Sotherly Hotels (SOHO) Misses Q2 EPS by 15c, Miss on Revenues; Lowers FY17 Revenue Outlook Below Consensus

Sotherly Hotels (NASDAQ: SOHO) reported Q2 EPS of $0.02, $0.15 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $40.64 million versus the consensus estimate of $42.25 million.

GUIDANCE:

Sotherly Hotels sees FY2017 revenue of $152.655-156.504 million, versus the consensus of $157.5 million.

HIGHLIGHTS:

• RevPAR. Room revenue per available room (“RevPAR”) for the Company’s composite portfolio, which includes the performance of the rooms participating in our rental program at the Hyde Resort & Residences, during the three-month period ending June 30, 2017, increased 1.4% over the three months ended June 30, 2016, to $110.67 driven by a 2.5% decrease in occupancy and a 4.0% increase in average daily rate (“ADR”). For the six-month period ending June 30, 2017, RevPAR increased 3.3% over the six months ended June 30, 2016, to $107.93 driven by a 0.4% decrease in occupancy and a 3.8% increase in ADR. For properties in the Company’s composite portfolio not impacted by renovation activity, RevPAR for the three-month period ended June 30, 2017 increased 4.1% driven by a 5.1% increase in ADR offset by a 1.0% decrease in occupancy. For the same properties, RevPAR for the six-month period ended June 30, 2017 increased 7.5% driven by a 6.0% increase in ADR and a 1.4% increase in occupancy.
• Common Dividends. As previously reported on July 25, 2017, the Company announced its quarterly dividend (distribution) on its common stock (and units) at $0.11 per share (and unit) to be paid on October 11, 2017 to stockholders (and unitholders) of record as of September 15, 2017.
• Hotel EBITDA. The Company generated hotel EBITDA of approximately $11.5 million during the three-month period ending June 30, 2017, a decrease of 7.7%, or approximately $1.0 million, from the three months ended June 30, 2016. For the six-month period ending June 30, 2017, hotel EBITDA increased 2.0%, or approximately $0.5 million, over the six months ended June 30, 2016.
• EBITDA. The Company generated EBITDA of approximately $9.7 million during the three-month period ending June 30, 2017, a decrease of 12.9% or approximately $1.4 million compared to the three months ended June 30, 2016. For the six-month period ending June 30, 2017, EBITDA decreased 0.4% or approximately $0.1 million from the six months ended June 30, 2016.
• Adjusted FFO. For the three-month period ending June 30, 2017, adjusted FFO decreased 23.8% or approximately $1.6 million from the three months ended June 30, 2016. For the six-month period ending June 30, 2017, adjusted FFO decreased 1.7% or approximately $0.2 million over the six months ended June 30, 2016.

For earnings history and earnings-related data on SoTHERLY Hotels (SOHO) click here.

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