For the latest quarter ending 30 September 2023, the company reported a net loss of $2.06m as against a net income of $1.97m in the corresponding period of 2022.
Net income attributable to common stockholders fell by roughly $4m from an income of $0.11m in Q3 2022 to a net loss of approximately $3.90m in Q3 2023.
The net loss per share attributable to common stockholders in Q3 2023, both basic and diluted, was $0.20, as against a net income of $0.01 in Q3 2022.
Total hotel operating expenses were $38.01m in the latest quarter, compared to $35.92m in the third quarter of 2022.
Sotherly Hotels’ earnings before interest, taxes, depreciation and amortisation (EBITDA) was $6.53m compared with $10.87m in the same period a year earlier.
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Room revenue per available room (RevPAR) for the hotel company’s composite portfolio fell to $102.82 in Q3 2023, from $104.19 in the same quarter of 2022.
The drop in RevPAR was due to a decline in the average daily rate (ADR) to $167.10 in Q3 2023 from $168.18 in Q3 2022, as well as a fall in occupancy to 61.5% in Q3 2023 from 62.0% in Q3 2022.
Sotherly Hotels president and CEO Dave Folsom said: “In the third quarter, we continued to witness RevPAR increases over the pre-pandemic results of 2019. Our wholly-owned portfolio’s overall RevPAR improvement over 2019 was 1.7%, with ADR up 15.0%.
“Occupancy still lags pre-pandemic levels, which we see as long-term upside potential for our portfolio. Revenue results for our wholly owned portfolio, compared to the prior year, showed RevPAR slightly up by 0.6% and ADR was up 1.5%. We continue to see improvement in the group and business travel segments.”
For the fourth quarter of 2023, the company anticipates its total revenue to be in the range of $40.49m and $41.97m and its EBITDA to be between $7.52m and $7.91m.
Sotherly’s portfolio features investments in ten hotel properties, consisting of 2,786 rooms, as well as interests in two condominium hotels and their related rental programmes.