Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 05, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Registrant Name | SOTHERLY HOTELS INC. | ||
Entity Central Index Key | 0001301236 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | MD | ||
Entity File Number | 001-32379 | ||
Entity Tax Identification Number | 20-1531029 | ||
Entity Address, Address Line One | 306 South Henry Street, Suite 100 | ||
Entity Address, City or Town | Williamsburg | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23185 | ||
City Area Code | 757 | ||
Local Phone Number | 229-5648 | ||
Entity Common Stock, Shares Outstanding | 19,235,803 | ||
Entity Public Float | $ 26,443,236 | ||
Auditor Firm ID | 686 | ||
Auditor Name | FORVIS, LLP | ||
Auditor Location | Richmond, Virginia | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain portions of Sotherly Hotels Inc.’s proxy statement for its 2023 annual meeting of stockholders to be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year covered by this report. | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Title of each class | Common Stock, $0.01 par value | ||
Trading Symbol | SOHO | ||
Name of each exchange on which registered | NASDAQ | ||
8.0% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Title of each class | 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | ||
Trading Symbol | SOHOB | ||
Name of each exchange on which registered | NASDAQ | ||
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Title of each class | 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | ||
Trading Symbol | SOHOO | ||
Name of each exchange on which registered | NASDAQ | ||
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Title of each class | 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value | ||
Trading Symbol | SOHON | ||
Name of each exchange on which registered | NASDAQ | ||
Sotherly Hotels LP [Member] | |||
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Registrant Name | SOTHERLY HOTELS LP | ||
Entity Central Index Key | 0001301236 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-36091 | ||
Entity Tax Identification Number | 20-1965427 | ||
Entity Address, Address Line One | 306 South Henry Street, Suite 100 | ||
Entity Address, City or Town | Williamsburg | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23185 | ||
City Area Code | 757 | ||
Local Phone Number | 229-5648 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Investment in hotel properties, net | $ 365,070,725 | $ 375,885,224 |
Investment in hotel properties held for sale, net | 22,870,487 | |
Cash and cash equivalents | 21,918,680 | 13,166,883 |
Restricted cash | 5,422,950 | 12,411,654 |
Accounts receivable, net | 5,844,904 | 4,822,187 |
Prepaid expenses, inventory and other assets | 8,311,862 | 6,894,228 |
TOTAL ASSETS | 406,569,121 | 436,050,663 |
LIABILITIES | ||
Mortgage loans, net | 320,482,103 | 351,170,883 |
Secured notes, net | 19,128,330 | |
Unsecured notes | 2,545,975 | 7,609,934 |
Accounts payable and accrued liabilities | 25,704,835 | 35,960,293 |
Advance deposits | 2,233,013 | 1,552,942 |
Dividends and distributions payable | 4,082,472 | 4,125,351 |
TOTAL LIABILITIES | 355,048,398 | 419,547,733 |
Commitments and contingencies | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Common stock, par value $0.01, 69,000,000 shares authorized, 18,951,525 shares issued and outstanding at December 31, 2022 and 17,441,058 shares issued and outstanding at December 31, 2021. | 189,515 | 174,410 |
Additional paid-in capital | 175,611,370 | 177,651,954 |
Unearned ESOP shares | (2,601,134) | (3,083,398) |
Distributions in excess of retained earnings | (120,985,183) | (153,521,704) |
Total Sotherly Hotels Inc. stockholders’ equity | 52,254,301 | 21,261,858 |
Noncontrolling interest | (733,578) | (4,758,928) |
TOTAL EQUITY | 51,520,723 | 16,502,930 |
TOTAL LIABILITIES AND EQUITY | 406,569,121 | 436,050,663 |
8.0% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value, 11,000,000 shares authorized: | 14,641 | 15,100 |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value, 11,000,000 shares authorized: | 13,461 | 13,846 |
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Sotherly Hotels Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value, 11,000,000 shares authorized: | 11,631 | 11,650 |
Sotherly Hotels LP [Member] | ||
ASSETS | ||
Investment in hotel properties, net | 365,070,725 | 375,885,224 |
Investment in hotel properties held for sale, net | 22,870,487 | |
Cash and cash equivalents | 21,918,680 | 13,166,883 |
Restricted cash | 5,422,950 | 12,411,654 |
Accounts receivable, net | 5,844,904 | 4,822,187 |
Loan receivable - affiliate | 2,650,526 | 3,157,172 |
Prepaid expenses, inventory and other assets | 8,311,862 | 6,894,228 |
TOTAL ASSETS | 409,219,647 | 439,207,835 |
LIABILITIES | ||
Mortgage loans, net | 320,482,103 | 351,170,883 |
Secured notes, net | 19,128,330 | |
Unsecured notes | 2,545,975 | 7,609,934 |
Accounts payable and accrued liabilities | 25,704,835 | 35,960,293 |
Advance deposits | 2,233,013 | 1,552,942 |
Dividends and distributions payable | 4,082,472 | 4,125,351 |
TOTAL LIABILITIES | 355,048,398 | 419,547,733 |
Commitments and contingencies | ||
PARTNERS' CAPITAL | ||
General Partner: 197,767 units and 185,748 units issued and outstanding as of December 31, 2022 and 2021, respectively | (106,022) | (469,805) |
Limited Partners: 19,578,946 units and 18,389,030 units issued and outstanding as of December 31, 2022 and 2021, respectively | (39,143,494) | (75,315,469) |
TOTAL PARTNERS' CAPITAL | 54,171,249 | 19,660,102 |
Sotherly Hotels Inc. stockholders’ equity | ||
TOTAL LIABILITIES AND EQUITY | 409,219,647 | 439,207,835 |
Sotherly Hotels LP [Member] | 8.0% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | ||
PARTNERS' CAPITAL | ||
Preferred units, 11,000,000 units authorized; | 34,344,086 | 35,420,784 |
Sotherly Hotels LP [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
PARTNERS' CAPITAL | ||
Preferred units, 11,000,000 units authorized; | 31,571,778 | 32,474,760 |
Sotherly Hotels LP [Member] | 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
PARTNERS' CAPITAL | ||
Preferred units, 11,000,000 units authorized; | $ 27,504,901 | $ 27,549,832 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 69,000,000 | 69,000,000 |
Common stock, shares issued | 18,951,525 | 17,441,058 |
Common stock, shares outstanding | 18,951,525 | 17,441,058 |
8.0% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, dividend rate percentage | 8% | 8% |
Preferred stock, shares issued | 1,464,100 | 1,510,000 |
Preferred stock, shares outstanding | 1,464,100 | 1,510,000 |
Preferred stock, aggregate liquidation preference | $ 44,655,050 | $ 43,035,000 |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, dividend rate percentage | 7.875% | 7.875% |
Preferred stock, shares issued | 1,346,110 | 1,384,610 |
Preferred stock, shares outstanding | 1,346,110 | 1,384,610 |
Preferred stock, aggregate liquidation preference | $ 40,940,681 | $ 39,385,669 |
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, dividend rate percentage | 8.25% | 8.25% |
Preferred stock, shares issued | 1,163,100 | 1,165,000 |
Preferred stock, shares outstanding | 1,163,100 | 1,165,000 |
Preferred stock, aggregate liquidation preference | $ 35,674,458 | $ 33,329,922 |
Sotherly Hotels LP [Member] | ||
General Partner, units issued | 197,767 | 185,748 |
General Partner, units outstanding | 197,767 | 185,748 |
Limited Partner, units issued | 19,578,946 | 18,389,030 |
Limited Partner, units outstanding | 19,578,946 | 18,389,030 |
Sotherly Hotels LP [Member] | 8.0% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred units, authorized | 11,000,000 | 11,000,000 |
Preferred units, dividend rate percentage | 8% | 8% |
Preferred units, issued | 1,464,100 | 1,510,000 |
Preferred units, outstanding | 1,464,100 | 1,510,000 |
Preferred units, aggregate liquidation preference | $ 44,655,050 | $ 43,035,000 |
Sotherly Hotels LP [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred units, authorized | 11,000,000 | 11,000,000 |
Preferred units, dividend rate percentage | 7.875% | 7.875% |
Preferred units, issued | 1,346,110 | 1,384,610 |
Preferred units, outstanding | 1,346,110 | 1,384,610 |
Preferred units, aggregate liquidation preference | $ 40,940,681 | $ 39,385,669 |
Sotherly Hotels LP [Member] | 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred units, authorized | 11,000,000 | 11,000,000 |
Preferred units, dividend rate percentage | 8.25% | 8.25% |
Preferred units, issued | 1,163,100 | 1,165,000 |
Preferred units, outstanding | 1,163,100 | 1,165,000 |
Preferred units, aggregate liquidation preference | $ 35,674,458 | $ 33,329,922 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUE | |||
Total revenue | $ 166,077,304 | $ 127,587,924 | $ 71,502,576 |
Hotel operating expenses | |||
Total hotel operating expenses | 119,614,736 | 96,693,363 | 74,726,885 |
Depreciation and amortization | 18,650,336 | 19,909,226 | 19,896,772 |
Impairment of investment in hotel properties, net | 0 | 12,201,461 | |
Loss (gain) on disposal of assets | 636,198 | (158,286) | 136,063 |
Corporate general and administrative | 6,621,221 | 6,997,166 | 6,492,526 |
Total operating expenses | 145,522,491 | 135,642,930 | 101,252,246 |
NET OPERATING INCOME (LOSS) | 20,554,813 | (8,055,006) | (29,749,670) |
Other income (expense) | |||
Interest expense | (19,772,802) | (22,686,694) | (18,056,874) |
Interest income | 189,291 | 147,025 | 210,426 |
Loss on early extinguishment of debt | (5,944,881) | ||
Unrealized gain (loss) on hedging activities | 2,918,207 | 1,493,841 | (986,200) |
PPP loan forgiveness | 4,720,278 | ||
Gain on sale of hotel properties | 30,053,977 | ||
Gain on involuntary conversion of assets | 1,763,320 | 588,586 | 179,856 |
Net income (loss) before income taxes | 34,482,203 | (28,512,248) | (48,402,462) |
Income tax provision | (522,355) | (27,392) | (5,280,443) |
Net income (loss) | 33,959,848 | (28,539,640) | (53,682,905) |
Less: Net (income) loss attributable to noncontrolling interest | (1,423,327) | 2,318,166 | 4,489,341 |
Net income (loss) attributable to the Company | 32,536,521 | (26,221,474) | (49,193,564) |
Undeclared distributions to preferred stockholders | (7,634,219) | (7,541,891) | (8,755,642) |
Gain on extinguishment of preferred stock/units | 64,518 | 361,476 | |
Net income (loss) attributable to common stockholders | $ 24,966,820 | $ (33,401,889) | $ (57,949,206) |
Net income (loss) per share attributable to common stockholders/general and limited partner unit | |||
Basic | $ 1.40 | $ (2.15) | $ (4.05) |
Diluted | $ 1.40 | $ (2.15) | $ (4.05) |
Weighted average number of common shares/general and limited partner units outstanding | |||
Basic | 17,802,772 | 15,531,684 | 14,312,049 |
Diluted | 17,802,772 | 15,531,684 | 14,312,049 |
Sotherly Hotels LP [Member] | |||
REVENUE | |||
Total revenue | $ 166,077,304 | $ 127,587,924 | $ 71,502,576 |
Hotel operating expenses | |||
Total hotel operating expenses | 119,614,736 | 96,693,363 | 74,726,885 |
Depreciation and amortization | 18,650,336 | 19,909,226 | 19,896,772 |
Impairment of investment in hotel properties, net | 12,201,461 | ||
Loss (gain) on disposal of assets | 636,198 | (158,286) | 136,063 |
Corporate general and administrative | 6,621,221 | 6,997,166 | 6,492,526 |
Total operating expenses | 145,522,491 | 135,642,930 | 101,252,246 |
NET OPERATING INCOME (LOSS) | 20,554,813 | (8,055,006) | (29,749,670) |
Other income (expense) | |||
Interest expense | (19,772,802) | (22,686,694) | (18,056,874) |
Interest income | 189,291 | 147,025 | 210,426 |
Loss on early extinguishment of debt | (5,944,881) | ||
Unrealized gain (loss) on hedging activities | 2,918,207 | 1,493,841 | (986,200) |
PPP loan forgiveness | 4,720,278 | ||
Gain on sale of hotel properties | 30,053,977 | ||
Gain on involuntary conversion of assets | 1,763,320 | 588,586 | 179,856 |
Net income (loss) before income taxes | 34,482,203 | (28,512,248) | (48,402,462) |
Income tax provision | (522,355) | (27,392) | (5,280,443) |
Net income (loss) | 33,959,848 | (28,539,640) | (53,682,905) |
Undeclared distributions to preferred stockholders | (7,634,219) | (7,541,891) | (8,755,642) |
Undeclared distributions to preferred unit holders | (7,634,219) | (7,541,891) | (8,755,642) |
Gain on extinguishment of preferred stock/units | 64,518 | 361,476 | |
Net income (loss) attributable to general and limited partnership unit holders | $ 26,390,147 | $ (35,720,055) | $ (62,438,547) |
Net income (loss) per share attributable to common stockholders/general and limited partner unit | |||
Basic | $ 1.36 | $ (2.08) | $ (3.89) |
Diluted | $ 1.36 | $ (2.08) | $ (3.89) |
Weighted average number of common shares/general and limited partner units outstanding | |||
Basic | 19,266,320 | 17,186,789 | 16,065,499 |
Diluted | 19,266,320 | 17,186,789 | 16,065,499 |
Rooms Department [Member] | |||
REVENUE | |||
Total revenue | $ 109,553,906 | $ 88,625,659 | $ 49,192,589 |
Hotel operating expenses | |||
Total hotel operating expenses | 25,782,888 | 22,688,063 | 15,565,313 |
Rooms Department [Member] | Sotherly Hotels LP [Member] | |||
REVENUE | |||
Total revenue | 109,553,906 | 88,625,659 | 49,192,589 |
Hotel operating expenses | |||
Total hotel operating expenses | 25,782,888 | 22,688,063 | 15,565,313 |
Food and Beverage Department [Member] | |||
REVENUE | |||
Total revenue | 29,556,213 | 15,829,487 | 10,676,646 |
Hotel operating expenses | |||
Total hotel operating expenses | 19,724,225 | 10,297,461 | 8,531,411 |
Food and Beverage Department [Member] | Sotherly Hotels LP [Member] | |||
REVENUE | |||
Total revenue | 29,556,213 | 15,829,487 | 10,676,646 |
Hotel operating expenses | |||
Total hotel operating expenses | 19,724,225 | 10,297,461 | 8,531,411 |
Other Operating Departments [Member] | |||
REVENUE | |||
Total revenue | 26,967,185 | 23,132,778 | 11,633,341 |
Hotel operating expenses | |||
Total hotel operating expenses | 9,296,056 | 8,607,594 | 5,142,853 |
Other Operating Departments [Member] | Sotherly Hotels LP [Member] | |||
REVENUE | |||
Total revenue | 26,967,185 | 23,132,778 | 11,633,341 |
Hotel operating expenses | |||
Total hotel operating expenses | 9,296,056 | 8,607,594 | 5,142,853 |
Indirect [Member] | |||
Hotel operating expenses | |||
Total hotel operating expenses | 64,811,567 | 55,100,245 | 45,487,308 |
Indirect [Member] | Sotherly Hotels LP [Member] | |||
Hotel operating expenses | |||
Total hotel operating expenses | $ 64,811,567 | $ 55,100,245 | $ 45,487,308 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Unearned ESOP Shares [Member] | Distributions in Excess of Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balances, beginning at Dec. 31, 2019 | $ 101,407,171 | $ 43,646 | $ 142,723 | $ 180,515,861 | $ (4,105,637) | $ (73,990,690) | $ (1,198,732) |
Balances, shares, beginning at Dec. 31, 2019 | 4,364,610 | 14,272,378 | |||||
Net income (loss) | (53,682,905) | (49,193,564) | (4,489,341) | ||||
Issuance of restricted common stock awards | 461,939 | $ 1,876 | 460,063 | ||||
Issuance of restricted common stock awards, shares | 187,583 | ||||||
Issuance of unrestricted common stock awards | 14,175 | $ 23 | 14,152 | ||||
Issuance of unrestricted common stock awards, shares | 2,250 | ||||||
Conversion of units in Operating Partnership to shares of common stock | $ 5,616 | (505,699) | (322) | 500,405 | |||
Conversion of units in Operating Partnership to shares of common stock, shares | 561,639 | ||||||
Amortization of ESOP shares | 205,216 | (264,717) | 469,933 | ||||
Amortization of restricted stock award | 72,780 | 72,780 | |||||
Preferred stock dividends declared | (2,188,910) | (2,188,910) | |||||
Common stockholders' dividends and distributions declared | (2,088,161) | (1,927,066) | (161,095) | ||||
Balances, ending at Dec. 31, 2020 | 44,201,305 | $ 43,646 | $ 150,238 | 180,292,440 | (3,636,026) | (127,300,230) | (5,348,763) |
Balances, shares, ending at Dec. 31, 2020 | 4,364,610 | 15,023,850 | |||||
Net income (loss) | (28,539,640) | (26,221,474) | (2,318,166) | ||||
Issuance of preferred stock | 444,766 | ||||||
Issuance of common stock awards | $ 1,513 | 443,253 | |||||
Issuance of common stock awards, shares | 151,281 | ||||||
Conversion of units in Operating Partnership to shares of common stock | $ 328 | (2,908,329) | 2,908,001 | ||||
Conversion of units in Operating Partnership to shares of common stock, shares | 32,781 | ||||||
Amortization of ESOP shares | 172,000 | (380,628) | 552,628 | ||||
Amortization of restricted stock award | 72,780 | 72,780 | |||||
Extinguishment of preferred stock | 151,719 | $ (3,050) | $ 22,331 | 132,438 | |||
Extinguishment of preferred stock, shares | (305,000) | 2,233,146 | |||||
Balances, ending at Dec. 31, 2021 | 16,502,930 | $ 40,596 | $ 174,410 | 177,651,954 | (3,083,398) | (153,521,704) | (4,758,928) |
Balances, shares, ending at Dec. 31, 2021 | 4,059,610 | 17,441,058 | |||||
Net income (loss) | 33,959,848 | 32,536,521 | 1,423,327 | ||||
Issuance of common stock awards | 798,686 | $ 3,951 | 794,735 | ||||
Issuance of common stock awards, shares | 395,086 | ||||||
Conversion of units in Operating Partnership to shares of common stock | $ 3,085 | (2,605,108) | 2,602,023 | ||||
Conversion of units in Operating Partnership to shares of common stock, shares | 308,532 | ||||||
Amortization of ESOP shares | 126,958 | (355,306) | 482,264 | ||||
Amortization of restricted stock award | 72,780 | 72,780 | |||||
Extinguishment of preferred stock | 59,521 | $ (863) | $ 8,069 | 52,315 | |||
Extinguishment of preferred stock, shares | (86,300) | 806,849 | |||||
Balances, ending at Dec. 31, 2022 | $ 51,520,723 | $ 39,733 | $ 189,515 | $ 175,611,370 | $ (2,601,134) | $ (120,985,183) | $ (733,578) |
Balances, shares, ending at Dec. 31, 2022 | 3,973,310 | 18,951,525 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 33,959,848 | $ (28,539,640) | $ (53,682,905) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 18,650,336 | 19,909,226 | 19,896,772 |
Impairment of investment in hotel properties, net | 0 | 12,201,461 | |
Amortization of deferred financing costs | 1,293,092 | 1,029,306 | 572,696 |
Amortization of mortgage premium | (24,681) | (24,681) | (24,681) |
Gain on involuntary conversion of assets | (1,763,320) | (588,586) | (179,856) |
Unrealized (gain) loss on hedging activities | (2,918,207) | (1,493,841) | 986,200 |
Loss on early extinguishment of debt | 5,944,881 | ||
PPP loan forgiveness | (4,720,278) | ||
Gain on sale of assets | (30,053,977) | ||
Loss (gain) on disposal of assets | 633,803 | (158,286) | 136,063 |
ESOP and stock / unit - based compensation | 998,424 | 689,547 | 754,111 |
Changes in assets and liabilities: | |||
Accounts receivable | (1,439,886) | (2,640,487) | 3,032,703 |
Prepaid expenses, inventory and other assets | (1,597,055) | 719,031 | (2,197,874) |
Deferred income taxes | 5,412,084 | ||
Accounts payable and other accrued liabilities | (12,984,231) | 1,630,584 | 15,152,165 |
Advance deposits | 680,071 | (411,131) | (821,265) |
Accounts receivable - affiliate | (300,153) | ||
Net cash provided by (used in) operating activities | 6,658,820 | 2,322,503 | (11,263,940) |
