# EDGAR Filing Document

**Accession Number:** 0001313536
**File Stem:** 0000950170-23-000477
**Filing Date:** 2023-1
**Character Count:** 16094
**Document Hash:** aaa59ed5f8e68047b62b70d691f6f9ad
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-000477.hdr.sgml**: 20230109

**ACCESSION NUMBER**: 0000950170-23-000477

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230109

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230109

**DATE AS OF CHANGE**: 20230109

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sotherly Hotels Inc.
- **CENTRAL INDEX KEY:** 0001301236
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32379
- **FILM NUMBER:** 23516944

**BUSINESS ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185
- **BUSINESS PHONE:** 757-229-5648

**MAIL ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sotherly Hotel Inc.
- **DATE OF NAME CHANGE:** 20130416

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MHI Hospitality CORP
- **DATE OF NAME CHANGE:** 20040823
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SOTHERLY HOTELS LP
- **CENTRAL INDEX KEY:** 0001313536
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS & MOTELS [7011]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36091
- **FILM NUMBER:** 23516945

**BUSINESS ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185
- **BUSINESS PHONE:** 757-229-5648

**MAIL ADDRESS:**
- **STREET 1:** 306 SOUTH HENRY STREET
- **STREET 2:** SUITE 100
- **CITY:** WILLIAMSBURG
- **STATE:** VA
- **ZIP:** 23185

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MHI HOSPITALITY LP
- **DATE OF NAME CHANGE:** 20050106

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

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**FORM** 8-K

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**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**Date of Report (Date of earliest event reported):** January 9, 2023

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SOTHERLY HOTELS INC.

SOTHERLY HOTELS LP

**(Exact name of Registrant as Specified in Its Charter)** 

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| | | |
|:---|:---|:---|
| Maryland **(Sotherly Hotels Inc.)**<br>Delaware **(Sotherly Hotels LP)** | 001-32379 **(Sotherly Hotels Inc.)**<br>001-36091 **(Sotherly Hotels LP)** | 20-1531029 **(Sotherly Hotels Inc.)**<br>20-1965427 **(Sotherly Hotels LP)** |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br>**Identification No.)** |
| 306 South Henry Street, Suite 100<br>Williamsburg**,** Virginia |  | 23185 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code: (**757**)** 229-5648

**Not Applicable** 

**(Former Name or Former Address, if Changed Since Last Report)** 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

**Sotherly Hotels Inc**. ☐ **Sotherly Hotels LP** ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

**Sotherly Hotels Inc**. ☐ **Sotherly Hotels LP** ☐

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Securities registered or to be registered pursuant to Section 12(b) of the Act.

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| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| Common Stock, $0.01 par value | SOHO | The NASDAQ Stock Market LLC |
| 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | SOHOB | The NASDAQ Stock Market LLC |
| 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | SOHOO | The NASDAQ Stock Market LLC |
| 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | SOHON | The NASDAQ Stock Market LLC |

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**Item 2.02 Results of Operations and Financial Condition.** 

On January 9, 2023, Sotherly Hotels Inc., a Maryland corporation (the "Company") and the sole general partner of Sotherly Hotels LP, a Delaware limited partnership, issued a press release (the "Press Release") announcing preliminary operating results of its portfolio of wholly-owned hotels for the quarter ended December 31, 2022. A copy of the Press Release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

In accordance with General Instruction B.2 and B.6 of Form 8-K, the information included in this Item 2.02 (including Exhibit 99.1 hereto), shall not be deemed "filed" for the purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 99.1 | [<u>Press Release of Sotherly Hotels Inc. dated January 9, 2023.</u>](soho-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
| Date: January 9, 2023 | **SOTHERLY HOTELS INC.** | **SOTHERLY HOTELS INC.** |
|  | By: | /s/ Anthony E. Domalski |
|  |  | **Anthony E. Domalski** |
|  |  | **Chief Financial Officer** |
|  | **SOTHERLY HOTELS LP** | **SOTHERLY HOTELS LP** |
|  |  | **by its General Partner,** |
|  |  | **SOTHERLY HOTELS INC.** |
|  | By: | /s/ Anthony E. Domalski |
|  |  | **Anthony E. Domalski** |
|  |  | **Chief Financial Officer** |

