% | -36.99% | -5% | 12.14% | -23.47% | -8.78% | 21.26% | 1858.82% | -84.13% | - |
| FFO per Share | 0.95 | 1.07 | 1.21 | 2.78 | -0.41 | -2.05 | 1.73 | 11.72 | 9.91 | 9.05 | 1.51 | 1.35 | 0.54 | 0.46 | 0.40 | 0.65 | 0.90 | 0.82 | 1.09 | 1.22 | 1.02 | 0.06 | 0.36 |
| FFO Payout Ratio % | 0% | 38.57% | 43.87% | 0% | 0% | -6.83% | 33.38% | 3.99% | 4.34% | 4.34% | 21.66% | 19.13% | 33.22% | 25.61% | 6.71% | 0% | 3.32% | 126.05% | 62.21% | 55.39% | 50.35% | 0% | 0% |
| EPS (Diluted) | -0.02 | -0.34 | -0.22 | 1.39 | -2.15 | -4.05 | 0.09 | 0.01 | -0.24 | -0.01 | 0.43 | -0.06 | -0.29 | -0.41 | -0.50 | -0.25 | -0.28 | -0.09 | 0.36 | 0.47 | 0.37 | -0.26 | 0.02 |
| EPS Growth % | 4.12% | -54.55% | -115.83% | 164.65% | 46.91% | -4798.38% | - | 103.38% | -2300% | -102.33% | 816.67% | 79.31% | 29.27% | 18% | -100% | 10.71% | -226.72% | -123.81% | -23.4% | 27.03% | 242.31% | -1215.88% | - |
| EPS (Basic) | - | -0.34 | -0.22 | 1.40 | -2.15 | -4.05 | 0.09 | 0.01 | -0.24 | -0.01 | 0.43 | -0.06 | -0.29 | -0.41 | -0.50 | -0.25 | -0.28 | -0.09 | 0.36 | 0.47 | 0.37 | -0.26 | 0.02 |
| Diluted Shares Outstanding | 20.4M | 19.42M | 18.84M | 18.38M | 15.53M | 14.31M | 13.64M | 13.52M | 13.83M | 14.9M | 12.54M | 10.38M | 10.16M | 10M | 9.68M | 9.46M | 7.17M | 6.97M | 6.9M | 6.78M | 6.67M | 6M | 6M |
High leverage liquidity constraints
According to the latest quarterly financial data, Sotherly Hotels experienced a 6.6% year-over-year revenue decline in 2025Q3, reflecting the inherent cyclicality of its Sunbelt-focused portfolio and the challenges of maintaining top-line growth in a high-cost, full-service hospitality environment during off-peak travel periods.
The revenue trajectory appears increasingly sensitive to seasonal troughs, as evidenced by the sharp drop from $48.8M in 2025Q2 to $38.0M in 2025Q3. This volatility suggests that the company's reliance on leisure-heavy Southern markets may leave it exposed to broader shifts in discretionary travel spending.
As reported in recent filings, the company's NOI margin compressed to 19.2% in 2025Q3, down significantly from the 31.0% peak observed in 2024Q2, highlighting the difficulty of managing fixed labor and insurance costs within a high-touch, full-service hotel operating model.
The significant margin erosion suggests that Sotherly struggles to achieve operating leverage when occupancy levels dip. Investors should monitor whether rising property-level expenses, particularly insurance premiums in coastal regions, are creating a structural floor on margin recovery potential.
Based on the provided income statement data, FFO per share plummeted to -0.03 in 2025Q3, a stark reversal from the 0.48 reported in 2025Q1, which underscores the high sensitivity of Sotherly's earnings to minor fluctuations in property-level performance and interest expense obligations.
The erratic FFO trajectory indicates that the company's earnings quality is heavily influenced by its capital structure and the high fixed costs of its asset base. The transition to negative FFO suggests that the current dividend policy may face significant sustainability hurdles in the near term.
Financial statements indicate that Sotherly's reliance on preferred equity and high leverage creates a complex hurdle for common shareholders, as evidenced by the 2025Q3 net loss of $5.5M despite the company's ongoing efforts to reposition assets through its niche upbranding strategy.
The persistent net losses suggest that the company's interest and preferred dividend obligations may be consuming the majority of cash flow generated by operations. This capital structure configuration warrants further investigation into whether the underlying real estate value can support the current debt load during prolonged market downturns.
Quick answers to the most common questions about buying SOHO stock.
For fiscal year 2024, Sotherly Hotels Inc. (SOHO) reported total revenue of $181.9M. This represents a 644.4% increase compared to $24.4M in 2003.
Sotherly Hotels Inc. (SOHO) is profitable, generating $1.3M in net income for the fiscal year ending 2024 with a net profit margin of 0.7%.
Sotherly Hotels Inc. (SOHO) reported an operating income of $20.6M, resulting in an operating profit margin of 11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Sotherly Hotels Inc. (SOHO) generated $46.8M in gross profit for the year, representing a gross profit margin of 25.7%. This demonstrates the company's core pricing power and production efficiency.