Cash flows from investing activities: | |||
Proceeds from sale of hotel properties | 52,403,981 | ||
Improvements and additions to hotel properties | (7,964,630) | (3,176,841) | (4,015,514) |
Proceeds from involuntary conversion | 2,180,489 | 588,586 | 179,856 |
Proceeds from sale of assets | 35,327 | 200,500 | 56,677 |
Net cash provided by (used in) investing activities | 46,655,167 | (2,387,755) | (3,778,981) |
Cash flows from financing activities: | |||
Proceeds from mortgage loans | 7,777,475 | ||
Proceeds from secured notes | 20,000,000 | ||
Proceeds from unsecured notes | 10,719,100 | ||
Payments on mortgage loans | (38,507,799) | (6,528,078) | (2,609,861) |
Payments on secured notes | (20,000,000) | ||
Payments of unsecured notes | (461,181) | (3,109,166) | |
Payments of deferred financing costs | (359,389) | (19,513) | (1,560,680) |
Dividends on common stock and distributions paid | (2,000,418) | ||
Preferred dividends paid | (2,188,910) | ||
Net cash (used in ) provided by financing activities | (51,550,894) | (9,656,757) | 22,359,231 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,763,093 | (9,722,009) | 7,316,310 |
Cash, cash equivalents and restricted cash at the beginning of the period | 25,578,537 | 35,300,546 | 27,984,236 |
Cash, cash equivalents and restricted cash at the end of the period | 27,341,630 | 25,578,537 | 35,300,546 |
Supplemental disclosures: | |||
Cash paid during the period for interest | 23,277,738 | 19,897,847 | 9,543,748 |
Cash paid (received) during the period for income taxes | 26,000 | 20,200 | (21,078) |
Non-cash investing and financing activities: | |||
Change in amount of improvements to hotel property in accounts payable and accrued liabilities | 56,914 | 353,028 | 542,102 |
Cash and cash equivalents | 21,918,680 | 13,166,883 | 25,297,771 |
Restricted cash | 5,422,950 | 12,411,654 | 10,002,775 |
Cash, cash equivalents and restricted cash at the end of the period | 27,341,630 | 25,578,537 | 35,300,546 |
Sotherly Hotels LP [Member] | |||
Cash flows from operating activities: | |||
Net income (loss) | 33,959,848 | (28,539,640) | (53,682,905) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 18,650,336 | 19,909,226 | 19,896,772 |
Impairment of investment in hotel properties, net | 12,201,461 | ||
Amortization of deferred financing costs | 1,293,092 | 1,029,306 | 572,696 |
Amortization of mortgage premium | (24,681) | (24,681) | (24,681) |
Gain on involuntary conversion of assets | (1,763,320) | (588,586) | (179,856) |
Unrealized (gain) loss on hedging activities | (2,918,207) | (1,493,841) | 986,200 |
Loss on early extinguishment of debt | 5,944,881 | ||
PPP loan forgiveness | (4,720,278) | ||
Gain on sale of assets | (30,053,977) | ||
Loss (gain) on disposal of assets | 633,803 | (158,286) | 136,063 |
ESOP and stock / unit - based compensation | 491,778 | 100,465 | 349,217 |
Changes in assets and liabilities: | |||
Accounts receivable | (1,439,886) | (2,640,487) | 3,032,703 |
Prepaid expenses, inventory and other assets | (1,597,055) | 719,031 | (2,197,874) |
Deferred income taxes | 5,412,084 | ||
Accounts payable and other accrued liabilities | (12,984,231) | 1,630,584 | 15,152,165 |
Advance deposits | 680,071 | (411,131) | (821,265) |
Accounts receivable - affiliate | (300,153) | ||
Net cash provided by (used in) operating activities | 6,152,174 | 1,733,421 | (11,668,834) |
Cash flows from investing activities: | |||
Proceeds from sale of hotel properties | 52,403,981 | ||
Improvements and additions to hotel properties | (7,964,630) | (3,176,841) | (4,015,514) |
ESOP loan payments received | 506,646 | 589,082 | 463,376 |
Proceeds from involuntary conversion | 2,180,489 | 588,586 | 179,856 |
Proceeds from sale of assets | 35,327 | 200,500 | 56,677 |
Net cash provided by (used in) investing activities | 47,161,813 | (1,798,673) | (3,315,605) |
Cash flows from financing activities: | |||
Proceeds from mortgage loans | 7,777,475 | ||
Proceeds from secured notes | 20,000,000 | ||
Proceeds from unsecured notes | 10,719,100 | ||
Payments on mortgage loans | (38,507,799) | (6,528,078) | (2,609,861) |
Payments on secured notes | (20,000,000) | ||
Payments of unsecured notes | (461,181) | (3,109,166) | |
Payments of deferred financing costs | (359,389) | (19,513) | (1,560,680) |
Dividends on common stock and distributions paid | (2,058,900) | ||
Preferred dividends paid | (2,188,910) | ||
Net cash (used in ) provided by financing activities | (51,550,894) | (9,656,757) | 22,300,749 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 1,763,093 | (9,722,009) | 7,316,310 |
Cash, cash equivalents and restricted cash at the beginning of the period | 25,578,537 | 35,300,546 | 27,984,236 |
Cash, cash equivalents and restricted cash at the end of the period | 27,341,630 | 25,578,537 | 35,300,546 |
Supplemental disclosures: | |||
Cash paid during the period for interest | 23,157,605 | 19,630,506 | 9,541,533 |
Cash paid (received) during the period for income taxes | 26,000 | 20,200 | (21,078) |
Non-cash investing and financing activities: | |||
Change in amount of improvements to hotel property in accounts payable and accrued liabilities | 56,914 | 353,028 | 542,102 |
Cash and cash equivalents | 21,918,680 | 13,166,883 | 25,297,771 |
Restricted cash | 5,422,950 | 12,411,654 | 10,002,775 |
Cash, cash equivalents and restricted cash at the end of the period | $ 27,341,630 | $ 25,578,537 | $ 35,300,546 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Partners' Capital - USD ($) | Total | Sotherly Hotels LP [Member] | Sotherly Hotels LP [Member] General Partner [Member] | Sotherly Hotels LP [Member] Limited Partner [Member] | Sotherly Hotels LP [Member] Preferred Units [Member] | Sotherly Hotels LP [Member] Preferred Units [Member] Series B Preferred Units [Member] | Sotherly Hotels LP [Member] Preferred Units [Member] Series C Preferred Units [Member] | Sotherly Hotels LP [Member] Preferred Units [Member] Series D Preferred Units [Member] |
Balances, beginning at Dec. 31, 2019 | $ 105,558,317 | $ 315,959 | $ 2,636,363 | $ 37,766,531 | $ 36,461,955 | $ 28,377,509 | ||
Balances, units, beginning at Dec. 31, 2019 | 160,006 | 15,840,512 | 4,364,610 | |||||
Issuance of partnership units | 476,113 | $ 4,761 | $ 471,352 | |||||
Issuance of partnership units, number of units | 1,898 | 187,935 | ||||||
Amortization of restricted units award | $ 72,780 | 72,780 | $ 728 | $ 72,052 | ||||
Unit based compensation | (199,675) | (1,997) | (197,678) | |||||
Preferred units distributions declared | (2,188,910) | (805,000) | (765,160) | (618,750) | ||||
Partnership units distributions declared | (2,088,161) | (19,271) | (2,068,890) | |||||
Net income (loss) | $ (53,682,905) | (53,682,905) | (558,718) | (55,313,097) | 805,000 | 765,160 | 618,750 | |
Balances, ending at Dec. 31, 2020 | 47,947,559 | $ (258,538) | $ (54,399,898) | 37,766,531 | 36,461,955 | 28,377,509 | ||
Balances, units, ending at Dec. 31, 2020 | 161,904 | 16,028,447 | 4,364,610 | |||||
Balances, beginning at Dec. 31, 2019 | 105,558,317 | $ 315,959 | $ 2,636,363 | 37,766,531 | 36,461,955 | 28,377,509 | ||
Balances, units, beginning at Dec. 31, 2019 | 160,006 | 15,840,512 | 4,364,610 | |||||
Redemption of partnership units, number of units | 0 | |||||||
Balances, ending at Dec. 31, 2021 | 19,660,102 | $ (469,805) | $ (75,315,469) | 35,420,784 | 32,474,760 | 27,549,832 | ||
Balances, units, ending at Dec. 31, 2021 | 185,748 | 18,389,030 | 4,059,610 | |||||
Balances, beginning at Dec. 31, 2020 | 47,947,559 | $ (258,538) | $ (54,399,898) | 37,766,531 | 36,461,955 | 28,377,509 | ||
Balances, units, beginning at Dec. 31, 2020 | 161,904 | 16,028,447 | 4,364,610 | |||||
Issuance of partnership units | 444,766 | $ 4,448 | $ 440,318 | |||||
Issuance of partnership units, number of units | 1,513 | 149,768 | ||||||
Amortization of restricted units award | $ 72,780 | 72,780 | $ 728 | $ 72,052 | ||||
Unit based compensation | (417,082) | (4,171) | (412,911) | |||||
Extinguishment of preferred units | 151,719 | 151,719 | $ 73,124 | $ 7,239,214 | (2,345,747) | (3,987,195) | (827,677) | |
Extinguishment of preferred units, shares | 22,331 | 2,210,815 | (305,000) | |||||
Net income (loss) | (28,539,640) | (28,539,640) | $ (285,396) | $ (28,254,244) | ||||
Balances, ending at Dec. 31, 2021 | 19,660,102 | $ (469,805) | $ (75,315,469) | $ 35,420,784 | 32,474,760 | 27,549,832 | ||
Balances, units, ending at Dec. 31, 2021 | 185,748 | 18,389,030 | 4,059,610 | |||||
Issuance of partnership units | 798,686 | $ 7,987 | $ 790,699 | |||||
Issuance of partnership units, number of units | 3,951 | 391,135 | ||||||
Amortization of restricted units award | 72,780 | 72,780 | $ 728 | $ 72,052 | ||||
Unit based compensation | (379,688) | (5,025) | (374,663) | |||||
Extinguishment of preferred units | 59,521 | 59,521 | $ 20,495 | $ 2,063,637 | (902,982) | (44,931) | ||
Extinguishment of preferred units, shares | 8,068 | 798,781 | (86,300) | (1,076,698) | ||||
Net income (loss) | $ 33,959,848 | 33,959,848 | $ 339,598 | $ 33,620,250 | ||||
Balances, ending at Dec. 31, 2022 | $ 54,171,249 | $ 106,022 | $ (39,143,494) | $ 34,344,086 | $ 31,571,778 | $ 27,504,901 | ||
Balances, units, ending at Dec. 31, 2022 | 197,767 | 19,578,946 | 3,973,310 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Sotherly Hotels Inc. (the “Company”) is a self-managed and self-administered lodging real estate investment trust (“REIT”) that was incorporated in Maryland on August 20, 2004 . The Company historically has focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the southern United States. The Company’s portfolio, as of December 31, 2022 , consisted of investments in ten hotel properties, comprising 2,786 rooms and two hotel commercial condominium units and their associated rental programs. Seven of our hotels operated under the Hilton, DoubleTree and Hyatt brands, and three are independent hotels. The Company commenced operations on December 21, 2004 when it completed its initial public offering (“IPO”) and thereafter consummated the acquisition of six hotel properties. Substantially all of the Company’s assets are held by, and all of its operations are conducted through, Sotherly Hotels LP, (the “Operating Partnership”). Pursuant to the terms of the Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”), the Company, as general partner, is not entitled to compensation for its services to the Operating Partnership. The Company, as general partner, conducts substantially all of its operations through the Operating Partnership and the Company’s administrative expenses are the obligations of the Operating Partnership. Additionally, the Company is entitled to reimbursement for any expenditure incurred by it on the Operating Partnership’s behalf. For the Company to qualify as a REIT, it cannot operate hotels. Therefore, the Operating Partnership, which, at December 31, 2022 , was approximately 95.8 % owned by the Company, and its subsidiaries, lease its hotels to direct and indirect subsidiaries of MHI Hospitality TRS Holding, Inc., MHI Hospitality TRS, LLC and certain of its subsidiaries, (collectively, “MHI TRS Entities”), each of which is a wholly-owned subsidiary of the Operating Partnership. For the years ended December 31, 2022, 2021, and 2020, the MHI TRS Entities engaged eligible independent hotel management companies, MHI Hotels Services, LLC, which did business as Chesapeake Hospitality (“Chesapeake Hospitality”); Highgate Hotels, L.P.; and Our Town Hospitality, LLC (“Our Town”) to operate the hotels under management contracts. MHI Hospitality TRS Holding, Inc. is treated as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. As of December 31, 2022 , Our Town was the manager of each of our ten wholly-owned hotels and our two condominium hotel rental programs. All references in these “Notes to Consolidated Financial Statements” to “we,” “us” and “our” refer to the Company, its Operating Partnership and its subsidiaries and predecessors, collectively, unless the context otherwise requires or where otherwise indicated. Significant Transactions Significant transactions occurring during the current and two prior fiscal years include the following: Between April 16 and May 6, 2020, the Company received proceeds of three separate PPP Loans administered by the U.S. Small Business Administration pursuant to the CARES Act totaling approximately $ 10.7 million. Each PPP Loan had an initial term of two years with the ability to extend the loan to five years , if not completely forgiven and carries an interest rate of 1.00 %. Equal payments of principal and interest were to begin no later than 10 months following origination of the loan and are amortized over the remaining term of the loan . Pursuant to the terms of the CARES Act, the proceeds of each PPP Loan may be used for payroll costs, mortgage interest, rent or utility costs. The promissory note for each PPP Loan contains customary events of default relating to, among other things, payment defaults and breach of representations and warranties or of provisions of the relevant promissory note. On December 9, 2022, the Company was notified it had received forgiveness for one of its PPP Loans in the principal amount of approximately $ 4.6 million. On February 3, 2023, the Company was notified it has received forgiveness for another PPP Loan in the principal amount of approximately $ 0.3 million. On December 31, 2020, we entered into the following agreements with KWHP SOHO, LLC ("KW") and MIG SOHO, LLC (together, the "Investors"): (i) a Note Purchase Agreement with the Investors; (ii) the Secured Notes; (iii) a Pledge and Security Agreement with KW; (iv) a Board Observer Agreement with KW; and (v) other ancillary agreements. These agreements constituted a transaction whereby the Investors purchased $ 20.0 million in Secured Notes (the "Secured Notes") from the Operating Partnership. On June 29, 2022, the Company satisfied and paid in full the Secured Notes. On November 30, 2021, Raleigh Hotel Associates, LLC, a Delaware limited liability company and an affiliate of the Company, entered into a real estate sale agreement to sell the DoubleTree by Hilton Raleigh-Brownstone University hotel located in Raleigh, North Carolina to CS Acquisition Vehicle, LLC, a Delaware limited liability company, for a purchase price of $ 42.0 million. On December 13, 2021, Louisville Hotel Associates, LLC, a Delaware limited liability company and an affiliate of the Company, entered into a purchase and sale agreement to sell the Sheraton Louisville Riverside hotel located in Jeffersonville, Indiana to Riverside Hotel, LLC, an Indiana limited liability company, for a purchase price of $ 11.5 million, including the assumption by the buyer of the mortgage loan on the hotel. On February 10, 2022, the Company closed the sale of the Sheraton Louisville Riverside hotel. There were no net proceeds from the sale. On June 10, 2022, we closed the sale of the DoubleTree by Hilton Raleigh-Brownstone University hotel. The Company used approximately $ 18.6 million of the net cash proceeds from the sale of the hotel to repay the existing mortgage on the property and approximately $ 19.8 million of the net cash proceeds to repay a portion of the Secured Notes with the Investors as required by the terms of the Secured Notes. The Company used the remaining net cash proceeds general corporate purposes. The Investors received approximately $ 19.8 million of the proceeds from the sale of the hotel, of which approximately $ 13.3 million was applied toward principal, approximately $ 6.3 million was applied toward the exit fee owed under the Secured Notes, and approximately $ 0.2 million was applied toward accrued interest. Additionally, the terms of the Secured Notes allowed for the release of a portion of the interest reserves in the amount of approximately $ 1.6 million, of which approximately $ 1.1 million was applied toward principal and approximately $ 0.5 million was applied toward the exit fee. On June 28, 2022, affiliates of the Company entered into amended loan documents to modify the existing mortgage loan on the Hotel Alba Tampa with the existing lender, Fifth Third Bank. Pursuant to the amended loan documents, the amended mortgage loan: (i) has an increased principal balance of $ 25.0 million; (ii) includes an extended maturity date of June 30, 2025 , which may be further extended for two additional periods of one year each, subject to certain conditions; (iii) bears a floating interest rate of SOFR plus 2.75 %, subject to a floor rate of 2.75 %; (iv) amortizes on a 25-year schedule and requires payments of monthly interest plus $ 40,600 monthly amortization payments; and (v) is guaranteed by the Operating Partnership up to $ 12.5 million, with the guaranty reducing to $ 6.25 million upon the successful achievement of certain performance milestones. On June 29, 2022, the Company used the proceeds from the refinance of the Hotel Alba Tampa, along with approximately $ 0.2 million of cash on hand as well as the balance of the interest reserve under the Secured Notes of approximately $ 0.5 million, to satisfy and pay in full the Secured Notes. The Investors received approximately $ 8.3 million in satisfaction of the Secured Notes, of which approximately $ 5.6 million was applied toward principal, approximately $ 2.6 million was applied toward the exit fee owed under the Secured Notes, and approximately $ 0.02 million was applied toward accrued interest. Concurrent with the cancellation of the Secured Notes, the following agreements were also terminated in accordance with their terms: (i) Note Purchase Agreement; (ii) Pledge and Security Agreement; (iii) Board Observer Agreement; and (iv) other related ancillary agreements. From June 21, 2021 through August 24, 2022, the Company entered into various privately-negotiated share exchange agreements with holders of its Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, in reliance on Section 3(a)(9) of the Securities Act. Pursuant to those share exchange agreements, the Company has exchanged an aggregate of 3,0393,995 shares of its common stock for 145,900 shares of the Series B Preferred Stock, 208,500 shares of the Series C Preferred Stock, and 36,900 shares of the Series D Preferred Stock, together with all of the holder’s rights to receive accrued and unpaid dividends on those shares of Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock. The common stock was issued in reliance on the exemption from registration set forth in Section 3(a)(9) of the Securities Act, as amended, for securities exchanged by an issuer with an existing security holder in a transaction where no commission or other remuneration was be paid or given directly or indirectly for soliciting such an exchange. