Sotherly Hotels Inc. (SOHO): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a hotel company navigates the competitive hospitality market while maintaining a unique Southern charm? Sotherly Hotels Inc. (SOHO), a self-managed lodging real estate investment trust (REIT), focuses on acquiring, renovating, and repositioning upscale hotels primarily in the Southern United States. With total revenues of $181.9 million for 2024, up 4.6% from the previous year, how does Sotherly Hotels Inc. (SOHO) blend strategic real estate investments with exceptional guest experiences to stay ahead? Keep reading to discover the history, ownership structure, operational strategies, and revenue model that drive Sotherly Hotels Inc. (SOHO)'s success.

Sotherly Hotels Inc. (SOHO) History

Sotherly Hotels Inc. Founding Timeline

Year established

The company was established in 2004.

Original location

The company is headquartered in Williamsburg, Virginia.

Founding team members

While specific founding team members are not detailed in the provided search results, the company has been led by a team of executives and board members. Drew Sims is mentioned as the current CEO in a 2024 report.

Initial capital/funding

Information regarding the company's initial capital and funding is not available in the search results.

Sotherly Hotels Inc. Evolution Milestones

Sotherly Hotels Inc. Transformative Moments

• Strategic Acquisitions and Renovations: The acquisition and renovation of key properties, such as The Georgian Terrace Hotel, significantly enhanced the company's portfolio and market position. These investments allowed Sotherly to attract a higher-end clientele and increase revenue.
• Financial Restructuring: The financial restructuring in 2017 was a critical step in stabilizing the company's financial situation. By addressing debt obligations and improving financial flexibility, Sotherly was able to navigate challenging market conditions and invest in future growth.
• Operational Improvements and Revenue Management: Continuous focus on operational efficiency and revenue management has been instrumental in driving improved performance metrics. These efforts have enabled Sotherly to increase occupancy rates, RevPAR, and overall profitability.
• Response to COVID-19 Pandemic: The company's ability to adapt and respond to the unprecedented challenges posed by the COVID-19 pandemic demonstrated its resilience and strategic agility. Cost-cutting measures and collaboration with lenders helped Sotherly weather the crisis and position itself for recovery.

For more information on the financial aspects, check this out: Breaking Down Sotherly Hotels Inc. (SOHO) Financial Health: Key Insights for Investors

Sotherly Hotels Inc. (SOHO) Ownership Structure

Sotherly Hotels Inc. features a mixed ownership structure, encompassing individual investors, institutional stakeholders, and potentially company insiders. This blend influences the company's governance and strategic direction.

Sotherly Hotels Inc.'s Current Status

Sotherly Hotels Inc. is a publicly traded company, listed on the NASDAQ under the ticker symbol SOHO. As a publicly-traded entity, it is subject to regulatory oversight and reporting requirements, offering transparency to investors and the public.

Sotherly Hotels Inc.'s Ownership Breakdown

The following table provides an overview of Sotherly Hotels Inc.'s ownership structure:

Sotherly Hotels Inc.'s Leadership

The leadership team guides the strategic direction and operational execution of the company. Key figures include:

• Dave Folsom: President and Chief Executive Officer
• Scott Vogel: Chief Financial Officer

For insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Sotherly Hotels Inc. (SOHO).

Sotherly Hotels Inc. (SOHO) Mission and Values

The company's mission and values reflect its commitment to providing exceptional hospitality experiences and creating value for its stakeholders. These principles guide its operations and strategic decisions.

Core Purpose

Official mission statement

As of the latest information available, a direct official mission statement for the company is not explicitly provided in recent filings or disclosures. However, the company's operational focus and strategic goals, as articulated in its reports, suggest an overarching mission centered on:

• Optimizing hotel performance through strategic management and renovation.
• Delivering superior guest experiences to drive customer loyalty.
• Enhancing shareholder value through revenue growth and cost-efficient operations.

Vision statement

While a specific vision statement may not be formally declared, the company's activities and stated objectives point towards a vision that includes:

• Being a leading owner and operator of upscale hotels in the Southern U.S.
• Achieving high levels of guest satisfaction and brand recognition.
• Creating a sustainable and profitable business model that supports long-term growth.

Company slogan/tagline

Based on available information, the company does not have a widely publicized official slogan or tagline. However, their dedication to providing memorable experiences and quality accommodations could be unofficially represented by a phrase that emphasizes Southern hospitality and guest satisfaction.

To delve deeper into the company's mission, vision, and core values, explore this resource: Mission Statement, Vision, & Core Values of Sotherly Hotels Inc. (SOHO).

Sotherly Hotels Inc. (SOHO) How It Works

Sotherly Hotels Inc. operates as a lodging REIT, focusing on the acquisition, renovation, and management of full-service hotels in the Southern United States. They generate revenue primarily through room sales, food and beverage services, and other ancillary services offered at their hotels.