---

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## Exhibit 99.1

**Exhibit 99.1**

![img42542370_0.jpg](img42542370_0.jpg)

FOR IMMEDIATE RELEASE

MONDAY, JANUARY 9, 2023

**SOTHERLY HOTELS INC. REPORTS PRELIMINARY OPERATING RESULTS**

**FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2022**

**Williamsburg, Virginia – January 9, 2023 – Sotherly Hotels Inc. (NASDAQ: SOHO)**, ("Sotherly" or the "Company"), a self-managed and self-administered lodging real estate investment trust (a "REIT"), today reported preliminary operating results for the Company's ten wholly-owned properties, ("same-store" portfolio metrics). Accordingly, the actual data does not include the participating condominium hotel rooms of the Hyde Resort & Residences and the Hyde Beach House, the Sheraton Louisville Riverside, or the DoubleTree by Hilton Raleigh Brownstone.

Preliminary same-store portfolio metrics for the fourth quarter 2022 were as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**October Results** | &nbsp;&nbsp;**October Results** | &nbsp;&nbsp;**October Results** | &nbsp;&nbsp;**October Results** | &nbsp;&nbsp;**December Results** | &nbsp;&nbsp;**December Results** | &nbsp;&nbsp;**December Results** | &nbsp;&nbsp;**December Results** |
|  | &nbsp;&nbsp;**Oct-22** | &nbsp;&nbsp;**% Variance to 2021** | &nbsp;&nbsp;**% Variance to 2019** |  | &nbsp;&nbsp;**Dec-22** | &nbsp;&nbsp;**% Variance to 2021** | &nbsp;&nbsp;**% Variance to 2019** |
| &nbsp;&nbsp;Occupancy | &nbsp;&nbsp;69.9% | &nbsp;&nbsp;16.6% | &nbsp;&nbsp;-8.6% | &nbsp;&nbsp;Occupancy | &nbsp;&nbsp;48.1% | &nbsp;&nbsp;4.8% | &nbsp;&nbsp;-14.4% |
| &nbsp;&nbsp;ADR | &nbsp;&nbsp;$186.12 | &nbsp;&nbsp;12.9% | &nbsp;&nbsp;12.0% | &nbsp;&nbsp;ADR | &nbsp;&nbsp;$169.69 | &nbsp;&nbsp;8.9% | &nbsp;&nbsp;18.6% |
| &nbsp;&nbsp;RevPAR | &nbsp;&nbsp;$129.16 | &nbsp;&nbsp;31.6% | &nbsp;&nbsp;2.6% | &nbsp;&nbsp;RevPAR | &nbsp;&nbsp;$80.75 | &nbsp;&nbsp;13.7% | &nbsp;&nbsp;1.3% |
| &nbsp;&nbsp;**November Results** | &nbsp;&nbsp;**November Results** | &nbsp;&nbsp;**November Results** | &nbsp;&nbsp;**November Results** | &nbsp;&nbsp;**Q4 Results** | &nbsp;&nbsp;**Q4 Results** | &nbsp;&nbsp;**Q4 Results** | &nbsp;&nbsp;**Q4 Results** |
|  | &nbsp;&nbsp;**Nov-22** | &nbsp;&nbsp;**% Variance to 2021** | &nbsp;&nbsp;**% Variance to 2019** |  | &nbsp;&nbsp;**Q4 2022** | &nbsp;&nbsp;**% Variance to 2021** | &nbsp;&nbsp;**% Variance to 2019** |
| &nbsp;&nbsp;Occupancy | &nbsp;&nbsp;55.8% | &nbsp;&nbsp;-0.7% | &nbsp;&nbsp;-18.3% | &nbsp;&nbsp;Occupancy | &nbsp;&nbsp;58.0% | &nbsp;&nbsp;7.3% | &nbsp;&nbsp;-13.4% |
| &nbsp;&nbsp;ADR | &nbsp;&nbsp;$170.96 | &nbsp;&nbsp;12.2% | &nbsp;&nbsp;10.2% | &nbsp;&nbsp;ADR | &nbsp;&nbsp;$176.93 | &nbsp;&nbsp;11.8% | &nbsp;&nbsp;13.3% |
| &nbsp;&nbsp;RevPAR | &nbsp;&nbsp;$94.43 | &nbsp;&nbsp;11.0% | &nbsp;&nbsp;-10.1% | &nbsp;&nbsp;RevPAR | &nbsp;&nbsp;$101.52 | &nbsp;&nbsp;19.8% | &nbsp;&nbsp;-1.9% |

