Sotherly Hotels Inc. - 8.25% Se SOHON

Competitive advantage analysis · real-estate

REIT Specialized
Overall moat score
50/100
Developing

About Sotherly Hotels Inc. - 8.25% Se

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 … Full SOHON analysis →

Competitive advantage assessment

Key strengths

  • Accretive Growth Track Record Growth appears accretive (score 0.79), suggesting disciplined capital allocation.

Key risks

  • Elevated Leverage Risk Leverage is elevated (score 0.26), raising refinancing risk.
  • Weak NOI Margins NOI margins lag peers (score 0.28), indicating weak pricing power.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Rent Pricing Power

Developing
43

Where SOHON ranks in REIT - Hotel & Motel

Sotherly Hotels Inc. - 8.25% Se ranks #11 of 19 scored companies in REIT - Hotel & Motel by moat score — the top 58%. The widest moat in the group is Apple Hospitality REIT, Inc. (APLE) at 94/100.

Moat scores for companies ranked near SOHON in REIT - Hotel & Motel
# Company Moat score Rating
7 Ryman Hospitality Properties, I RHP 63/100 Moderate
8 Xenia Hotels & Resorts, Inc. XHR 59/100 Moderate
9 Summit Hotel Properties, Inc. INN 58/100 Moderate
10 Sotherly Hotels Inc. SOHO 54/100 Moderate
11 Sotherly Hotels Inc. - 8.25% Se SOHON 50/100 Developing
12 Sotherly Hotels Inc. - 7.875% S SOHOO 49/100 Developing
13 Braemar Hotels & Resorts Inc. BHR 48/100 Developing
14 Sunstone Hotel Investors, Inc. SHO 47/100 Developing
15 Sotherly Hotels Inc. - 8.0% Ser SOHOB 46/100 Developing

See every Real Estate Investment Trusts company ranked by moat score →

How SOHON scores on the REIT Specialized defenses

Rent Pricing Power

Score 43 · 20% of the moat score

For a REIT, pricing power is the ability to raise rents at renewal and still keep the space occupied.

AFFO Strength

Score 46 · 18% of the moat score

AFFO — adjusted funds from operations — is the cash a REIT can actually distribute after the recurring capital spending buildings need in order to stay leasable.

Balance Sheet & Cost of Capital

Score 39 · 20% of the moat score

Real estate is bought with borrowed money, so a REIT's cost of capital is its competitive advantage.

Capital Recycling & Growth

Score 70 · 16% of the moat score

REITs grow by issuing shares and debt to buy more property, which creates value only when the yield on the asset exceeds the cost of the capital raised.

Operational Efficiency

Score 36 · 14% of the moat score

Running property — leasing, maintenance, taxes, management — is the part of the business a REIT genuinely controls.

Portfolio Quality & Diversification

Score 72 · 12% of the moat score

Portfolio quality is really a question about what happens when a tenant fails.

How each REIT Specialized defense is measured, in full →

Understanding SOHON's moat

What is Sotherly Hotels Inc. - 8.25% Se's moat score?

Sotherly Hotels Inc. - 8.25% Se (SOHON) scores 50 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #11 of 19 scored companies in REIT - Hotel & Motel, the top 58%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 29 companies in REIT - Hotel & Motel. Its strongest defense is Portfolio Quality & Diversification (72/100) and its weakest is Operational Efficiency (36/100).

How does Sotherly Hotels Inc. - 8.25% Se compare with other REIT - Hotel & Motel companies?

Sotherly Hotels Inc. - 8.25% Se ranks #11 of 19 scored companies in REIT - Hotel & Motel by moat score. The widest moat in REIT - Hotel & Motel is Apple Hospitality REIT, Inc. (APLE) at 94/100. The companies ranked closest are Sotherly Hotels Inc. (SOHO) at 54 just above it and Sotherly Hotels Inc. - 7.875% S (SOHOO) at 49 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — REIT Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 29 companies in REIT - Hotel & Motel. The defenses are then weighted to produce the overall score out of 100.

Why is Sotherly Hotels Inc. - 8.25% Se scored with the REIT Specialized template?

A REIT is a portfolio of buildings financed with debt and required to distribute most of its taxable income. Reported earnings are dominated by depreciation on assets that often appreciate, so net income says very little; the real question is how much cash the properties distribute, and how securely. The REIT template scores what determines that: rent pricing, distributable cash, cost of capital, and the discipline behind growth.

Which competitive defenses are measured for Sotherly Hotels Inc. - 8.25% Se?

The REIT Specialized template measures 6 defenses, and SOHON scores: Rent Pricing Power (43), AFFO Strength (46), Balance Sheet & Cost of Capital (39), Capital Recycling & Growth (70), Operational Efficiency (36), Portfolio Quality & Diversification (72). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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