SOTHERLY HOTELS INC. PROVIDES UPDATE ON OPERATIONS RELATED TO COVID-19; ANNOUNCES SUSPENSION OF COMMON STOCK AND PREFERRED DI...
March 17 2020 - 6:30PM
Sotherly Hotels Inc.
(NASDAQ: SOHO)
(the “Company”) today announced that it has implemented
rigorous cost-savings measures to minimize the impact of revenue
declines resulting from cancellations, corporate travel
restrictions, and government mandated closures related to concerns
surrounding COVID-19. The Company is taking the following actions
at the property and corporate level:
- The Company is working with its
management partners to implement aggressive cost control measures
at the property-level in order to minimize impact to profitability.
Included in this policy, the Company is deferring all non-vital
capital expenditures at its properties.
- Corporate G&A has been
significantly decreased, including immediate reductions in
compensation and benefits for all corporate staff. As part of this
change, the Company’s board of directors has agreed to waive all
director’s fees for the quarter.
- As approved by its board of
directors, the Company is announcing the suspension of its regular
quarterly cash common stock dividends in order to preserve
liquidity and ensure future success. The Company is also deferring
payment of the previously declared first quarter dividend that was
to be paid April 9, 2020 to stockholders of record on March 13,
2020.
- The Company is deferring payment of
its previously announced dividends for its Series B Cumulative
Redeemable Perpetual Preferred Stock, Series C Cumulative
Redeemable Perpetual Preferred Stock, and Series D Cumulative
Redeemable Perpetual Preferred Stock that were to be paid April 15,
2020 to shareholders of record as of March 31, 2020.
Dave Folsom, President and CEO commented, “First
and foremost, we are taking every precaution to maintain a clean
and safe environment for our employees and guests at our hotels as
well as our corporate staff. We are closely monitoring the Centers
for Disease Control and Prevention (CDC), World Health Organization
(WHO), and local health agencies for the latest developments
related to COVID-19 and following their guidance on the appropriate
health and safety measures at our hotels. The growing concerns
surrounding COVID-19 have contributed to substantial cancellations
and we expect occupancy and RevPAR declines to continue in the
near-term as we are experiencing a significant reduction in new
reservations relative to prior expectations. During this time of
economic uncertainty, we believe it is prudent to exercise caution
and to take swift and decisive action in order to preserve the
long-term well-being of the Company. The leadership of the Company
and its management partners possess the experience and expertise to
navigate this challenging environment and will adapt operations to
preserve profitability. We believe our diligent efforts in regard
to bolstering our balance sheet over the past several years,
building cash reserves, and reinvesting in our assets have
positioned the Company for success after we weather this storm. We
will continue to closely monitor the situation and adjust our
strategies appropriately in order to preserve long-term value for
our shareholders.”
About Sotherly
Hotels Inc.
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.
Currently, the Company’s portfolio consists of investments in
twelve hotel properties, comprising 3,156 rooms, as well as
interests in two condominium hotels and their associated rental
programs. The Company owns hotels that operate under the Hilton
Worldwide, Marriott International, Inc., and Hyatt Hotels
Corporation brands, as well as independent hotels. Sotherly Hotels
Inc. was organized in 2004 and is headquartered in Williamsburg,
Virginia. For more information, please visit
www.sotherlyhotels.com.
Contact at the
Company:
Mack Sims
Sotherly Hotels Inc.306 South Henry Street, Suite 100Williamsburg,
Virginia 23185 (757) 229-5648
Sotherly Hotels (NASDAQ:SOHO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sotherly Hotels (NASDAQ:SOHO)
Historical Stock Chart
From Sep 2023 to Sep 2024