📊 SOHON Key Takeaways
Is Sotherly Hotels Inc. (SOHON) a Good Investment?
Sotherly Hotels faces critical financial distress with interest coverage of 0.5x, indicating inability to service debt from operations, combined with negative free cash flow of -$50.8M and an unsustainable 11.15x debt/equity ratio. Despite solid 30.8% operating margins, the company is consumed by leverage and generates persistent net losses while burning cash.
Why Buy Sotherly Hotels Inc. Stock? SOHON Key Strengths
- Healthy operating margin of 30.8% indicates core hotel operations are reasonably profitable
- Positive operating cash flow of $10.3M shows operational activities generating some cash
- Net loss improving 50.9% year-over-year demonstrates management initiatives to reduce losses
SOHON Stock Risks: Sotherly Hotels Inc. Investment Risks
- Interest coverage of 0.5x means operating income covers only 50% of interest expense - imminent default risk
- Debt/equity ratio of 11.15x with $315.2M long-term debt against $28.3M equity creates solvency crisis
- Negative free cash flow of -$50.8M unsustainable; company burning $50.8M annually after capex needs
- Declining revenue (-3.0% YoY) combined with negative net income shows deteriorating fundamental trend
- Minimal cash buffer of $7.0M insufficient to cover operations given negative FCF trajectory
Key Metrics to Watch
- Interest coverage ratio - track whether it can improve above 1.0x to avoid default
- Debt/equity reduction progress - monitor debt paydown vs equity recovery
- Free cash flow inflection - critical to return to positive FCF to sustain operations
- Revenue stabilization - monitor if declining revenue trend reverses
- Debt refinancing activity - track ability to refinance maturing obligations
Sotherly Hotels Inc. (SOHON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SOHON Profit Margin, ROE & Profitability Analysis
SOHON vs Real Estate Sector: How Sotherly Hotels Inc. Compares
How Sotherly Hotels Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sotherly Hotels Inc. Stock Overvalued? SOHON Valuation Analysis 2026
Based on fundamental analysis, Sotherly Hotels Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sotherly Hotels Inc. Balance Sheet: SOHON Debt, Cash & Liquidity
SOHON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sotherly Hotels Inc.'s revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $-0.22 indicates the company is currently unprofitable.
SOHON Revenue Growth, EPS Growth & YoY Performance
SOHON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $38.0M | $772.6K | $-0.19 |
| Q2 2025 | $48.8M | $1.6M | $-0.02 |
| Q1 2025 | $46.5M | $1.3M | $-0.03 |
| Q3 2024 | $39.2M | -$1.9M | $-0.08 |
| Q2 2024 | $49.0M | $4.6M | $0.10 |
| Q1 2024 | $43.5M | $1.3M | $-0.03 |
| Q3 2023 | $39.2M | -$1.9M | $0.01 |
| Q2 2023 | $47.2M | $5.1M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sotherly Hotels Inc. Dividends, Buybacks & Capital Allocation
SOHON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sotherly Hotels Inc. (CIK: 0001301236)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SOHON
What is the AI rating for SOHON?
Sotherly Hotels Inc. (SOHON) has an AI rating of STRONG SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SOHON's key strengths?
Claude: Healthy operating margin of 30.8% indicates core hotel operations are reasonably profitable. Positive operating cash flow of $10.3M shows operational activities generating some cash.
What are the risks of investing in SOHON?
Claude: Interest coverage of 0.5x means operating income covers only 50% of interest expense - imminent default risk. Debt/equity ratio of 11.15x with $315.2M long-term debt against $28.3M equity creates solvency crisis.
What is SOHON's revenue and growth?
Sotherly Hotels Inc. reported revenue of $41.3M.
Does SOHON pay dividends?
Sotherly Hotels Inc. pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find SOHON SEC filings?
Official SEC filings for Sotherly Hotels Inc. (CIK: 0001301236) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SOHON's EPS?
Sotherly Hotels Inc. has a diluted EPS of $-0.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SOHON a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sotherly Hotels Inc. has a STRONG SELL rating with 87% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SOHON stock overvalued or undervalued?
Valuation metrics for SOHON: ROE of -27.2% (sector avg: 8%), net margin of -18.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy SOHON stock in 2026?
Our dual AI analysis gives Sotherly Hotels Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SOHON's free cash flow?
Sotherly Hotels Inc.'s operating cash flow is $10.3M, with capital expenditures of $61.1M. FCF margin is -123.1%.
How does SOHON compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -18.6% (avg: 20%), ROE -27.2% (avg: 8%), current ratio N/A (avg: 1.5).
Is Sotherly Hotels Inc. carrying too much debt?
SOHON has a debt-to-equity ratio of 11.15x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.