News Summary
Sotherly Hotels Inc. has announced a significant increase in profitability and revenue for Q1 2023, reporting funds from operations of $3.8 million and a net income of $2.7 million. The company’s revenues reached $48.3 million, showcasing a robust recovery in the hospitality sector. Looking ahead, Sotherly anticipates funds from operations to fall between 52 to 56 cents per share for the year, with total revenues projected to be between $183.4 million and $188.2 million.
Williamsburg, Virginia – Sotherly Hotels Inc. (SOHO) has reported a significant increase in profitability and revenue for the first quarter of 2023. The real estate investment trust (REIT) revealed funds from operations of $3.8 million, which translates to 19 cents per share for the period. This profitability metric is essential for REITs, as it offers a clearer picture of cash flow by adding back non-cash expenses like depreciation and amortization to net income.
In addition to the funds from operations, Sotherly Hotels reported a net income of $2.7 million, equivalent to 13 cents per share. The company’s revenues for the quarter reached $48.3 million, signaling a robust performance in the hospitality sector during this time.
Looking ahead, Sotherly Hotels anticipates a full-year performance with funds from operations projected to fall between 52 cents to 56 cents per share. The expected revenue for the entire year is estimated to range from $183.4 million to $188.2 million.
Details of the Financial Performance
Funds from operations is a crucial metric for REIT investors, providing insights into a company’s operational performance. For Sotherly Hotels, the calculated funds from operations take into account net income and adjust it by adding back depreciation and amortization. This method provides stakeholders with a more accurate picture of the company’s cash flow and ability to generate earnings.
The increase in revenue to $48.3 million reflects a positive trend in the hotel industry’s recovery, especially given the economic backdrop that has been affecting travel and hospitality sectors. Sotherly Hotels’ operations span across various locations, enhancing its revenue streams and reinforcing its market position.
Company Background
Founded and based in Williamsburg, Virginia, Sotherly Hotels concentrates on hotel acquisition, development, and management, focusing on markets characterized by high barriers to entry. As a REIT, Sotherly is particularly systematic in its financial reporting, ensuring transparency for its shareholders.
In recent years, Sotherly has been recognized for its strategic management of properties, with a keen focus on improving operational efficiency and maximizing returns for its investors. The announcement of its first-quarter performance illustrates the company’s resilience and commitment to navigating the uncertainties of the hospitality market.
Overall, Sotherly Hotels’ first-quarter results affirm its ongoing efforts in maintaining solid financial health and growth, which it anticipates will continue throughout the year in alignment with its strategic objectives.
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HERE Resources
Additional Resources
- Salon: Joe Biden’s Gaffes
- Wikipedia: Real Estate Investment Trust
- Salon: Biden’s Speech
- Google Search: Hotel Industry Recovery
- Salon: Political Gaffes Compilation
- Encyclopedia Britannica: Hospitality Industry
Author: STAFF HERE WILLIAMSBURG WRITER
WILLIAMSBURG STAFF WRITER The WILLIAMSBURG STAFF WRITER represents the experienced team at HEREWilliamsburg.com, your go-to source for actionable local news and information in Williamsburg, James City County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Williamsburg Farmers Market, Yorktown Market Days, and Busch Gardens Food & Wine Festival. Our coverage extends to key organizations like the Greater Williamsburg Chamber of Commerce and Colonial Williamsburg Foundation, plus leading businesses in education and hospitality that power the local economy such as College of William & Mary, The Williamsburg Winery, and Sodexo. As part of the broader HERE network, including HEREVirginiaBeach.com, we provide comprehensive, credible insights into Virginia's dynamic landscape.