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation – The consolidated financial statements of the Company presented herein include all the accounts of Sotherly Hotels Inc., the Operating Partnership and the MHI TRS Entities. All significant inter-company balances and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements of the Operating Partnership presented herein include all the accounts of Sotherly Hotels LP and the MHI TRS Entities. All significant inter-company balances and transactions have been eliminated. Additionally, all administrative expenses of the Company and those expenditures made by the Company on behalf of the Operating Partnership are reflected as the administrative expenses, expenditures and obligations thereto of the Operating Partnership, pursuant to the terms of the Partnership Agreement. Variable Interest Entities – The Operating Partnership is a variable interest entity. The Company’s only significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership and its subsidiaries. All of the Company’s debt is an obligation of the Operating Partnership and its subsidiaries. Investment in Hotel Properties – Investments in hotel properties include investments in operating properties which are recorded at fair value on the acquisition date and allocated to land, property and equipment and identifiable intangible assets. Replacements and improvements are capitalized, while repairs and maintenance are expensed as incurred. Upon the sale or retirement of a fixed asset, the cost and related accumulated depreciation are removed from our accounts and any resulting gain or loss is included in the statements of operations. Expenditures under a renovation project, which constitute additions or improvements that extend the life of the property, are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 7 to 39 years for buildings and building improvements and 3 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets. The Company assesses the carrying values of its investments in hotel properties whenever events or changes in circumstances indicate that the carrying value of the hotel properties may not be recoverable. Events or circumstances that may cause a review include, but are not limited to, adverse permanent changes in the demand for lodging at the properties due to declining national or local economic conditions and/or new hotel construction in markets where the hotels are located. When such conditions exist, management performs an analysis to determine if the estimated undiscounted future cash flows from operations and the proceeds from the ultimate disposition of a hotel property exceeds its carrying value. If the estimated undiscounted future cash flows are found to be less than the carrying amount of the asset, an adjustment to reduce the carrying amount to the related hotel property’s estimated fair market value would be recorded and an impairment loss recognized. The COVID-19 pandemic has had, an adverse impact on the lodging and hospitality industries, which the Company considered to be a triggering event for each of its hotels during its impairment testing for the year ended December 31, 2021. The Company assessed the recoverability of each of its hotel properties which included a projection of future operating cash flows based upon significant assumptions regarding its ability to maintain ownership of the property, growth rates, occupancy, room rates, economic trends, property-specific operating costs, an allowance for the replacement of furniture, fixtures and equipment and projected cash flows from the eventual disposition of the hotel. The Company also projected cash flows assuming an eventual disposition of the hotel based upon property-specific capitalization rates. As of December 31, 2021, the Company determined the Sheraton Louisville Riverside, to be impaired based on the proceeds received in a subsequent sale, as well as The Whitehall in Houston, Texas due to the lack of certainty regarding our ability to extend or refinance the mortgage which was set to mature in early 2023. The Company recognized an impairment loss of approximately $ 12.2 million during the period ended December 31, 2021. The impairment loss was determined using level 2 inputs under authoritative guidance for fair value measurements. No impairment loss was recognized for the year ended December 31, 2022. Assets Held for Sale – The Company records assets as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. When the carrying value of the asset is greater than the fair value, the Company reduces the carrying value to fair value less selling costs and recognizes an impairment loss. Cash and Cash Equivalents – The Company consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Concentration of Credit Risk – The Company holds cash accounts at several institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) protection limits of $ 250,000 . Our exposure to credit loss in the event of the failure of these institutions is represented by the difference between the FDIC protection limit and the total amounts on deposit. Management monitors, on a regular basis, the financial condition of the financial institutions along with the balances there on deposit to minimize our potential risk. Restricted Cash – Restricted cash includes real estate tax escrows, insurance escrows and reserves for replacements of furniture, fixtures and equipment pursuant to certain requirements in our various mortgage agreements. Accounts Receivable – Accounts receivable consists primarily of hotel guest, banqueting and credit card receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. Inventories – Inventories, consisting primarily of food and beverages, are stated at the lower of cost or net realizable value, with cost determined on a method that approximates first-in, first-out basis. Franchise License Fees – Fees expended to obtain or renew a franchise license are amortized over the life of the license or renewal. The unamortized franchise fees as of December 31, 2022 and 2021 were approximately $ 241,038 and $ 294,390 , respectively. Amortization expense for the years ended December 31, 2022, 2021, and 2020 was $ 48,852 , $ 59,482 and $ 59,482 , respectively. Deferred Financing Costs – Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt and are reflected in mortgage loans, net and unsecured notes, net on the consolidated balance sheets. Deferred offering costs are recorded at cost and consist of offering fees and other costs incurred in advance of issuing equity and are reflected in prepaid expenses, inventory and other assets on the consolidated balance sheets. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. Derivative Instruments – Our derivative instruments are reflected as assets or liabilities on the consolidated balance sheet and measured at fair value. Derivative instruments used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as an interest rate risk, are considered fair value hedges. Derivative instruments used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For a derivative instrument designated as a cash flow hedge, the change in fair value each period is reported in accumulated other comprehensive income in stockholders’ equity and partners’ capital to the extent the hedge is effective. For a derivative instrument designated as a fair value hedge, the change in fair value each period is reported in earnings along with the change in fair value of the hedged item attributable to the risk being hedged. For a derivative instrument that does not qualify for hedge accounting or is not designated as a hedge, the change in fair value each period is reported in earnings. We use derivative instruments to add stability to interest expense and to manage our exposure to interest-rate movements. To accomplish this objective, we currently use interest rate caps and an interest rate swap which act as cash flow hedges and are not designated as hedges. We value our interest-rate caps and interest rate swap at fair value, which we define as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We do not enter into contracts to purchase or sell derivative instruments for speculative trading purposes. Fair Value Measurements – We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table represents our assets and liabilities measured at fair value and the basis for that measurement (our interest rate caps and interest rate swap are the only assets or liabilities measured at fair value on a recurring basis, there were two non-recurring or infrequent asset valuations and no non-recurring liabilities for fair value measurements as of December 31, 2022 and 2021, respectively): Level 1 Level 2 Level 3 December 31, 2021 Interest rate cap (1) $ — $ 47 $ — Interest rate swap (2) $ — $ ( 1,537,319 ) $ — Mortgage loans (3) $ — $ ( 355,496,444 ) $ — Investment in hotel properties, net (4) $ — $ 23,000,000 $ — Investment in hotel properties held for sale, net (5) $ — $ 11,063,952 $ — December 31, 2022 Interest rate swaps (2) $ — $ 1,308,503 $ — Mortgage loans (3) $ — $ ( 306,300,855 ) $ — (1) Interest rate cap, which caps the 1-month LIBOR rate at 3.25 %. (2) Interest rate swaps, one of which swaps the Loan Rate for a fixed interest rate of 5.237 % for the DoubleTree by Hilton Philadelphia Airport mortgage and is valued at December 31, 2022 and December 31, 2021 , and the other which swaps the Loan Rate for a fixed rate of 5.576 % for the Hotel Alba Tampa mortgage and is valued only at December 31, 2022. Notional amounts of the swaps approximate the declining balance of the loan. (3) Mortgage loans had a carrying value on our Consolidated Balance Sheets of $ 320,482,103 and $ 351,170,883 , as of December 31, 2022 and December 31, 2021, respectively. (4) Investment in hotel properties, net, a non-recurring asset, is reflected at appraised value as of December 31, 2021. (5) Investment in hotel properties held for sale, net, a non-recurring asset, is reflected at net realizable value as of December 31, 2021. Noncontrolling Interest in Operating Partnership – Certain hotel properties have been acquired, in part, by the Operating Partnership through the issuance of limited partnership units of the Operating Partnership. The noncontrolling interest in the Operating Partnership is: (i) increased or decreased by the limited partners’ pro-rata share of the Operating Partnership’s net income or net loss, respectively; (ii) decreased by distributions; (iii) decreased by redemption of partnership units for the Company’s common stock; and (iv) adjusted to equal the net equity of the Operating Partnership multiplied by the limited partners’ ownership percentage immediately after each issuance of units of the Operating Partnership and/or the Company’s common stock through an adjustment to additional paid-in capital. Net income or net loss is allocated to the noncontrolling interest in the Operating Partnership based on the weighted average percentage ownership throughout the period. Revenue Recognition – Revenue consists of amounts derived from hotel operations, including the sales of rooms, food and beverage, and other ancillary services. Room revenue is recognized over a customer’s hotel stay. Revenue from food and beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized on these distinct goods and services at the point in time or over the time period that goods or services are provided to the customer. Some contracts for rooms or food and beverage services require an upfront deposit which is recorded as advanced deposits (or contract liabilities) shown on our consolidated balance sheets and recognized once the performance obligations are satisfied. Certain ancillary services are provided by third parties and the Company assessed whether it is the principal or agent in these arrangements. If the Company is the agent, revenue is recognized based upon the gross commission earned from the third party. If the Company is the principal, the Company recognizes based upon the gross sales price. With respect to the hotel condominium rental programs the Company operates at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences, the Company has determined that it is an agent and recognizes revenue based on its share of revenue earned under the rental agency agreement. Certain of the Company’s hotels have retail spaces, restaurants or other spaces which the Company leases to third parties. Lease revenue is recognized on a straight-line basis over the life of the lease and included in other operating revenues in the Company’s consolidated statements of operations. The Company collects revenue, sales taxes, use taxes, occupancy taxes and similar taxes at its hotels which are reflected in revenue on a net basis on the consolidated statements of operations. Lease Revenue – Several of our properties generate revenue from leasing commercial space adjacent to the hotel, the restaurant space within the hotel, portions of our parking facilities, apartment units and space on the roofs of our hotels for antennas and satellite dishes. We account for the lease income as revenue from other operating departments within the consolidated statement of operations pursuant to the terms of each lease. Lease revenue was approximately $ 1.3 million, $ 1.7 million and $ 1.4 million, for the years ended December 31, 2022, 2021, and 2020, respectively. A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: December 31, 2023 1,370,292 December 31, 2024 1,367,550 December 31, 2025 1,339,747 December 31, 2026 1,330,479 December 31, 2027 1,327,226 December 31, 2028 and thereafter 19,575,361 Total 26,310,655 Lessee Accounting – The Company’s operating lease agreements primarily include the ground lease on the Hyatt Centric Arlington, the parking garage lease in Hollywood, Florida at the Hyde Beach House Resort & Residences, and the corporate office lease. The assets are classified as “right of use assets”, which represent our right to use an underlying asset and the operating lease liability, which represent our obligation to make lease payments arising from the lease, is classified within “accounts payable and other accrued liabilities”. Right of use assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the right of use assets and operating lease liabilities are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit financing rate, we use our incremental borrowing cost based on information available at the commencement date using our actual borrowing rates commensurate with the lease terms and fully levered borrowing to determine present value. Extension options on our leases are included in our minimum lease terms when they are reasonably certain to be exercised. Income Taxes – The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As a REIT, the Company generally will not be subject to federal income tax. The MHI TRS Entities which leases our hotels from subsidiaries of the Operating Partnership, are subject to federal and state income taxes. We account for income taxes using the asset and liability method under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is required for deferred tax assets if, based on all available evidence, it is “more-likely-than-not” that all or a portion of the deferred tax asset will or will not be realized due to the inability to generate sufficient taxable income in certain financial statement periods. The “more-likely-than-not” analysis means the likelihood of realization is greater than 50 %, that we either will or will not be able to fully utilize the deferred tax assets against future taxable income. The net amount of deferred tax assets that are recorded on the financial statements must reflect the tax benefits that are expected to be realized using these criteria. As of December 31, 2022, we determined that it is more-likely-than-not that we will not be able to fully utilize our deferred tax assets for future tax consequences; therefore, a 100 % valuation allowance is required. As of December 31, 2022 , we had no uncertain tax positions. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2022, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include 2011 through 2021. In addition, as of December 31, 2022, the tax years that remain subject to examination by the major tax jurisdictions to which the MHI TRS Entities are subject, because of open NOL carryforwards, generally include 2014 through 2021. The Operating Partnership is generally not subject to federal and state income taxes as the unit holders of the Partnership are subject to tax on their respective shares of the Partnership’s taxable income. Stock-based Compensation – The Company’s 2013 Long-Term Incentive Plan (the “2013 Plan”), which the Company’s stockholders approved in April 2013, permitted the grant of stock options, restricted stock and performance share compensation awards to its employees and directors for up to 750,000 shares of common stock. The Company believes that stock awards align the interests of its employees with those of its stockholders. Under the 2013 Plan, the Company made cumulative stock awards totaling 745,160 shares, of which 316,333 were originally restricted. As of December 31, 2022 , there were 45,000 restricted shares to certain executives, directors, and employees, and 700,160 non-restricted shares issued to certain executives, directors and employees. All awards have vested except for 45,000 shares issued to certain executives, which will vest over the next 7 years. The remaining 4,840 shares have been deregistered. Under the 2013 Plan, the Company was authorized to issue a variety of performance-based stock awards, including nonqualified stock options. The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the value of the award as determined by the Company’s stock price on the date of grant or issuance. As of December 31, 2022 , no performance-based stock awards have been granted. Consequently, stock-based compensation as determined under the fair-value method would be the same under the intrinsic-value method. The Company’s 2022 Long-Term Incentive Plan (the “2022 Plan”), which the Company’s stockholders approved in April 2022, permits the grant of stock options, restricted stock, unrestricted stock and performance share compensation awards to its employees and directors for up to 2,000,000 shares of common stock. Under the 2022 Plan, the Company may issue a variety of performance-based stock awards, including nonqualified stock options. The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the value of the award as determined by the Company’s stock price on the date of grant or issuance. As of December 31, 2022 , 167,390 service-based stock awards have been granted. Total stock-based compensation cost recognized under the 2013 Plan and 2022 Plan for the years ended December 31, 2022, 2021, and 2020 was $ 871,466 , $ 517,546 and $ 548,894 , respectively. Additionally, the Company sponsors and maintains an Employee Stock Ownership Plan (“ESOP”) and related trust for the benefit of its eligible employees. We reflect unearned ESOP shares as a reduction of stockholders’ equity. Dividends on unearned ESOP shares, when paid, are considered compensation expense. The Company recognizes compensation expense equal to the fair value of the Company’s ESOP shares during the periods in which they are committed to be released. For the years ended December 31, 2022, 2021, and 2020 the ESOP compensation cost was $ 140,703 , $ 172,000 and $ 175,367 , respectively. