Consolidated Statements of Cash Flows
|
12 Months Ended |
|
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
| Cash flows from operating activities: |
|
|
|
| Net (loss) income |
$ (7,779,133)
|
$ 1,179,854
|
$ 3,809,711
|
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
| Depreciation and amortization |
19,658,902
|
19,380,906
|
18,788,748
|
| Impairment of investment in hotel properties held for sale |
1,310,308
|
|
|
| Amortization of deferred financing costs |
1,655,153
|
745,409
|
598,237
|
| Amortization of deferred lease expense |
27,988
|
423,382
|
|
| Amortization of mortgage premium |
(18,203)
|
(24,681)
|
(24,681)
|
| Amortization of finance lease liabilities |
830,372
|
536,758
|
|
| Net gain on involuntary conversion of assets |
(3,985,417)
|
(502,808)
|
(1,371,041)
|
| Unrealized and realized (gain) loss on hedging activities |
(131,803)
|
937,783
|
737,682
|
| Gain on disposal of assets |
|
(4,400)
|
(4,700)
|
| Loss on early extinguishment of debt |
43,294
|
241,878
|
|
| PPP loan forgiveness |
|
|
(275,494)
|
| ESOP and stock / unit - based compensation |
424,117
|
497,500
|
559,220
|
| Changes in assets and liabilities: |
|
|
|
| Accounts receivable, net |
(177,486)
|
1,275,961
|
(42,453)
|
| Insurance receivable |
255,135
|
(2,855,593)
|
|
| Prepaid expenses, inventory and other assets |
(534,675)
|
429,109
|
1,824,607
|
| Accounts payable and other accrued liabilities |
(1,223,397)
|
2,508,244
|
(3,581,342)
|
| Advance deposits |
(40,090)
|
1,119,844
|
381,968
|
| Net cash provided by operating activities |
10,315,065
|
25,889,146
|
21,400,462
|
| Cash flows from investing activities: |
|
|
|
| Improvements and additions to hotel properties |
(14,909,318)
|
(14,648,934)
|
(8,181,496)
|
| Proceeds from involuntary conversion |
4,170,429
|
502,808
|
1,312,675
|
| Proceeds from sale of assets |
|
4,400
|
141,952
|
| Net cash used in investing activities |
(10,738,889)
|
(14,141,726)
|
(6,726,869)
|
| Cash flows from financing activities: |
|
|
|
| Proceeds from mortgage loans |
42,000,000
|
66,250,000
|
2,715,833
|
| Proceeds of line of credit |
7,500,000
|
|
|
| Redemption of interest rate swap |
|
965,000
|
|
| Payments on mortgage loans |
(43,352,703)
|
(64,961,688)
|
(7,256,859)
|
| Payments of unsecured notes |
(658,766)
|
(878,043)
|
(740,857)
|
| Payments on finance lease liabilities |
(82,295)
|
(31,339)
|
|
| Payments of deferred financing costs |
(1,185,827)
|
(1,723,964)
|
(525,437)
|
| Purchase of interest rate cap |
|
(916,000)
|
|
| Preferred dividends paid |
(3,988,624)
|
(7,977,251)
|
(9,971,563)
|
| Net cash provided by (used in) financing activities |
231,785
|
(9,273,285)
|
(15,778,883)
|
| Net (decrease) increase in cash, cash equivalents and restricted cash |
(192,039)
|
2,474,135
|
(1,105,290)
|
| Cash, cash equivalents and restricted cash at the beginning of the period |
28,710,475
|
26,236,340
|
27,341,630
|
| Cash, cash equivalents and restricted cash at the end of the period |
28,518,436
|
28,710,475
|
26,236,340
|
| Supplemental disclosures: |
|
|
|
| Cash paid during the period for interest |
19,937,374
|
20,375,075
|
17,084,338
|
| Cash paid during the period for income taxes |
143,364
|
158,789
|
164,450
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
| Operating cash flows for operating leases |
563,715
|
1,135,237
|
1,013,605
|
| Operating cash flows for finance leases |
1,261,987
|
85,491
|
4,486
|
| Financing cash flows for finance leases |
82,296
|
31,339
|
9,070
|
| Non-cash investing and financing activities: |
|
|
|
| Change in accrued capital expenditures |
(126,402)
|
165,566
|
(471,661)
|
| Remeasurement of finance lease asset and liability |
|
22,352,075
|
|
| Acquisition of finance lease assets and liabilities |
53,550
|
241,978
|
63,424
|
| Cash and cash equivalents |
7,010,604
|
7,327,880
|
17,101,993
|
| Restricted cash |
21,507,832
|
21,382,595
|
9,134,347
|
| Cash, cash equivalents and restricted cash at the end of the period |
28,518,436
|
28,710,475
|
26,236,340
