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Sotherly Hotels Inc (SOHOB) Fair Value & Analysis

Real Estate · US · Market cap $66.5M

SH Sotherly Hotels Inc logo Sotherly Hotels Inc SOHOB · US
Price$1.25
Fair Value$0.8501
Upside-32.0%
Quality46/100
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Weak Growth
Loss-making · -4.4% net margin
Low debt · generates free cash flow
Mixed vs. peers (5/12)
Narrow moat 18/100
Evidence: Medium Range $0.8501 – $0.8501 Share as image

Fair value as of: Jul 27, 2026

From 15 valuation models · updated 14 days ago

Fair value updated Jul 27, 2026, revised from $8.49 to $0.8501 (−90.0%) since Jun 26, 2026. Share price −85.6% over the past month.

Below-average quality, and screening another 32% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($0.8501). The favourable scenario is already priced in.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

$19.59 $0.2500 Fair Value $0.8501 Aug 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $0.2500 – $19.59 · the $1.25 price screens above the $0.8501 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

Full chart & analysis →

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Analysis

Sotherly Hotels Inc (SOHOB) currently trades at $1.25, while our model-based Fair Value estimate is $0.8501, implying the stock looks roughly 32.0% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Real Estate sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Sotherly Hotels Inc generated revenue of $176M at a net margin of -4.4%. Revenue declined 6.1% year over year. It earns a return on equity of -22.3%. Net debt stands at $31.5B. Fundamentals as of Jul 27, 2026

For context, the median of 10 Real Estate peers we cover trades at -33% fair-value upside, at -32%, SOHOB screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $1,519 $2,139 $2,903 80
Residual Income $318.61 $284.80 $156.70 76
Gordon GGM $0.5200 $0.8800 $1.14 70
All 15 models by family
DCF Models
FCF DCF $1,526 $2,202 $3,080 38
5Y Revenue Exit $651.55 $740.42 $813.83 39
5Y EBITDA Exit $654.53 $746.13 $822.63 41
10Y Revenue Exit $1,022 $1,200 $1,387 36
10Y EBITDA Exit $1,023 $1,204 $1,393 37
Dividend Discount
Gordon GGM $0.5200 $0.8800 $1.14 70
DDM Multi-Stage $0.5200 $0.8300 $0.9400 61
Multiples
P/S Multiple $0.3100 $0.4200 $0.5200 58
P/B Multiple $0.3100 $0.4200 $0.5200 55
EV/EBIT $0.5700 $2.71 $4.84 53
EV/EBITDA $3.83 $7.05 $10.27 54
EV/Revenue $0.7300 43
Asset-Based
NCAV (Graham) $265.71 $356.05 $531.42 50
Growth DCF
Growth DCF $1,519 $2,139 $2,903 80
Economic Profit
Residual Income $318.61 $284.80 $156.70 76

Widest divergence: Growth DCF ($2,139) versus Multiples ($0.4200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $176M
Revenue growth (YoY) -6.1%
Net margin -4.4%
Return on equity -22.3%
Free cash flow $9.5B FY2025
Operating margin 2.0%
More key figures
EPS (TTM) $-1.66
EPS growth (YoY) +243%
Net debt $31.5B FY2025

Figures from reported company fundamentals · as of Jul 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 53 · Market factors (momentum, volatility) 17

Profitability 20
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 25
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust, or REIT, to own, acquire, renovate and reposition full-service, primarily upscale and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States.

Full company description

Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust, or REIT, to own, acquire, renovate and reposition full-service, primarily upscale and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States. Sotherly owns ten full-service, primarily upscale and upper-upscale hotels located in seven states with an aggregate of 2,786 hotel rooms, and interests in two condominium hotels and their associated rental programs. Sotherly Hotels Inc. was established on August 20, 2004 and was incorporated in 2004 in Maryland, USA.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Sotherly Hotels Inc reported revenue of $182M in FY2024 versus $71.5M in FY2020, a compound +26.3%/yr. Reported net income was $1.3M in FY2024.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2024)
$182M
Latest YoY
+4.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.4%
Avg. growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.8%
Revenue +26.3%/yr
FY20 $71.5M
FY21 $128M
FY22 $166M
FY23 $174M
FY24 $182M
Net income
FY20 −$49.2M
FY21 −$26.2M
FY22 $32.5M
FY23 $3.9M
FY24 $1.3M

SOHOB screens 32% overvalued. Compare with Host Hotels & Resorts, Inc →

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Cite: Fair Value Calculator (2026). "Sotherly Hotels Inc Fair Value". https://www.fairvalue-calculator.com/stock/SOHOB

Peer Group

REIT - Hotel & Motel · 35 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −32% · Below median
Return on assets 2% · Above median
Net margin (TTM) -4% · Bottom 25%
Operating margin (TTM) 2% · Bottom 25%
Revenue growth -6% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs REIT - Hotel & Motel median · lower = cheaper

P/S (TTM) 0.38× · Cheaper than 75% of peers
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 11.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 12
FUTURE 0 · sector 2
PAST 0 · sector 6
HEALTH 99 · sector 73
DIVIDEND 0 · sector 65

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more REIT - Hotel & Motel stocks, each showing price versus our Fair Value estimate (as of Jul 27, 2026).

Stock Price Fair Value vs Fair Value
Host Hotels & Resorts, Inc HST $24.50 $16.49 -33%
Ryman Hospitality Properties, Inc RHP $133.09 $48.74 -63%
COVH COVH €21.80 €21.79 -0%
Apple Hospitality REIT, Inc APLE $16.61 $12.63 -24%
Park Hotels & Resorts inc. PK $14.74 $20.58 +40%
DiamondRock Hospitality Company DRH $12.85 $8.43 -34%
Sunstone Hotel Investors, Inc SHO $11.74 $2.52 -79%
Pebblebrook Hotel Trust PEB $19.09 $25.37 +33%
Xenia Hotels & Resorts, Inc XHR $21.49 $11.63 -46%
RLJ Lodging Trust (RLJ) RLJ $12.34 $8.28 -33%

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Frequently asked questions

Is Sotherly Hotels Inc (SOHOB) overvalued or undervalued?
As of Jul 27, 2026, our model estimates a fair value of $0.8501 versus a price of $1.25, about −32% (overvalued).
What is the fair value of SOHOB?
Our model-based fair value for Sotherly Hotels Inc is $0.8501 (as of Jul 27, 2026), built from audited fundamentals. The current price is $1.25.
What is the quality score of SOHOB?
Sotherly Hotels Inc has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sotherly Hotels Inc (SOHOB)?
Sotherly Hotels Inc reported trailing-twelve-month revenue of about $176M (latest available figure, as of Jul 27, 2026).
What is the net profit margin of SOHOB?
The net profit margin of Sotherly Hotels Inc is about -4.4%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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