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the differential is recognized as additional paid in capital. Because the ESOP is internally leveraged through a loan from the Company to the ESOP, the loan receivable by the Company from the ESOP is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated financial statements. Advertising – Advertising costs, including digital advertising, were approximately $ 2.2 million, $ 2.0 million and $ 1.4 million, for the years ended December 31, 2022, 2021, and 2020 , respectively and are expensed as incurred. Business Interruption Proceeds – Insurance recoveries for business interruption were recognized during the years ended December 31, 2022, 2021, and 2020 , for $ 62,010 , $ 200,000 , and $ 85,517 , respectively. The insurance proceeds were reflected in the statement of operations in other operating departments revenues . Involuntary Conversion of Assets – The Company record gains or losses on involuntary conversions of assets due to recovered insurance proceeds to the extent the undepreciated cost of a nonmonetary asset differs from the amount of monetary proceeds received. During the years ending December 31, 2022, 2021, and 2020 , we recognized approximately $ 1.8 million, $ 0.6 million and $ 0.2 million, respectively, for gain on involuntary conversion of assets, which is reflected in the consolidated statements of operations. Comprehensive Income (Loss) – Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period from non-owner sources. The Company does not have any items of comprehensive income (loss) other than net income (loss). Segment Information – The Company has determined that our business is conducted in one reportable segment: hotel ownership. Use of Estimates – The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements – In June 2016, the FASB issued ASU 2016-13, Financial Instruments -Credit Losses(Topic 326) , which replaced the existing " incurred loss " approach with an " expected loss " model for financial instruments measured at amortized cost. For trade and other receivables, the forward looking "expected loss" model will generally result in the earlier recognition of allowances for losses. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments -Credit Losses, which clarified that operating lease receivables accounted for under ASC 842 are not in the scope of ASU 2016-13. We do not expect adoption of this standard to have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The update provides guidance in accounting for changes in contracts, hedging relationships, and other transactions as a result of this reference rate reform. The option expedients and exceptions contained within this update, in general, only apply to contract amendments and modifications entered into prior to January 1, 2023. The provisions of this update will most likely affect our financial reporting process relating to modifications of contracts with lenders and the hedging contracts associated with each respective modified borrowing contract. In general, the provision of the update would benefit us by allowing modifications of debt contracts with lenders that fall under the guidance of ASC Topic 740 to be accounted for as a non-substantial modification and not be considered debt extinguishment. As of December 31, 2022 , we have not entered into any contract modification as it directly relates to reference rate reform, with the exception of a modification to the mortgages on The Whitehall in Houston, Texas, which changed the reference rate from LIBOR to the New York Prime Rate, and on Hotel Alba Tampa, Tapestry Collection in Tampa, Florida, which changed the reference rate from LIBOR to SOFR. On March 14, 2023, the Company modified the floating-rate mortgage on the DoubleTree by Hilton Philadelphia Airport to change the reference rate from 1-month LIBOR to SOFR. The Company anticipates no additional loan modifications will be required. |
Disposal of Assets
Disposal of Assets | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal of Assets | 3. Disposal of Assets Sheraton Louisville Riverside and DoubleTree by Hilton Raleigh-Brownstone University. On February 10, 2022 and June 10, 2022, we closed on the sale of our hotel properties the Sheraton Louisville Riverside and the DoubleTree by Hilton Raleigh-Brownstone University, respectively. The results of operations for these two properties are included in our consolidated financial statements through the date of disposal. The following proforma financial information presents the results of operations of the Company and the Operating Partnership for the years ending December 31, 2022 and 2021, respectively, as if the disposition of properties, the Sheraton Louisville Riverside and the DoubleTree by Hilton Raleigh-Brownstone University, had taken place on January 1, 2021. The following proforma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations, had the transactions taken place on January 1, 2021: Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 (unaudited) (unaudited) Pro forma revenues $ 162,852,282 $ 118,839,373 Pro forma operating expenses $ 143,126,315 $ 121,773,659 Pro forma operating expense (income) $ 19,725,967 $ ( 2,934,286 ) Pro forma net income (loss) $ 7,090,465 $ ( 21,984,647 ) Pro forma income (loss) per basic share $ 0.40 $ ( 1.42 ) Pro forma income (loss) per diluted share $ 0.40 $ ( 1.42 ) Pro forma income (loss) per basic unit $ 0.37 $ ( 1.28 ) Pro forma income (loss) per diluted unit $ 0.37 $ ( 1.28 ) Basic common shares 17,802,772 15,531,684 Diluted common shares 17,802,772 15,531,684 Basic units 19,266,320 17,186,789 Diluted units 19,266,320 17,186,789 |
Investment in Hotel Properties,
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net | 4. Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net Investment in hotel properties, net as of December 31, 2022 and 2021 consisted of the following: December 31, 2022 December 31, 2021 Land and land improvements $ 60,934,859 $ 60,395,168 Buildings and improvements 412,717,919 407,310,530 Right of use assets 5,199,845 5,711,607 Furniture, fixtures and equipment 51,292,107 50,505,902 530,144,730 523,923,207 Less: accumulated depreciation and impairment ( 165,074,005 ) ( 148,037,983 ) Investment in Hotel Properties, Net $ 365,070,725 $ 375,885,224 Our review of possible impairment during the years ended December 31, 2022 and 2021 , resulted in an impairment charge of approximately $ 12.2 million, related to the Sheraton Louisville Riverside and The Whitehall in Houston, Texas during the year ended December 31, 2021. Investment in hotel properties held for sale, net as of December 31, 2022 and 2021 consisted of the following: December 31, 2022 December 31, 2021 Land and land improvements $ — $ 5,799,197 Buildings and improvements — 36,115,121 Furniture, fixtures and equipment — 5,743,949 — 47,658,267 Less: accumulated depreciation and impairment — ( 24,787,780 ) Investment in Hotel Properties Held for Sale, Net $ — $ 22,870,487 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Mortgage Loans, Net. As of December 31, 2022 and 2021 , the Company had approximately $ 320.5 million and approximately $ 351.2 million of outstanding mortgage debt, respectively. The following table sets forth our mortgage debt obligations on our hotels. Balance Outstanding as of December 31, December 31, Prepayment Maturity Amortization Interest Property 2022 2021 Penalties Date Provisions Rate The DeSoto (1) $ 31,219,022 $ 32,148,819 Yes 7/1/2026 25 years 4.25 % DoubleTree by Hilton Jacksonville (2) 32,416,570 33,051,316 Yes 7/11/2024 30 years 4.88 % DoubleTree by Hilton Laurel (3) 7,412,107 8,175,215 None 5/5/2023 25 years 5.25 % DoubleTree by Hilton Philadelphia Airport (4) 39,413,672 40,734,077 None 10/31/2023 30 years LIBOR plus 2.27 % DoubleTree by Hilton Raleigh- (5) — 18,300,000 Yes 8/1/2022 (5) LIBOR plus 4.00 % DoubleTree Resort by Hilton Hollywood (6) 52,724,475 54,253,963 (6) 10/1/2025 30 years 4.913 % Georgian Terrace (7) 40,492,622 41,484,732 (7) 6/1/2025 30 years 4.42 % Hotel Alba Tampa, Tapestry Collection by Hilton (8) 24,756,400 17,383,397 None 6/30/2025 (8) SOFR plus 2.75 % Hotel Ballast Wilmington, Tapestry Collection by (9) 31,699,775 32,604,948 Yes 1/1/2027 25 years 4.25 % Hyatt Centric Arlington (10) 47,534,606 48,990,136 Yes 10/1/2028 30 years 5.25 % Sheraton Louisville Riverside (11) — 10,947,366 Yes 12/1/2026 25 years 4.27 % The Whitehall (12) 14,226,067 14,551,671 None 2/26/2028 25 years PRIME plus 1.25 % Total Mortgage Principal Balance $ 321,895,316 $ 352,625,640 Deferred financing costs, net ( 1,480,779 ) ( 1,547,004 ) Unamortized premium on loan 67,566 92,247 Total Mortgage Loans, Net $ 320,482,103 $ 351,170,883 (1) The note amortizes on a 25 -year schedule after an initial interest-only period of one year and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (2) The note is subject to a pre-payment penalty until March 2024 . Prepayment can be made without penalty thereafter. (3) The note is subject to an exit fee of 0.75 % if prepaid on or after February 5, 2023. On July 15, 2021, we entered into a note modification agreement whereby the maturity date was extended from August 5, 2021 to May 5, 2022 . On April 28, 2022, we entered into an additional note modification agreement whereby the maturity date was extended from May 5, 2022 to May 5, 2023 . (4) The note bears a floating interest rate of 1 -month LIBOR plus 2.27 %, but we entered into a swap agreement to fix the rate at 5.237 % through July 31, 2023 . Under the swap agreement, notional amounts approximate the declining balance of the loan and we are responsible for any potential termination fees associated with early termination of the swap agreement. (5) The DoubleTree by Hilton Raleigh-Brownstone University was sold on June 10, 2022. (6) With limited exception, the note may not be prepaid prior to June 2025 . (7) With limited exception, the note may not be prepaid prior to February 2025 . (8) The note bears a floating interest rate of SOFR plus 2.75 % subject to a floor rate of 2.75 %; with monthly principal payments of $ 40,600 ; the note provides that the mortgage can be extended for two additional periods of one year each, subject to certain conditions. On July 11, 2022, we entered into a swap agreement to fix the rate at 5.576 %. The swap agreement reflects notional amounts approximate to the declining balance of the loan and we are responsible for any potential termination fees associated with early termination of the swap agreement. (9) The note amortizes on a 25 -year schedule after an initial interest-only period of one year and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (10) Following a 5 -year lockout, the note can be prepaid with penalty in years 6 - 10 and without penalty during the final 4 months of the term. (11) The Sheraton Louisville Riverside was sold on February 10, 2022. (12) The note bears a floating interest rate of New York Prime Rate plus 1.25 %, with a floor of 7.50 %. As of December 31, 2022, the Company failed to meet certain financial covenants under the mortgages secured by The Whitehall and the DoubleTree by Hilton Philadelphia Airport. The Company has received waivers of the financial covenants from each lender, through December 31, 2022. In 2023, the mortgages on the Whitehall, the DoubleTree by Hilton Laurel, and the DoubleTree by Hilton Philadelphia Airport mature. We intend to either refinance the mortgages maturing in 2023 at the level of their existing indebtedness or request extensions at existing terms. Total future mortgage debt maturities, including with respect to any extensions of loan maturity, as of December 31, 2022 were as follows: December 31, 2023 53,555,486 December 31, 2024 38,069,572 December 31, 2025 116,084,892 December 31, 2026 58,588,970 December 31, 2027 1,757,220 December 31, 2028 and thereafter 53,839,176 Total future maturities $ 321,895,316 PPP Loans . Between April 16 and May 6, 2020, the Operating Partnership and certain of its subsidiaries received proceeds of three separate PPP Loans administered by the U.S. Small Business Administration pursuant to the CARES Act totaling approximately $ 10.7 million. Each PPP Loan had an initial term of two years with the ability to extend the loan to five years , if not forgiven and carries an interest rate of 1.00 %. Equal payments of principal and interest were to begin no later than 10 months following origination of the loan and are amortized over the remaining term of the loan . Pursuant to the terms of the CARES Act, the proceeds of each PPP Loan may be used for payroll costs, mortgage interest, rent or utility costs. The promissory note for each PPP Loan contains customary events of default relating to, among other things, payment defaults and breach of representations and warranties or of provisions of the relevant promissory note. Under the terms of the CARES Act, each borrower can apply for and be granted forgiveness for all or a portion of the PPP Loan, which is determined, subject to limitations, based on the use of loan proceeds in accordance with the terms of the CARES Act. On December 9, 2022, the Company was notified it had received principal debt forgiveness in the amount of approximately $ 4.6 million. As of December 31, 2022, the Company had two outstanding applications for forgiveness totaling approximately $ 0.6 million. No assurance is provided that the Company will obtain forgiveness under any relevant PPP Loan in whole or in part. As of December 31, 2022 and 2021, the Company had principal balances outstanding which totaled approximately $ 2.5 million and $ 7.6 million, respectively. Secured Notes Financing . On December 31, 2020, we entered into a transaction whereby certain investors purchased $ 20.0 million in Secured Notes from the Operating Partnership. On June 10, 2022, the Company used the proceeds from the sale of the Doubletree by Hilton Raleigh Brownstone-University hotel to partially repay the Secured Notes. The Investors received approximately $ 19.8 million of the proceeds from the sale of the hotel, of which approximately $ 13.3 million was applied toward principal, approximately $ 6.3 million was applied toward the exit fee owed under the Secured Notes, and approximately $ 0.2 million was applied toward accrued interest. Additionally, the terms of the Secured Notes allowed for the release of a portion of the interest reserves in the amount of approximately $ 1.6 million, of which approximately $ 1.1 million was applied toward principal and approximately $ 0.5 million was applied toward the exit fee. On June 29, 2022, the Company used the proceeds from the refinance of the Hotel Alba Tampa, along with approximately $ 0.2 million of cash on hand as well as the balance of the interest reserve under the Secured Notes of approximately $ 0.5 million, to satisfy and pay in full the Secured Notes. The Investors received approximately $ 8.3 million in satisfaction of the Secured Notes, of which approximately $ 5.6 million was applied toward principal, approximately $ 2.6 million was applied toward the exit fee owed under the Secured Notes, and approximately $ 0.1 million was applied toward accrued interest. Concurrent with the cancellation of the Secured Notes, the following agreements were also terminated in accordance with their terms: (i) Note Purchase Agreement; (ii) Pledge and Security Agreement; (iii) Board Observer Agreement; and (iv) other related ancillary agreements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Ground, Building and Submerged Land Leases – We lease 2,086 square feet of commercial space next to The DeSoto for use as an office, retail or conference space, or for any related or ancillary purposes for the hotel and/or atrium space. In December 2007, we signed an amendment to the lease to include rights to the outdoor esplanade adjacent to the leased commercial space. The areas are leased under a six-year operating lease, which expired October 31, 2006 and has been renewed for the fourth of five optional five-year renewal periods expiring October 31, 2026 . Rent expense for this operating lease for the years ended December 31, 2022, 2021, and 2020 was $ 83,932 , $ 83,932 and $ 74,809 , respectively. We lease, as landlord, the entire fourteenth floor of the Savannah hotel property to The Chatham Club, Inc. under a ninety-nine- year lease expiring July 31, 2086 . This lease was assumed upon the purchase of the building under the terms and conditions agreed to by the previous owner of the property. No rental income is recognized under the terms of this lease as the original lump sum rent payment of $ 990 was received by the previous owner and not prorated over the life of the lease. We lease land adjacent to the Hotel Alba Tampa, Tapestry Collection by Hilton for use as parking under a five-year renewable agreement with the Florida Department of Transportation that commenced in July 2019 and expires in July 2024 . The agreement requires annual payments of $ 2,432 , plus tax, and may be renewed for an additional five years . Rent expense for each of the years ended December 31, 2022, 2021, and 2020 was $ 2,608 , $ 2,575 and $ 2,604 , respectively. We lease approximately 8,500 square feet of commercial office space in Williamsburg, Virginia under an agreement with a ten-year term beginning January 1, 2020 . The initial annual rent under the agreement is $ 218,875 , with the rent for each successive annual period increasing by 3.0 % over the prior annual period’s rent. The annual rent was offset by a tenant improvement allowance of $ 200,000 , that was applied against one-half of each monthly rent payment until the tenant improvement allowance was exhausted in 2021. Rent expense for the years ended December 31, 2022, 2021, and 2020 was each $ 223,607 . We lease the land underlying all of the Hyatt Centric Arlington hotel pursuant to a ground lease. The ground lease requires us to make rental payments of $ 50,000 per year in base rent and percentage rent equal to 3.5 % of gross room revenue in excess of certain thresholds, as defined in the ground lease agreement. The initial term of the ground lease expires in 2025 . We have exercised our option on the first of five renewal periods of 10 years each. Rent expense for the years ended December 31, 2022, 2021, and 2020 , was $ 501,042 , $ 232,588 and $ 153,019 , respectively. We entered into a 20 -year parking and cabana management agreement for the parking garage and poolside cabanas associated with the Hyde Beach House Resort & Residences. The parking and cabana management agreement, which is treated for accounting purposes as an embedded lease, requires us to make rental payments of $ 270,100 per year in base rent. The initial term of the parking garage and cabana lease expires in 2039 and may be extended for four additional renewal periods of 5 years each. Rent expense for the years ended December 31, 2022, 2021, and 2020 , was $ 271,000 , $ 271,000 and $ 85,166 , respectively. We also lease certain furniture and equipment under financing arrangements expiring by December 2027 . A schedule of minimum future lease payments for