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"We're pleased with these preliminary results for the fourth quarter which reflect the Company's continued recovery, despite the impact caused by hurricane Nicole and the softening of demand in the South Florida market during the month of November," commented Dave Folsom, the Company's President and Chief Executive Officer. "Lodging fundamentals during the quarter were fueled by an improved returned-to-office rate and as well as expanded group business travel. Meantime, room rates continued to outperform the prior period across all segments of business. These trends were especially notable in October, as RevPAR outpaced the same period in 2019 by 2.6%."

**About Sotherly Hotels Inc.**

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that

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operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit <u>www.sotherlyhotels.com</u>.

Contact at the Company:

Mack Sims

Vice President – Operations & Investor Relations

Sotherly Hotels Inc.

306 South Henry Street, Suite 100

Williamsburg, Virginia 23185

757.229.5648 **Forward-Looking Statements**

This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe our current strategies, expectations, and future plans are generally identified by our use of words, such as "intend," "plan," "may," "should," "will," "project," "estimate," "anticipate," "believe," "expect," "continue," "potential," "opportunity," and similar expressions, whether in the negative or affirmative, but the absence of these words does not necessarily mean that a statement is not forward-looking. All statements regarding our expected financial position, business and financing plans are forward-looking statements.

Factors which could have a material adverse effect on the Company's future operations, results, performance and prospects, include, but are not limited to: national and local economic and business conditions that affect occupancy rates and revenues at our hotels and the demand for hotel products and services; risks associated with the hotel industry, including competition and new supply of hotel rooms, increases in wages, energy costs and other operating costs; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements, including our recently negotiated forbearance agreements and loan modifications and, as necessary, to refinance or seek an extension of the maturity of such indebtedness or further modification of such debt agreements; risks associated with adverse weather conditions, including hurricanes; impacts on the travel industry from pandemic diseases, including COVID-19; the availability and terms of financing and capital and the general volatility of the securities markets; management and performance of our hotels; risks associated with maintaining our system of internal controls; risks associated with the conflicts of interest of the Company's officers and directors; risks associated with redevelopment and repositioning projects, including delays and cost overruns; supply and demand for hotel rooms in our current and proposed market areas; risks associated with our ability to maintain our franchise agreements with our third party franchisors; our ability to acquire additional properties and the risk that potential acquisitions may not perform in accordance with expectations; our ability to successfully expand into new markets; legislative/regulatory changes, including changes to laws governing taxation of real estate investment trusts ("REITs"); the Company's ability to maintain its qualification as a REIT; and our ability to maintain adequate insurance coverage. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved.

Additional factors that could cause actual results to vary from our forward-looking statements are set forth under the section titled "Risk Factors" in our Annual Report on Form 10-K, in this report and subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to and does not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although the Company believes its current expectations to be based upon reasonable assumptions, it can give no assurance that its expectations will be attained or that actual results will not differ materially.

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