Sotherly Hotels Inc. (SOHO) stock released second-quarter 2021 financial results after which the stock became more bullish than before. SOHO price saw a push of 13.3% to reach $2.56 a share at the time of this writing. The stock was gaining in the previous trading session and went up by 1.35% at closing.
SOHO Stock Second Quarter 2021 Financial Results:
- Sotherly Hotels generated $34.4 million in revenue in the third quarter of 2021 as compared to $5.3 million in Q2,2020. This revenue was 33.3% lower than the same period revenue of 2019.
- Room revenue per available room for the SOHO stock reached $94.93 as compared to $12.91 in the same prior year quarter.
- The production of hotel EBITDA increased to $9.7 million in the three months ended June 30, 2021. This compares to the deficit of $5.2 million in the same tenure of the previous year.
- SOHO stock recorded a 108.3% increase in adjusted FFO attributable to common stockholders and unitholders to reach $14.4 million as compared to Q2,2020.
Dividend Update:
The SOHO stock for now will not pay the quarterly dividend to its shareholders to maintain liquidity till any further update. The stock did not pay the dividend for the second quarter of 2021. The management is monitoring the SOHO stock’s situation and will decide about the future dividends according to the situation.
Monthly Cash Use Estimates:
The SOHO stock estimated $0.4 million average monthly cash use for the third quarter of 2021 based on the following assumptions.
- $2.90 to $2.95 million for monthly average hotel cash flow
- $0.40 to $0.45 million for monthly G&A cash use.
- $0.50 to $0.50 million for capital expenditures
- $2.40 million monthly cash use for corporate financing.
Developments of SOHO stock:
SOHO stock signed many forbearance and loan modification agreements with its lenders. These agreements are for mortgage loans that Sotherly’s hotels located in various places secure. These agreements will able SOHO stock to defer payments of principal and interest for various period periods.
Financial Guidance for 3rd Quarter 2021:
SOHO stock expected a decline in its RevPAR between 5% to 10% as compared to the third quarter of 2019. However, it would be much better than the first and second quarters of 2021. The stock has not provided clear guidance due as no one knows the uncertainties due to Covid-19.
Wrap Up:
Sotherly Hotels stock is hot among investors so far after the release of second-quarter 2021 financial results. The stock had $33.5 million in cash and cash equivalents by the end of June 2021. The stock has a market cap of 36.079 million and 165,578 average trading volume.