the following twelve-month periods is as follows: December 31, 2023 $ 675,927 December 31, 2024 678,300 December 31, 2025 683,348 December 31, 2026 673,413 December 31, 2027 342,503 December 31, 2028 and thereafter 13,512,577 Total $ 16,566,068 Employment Agreements — The Company has entered into various employment contracts with employees that could result in obligations to us in the event of a change in control or termination without cause. Management Agreements – As of December 31, 2022, all ten of our wholly-owned hotels, and our two condominium hotel rental programs, operated under management agreements with Our Town (see Note 9). The management agreements expire on March 31, 2035 and may be extended for up to two additional periods of five years each, subject to the approval of both parties . Each of the individual hotel management agreements may be terminated earlier than the stated term upon the sale of the hotel covered by the respective management agreement, in which case we may incur early termination fees. Franchise Agreements – As of December 31, 2022 , most of our hotels operate under franchise licenses from national hotel companies. Under the franchise agreements, we are required to pay a franchise fee generally between 3.0 % and 5.0 % of room revenues, plus additional fees for marketing, central reservation systems, and other franchisor programs and services that amount to between 3.0 % and 4.0 % of gross revenues from the hotels. The franchise agreements currently expire between October 2024 and March 2038 . Each of our franchise agreements provides for early termination fees in the event the agreement is terminated before the stated term. Restricted Cash Reserves – Each month, we are required to escrow with the lenders on the Hotel Ballast, The DeSoto, the DoubleTree by Hilton Jacksonville Riverfront, the DoubleTree Resort by Hilton Hollywood Beach, the Hyatt Centric Arlington and the Georgian Terrace an amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties . We are also required by several of our lenders to establish individual property improvement funds to cover the cost of replacing capital assets at our properties. Each month, those contributions equal 4.0 % of gross revenues for the Hotel Ballast, The DeSoto, the DoubleTree by Hilton Jacksonville Riverfront, the DoubleTree Resort by Hilton Hollywood Beach, The Whitehall and the Georgian Terrace and equal 4.0 % of room revenues for the DoubleTree by Hilton Philadelphia Airport and the Hyatt Centric Arlington. ESOP Loan Commitment – The Company’s board of directors approved the ESOP on November 29, 2016, which was adopted by the Company in December 2016 and effective January 1, 2016. The ESOP is a non-contributory defined contribution plan covering all employees of the Company. The ESOP is a leveraged ESOP, meaning the contributed funds are loaned to the ESOP from the Company. The Company entered into a loan agreement with the ESOP on December 29, 2016, pursuant to which the ESOP may borrow up to $ 5.0 million to purchase shares of the Company’s common stock on the open market. Under the loan agreement, the aggregate principal amount outstanding at any time may not exceed $ 5.0 million and the ESOP may borrow additional funds up to that limit in the future, until December 29, 2036. Between January 3, 2017 and February 28, 2017, the Company’s ESOP purchased 682,500 shares of the Company’s common stock of an aggregate cost of $ 4.9 million. Litigation – We are not involved in any material litigation, nor, to our knowledge, is any material litigation threatened against us. We have settled, during the period covered by these financial statements, all significant claims made during the same period. We are involved in routine litigation arising out of the ordinary course of business, all of which we expect to be covered by insurance and we believe it is not reasonably possible such matters will have a material adverse impact on our financial condition or results of operations or cash flows. |
Preferred Stock and Units
Preferred Stock and Units | 12 Months Ended |
Dec. 31, 2022 | |
Preferred Stock And Units [Abstract] | |
Preferred Stock and Units | . Preferred Stock and Units Preferred Stock - The Company is authorized to issue up to 11,000,000 shares of preferred stock. The following table sets forth our Cumulative Redeemable Perpetual Preferred Stock by series: Per Number of Shares Quarterly Annum Liquidation Issued and Outstanding as of Distributions Preferred Stock - Series Rate Preference December 31, 2022 December 31, 2021 Per Share Series B Preferred Stock 8.000 % $ 25.00 1,464,100 1,510,000 $ 0.500000 Series C Preferred Stock 7.875 % $ 25.00 1,346,110 1,384,610 $ 0.492188 Series D Preferred Stock 8.250 % $ 25.00 1,163,100 1,165,000 $ 0.515625 The Company is required to pay cumulative cash distributions on the preferred stock at rates in the above table per annum of the $ 25.00 liquidation preference per share. Holders of the Company’s preferred stock are entitled to receive distributions when authorized by the Company’s board of directors out of assets legally available for the payment of distributions. The preferred stock is not redeemable by the holders, has no maturity date and is not convertible into any other security of the Company or its affiliates. In March 2020 the Company deferred the record date for the dividends on the Company’s Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock that were to be paid April 15, 2020. As of December 31, 2022, there are cumulative undeclared preferred dividends, of approximately $ 21.9 million. Preferred Units – The Company is the holder of the Operating Partnership’s preferred partnership units and is entitled to receive distributions when authorized by the general partner of the Operating Partnership out of assets legally available for the payment of distributions. The following table sets forth our Cumulative Redeemable Perpetual Preferred Units by series: Per Number of Units Quarterly Annum Liquidation Issued and Outstanding as of Distributions Preferred Units - Series Rate Preference December 31, 2022 December 31, 2021 Per Unit Series B Preferred Units 8.000 % $ 25.00 1,464,100 1,510,000 $ 0.500000 Series C Preferred Units 7.875 % $ 25.00 1,346,110 1,384,610 $ 0.492188 Series D Preferred Units 8.250 % $ 25.00 1,163,100 1,165,000 $ 0.515625 The Company pays cumulative cash distributions on the preferred units at rates in the above table per annum of the $ 25.00 liquidation preference per unit. The Company, which is the holder of the Operating Partnership’s preferred units is entitled to receive distributions when authorized by the Operating Partnership’s general partner out of assets legally available for the payment of distributions. The preferred units are not redeemable by the holder, have no maturity date and are not convertible into any other security of the Operating Partnership or its affiliates. In March 2020 the Company deferred the record dates for the dividends on the Operating Partnership’s Series B Preferred Units, Series C Preferred Units, and Series D Preferred Units that were to be paid April 15, 2020. As of December 31, 2022 , there are cumulative undeclared preferred distributions to the Company from the Operating Partnership of approximately $ 21.9 million. The following table presents the quarterly distributions by the Operating Partnership declared and payable per December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.500000 $ - $ - June 30, - - - September 30, - - - December 31, - - - The following table presents the quarterly distributions by the Operating Partnership declared and payable per Series C Preferred Unit and dividends by the Company declared and payable per share of Series C Preferred Stock, for the years ended December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.492188 $ - $ - June 30, - - - September 30, - - - December 31, - - - The following table presents the quarterly distributions by the Operating Partnership declared and payable per Series D Preferred Unit and dividends by the Company declared and payable per share of Series D Preferred Stock, for the years ended December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.515625 $ - $ - June 30, - - - September 30, - - - December 31, - - - |
Common Stock and Units
Common Stock and Units | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Common Stock and Units | 8. Common Stock and Units Common Stock – The Company is authorized to issue up to 69,000,000 shares of common stock, $ 0.01 par value per share. Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. Holders of the Company’s common stock are entitled to receive distributions when authorized by the Company’s board of directors out of assets legally available for the payment of distributions. The following is a list of issuances during the years ended December 31, 2022, 2021, and 2020 of the Company’s common stock: On November 1, 2022, one holder of units in the Operating Partnership converted 217,845 units for an equivalent number of shares in the Company’s common stock. On August 23, 2022, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 13,000 shares of the Company's Series B Preferred Stock and 3,200 shares of the Company's Series C Preferred Stock, together with all of the holder’s rights to receive accrued and unpaid dividends on those preferred shares, for 140,130 shares of the Company's common stock. We closed the transaction and issued the common stock on August 24, 2022. On August 18, 2022, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 11,000 shares of the Company's Series B Preferred Stock, 7,100 shares of the Company's Series C Preferred Stock, and 1,900 shares of the Company's Series D Preferred Stock, together with all of the holder’s rights to receive accrued and unpaid dividends on those preferred shares, for 178,800 shares of the Company's common stock. We closed the transaction and issued the common stock on August 18, 2022. On July 21, 2022, the Company was issued 167,390 units in the Operating Partnership and awarded an equivalent number of shares of unrestricted stock to its employees. On July 1, 2022, one holder of units in the Operating Partnership converted 40,687 units for an equivalent number of shares in the Company’s common stock. On May 23, 2022, the Company was issued 37,428 units in the Operating Partnership and awarded an equivalent number of shares of unrestricted stock to its employees. On May 19, 2022, one holder of units in the Operating Partnership converted 50,000 units for an equivalent number of shares in the Company’ s common stock. On April 19, 2022, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 5,000 shares of the Company's Series B Preferred Stock and 10,600 shares of the Company's Series C Preferred Stock, together with all of the holder’s rights to receive accrued and unpaid dividends on those preferred shares, for 153,504 shares of the Company's common stock. We closed the transaction and issued the common stock on April 19, 2022. On April 11, 2022, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 4,000 shares of the Company's Series B Preferred Stock and 8,000 shares of the Company's Series C Preferred Stock, together with all of the holder’s rights to receive accrued and unpaid dividends on those preferred shares, for 116,640 shares of the Company's common stock. We closed the transaction and issued the common stock on April 12, 2022. On March 31, 20 22, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 5,900 shares of the Company’s Series B Preferred Stock and 6,600 shares of the Company’s Series C Preferred Stock, together with all of the rights to receive accrued and unpaid dividends on those preferred shares, for 120,875 shares of the Company’s common stock. We closed the transaction and issued the common stock on March 31, 2022. On March 24, 2022, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 7,000 shares of the Company’s Series B Preferred Stock and 3,000 shares of the Company’s Series C Preferred Stock, together with all of the rights to receive accrued and unpaid dividends on those preferred shares, for 96,900 shares of the Company’s common stock. We closed the transaction and issued the common stock on March 25, 2022. On January 21, 2022, the Company was issued 15,000 units in the Operating Partnership and awarded an equivalent number of shares of restricted stock to its independent directors. On January 21, 2022 and February 15, 2022, the Company was issued a total of 175,268 units in the Operating Partnership and awarded an equivalent number of shares of unrestricted stock to its employees. On December 16, 2021, one holder of units in the Operating Partnership redeemed 32,681 units for an equivalent number of shares in the Company’s common stock. On December 9, 2021, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 75,000 shares of the Company’s Series C Preferred Stock, together with all of the rights to receive accrued and unpaid dividends on those preferred shares, for 620,919 shares of the Company’s common stock. We closed the transaction and issued the common stock on December 9, 2021. On December 3, 2021, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 10,000 shares of the Company’s Series C Preferred Stock, together with all of the rights to receive accrued and unpaid dividends on those preferred shares, for 69,500 shares of the Company’s common stock. We closed the transaction and issued the common stock on December 9, 2021. On June 21, 2021, we entered into a privately-negotiated share exchange agreement. Pursuant to the share exchange agreement, the Company agreed to exchange 100,000 shares of the Company’s Series B Preferred Stock, 85,000 shares of the Company’s Series C Preferred Stock, and 35,000 shares of the Company’s Series D Preferred Stock, together with all of the rights to receive accrued and unpaid dividends on those preferred shares, for 1,542,727 shares of the Company’s common stock. We closed the transaction and issued the common stock on June 22, 2021. On February 4, 2021, one holder of units in the Operating Partnership redeemed 100 units for an equivalent number of shares in the Company’s common stock. On February 4, 2021, the Company was issued 136,281 units in the Operating Partnership and awarded shares of unrestricted stock to its employees. On February 4, 2021, the Company was issued 15,000 units in the Operating Partnership and awarded shares of restricted stock to its independent directors. On December 17, 2020, The Company issued 127,583 units in the Operating Partnership and awarded shares of restricted stock to its independent directors and employees. On December 1, 2020, one holder of units in the Operating Partnership redeemed 15,000 units for an equivalent number of shares in the Company’s common stock. On May 1, 2020, one holder of units in the Operating Partnership redeemed 57,687 units for an equivalent number of shares in the Company’s common stock. On February 23, 2020, the Company was issued 17,250 units in the Operating Partnership and awarded 15,000 shares of restricted stock and 2,250 shares of unrestricted stock to its independent directors. On January 1, 2020, two holders of units in the Operating Partnership redeemed 488,952 units for an equivalent number of shares in the Company’s common stock. On January 1, 2020, the Company was issued 45,000 units in the Operating Partnership and awarded 45,000 shares of restricted stock to two of its employees. As of December 31, 2022 and 2021 , the Company had 18,951,525 and 17,441,058 shares of common stock outstanding, respectively. Operating Partnership Units – Holders of Operating Partnership units, other than the Company as general partner, have certain redemption rights, which enable them to cause the Operating Partnership to redeem their units in exchange for shares of the Company’s common stock on a one -for-one basis or, at the option of the Company, cash per unit equal to the average of the market price of the Company’s common stock for the 10 trading days immediately preceding the notice date of such redemption. The number of shares issuable upon exercise of the redemption rights will be adjusted upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions, which otherwise would have the effect of diluting the ownership interests of the limited partners or the stockholders of the Company. Since January 1, 2020, there have been no issuances or redemptions, of units in the Operating Partnership other than the issuances of units in the Operating Partnership to the Company described above. As of December 31, 2022 and 2021 , the total number of Operating Partnership units outstanding was 19,776,713 and 18,574,778 , respectively. As of December 31, 2022 and 2021, the total number of outstanding units in the Operating Partnership not owned by the Company was 825,188 and 1,133,720 , respectively, with a fair market value of approximately $ 1.5 million and approximately $ 2.4 million, respectively, based on the price per share of the common stock on such respective dates. Common Stock Dividends and Unit Distributions – The following table presents the quarterly stock dividends and unit distributions by us declared and payable per common stock/unit for the years ended December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.130 $ - $ - June 30, - - - September 30, - - - December 31, - - - As of December 31, 2022 , there were unpaid common dividends and distributions to holders of record as of March 13, 2020 in the amount of $ 2,088,160 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions Our Town Hospitality. Our Town is currently the management company for each of our ten wholly-owned hotels, as well as the manager of our rental programs at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences. As of December 31, 2022, an affiliate of Andrew M. Sims, our Chairman, an affiliate of David R. Folsom, our President and Chief Executive Officer, and Andrew M. Sims Jr., our Vice President - Operations & Investor Relations, beneficially owned approximately 63.0 %, 7.0 %, a nd 15.0 %, respectively, of the total outstanding ownership interests of Our Town. Mr. Sims, Mr. Folsom, and Mr. Sims Jr. serve as directors of Our Town. The following is a summary of the transactions between Our Town and us: Accounts Receivable – At December 31, 2022 and 2021 , we were due approximately $ 0.3 million and $ 0.2 million, respectively, from Our Town Hospitality. Accounts Payable – At December 31, 2022 and 2021 , we owed Our Town approximately $ 1.3 million and $ 1.0 million, respectively. Management Agreements – On September 6, 2019, we entered into a master agreement with Our Town related to the management of certain of our hotels, as amended on December 13, 2019 (as amended, the “OTH Master Agreement”). On December 13, 2019, and subsequent dates we entered into a series of individual hotel management agreements for the management of our hotels. The hotel management agreements for each of our ten wholly-owned hotels and the two rental programs are each referred to as an “OTH Hotel Management