Sotherly Hotels Inc. (NASDAQ:SOHO) Q1 2019 Earnings Conference Call Transcript

May 07, 2019 • 10:00 am ET


Sotherly Hotels Inc. (NASDAQ:SOHO) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to the Sotherly Hotels Inc. First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn over the conference to Scott Kucinski, Vice President. Please go ahead.

Scott Kucinski

Thank you, and good morning, everyone. Welcome to Sotherly Hotels first quarter earnings call and webcast. Dave Folsom, our President and COO, will begin today's call with a review of the Company's quarterly activities and a review of portfolio performance. Tony Domalski, our CFO, will provide our key financial results for the quarter and review our 2019 guidance. Drew Sims, our Chairman and CEO, will conclude with an update on our strategic objectives. We will then take questions.

If you did not receive a copy of the earnings release, you may access it on our website at In the release, the Company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. Any statements made during this conference call which are not historical may constitute forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained. Factors and risks that can cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today's press release and from time to time in the Company's filings with the SEC. The Company does not undertake a duty to update or revise any forward-looking statements.

With that, I'll turn the call over to Dave.

David Folsom

Thank you, Scott. Good morning, everyone. I'll start off today's call with a review of our portfolio's key operating metrics for what turned out to be an exceptional quarter for the Company. Looking at results for the composite portfolio, which represents the Company's wholly owned properties and the participating condominium hotel rooms from the Hyde Resort & Residences. For the quarter, portfolio RevPAR increased 8.8% over prior year to $121.86, reflecting a 5.2% increase in occupancy and a 3.5% increase in ADR.

Looking at individual property-level activity and highlights in the quarter. A year after its conversion to a boutique concept, Hotel Ballast in Wilmington continues to improve its performance, gaining 27.4% on RevPAR for the quarter, driven by a 21.4% increase in occupancy and a 4.9% increase in rate. The DeSoto in Savannah steadily continued its ramp-up efforts following the 2017 repositioning, increasing RevPAR by 13.4% to $114.97 with a 12.5% increase in occupancy and a 0.9% increase in rate, while gaining 10.7% of RevPAR share against its competitive set.

The Hyatt Centric Arlington grew RevPAR 6.9% in the quarter and continues to outperform the market as it captured 5.4% from its competitive share -- from its competitive set in RevPAR's fair share. In Atlanta, the Georgian Terrace continued its exceptional performance by taking share from the competition during a strong quarter for the market, which was fueled by