Sotherly Hotels Inc. (NASDAQ:SOHO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET

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Sotherly Hotels Inc. (NASDAQ:SOHO) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, and welcome to the Sotherly Hotels Third Quarter 2019 Earnings Conference Call. [Operator Instructions]. At this time, I would like to turn the conference over to Max Sims [Phonetic]. You may proceed, sir.

Executive
Unidentified Speaker

Thank you, and good morning, everyone. Welcome to Sotherly Hotels Third Quarter Earnings Call and Webcast. Dave Folsom, our 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 update our 2019 guidance. Drew Sims, our Chairman and CEO, will conclude with an update of 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 sotherlyhotels.com. 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 that 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.

Executive
David R. Folsom

Thank you, Mac [Phonetic], and good morning, everyone. I'll start off today's call with a review of our portfolio's key operating metrics in the quarter. 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 0.3% over prior year to $100.06 with a 1.1% increase in occupancy and a 0.7% decrease in ADR. Year-to-date, portfolio RevPAR increased 4.5% over prior year to $116.57, with a 2.2% increase in occupancy and a 2.3% increase in ADR.

During the quarter, our portfolio was exposed to weather-related disruption resulting from Hurricane Dorian, a category 5 storm that struck the region from late August to early September. The storm threat, a substantial portion of the East Coast with governments declaring states of emergency in Florida, Georgia, South Carolina, North Carolina and Virginia. As we mentioned in our press release on September 6, our portfolio sustained only minimal damage, and all properties remained open during the storm. The regional impact of Dorian, however, was more substantial from a business interruption standpoint. The storm was large, slow-moving and its track was uncertain for many days leading up to landfall.

We experienced significant cancellations and minimal revenue pickup at our hotels along the coast, ranging from Hollywood, Florida to Arlington, Virginia, as a result. Travel throughout the Southeast region was disrupted from late August until the middle of September, and the