Agreement” and, together, the “OTH Hotel Management Agreements”. The Company agreed to provide Our Town with initial working capital of up to $ 1.0 million as an advance on the management fees that we will owe to Our Town under the OTH Hotel Management Agreements. The advanced funds were to be offset against future management fees otherwise payable to Our Town by means of a 25 % reduction in such fees each month during 2020. In addition, the OTH Master Agreement provides for an adjustment to the fees payable by us under the OTH Hotel Management Agreements in the event the net operating income of Our Town falls below $ 250,000 for any calendar year beginning on or after January 1, 2021. The OTH Master Agreement expires on March 31, 2035 but shall be extended beyond 2035 for such additional periods as an OTH Hotel Management Agreement remains in effect. The base management fees for each hotel under management with Our Town is 2.50 %. For any new individual hotel management agreements, Our Town will receive a base management fee of 2.00 % of gross revenues for the first full year from the commencement date through the anniversary date, 2.25 % of gross revenues the second full year, and 2.50 % of gross revenues for every year thereafter. For the years ended December 31, 2022 and 2021, the base management fees earned by Our Town under the contract were approximately $ 4.1 million and $ 3.4 million, respectively, and the incentive management fees earned by Our Town were approximately $ 0.3 million and $ 0.3 million, respectively. We also paid Our Town approximately $ 0.3 million in termination fees in 2022 triggered by the sale of the Sheraton Louisville Riverside and DoubleTree by Hilton Raleigh-Brownstone University . Sublease – On December 13, 2019, we entered into a sublease agreement with Our Town pursuant to which Our Town subleases 2,245 square feet of office space from Sotherly for a period of 5 years, with a 5 -year renewal subject to approval by Sotherly, on terms and conditions similar to the terms of the prime lease entered into by Sotherly and the third-party owner of the property . For the years ended December 31, 2022 and 2021 , the Company received rent income from Our Town of $ 159,734 and $ 144,452 , respectively. Credit Agreement – On December 13, 2019, we entered into a credit agreement with Our Town effective January 1, 2020, pursuant to which Sotherly agreed to provide Our Town with a working capital line of credit. The original agreement allowed Our Town to borrow up to $ 500,000 . Our Town was allowed to draw against the line of credit from time to time prior to January 1, 2021. The credit agreement was amended by the parties on June 4, 2021 such that (i) the maximum amount of credit available is capped at $ 894,900 ; (ii) the total amount of advances, as of June 4, 2021, was agreed to be $ 894,900 ; (iii) no additional advances are permitted; (iv) principal payments are required to be made by the borrower in the amount of $ 100,000 on each of December 31, 2021 through 2025; (v) the maturity date was extended to December 31, 2026 ; and (vi) the aggregate unpaid principal amount and another other obligations are required to be paid at maturity. In addition, an affiliate of Mr. Sims entered into a conditional financing commitment with Our Town to provide funding to permit repayment of the loan in the event the principal balance of the loan made to Our Town under the credit agreement has not been repaid prior to maturity and Sotherly declines to extend the maturity date. Interest accrued on the outstanding balance at 3.5 % per annum and was payable quarterly in arrears. In the event of a default under the credit agreement, the Company had the right to offset any outstanding unpaid balance against amounts it owed to Our Town under the OTH Hotel Management Agreements. On June 4, 2021, the OTH Master Agreement and the related credit agreement were amended to provide for an increase in the balance outstanding under the credit agreement of $ 299,900 in satisfaction for an equivalent portion of unrepaid management fee advances and to provide for a guaranteed minimum incentive management fee of $ 250,000 for calendar year 2021 in satisfaction of the remainder of unrepaid management fee advances. On December 20, 2021, the Company received full payment on the credit agreement and was no longer available for use by Our Town. Employee Medical Benefits – We purchase employee medical benefits through Our Town (or its affiliate) for those employees that are employed by Our Town that work exclusively for our properties, starting January 1, 2020. For the years ended December 31, 2022 and 2021, the employer portion of the plan covering those employees that work exclusively at our properties under our management agreements with Our Town was approximately $ 3.2 million and $ 2.7 million, respectively. Chesapeake Hospitality. Chesapeake Hospitality was a company owned and controlled by individuals including Kim E. Sims and Christopher L. Sims, each a former director of Sotherly and a sibling of our Chairman, Andrew M. Sims. Prior to November 2019, Andrew M. Sims, owned approximately 19.3 % of the total outstanding ownership interests of Chesapeake Hospitality, all of which have since been sold. The following is a summary of the transactions between Chesapeake Hospitality and us: Management Agreements – Chesapeake Hospitality was the management company for our DoubleTree Resort by Hilton Hollywood Beach hotel, the Hyde Resort & Residences, and the Hyde Beach House Resort & Residences until April 1, 2020. Effective April 1, 2020 , Chesapeake no longer serves as manager for any of our properties and management of the remaining properties that had been managed by Chesapeake was transitioned to Our Town. Upon termination of the last remaining individual hotel management agreements with Chesapeake, the Chesapeake master agreement automatically terminated in accordance with its terms. Prior to January 1, 2020, Chesapeake Hospitality was the manager for each of our hotels that we wholly-owned, with the exception of the Hyatt Centric Arlington, under various hotel management agreements. On January 1, 2020 , the management agreements for ten of our wholly-owned hotels expired. Those hotels are now managed by Our Town as described above. In connection with the termination of those ten Chesapeake management agreements, we paid approximately $ 0.2 million in termination fees. Base management fees earned by Chesapeake Hospitality totaled $ 0 , $ 0 and $ 241,332 for the years ended December 31, 2022, 2021, and 2020 , respectively. In addition, incentive management fees of $ 0 , $ 0 and $( 40,375 ) were expensed for the years ended December 31, 2022, 2021, and 2020, respectively. Other Related Parties – The Company employs Andrew M. Sims, Jr. the son of our Chairman, who currently serves as Vice President – Operations & Investor Relations, and Robert E. Kirkland IV, the son-in-law of our Chairman, who currently serves as General Counsel, as employees. Prior to February 1, 2022, the Company employed Ashley S. Kirkland, daughter of our Chairman, as Corporate Counsel and Compliance Officer. Compensation for these three employees, including benefits, for the years ended December 31, 2022, 2021, and 2020 totaled $ 605,163 , $ 462,809 and $ 464,218 , respectively. On July 1, 2022, a partnership controlled by a sibling of our Chairman converted 40,687 partnership units for an equivalent number of shares in the Company’s common stock, pursuant to the terms of the partnership agreement. On May 19, 2022, a trust in which our Chairman has a potential beneficial interest converted 50,000 partnership units for an equivalent number of shares in the Company’s common stock, pursuant to the terms of the partnership agreement. On December 16, 2021, a trust controlled in part by our Chairman converted 32,681 partnership units for an equivalent number of shares of the Company’s common stock, pursuant to the terms of the partnership agreement. On May 1, 2020, a partnership controlled by a sibling of our Chairman converted 57,867 partnership units, for an equivalent number of shares of the Company’s common stock, pursuant to the terms of the partnership agreement. On January 1, 2020, a partnership controlled by a sibling of our Chairman converted 410,000 partnership units for an equivalent number of shares of the Company’s common stock, pursuant to the terms of the partnership agreement. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | . Retirement Plans 401(k) Plan - The Company maintains a 401(k) plan for qualified employees. Prior to May 16, 2020, the plan was subject to “safe harbor” provisions requiring that we match 100.0 % of the deferral equal to 3.0 % of eligible employee compensation and 50.0 % of the deferral equal to the next 2.0 % of eligible employee compensation. All employer matching funds vested immediately in accordance with the “safe harbor” provisions. For the year ended December 31, 2021, the Company elected to make a discretionary contribution of 3.0 % of eligible employee compensation in order to comply with requirements associated with top-heavy plans. The Company's contributions to the plan for the years ended December 31, 2022, 2021, and 2020 were $ 75,631 , $ 53,474 and $ 42,841 , respectively. Employee Stock Ownership Plan - The Company adopted an ESOP effective January 1, 2016, which is a non-contributory defined contribution plan covering all employees of the Company. The ESOP is a leveraged ESOP, with funds loaned to the ESOP from the Company. The Company entered into a loan agreement with the ESOP on December 29, 2016, pursuant to which the ESOP may maintain aggregate borrowings of up to $ 5.0 million to purchase shares of the Company’s common stock on the open market, which serve as collateral for the loan. Coincident with the loan between the Company and the ESOP, the Operating Partnership entered into a loan with the Company to facilitate borrowings between the Company and the ESOP. Between January 3, 2017 and February 28, 2017, the Company’s ESOP purchased 682,500 shares of the Company’s common stock of an aggregate cost of approximately $ 4.9 million. Shares purchased by the ESOP are held in a suspense account for allocation among participants as contributions are made to the ESOP by the Company. The share allocations are accounted for at fair value on the date of allocation. A total of 301,646 and 247,606 shares with a fair value of $ 545,979 and $ 517,496 remained allocated or committed to be released from the suspense account as of December 31, 2022 and 2021 , respectively. The Company recognized compensation cost of $ 140,703 , $ 172,000 and $ 175,367 during the twelve months ended December 31, 2022, 2021 and 2020, respectively. The remaining 364,177 unallocated shares have an approximate fair value of $ 0.7 million, as of December 31, 2022. At December 31, 2022 , the ESOP held a total of 301,646 allocated shares, no committed-to-be-released shares and 364,177 unallocated shares. Dividends received by the ESOP on allocated and unallocated shares are used to pay down the loan from the Company. The share allocations are accounted for at fair value on the date of allocation as follows: December 31, 2022 December 31, 2021 Number of Shares Fair Value Number of Shares Fair Value Allocated shares 301,646 $ 545,979 247,606 $ 517,496 Committed to be released shares — — — — Total Allocated and Committed-to-be-Released 301,646 $ 545,979 247,606 $ 517,496 Unallocated shares 364,177 659,160 431,697 902,247 Total ESOP Shares 665,823 $ 1,205,139 679,303 $ 1,419,743 |
Indirect Hotel Operating Expens
Indirect Hotel Operating Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Indirect Hotel Operating Expenses | 11. Indirect Hotel Operating Expenses Indirect hotel operating expenses consists of the following expenses incurred by the hotels: 2022 2021 2020 Sales and marketing $ 15,062,397 $ 11,684,933 $ 8,094,085 General and administrative 13,436,054 10,533,201 10,542,495 Repairs and maintenance 8,723,144 7,362,334 5,490,145 Utilities 5,649,716 5,309,637 4,817,508 Property taxes 5,254,075 6,131,271 7,014,472 Management fees, including incentive 4,377,814 3,620,071 1,822,359 Franchise fees 4,059,709 3,321,352 2,042,902 Insurance 4,082,551 3,596,153 3,097,245 Information and telecommunications 3,378,716 3,048,495 2,271,266 Other 787,391 492,798 294,831 Total indirect hotel operating expenses $ 64,811,567 $ 55,100,245 $ 45,487,308 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of the provision for income taxes for the years ended December 31, 2022, 2021, and 2020 are as follows: Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Current: Federal $ — $ — $ ( 125,587 ) State 522,355 27,392 ( 6,054 ) 522,355 27,392 ( 131,641 ) Deferred: Federal 3,025,518 ( 149,704 ) ( 7,576,931 ) State 695,708 ( 38,580 ) ( 1,705,939 ) Subtotals 3,721,226 ( 188,284 ) ( 9,282,870 ) Change in deferred tax valuation allowance ( 3,721,226 ) 188,284 14,694,954 — — 5,412,084 $ 522,355 $ 27,392 $ 5,280,443 A reconciliation of the statutory federal income tax provision (benefit) to the Company’s provision for income tax is as follows: Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Statutory federal income tax provision (benefit) $ 7,241,263 $ ( 5,987,572 ) $ ( 10,164,517 ) Federal tax impact of REIT election ( 3,255,236 ) 5,851,466 2,530,482 Statutory federal income tax provision (benefit) at TRS 3,986,027 ( 136,106 ) ( 7,634,035 ) Federal impact of PPP loan forgiveness ( 966,584 ) — — State income tax provision (benefit), net of federal provision (benefit) 1,224,138 ( 24,786 ) ( 1,780,476 ) Change in valuation allowance ( 3,721,226 ) 188,284 14,694,954 $ 522,355 $ 27,392 $ 5,280,443 Deferred income taxes are recognized for temporary differences between the financial reporting bases of asset and liabilities and their respective tax bases and for operating losses and tax credit carryforwards based on enacted tax rates expected to be in effect when such amounts are realized. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversal of taxable temporary differences, projected taxable income and tax planning strategies. Due to the economic uncertainty the COVID-19 pandemic has produced upon tax-planning strategies and projections for future taxable income over the periods in which the deferred tax assets are realizable, as of December 31, 2022, the Company believes is not more likely than not that the Company will realize the benefits of these assets. Therefore, the Company has determined that a full valuation allowance should be recorded against the deferred tax asset. The amount of the deferred tax assets considered unrealizable, however, could change in the future based on revised estimates of future taxable income during the carryforward period. The significant components of our deferred tax asset as of December 31, 2022 and 2021, are as follows: Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Deferred tax asset: Net operating loss carryforwards $ 10,744,121 $ 14,287,318 $ 14,409,321 Accrued compensation 425,575 338,033 108,646 Accrued expenses and other — 247,037 128,318 Intangible assets 10,092 28,627 48,670 Less: Valuation allowance ( 11,179,788 ) ( 14,901,015 ) ( 14,694,955 ) Total $ — $ — $ — |
Earnings (Loss) per Share and p
Earnings (Loss) per Share and per Unit | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share and per Unit | 13. Earnings (Loss) per Share and per Unit Earnings (Loss) Per Share . The limited partners’ outstanding limited partnership units in the Operating Partnership (which may be redeemed for common stock upon notice from the limited partner and following our election to redeem the units for stock rather than cash) have been excluded from the diluted earnings per share calculation as there would be no effect on the amounts since the limited partners’ share of income would also be added back to net loss. The shares of the Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock are not convertible into or exchangeable for any other property or securities of the Company, except upon the occurrence of a change of control and have been excluded from the diluted earnings per share calculation as there would be no impact on the current controlling stockholders. The 364,177 , 431,697 and 509,069 non-committed, unearned ESOP shares are treated as reducing the number of issued and outstanding common shares and similarly reducing the weighted average number of common shares outstanding, for the years ended December 31, 2022, 2021 and 2020, respectively. The effect of allocated and committed to be released shares during the years ended December 31, 2021 and 2020, have not been included in the weighted average diluted earnings per share calculation, since there would be an anti-dilutive effect from the dilution by these shares, although the amount of compensation for allocated shares is reflected in net loss available to common stockholders for basic computation. The computation of the Company’s basic net earnings (loss) per share is presented below: Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Numerator Net income (loss) $ 33,959,848 $ ( 28,539,640 ) $ ( 53,682,905 ) Less: Net income allocated to participating share awards ( 113,405 ) — (1) — (1) Net (income) loss attributable to non-controlling interest ( 1,423,327 ) 2,318,166 4,489,341 Declared and undeclared distributions to preferred stockholders ( 7,634,219 ) ( 7,541,891 ) ( 8,755,642 ) Gain on extinguishment of preferred stock 64,518 361,476 — Net income (loss) attributable to common stockholders for EPS computation $ 24,853,415 $ ( 33,401,889 ) $ ( 57,949,206 ) Denominator Weighted average number common shares outstanding for basic EPS computation 17,802,772 15,531,684 14,312,049 Effect of dilutive participating securities: Unvested restricted shares — (1) — (1) — (1) Weighted average number common and common equivalent shares outstanding for diluted EPS computation 17,802,772 15,531,684 14,312,049 Basic net income (loss) per common share: Undistributed income (loss) $ 1.40 $ ( 2.15 ) $ ( 4.05 ) Total basic $ 1.40 $ ( 2.15 ) $ ( 4.05 ) Diluted net income (loss) per common share: Undistributed income (loss) $ 1.40 $ ( 2.15 ) $ ( 4.05 ) Allocation of participating share awards — (1) — (1) — (1) Total diluted $ 1.40 $ ( 2.15 ) $ ( 4.05 ) (1) Anti-dilutive, therefore not included. Earnings (Loss) Per Unit . The Series B Preferred Units, Series C Preferred Units, and Series D Preferred Units are not convertible into or exchangeable for any other property or securities of the Operating Partnership, except upon the occurrence of a change of control and have been excluded from the diluted earnings per unit calculation as there would be no impact on the current unitholders. The number of non-committed, unearned shares in the Company’s ESOP have no impact on the calculation of the loss per unit in the Operating Partnership. The computation of basic earnings (loss) per general and limited partnership unit in the Operating Partnership is presented below: Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Numerator Net income (loss) $ 33,959,848 $ ( 28,539,640 ) $ ( 53,682,905 ) Less: Net income allocated to participating unit awards ( 113,405 ) — (1) — (1) Declared and undeclared distributions to preferred unitholders ( 7,634,219 ) ( 7,541,891 ) ( 8,755,642 ) Gain on extinguishment of preferred units 64,518 361,476 — Net income (loss) attributable to unitholders for EPU computation $ 26,276,742 $ ( 35,720,055 ) $ ( 62,438,547 ) Denominator Weighted average number of units outstanding for basic EPU computation 19,266,320 17,186,789 16,065,499 Effect of dilutive participating securities: Unvested restricted units — (1) — (1) — (1) Weighted average number of equivalent units outstanding for diluted EPU computation 19,266,320 17,186,789 16,065,499 Basic net income (loss) per unit: Undistributed income (loss) $ 1.36 $ ( 2.08 ) $ ( 3.89 ) Total basic $ 1.36 $ ( 2.08 ) $ ( 3.89 ) Diluted net income (loss) per unit: Undistributed income (loss) $ 1.36 $ ( 2.08 ) $ ( 3.89 ) Allocation of participating unit awards — (1) — (1) — (1) Total diluted $ 1.36 $ ( 2.08 ) $ ( 3.89 ) (1) Anti-dilutive, therefore not included. |
