Sotherly Hotels faced operational challenges in Q2 2025, reporting a 5.4% decrease in RevPAR due to softening demand and economic uncertainty, while exhibiting resilience in average daily rates.

• Total revenue decreased 3.7% year-over-year to $48.8 million, driven by declines in occupancy and average daily rate (ADR).
• Year-to-date RevPAR showed a slight decline of 0.5%, with a notable 2.1% increase in occupancy.
• Hotel EBITDA dropped 11.5% year-over-year to approximately $13.9 million, reflecting pressures from reduced demand in key markets like Washington, D.C.
• Notably strong performance recorded at Hotel Ballast and Hyde Beach House, with the latter achieving a 12.7% RevPAR increase.
• The company is actively managing debt maturities while maintaining cost discipline and targeting revenue strategies amidst ongoing market challenges.