Sotherly Hotels stock rallies after Q2 occupancy, RevPAR rise from last year

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Shares of Sotherly Hotels Inc. SOHO, +2.69% rose 3.8% in morning trading Wednesday, after the real estate investment trust (REIT) that focuses on hotels in the South reported second-quarter occupancy that rose from a year ago, but showed monthly declines for occupancy and revenue per available room (RevPAR) during the quarter. The company said overall occupancy was 69.5% in the second quarter, up 17.3% from a year ago but down 10.0% from the same period in pre-pandemic 2019. RevPAR of $125.05 was up 43.2% from last year but 2.7% below 2019 levels. Meanwhile, occupancy fell to 67.8% in June from 68.4% in May, and from 72.4% in April, while June RevPAR of $116.10 was below May RevPAR of $124.73, which was below April RevPAR of $134.33. The company said the year-over-year improvement on a quarterly basis was driven by a “strong return in demand” from the business and group segments. “We’re encouraged with these preliminary results for the second quarter, which reflect the company’s continued improvement in performance and the sustained recovery of the industry,” said Chief Executive Dave Folsom. The stock has slipped 7.7% year to date, while the SPDR Real Estate Select Sector ETF XLRE, +0.41% has dropped 19.7% and the S&P 500 SPX, -0.05% has lost 19.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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