Quarterly Operating Results - U
Quarterly Operating Results - Unaudited | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results - Unaudited | 14. Quarterly Operating Results - Unaudited Quarters Ended 2022 March 31 June 30 September 30 December 31 Total revenue $ 38,352,603 $ 47,170,259 $ 39,212,695 $ 41,341,747 Total operating expenses 34,427,399 38,970,971 35,923,699 36,200,422 Net operating income 3,925,204 8,199,288 3,288,996 5,141,325 Net income (loss) ( 810,944 ) 27,605,359 1,972,563 5,192,870 Net income (loss) attributable to common shareholders ( 2,507,765 ) 24,269,449 112,680 3,092,456 Income (loss) per share attributable to common $ ( 0.15 ) $ 1.36 $ 0.01 $ 0.18 Income (loss) per share attributable to common $ ( 0.15 ) $ 1.36 $ 0.01 $ 0.18 Net income (loss) available to operating partnership unitholders ( 2,669,386 ) 25,799,389 61,586 3,198,559 Income (loss) per unit attributable to operating partnership unitholders– basic $ ( 0.14 ) $ 1.33 $ 0.00 $ 0.17 Income (loss) per unit attributable to operating partnership unitholders– diluted $ ( 0.14 ) $ 1.33 $ 0.00 $ 0.17 Quarters Ended 2021 March 31 June 30 September 30 December 31 Total revenue $ 22,635,532 $ 34,383,309 $ 35,493,126 $ 35,075,957 Total operating expenses 24,717,808 31,240,158 32,706,524 46,978,440 Net operating income (loss) ( 2,082,276 ) 3,143,151 2,786,602 ( 11,902,483 ) Net loss ( 7,575,624 ) ( 1,553,970 ) ( 2,528,221 ) ( 16,881,825 ) Net loss attributable to common shareholders ( 9,064,995 ) ( 2,810,603 ) ( 4,317,081 ) ( 17,209,210 ) Loss per share attributable to common shareholders– basic and diluted $ ( 0.62 ) $ ( 0.19 ) $ ( 0.27 ) $ ( 1.05 ) Net loss available to operating partnership unitholders ( 9,764,534 ) ( 2,990,241 ) ( 4,607,249 ) ( 18,358,031 ) Loss per unit attributable to operating partnership unitholders– basic and diluted $ ( 0.60 ) $ ( 0.18 ) $ ( 0.26 ) $ ( 1.02 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events On February 3, 2023, the SBA notified the Company that it had received partial forgiveness for one of its PPP Loans in the amount of $ 268,309 . On January 12, 2023, the Company issued 15,000 restricted shares of common stock to its independent directors and 64,278 vested shares of common stock to its independent directors and one officer. On January 23, 2023, the Company issued 205,000 restricted shares of common stock to certain its officers and employees pursuant to their employment agreements. On January 27, 2023, the Company amended one of its two PPP Loan Agreement with Fifth Third Bank providing for monthly level payments of $ 13,402 commencing March 6, 2023 and continuing until May 6, 2025 to extinguish the outstanding balance of the loan. On February 9, 2023, the Company amended another of its PPP Loan Agreements providing for 29 monthly level payments of $ 56,809 commencing March 1, 2023 and continuing until July 1, 2025 to extinguish the outstanding balance of the loan. On February 26, 2023, the Company entered into amended loan documents to modify the mortgage loan on The Whitehall hotel located in Houston, TX with the lender, International Bank of Commerce. The amendment (i) extends the maturity date to February 26, 2028 ; (ii) maintains a floating interest rate of New York Prime Rate plus 1.25 %; and (iii) subjects the interest rate to a floor rate of 7.50 %. The mortgage loan continues to be guaranteed by the Operating Partnership. On March 14, 2023, the Company entered into amended loan documents to modify the mortgage loan on the DoubleTree by Hilton Philadelphia Airport with the lender, TD Bank, N.A. The amendment provides a waiver for non-compliance with financial covenants for the periods ended September 30 and December 31, 2022, and modifies the reference rate replacing 1-month LIBOR with SOFR. On March 15, 2023, the Company paid a quarterly dividend (distribution) of $ 0.50 per Series B Preferred Stock (and unit) to the preferred stockholders (and unitholders of the Operating Partnership) of record on February 28, 2023. On March 15, 2023, the Company paid a quarterly dividend (distribution) of $ 0.492188 per Series C Preferred Stock (and unit) to the preferred stockholders (and unitholders of the Operating Partnership) of record on February 28, 2023. On March 15, 2023, the Company paid a quarterly dividend (distribution) of $ 0.515625 per Series D Preferred Stock (and unit) to the preferred stockholders (and unitholders of the Operating Partnership) of record on February 28, 2023. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | SOTHERLY HOTELS INC. SOTHERLY HOTELS LP SCHEDULE III—REAL ESTATE AN D ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 2022 (in thousands) Costs Capitalized Life on Initial Costs Subsequent to Acquisition Gross Amount At End of Year Accumulated Which Building & Building & Building & Depreciation Date of Date Depreciation Description Encumbrances Land Improvements Land Improvements Land Improvements Total & Impairment Construction Acquired is Computed The DeSoto – Savannah, Georgia $ 31,219 $ 600 $ 13,562 $ 865 $ 21,368 $ 1,465 $ 34,930 $ 36,395 $ ( 15,471 ) 1968 2004 3 - 39 years DoubleTree by Hilton Jacksonville 32,416 7,090 14,604 520 7,610 7,610 22,214 29,824 ( 10,316 ) 1970 2005 3 - 39 years DoubleTree by Hilton Laurel – Laurel, 7,412 900 9,443 71 5,900 971 15,343 16,314 ( 6,935 ) 1985 2004 3 - 39 years DoubleTree by Hilton Philadelphia 39,414 2,100 22,031 435 7,168 2,535 29,199 31,734 ( 13,830 ) 1972 2004 3 - 39 years DoubleTree Resort by Hilton 52,724 22,865 67,660 634 9,107 23,499 76,767 100,266 ( 15,696 ) 1972 2015 3 - 39 years Georgian Terrace – Atlanta, Georgia 40,493 10,128 45,386 ( 1,168 ) 9,307 8,960 54,693 63,653 ( 12,982 ) 1911 2014 3 - 39 years Hotel Alba Tampa, Tapestry Collection 24,756 4,153 9,670 1,777 26,026 5,930 35,696 41,626 ( 12,983 ) 1973 2007 3 - 39 years Hotel Ballast Wilmington, 31,700 785 16,829 1,139 15,248 1,924 32,077 34,001 ( 16,319 ) 1970 2004 3 - 39 years Hyatt Centric Arlington - Arlington, 47,535 191 70,369 79 1,792 270 72,161 72,431 ( 9,032 ) 2018 3 - 39 years The Whitehall – Houston, Texas 14,226 7,374 22,185 171 7,453 7,545 29,638 37,183 ( 15,615 ) 1963 2013 3 - 39 years Hyde Resort & Residences - 226 4,290 - - 226 4,290 4,516 ( 651 ) 2016 2017 3 - 39 years Hyde Beach House Resort & - - 5,710 - - - 5,710 5,710 ( 481 ) 2019 2019 3 - 39 years $ 321,895 $ 56,412 $ 301,739 $ 4,523 $ 110,979 $ 60,935 $ 412,718 $ 473,653 $ ( 130,311 ) (1) For the year ending December 31, 2022 , the aggregate cost of our real estate assets for federal income tax purposes was approximately $ 468.9 million. RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION RECONCILIATION OF REAL ESTATE Balance at December 31, 2020 $ 508,153 Acquisitions — Improvements 2,147 Disposal of Assets ( 680 ) Balance at December 31, 2021 $ 509,620 Acquisitions — Improvements 6,916 Disposal of Assets ( 42,883 ) Balance at December 31, 2022 $ 473,653 RECONCILIATION OF ACCUMULATED DEPRECIATION Balance at December 31, 2020 $ 111,758 Current Expense 14,474 Impairment 12,201 Disposal of Assets ( 8,538 ) Balance at December 31, 2021 $ 129,895 Current Expense 13,462 Impairment — Disposal of Assets ( 13,046 ) Balance at December 31, 2022 $ 130,311 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements of the Company presented herein include all the accounts of Sotherly Hotels Inc., the Operating Partnership and the MHI TRS Entities. All significant inter-company balances and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements of the Operating Partnership presented herein include all the accounts of Sotherly Hotels LP and the MHI TRS Entities. All significant inter-company balances and transactions have been eliminated. Additionally, all administrative expenses of the Company and those expenditures made by the Company on behalf of the Operating Partnership are reflected as the administrative expenses, expenditures and obligations thereto of the Operating Partnership, pursuant to the terms of the Partnership Agreement. |
Variable Interest Entities | Variable Interest Entities – The Operating Partnership is a variable interest entity. The Company’s only significant asset is its investment in the Operating Partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership and its subsidiaries. All of the Company’s debt is an obligation of the Operating Partnership and its subsidiaries. |
Investment in Hotel Properties | Investment in Hotel Properties – Investments in hotel properties include investments in operating properties which are recorded at fair value on the acquisition date and allocated to land, property and equipment and identifiable intangible assets. Replacements and improvements are capitalized, while repairs and maintenance are expensed as incurred. Upon the sale or retirement of a fixed asset, the cost and related accumulated depreciation are removed from our accounts and any resulting gain or loss is included in the statements of operations. Expenditures under a renovation project, which constitute additions or improvements that extend the life of the property, are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 7 to 39 years for buildings and building improvements and 3 to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the shorter of the lease term or the useful lives of the related assets. The Company assesses the carrying values of its investments in hotel properties whenever events or changes in circumstances indicate that the carrying value of the hotel properties may not be recoverable. Events or circumstances that may cause a review include, but are not limited to, adverse permanent changes in the demand for lodging at the properties due to declining national or local economic conditions and/or new hotel construction in markets where the hotels are located. When such conditions exist, management performs an analysis to determine if the estimated undiscounted future cash flows from operations and the proceeds from the ultimate disposition of a hotel property exceeds its carrying value. If the estimated undiscounted future cash flows are found to be less than the carrying amount of the asset, an adjustment to reduce the carrying amount to the related hotel property’s estimated fair market value would be recorded and an impairment loss recognized. The COVID-19 pandemic has had, an adverse impact on the lodging and hospitality industries, which the Company considered to be a triggering event for each of its hotels during its impairment testing for the year ended December 31, 2021. The Company assessed the recoverability of each of its hotel properties which included a projection of future operating cash flows based upon significant assumptions regarding its ability to maintain ownership of the property, growth rates, occupancy, room rates, economic trends, property-specific operating costs, an allowance for the replacement of furniture, fixtures and equipment and projected cash flows from the eventual disposition of the hotel. The Company also projected cash flows assuming an eventual disposition of the hotel based upon property-specific capitalization rates. As of December 31, 2021, the Company determined the Sheraton Louisville Riverside, to be impaired based on the proceeds received in a subsequent sale, as well as The Whitehall in Houston, Texas due to the lack of certainty regarding our ability to extend or refinance the mortgage which was set to mature in early 2023. The Company recognized an impairment loss of approximately $ 12.2 million during the period ended December 31, 2021. The impairment loss was determined using level 2 inputs under authoritative guidance for fair value measurements. No impairment loss was recognized for the year ended December 31, 2022. |
Assets Held for Sale | Assets Held for Sale – The Company records assets as held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. When the carrying value of the asset is greater than the fair value, the Company reduces the carrying value to fair value less selling costs and recognizes an impairment loss. |
Cash and Cash Equivalents | Cash and Cash Equivalents – The Company consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk – The Company holds cash accounts at several institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) protection limits of $ 250,000 . Our exposure to credit loss in the event of the failure of these institutions is represented by the difference between the FDIC protection limit and the total amounts on deposit. Management monitors, on a regular basis, the financial condition of the financial institutions along with the balances there on deposit to minimize our potential risk. |
Restricted Cash | Restricted Cash – Restricted cash includes real estate tax escrows, insurance escrows and reserves for replacements of furniture, fixtures and equipment pursuant to certain requirements in our various mortgage agreements. |
Accounts Receivable | Accounts Receivable – Accounts receivable consists primarily of hotel guest, banqueting and credit card receivables. Ongoing evaluations of collectability are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. |
Inventories | Inventories – Inventories, consisting primarily of food and beverages, are stated at the lower of cost or net realizable value, with cost determined on a method that approximates first-in, first-out basis. |
Franchise License Fees | Franchise License Fees – Fees expended to obtain or renew a franchise license are amortized over the life of the license or renewal. The unamortized franchise fees as of December 31, 2022 and 2021 were approximately $ 241,038 and $ 294,390 , respectively. Amortization expense for the years ended December 31, 2022, 2021, and 2020 was $ 48,852 , $ 59,482 and $ 59,482 , respectively. |
Deferred Financing Costs | Deferred Financing Costs – Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt and are reflected in mortgage loans, net and unsecured notes, net on the consolidated balance sheets. Deferred offering costs are recorded at cost and consist of offering fees and other costs incurred in advance of issuing equity and are reflected in prepaid expenses, inventory and other assets on the consolidated balance sheets. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. |
Derivative Instruments | Derivative Instruments – Our derivative instruments are reflected as assets or liabilities on the consolidated balance sheet and measured at fair value. Derivative instruments used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as an interest rate risk, are considered fair value hedges. Derivative instruments used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For a derivative instrument designated as a cash flow hedge, the change in fair value each period is reported in accumulated other comprehensive income in stockholders’ equity and partners’ capital to the extent the hedge is effective. For a derivative instrument designated as a fair value hedge, the change in fair value each period is reported in earnings along with the change in fair value of the hedged item attributable to the risk being hedged. For a derivative instrument that does not qualify for hedge accounting or is not designated as a hedge, the change in fair value each period is reported in earnings. We use derivative instruments to add stability to interest expense and to manage our exposure to interest-rate movements. To accomplish this objective, we currently use interest rate caps and an interest rate swap which act as cash flow hedges and are not designated as hedges. We value our interest-rate caps and interest rate swap at fair value, which we define as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We do not enter into contracts to purchase or sell derivative instruments for speculative trading purposes. |
Fair Value Measurements | Fair Value Measurements – We classify the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table represents our assets and liabilities measured at fair value and the basis for that measurement (our interest rate caps and interest rate swap are the only assets or liabilities measured at fair value on a recurring basis, there were two non-recurring or infrequent asset valuations and no non-recurring liabilities for fair value measurements as of December 31, 2022 and 2021, respectively): Level 1 Level 2 Level 3 December 31, 2021 Interest rate cap (1) $ — $ 47 $ — Interest rate swap (2) $ — $ ( 1,537,319 ) $ — Mortgage loans (3) $ — $ ( 355,496,444 ) $ — Investment in hotel properties, net (4) $ — $ 23,000,000 $ — Investment in hotel properties held for sale, net (5) $ — $ 11,063,952 $ — December 31, 2022 Interest rate swaps (2) $ — $ 1,308,503 $ — Mortgage loans (3) $ — $ ( 306,300,855 ) $ — (1) Interest rate cap, which caps the 1-month LIBOR rate at 3.25 %. (2) Interest rate swaps, one of which swaps the Loan Rate for a fixed interest rate of 5.237 % for the DoubleTree by Hilton Philadelphia Airport mortgage and is valued at December 31, 2022 and December 31, 2021 , and the other which swaps the Loan Rate for a fixed rate of 5.576 % for the Hotel Alba Tampa mortgage and is valued only at December 31, 2022. Notional amounts of the swaps approximate the declining balance of the loan. (3) Mortgage loans had a carrying value on our Consolidated Balance Sheets of $ 320,482,103 and $ 351,170,883 , as of December 31, 2022 and December 31, 2021, respectively. (4) Investment in hotel properties, net, a non-recurring asset, is reflected at appraised value as of December 31, 2021. (5) Investment in hotel properties held for sale, net, a non-recurring asset, is reflected at net realizable value as of December 31, 2021. |