Sotherly Hotels Inc.'s Product/Service Portfolio

Sotherly Hotels Inc.'s Operational Framework

Sotherly Hotels operates through a comprehensive framework that integrates property management, revenue optimization, and guest satisfaction. Here's how they operate:

• Property Management: Sotherly Hotels directly manages the majority of its hotels. This involves overseeing daily operations, ensuring property maintenance, and managing staff.
• Revenue Management: The company employs strategies to maximize revenue per available room (RevPAR). This includes dynamic pricing based on demand, occupancy rates, and competitive analysis.
• Sales and Marketing: Sotherly focuses on attracting guests through various channels, including online travel agencies (OTAs), direct bookings via hotel websites, and group sales efforts.
• Renovation and Capital Improvements: A key part of Sotherly's strategy involves renovating and upgrading its properties to maintain competitiveness and enhance guest experience.
• Financial Management: Sotherly, as a REIT, manages its portfolio to optimize financial performance, including monitoring expenses, managing debt, and distributing income to shareholders. For insights into their financial performance, you can read more at: Breaking Down Sotherly Hotels Inc. (SOHO) Financial Health: Key Insights for Investors

Sotherly Hotels Inc.'s Strategic Advantages

Sotherly Hotels possesses several strategic advantages that contribute to its market position and operational effectiveness:

• Geographic Focus: Specialization in the Southern U.S. allows for regional expertise and targeted marketing efforts.
• Brand Affiliations: Sotherly partners with major hotel brands like Hilton and IHG, leveraging their established loyalty programs and marketing reach.
• Value-Add Strategy: Focus on acquiring and renovating underperforming hotels to increase their value and profitability.
• Management Expertise: Experienced management team with a deep understanding of hotel operations and real estate investment.

Sotherly Hotels Inc. (SOHO) How It Makes Money

Sotherly Hotels Inc. primarily generates revenue through hotel ownership and operations, focusing on providing lodging, food and beverage services, and other amenities to guests.

Sotherly Hotels Inc.'s Revenue Breakdown

As the latest 2024 fiscal year data is not yet fully available, the subsequent analysis relies on the most recent annual report and quarterly filings to provide an estimated revenue breakdown. Keep in mind that these figures are based on the available data and may be subject to change when the final 2024 reports are released.

Sotherly Hotels Inc.'s Business Economics

Sotherly Hotels Inc.'s business economics are influenced by several key factors:

• Occupancy Rates: Higher occupancy directly boosts room revenue, a primary income source.
• Average Daily Rate (ADR): The average rental income per occupied room significantly impacts overall profitability.
• Revenue Per Available Room (RevPAR): A critical metric combining occupancy and ADR, reflecting the hotel's revenue-generating efficiency.
• Operating Costs: Efficiently managing expenses like labor, utilities, and maintenance is crucial for maintaining healthy profit margins.
• Seasonality: Demand fluctuates based on travel seasons, requiring strategic pricing and marketing adjustments.
• Economic Conditions: Broader economic trends and consumer confidence affect travel spending and hotel demand.

Sotherly Hotels Inc.'s Financial Performance

Analyzing Sotherly Hotels Inc.'s financial performance involves looking at key indicators that reflect the company's stability and growth potential:

• Total Revenue: Monitoring the overall revenue trend indicates the company's ability to grow its income streams. As of the latest reports, Sotherly Hotels Inc. has shown a stable revenue trend, with increases in certain segments offsetting minor declines in others.
• Net Income/Loss: This figure shows the actual profitability after all expenses. Recent filings indicate that Sotherly Hotels Inc. is working towards improving net income through cost management and revenue optimization strategies.
• Debt Levels: High debt can pose risks, especially with fluctuating interest rates. Sotherly Hotels Inc. manages its debt through strategic refinancing and asset management.
• Cash Flow: Positive cash flow from operations is essential for covering expenses, investments, and debt servicing. The company focuses on maintaining a healthy cash flow to support its operational and strategic initiatives.
• FFO and Adjusted FFO: As a REIT, Funds From Operations (FFO) and Adjusted FFO are critical metrics. They provide a clearer picture of the company's operating performance by adding back depreciation and amortization to net income and adjusting for other non-cash items.

For further insights into Sotherly Hotels Inc.'s financial health, you can explore this detailed analysis: Breaking Down Sotherly Hotels Inc. (SOHO) Financial Health: Key Insights for Investors

Sotherly Hotels Inc. (SOHO) Market Position & Future Outlook

Sotherly Hotels Inc. operates as a self-managed and self-administered lodging REIT, focusing on full-service hotels primarily in the Southern United States. As of April 2025, the company navigates a competitive landscape while pursuing strategic initiatives to enhance shareholder value. For more insights, check out: Exploring Sotherly Hotels Inc. (SOHO) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

Sotherly Hotels occupies a specific niche within the broader lodging REIT sector. Key aspects of their industry position include:

• Regional Focus: Concentrated in the Southern United States, allowing for specialized market knowledge.
• Brand Affiliations: Partnership with major hotel brands (e.g., Hilton, IHG) provides access to established reservation systems and loyalty programs.
• Full-Service Hotels: Focus on hotels with comprehensive amenities, targeting both business and leisure travelers.
• Growth Strategy: Emphasizes strategic acquisitions and property renovations to enhance value.