|
| Sotherly Hotels LP [Member] |
|
|
|
| Cash flows from operating activities: |
|
|
|
| Net (loss) income |
(7,779,133)
|
1,179,854
|
3,809,711
|
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
| Depreciation and amortization |
19,658,902
|
19,380,906
|
18,788,748
|
| Impairment of investment in hotel properties held for sale |
1,310,308
|
|
|
| Amortization of deferred financing costs |
1,655,153
|
745,409
|
598,237
|
| Amortization of deferred lease expense |
27,988
|
423,382
|
|
| Amortization of mortgage premium |
(18,203)
|
(24,681)
|
(24,681)
|
| Amortization of finance lease liabilities |
830,372
|
536,758
|
|
| Net gain on involuntary conversion of assets |
(3,985,417)
|
(502,808)
|
(1,371,041)
|
| Unrealized and realized (gain) loss on hedging activities |
(131,803)
|
937,783
|
737,682
|
| Gain on disposal of assets |
|
(4,400)
|
(4,700)
|
| Loss on early extinguishment of debt |
43,294
|
241,878
|
|
| PPP loan forgiveness |
0
|
|
(275,494)
|
| ESOP and stock / unit - based compensation |
(383,043)
|
(439,871)
|
(346,774)
|
| Changes in assets and liabilities: |
|
|
|
| Accounts receivable, net |
(177,486)
|
1,275,961
|
(42,453)
|
| Insurance receivable |
255,135
|
(2,855,593)
|
|
| Prepaid expenses, inventory and other assets |
(534,675)
|
429,109
|
1,824,607
|
| Accounts payable and other accrued liabilities |
(1,223,397)
|
2,508,244
|
(3,581,342)
|
| Advance deposits |
(40,090)
|
1,119,844
|
381,968
|
| Net cash provided by operating activities |
9,507,905
|
24,951,775
|
20,494,468
|
| Cash flows from investing activities: |
|
|
|
| Improvements and additions to hotel properties |
(14,909,318)
|
(14,648,934)
|
(8,181,496)
|
| Proceeds from involuntary conversion |
4,170,429
|
502,808
|
1,312,675
|
| Proceeds from sale of assets |
|
4,400
|
141,952
|
| ESOP loan payments received |
807,160
|
937,371
|
905,994
|
| Net cash used in investing activities |
(9,931,729)
|
(13,204,355)
|
(5,820,875)
|
| Cash flows from financing activities: |
|
|
|
| Proceeds from mortgage loans |
42,000,000
|
66,250,000
|
2,715,833
|
| Proceeds of line of credit |
7,500,000
|
|
|
| Redemption of interest rate swap |
|
965,000
|
|
| Payments on mortgage loans |
(43,352,703)
|
(64,961,688)
|
(7,256,859)
|
| Payments of unsecured notes |
(658,766)
|
(878,043)
|
(740,857)
|
| Payments on finance lease liabilities |
(82,295)
|
(31,339)
|
|
| Payments of deferred financing costs |
(1,185,827)
|
(1,723,964)
|
(525,437)
|
| Purchase of interest rate cap |
|
(916,000)
|
|
| Preferred dividends paid |
(3,988,624)
|
(7,977,251)
|
(9,971,563)
|
| Net cash provided by (used in) financing activities |
231,785
|
(9,273,285)
|
(15,778,883)
|
| Net (decrease) increase in cash, cash equivalents and restricted cash |
(192,039)
|
2,474,135
|
(1,105,290)
|
| Cash, cash equivalents and restricted cash at the beginning of the period |
28,710,475
|
26,236,340
|
27,341,630
|
| Cash, cash equivalents and restricted cash at the end of the period |
28,518,436
|
28,710,475
|
26,236,340
|
| Supplemental disclosures: |
|
|
|
| Cash paid during the period for interest |
19,937,374
|
20,375,075
|
17,116,639
|
| Cash paid during the period for income taxes |
143,364
|
158,789
|
164,450
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
| Operating cash flows for operating leases |
563,715
|
1,135,237
|
1,013,605
|
| Operating cash flows for finance leases |
1,261,987
|
85,491
|
4,486
|
| Financing cash flows for finance leases |
82,296
|
31,339
|
9,070
|
| Non-cash investing and financing activities: |
|
|
|
| Change in accrued capital expenditures |
(126,402)
|
165,566
|
(471,661)
|
| Remeasurement of finance lease asset and liability |
|
22,352,075
|
|
| Acquisition of finance lease assets and liabilities |
53,550
|
241,978
|
63,424
|
| Cash and cash equivalents |
7,010,604
|
7,327,880
|
17,101,993
|
| Restricted cash |
21,507,832
|
21,382,595
|
9,134,347
|
| Cash, cash equivalents and restricted cash at the end of the period |
$ 28,518,436
|
$ 28,710,475
|
$ 26,236,340
|