Noncontrolling Interest in Operating Partnership | Noncontrolling Interest in Operating Partnership – Certain hotel properties have been acquired, in part, by the Operating Partnership through the issuance of limited partnership units of the Operating Partnership. The noncontrolling interest in the Operating Partnership is: (i) increased or decreased by the limited partners’ pro-rata share of the Operating Partnership’s net income or net loss, respectively; (ii) decreased by distributions; (iii) decreased by redemption of partnership units for the Company’s common stock; and (iv) adjusted to equal the net equity of the Operating Partnership multiplied by the limited partners’ ownership percentage immediately after each issuance of units of the Operating Partnership and/or the Company’s common stock through an adjustment to additional paid-in capital. Net income or net loss is allocated to the noncontrolling interest in the Operating Partnership based on the weighted average percentage ownership throughout the period. |
Revenue Recognition | Revenue Recognition – Revenue consists of amounts derived from hotel operations, including the sales of rooms, food and beverage, and other ancillary services. Room revenue is recognized over a customer’s hotel stay. Revenue from food and beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized on these distinct goods and services at the point in time or over the time period that goods or services are provided to the customer. Some contracts for rooms or food and beverage services require an upfront deposit which is recorded as advanced deposits (or contract liabilities) shown on our consolidated balance sheets and recognized once the performance obligations are satisfied. Certain ancillary services are provided by third parties and the Company assessed whether it is the principal or agent in these arrangements. If the Company is the agent, revenue is recognized based upon the gross commission earned from the third party. If the Company is the principal, the Company recognizes based upon the gross sales price. With respect to the hotel condominium rental programs the Company operates at the Hyde Resort & Residences and the Hyde Beach House Resort & Residences, the Company has determined that it is an agent and recognizes revenue based on its share of revenue earned under the rental agency agreement. Certain of the Company’s hotels have retail spaces, restaurants or other spaces which the Company leases to third parties. Lease revenue is recognized on a straight-line basis over the life of the lease and included in other operating revenues in the Company’s consolidated statements of operations. The Company collects revenue, sales taxes, use taxes, occupancy taxes and similar taxes at its hotels which are reflected in revenue on a net basis on the consolidated statements of operations. |
Lease Revenue | Lease Revenue – Several of our properties generate revenue from leasing commercial space adjacent to the hotel, the restaurant space within the hotel, portions of our parking facilities, apartment units and space on the roofs of our hotels for antennas and satellite dishes. We account for the lease income as revenue from other operating departments within the consolidated statement of operations pursuant to the terms of each lease. Lease revenue was approximately $ 1.3 million, $ 1.7 million and $ 1.4 million, for the years ended December 31, 2022, 2021, and 2020, respectively. A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: December 31, 2023 1,370,292 December 31, 2024 1,367,550 December 31, 2025 1,339,747 December 31, 2026 1,330,479 December 31, 2027 1,327,226 December 31, 2028 and thereafter 19,575,361 Total 26,310,655 |
Lessee Accounting | Lessee Accounting – The Company’s operating lease agreements primarily include the ground lease on the Hyatt Centric Arlington, the parking garage lease in Hollywood, Florida at the Hyde Beach House Resort & Residences, and the corporate office lease. The assets are classified as “right of use assets”, which represent our right to use an underlying asset and the operating lease liability, which represent our obligation to make lease payments arising from the lease, is classified within “accounts payable and other accrued liabilities”. Right of use assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the right of use assets and operating lease liabilities are recognized in the period in which the obligation for those payments is incurred. As our leases do not provide an implicit financing rate, we use our incremental borrowing cost based on information available at the commencement date using our actual borrowing rates commensurate with the lease terms and fully levered borrowing to determine present value. Extension options on our leases are included in our minimum lease terms when they are reasonably certain to be exercised. |
Income Taxes | Income Taxes – The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. As a REIT, the Company generally will not be subject to federal income tax. The MHI TRS Entities which leases our hotels from subsidiaries of the Operating Partnership, are subject to federal and state income taxes. We account for income taxes using the asset and liability method under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is required for deferred tax assets if, based on all available evidence, it is “more-likely-than-not” that all or a portion of the deferred tax asset will or will not be realized due to the inability to generate sufficient taxable income in certain financial statement periods. The “more-likely-than-not” analysis means the likelihood of realization is greater than 50 %, that we either will or will not be able to fully utilize the deferred tax assets against future taxable income. The net amount of deferred tax assets that are recorded on the financial statements must reflect the tax benefits that are expected to be realized using these criteria. As of December 31, 2022, we determined that it is more-likely-than-not that we will not be able to fully utilize our deferred tax assets for future tax consequences; therefore, a 100 % valuation allowance is required. As of December 31, 2022 , we had no uncertain tax positions. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2022, the tax years that remain subject to examination by the major tax jurisdictions to which the Company is subject generally include 2011 through 2021. In addition, as of December 31, 2022, the tax years that remain subject to examination by the major tax jurisdictions to which the MHI TRS Entities are subject, because of open NOL carryforwards, generally include 2014 through 2021. The Operating Partnership is generally not subject to federal and state income taxes as the unit holders of the Partnership are subject to tax on their respective shares of the Partnership’s taxable income. |
Stock-Based Compensation | Stock-based Compensation – The Company’s 2013 Long-Term Incentive Plan (the “2013 Plan”), which the Company’s stockholders approved in April 2013, permitted the grant of stock options, restricted stock and performance share compensation awards to its employees and directors for up to 750,000 shares of common stock. The Company believes that stock awards align the interests of its employees with those of its stockholders. Under the 2013 Plan, the Company made cumulative stock awards totaling 745,160 shares, of which 316,333 were originally restricted. As of December 31, 2022 , there were 45,000 restricted shares to certain executives, directors, and employees, and 700,160 non-restricted shares issued to certain executives, directors and employees. All awards have vested except for 45,000 shares issued to certain executives, which will vest over the next 7 years. The remaining 4,840 shares have been deregistered. Under the 2013 Plan, the Company was authorized to issue a variety of performance-based stock awards, including nonqualified stock options. The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the value of the award as determined by the Company’s stock price on the date of grant or issuance. As of December 31, 2022 , no performance-based stock awards have been granted. Consequently, stock-based compensation as determined under the fair-value method would be the same under the intrinsic-value method. The Company’s 2022 Long-Term Incentive Plan (the “2022 Plan”), which the Company’s stockholders approved in April 2022, permits the grant of stock options, restricted stock, unrestricted stock and performance share compensation awards to its employees and directors for up to 2,000,000 shares of common stock. Under the 2022 Plan, the Company may issue a variety of performance-based stock awards, including nonqualified stock options. The value of the awards is charged to compensation expense on a straight-line basis over the vesting or service period based on the value of the award as determined by the Company’s stock price on the date of grant or issuance. As of December 31, 2022 , 167,390 service-based stock awards have been granted. Total stock-based compensation cost recognized under the 2013 Plan and 2022 Plan for the years ended December 31, 2022, 2021, and 2020 was $ 871,466 , $ 517,546 and $ 548,894 , respectively. Additionally, the Company sponsors and maintains an Employee Stock Ownership Plan (“ESOP”) and related trust for the benefit of its eligible employees. We reflect unearned ESOP shares as a reduction of stockholders’ equity. Dividends on unearned ESOP shares, when paid, are considered compensation expense. The Company recognizes compensation expense equal to the fair value of the Company’s ESOP shares during the periods in which they are committed to be released. For the years ended December 31, 2022, 2021, and 2020 the ESOP compensation cost was $ 140,703 , $ 172,000 and $ 175,367 , respectively. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the differential is recognized as additional paid in capital. Because the ESOP is internally leveraged through a loan from the Company to the ESOP, the loan receivable by the Company from the ESOP is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated financial statements. |
Advertising | Advertising – Advertising costs, including digital advertising, were approximately $ 2.2 million, $ 2.0 million and $ 1.4 million, for the years ended December 31, 2022, 2021, and 2020 , respectively and are expensed as incurred. |
Business Interruption Proceeds | Business Interruption Proceeds – Insurance recoveries for business interruption were recognized during the years ended December 31, 2022, 2021, and 2020 , for $ 62,010 , $ 200,000 , and $ 85,517 , respectively. The insurance proceeds were reflected in the statement of operations in other operating departments revenues . |
Involuntary Conversion of Assets | Involuntary Conversion of Assets – The Company record gains or losses on involuntary conversions of assets due to recovered insurance proceeds to the extent the undepreciated cost of a nonmonetary asset differs from the amount of monetary proceeds received. During the years ending December 31, 2022, 2021, and 2020 , we recognized approximately $ 1.8 million, $ 0.6 million and $ 0.2 million, respectively, for gain on involuntary conversion of assets, which is reflected in the consolidated statements of operations. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) – Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period from non-owner sources. The Company does not have any items of comprehensive income (loss) other than net income (loss). |
Segment Information | Segment Information – The Company has determined that our business is conducted in one reportable segment: hotel ownership. |
Use of Estimates | Use of Estimates – The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Pronouncements | New Accounting Pronouncements – In June 2016, the FASB issued ASU 2016-13, Financial Instruments -Credit Losses(Topic 326) , which replaced the existing " incurred loss " approach with an " expected loss " model for financial instruments measured at amortized cost. For trade and other receivables, the forward looking "expected loss" model will generally result in the earlier recognition of allowances for losses. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments -Credit Losses, which clarified that operating lease receivables accounted for under ASC 842 are not in the scope of ASU 2016-13. We do not expect adoption of this standard to have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to the existing guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). The update provides guidance in accounting for changes in contracts, hedging relationships, and other transactions as a result of this reference rate reform. The option expedients and exceptions contained within this update, in general, only apply to contract amendments and modifications entered into prior to January 1, 2023. The provisions of this update will most likely affect our financial reporting process relating to modifications of contracts with lenders and the hedging contracts associated with each respective modified borrowing contract. In general, the provision of the update would benefit us by allowing modifications of debt contracts with lenders that fall under the guidance of ASC Topic 740 to be accounted for as a non-substantial modification and not be considered debt extinguishment. As of December 31, 2022 , we have not entered into any contract modification as it directly relates to reference rate reform, with the exception of a modification to the mortgages on The Whitehall in Houston, Texas, which changed the reference rate from LIBOR to the New York Prime Rate, and on Hotel Alba Tampa, Tapestry Collection in Tampa, Florida, which changed the reference rate from LIBOR to SOFR. On March 14, 2023, the Company modified the floating-rate mortgage on the DoubleTree by Hilton Philadelphia Airport to change the reference rate from 1-month LIBOR to SOFR. The Company anticipates no additional loan modifications will be required. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Recurring Assets and Liabilities Measured at Fair Value | The following table represents our assets and liabilities measured at fair value and the basis for that measurement (our interest rate caps and interest rate swap are the only assets or liabilities measured at fair value on a recurring basis, there were two non-recurring or infrequent asset valuations and no non-recurring liabilities for fair value measurements as of December 31, 2022 and 2021, respectively): Level 1 Level 2 Level 3 December 31, 2021 Interest rate cap (1) $ — $ 47 $ — Interest rate swap (2) $ — $ ( 1,537,319 ) $ — Mortgage loans (3) $ — $ ( 355,496,444 ) $ — Investment in hotel properties, net (4) $ — $ 23,000,000 $ — Investment in hotel properties held for sale, net (5) $ — $ 11,063,952 $ — December 31, 2022 Interest rate swaps (2) $ — $ 1,308,503 $ — Mortgage loans (3) $ — $ ( 306,300,855 ) $ — (1) Interest rate cap, which caps the 1-month LIBOR rate at 3.25 %. (2) Interest rate swaps, one of which swaps the Loan Rate for a fixed interest rate of 5.237 % for the DoubleTree by Hilton Philadelphia Airport mortgage and is valued at December 31, 2022 and December 31, 2021 , and the other which swaps the Loan Rate for a fixed rate of 5.576 % for the Hotel Alba Tampa mortgage and is valued only at December 31, 2022. Notional amounts of the swaps approximate the declining balance of the loan. (3) Mortgage loans had a carrying value on our Consolidated Balance Sheets of $ 320,482,103 and $ 351,170,883 , as of December 31, 2022 and December 31, 2021, respectively. (4) Investment in hotel properties, net, a non-recurring asset, is reflected at appraised value as of December 31, 2021. (5) Investment in hotel properties held for sale, net, a non-recurring asset, is reflected at net realizable value as of December 31, 2021. |
Schedule of Minimum Future Lease Payments Receivable | A schedule of minimum future lease payments receivable for the following twelve-month periods is as follows: December 31, 2023 1,370,292 December 31, 2024 1,367,550 December 31, 2025 1,339,747 December 31, 2026 1,330,479 December 31, 2027 1,327,226 December 31, 2028 and thereafter 19,575,361 Total 26,310,655 |
Disposal of Assets (Tables)
Disposal of Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Proforma Financial Information Presents the Results of Operations | The following proforma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations, had the transactions taken place on January 1, 2021: Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 (unaudited) (unaudited) Pro forma revenues $ 162,852,282 $ 118,839,373 Pro forma operating expenses $ 143,126,315 $ 121,773,659 Pro forma operating expense (income) $ 19,725,967 $ ( 2,934,286 ) Pro forma net income (loss) $ 7,090,465 $ ( 21,984,647 ) Pro forma income (loss) per basic share $ 0.40 $ ( 1.42 ) Pro forma income (loss) per diluted share $ 0.40 $ ( 1.42 ) Pro forma income (loss) per basic unit $ 0.37 $ ( 1.28 ) Pro forma income (loss) per diluted unit $ 0.37 $ ( 1.28 ) Basic common shares 17,802,772 15,531,684 Diluted common shares 17,802,772 15,531,684 Basic units 19,266,320 17,186,789 Diluted units 19,266,320 17,186,789 |
Investment in Hotel Propertie_2
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Investment in Hotel Properties, Net | Investment in hotel properties, net as of December 31, 2022 and 2021 consisted of the following: December 31, 2022 December 31, 2021 Land and land improvements $ 60,934,859 $ 60,395,168 Buildings and improvements 412,717,919 407,310,530 Right of use assets 5,199,845 5,711,607 Furniture, fixtures and equipment 51,292,107 50,505,902 530,144,730 523,923,207 Less: accumulated depreciation and impairment ( 165,074,005 ) ( 148,037,983 ) Investment in Hotel Properties, Net $ 365,070,725 $ 375,885,224 |
Schedule of Investment in Hotel Properties Held for Sale, Net | Investment in hotel properties held for sale, net as of December 31, 2022 and 2021 consisted of the following: December 31, 2022 December 31, 2021 Land and land improvements $ — $ 5,799,197 Buildings and improvements — 36,115,121 Furniture, fixtures and equipment — 5,743,949 — 47,658,267 Less: accumulated depreciation and impairment — ( 24,787,780 ) Investment in Hotel Properties Held for Sale, Net $ — $ 22,870,487 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgage Debt Obligations on Hotels | The following table sets forth our mortgage debt obligations on our hotels. Balance Outstanding as of December 31, December 31, Prepayment Maturity Amortization Interest Property 2022 2021 Penalties Date Provisions Rate The DeSoto (1) $ 31,219,022 $ 32,148,819 Yes 7/1/2026 25 years 4.25 % DoubleTree by Hilton Jacksonville (2) 32,416,570 33,051,316 Yes 7/11/2024 30 years 4.88 % DoubleTree by Hilton Laurel (3) 7,412,107 8,175,215 None 5/5/2023 25 years 5.25 % DoubleTree by Hilton Philadelphia Airport (4) 39,413,672 40,734,077 None 10/31/2023 30 years LIBOR plus 2.27 % DoubleTree by Hilton Raleigh- (5) — 18,300,000 Yes 8/1/2022 (5) LIBOR plus 4.00 % DoubleTree Resort by Hilton Hollywood (6) 52,724,475 54,253,963 (6) 10/1/2025 30 years 4.913 % Georgian Terrace (7) 40,492,622 41,484,732 (7) 6/1/2025 30 years 4.42 % Hotel Alba Tampa, Tapestry Collection by Hilton (8) 24,756,400 17,383,397 None 6/30/2025 (8) SOFR plus 2.75 % Hotel Ballast Wilmington, Tapestry Collection by (9) 31,699,775 32,604,948 Yes 1/1/2027 25 years 4.25 % Hyatt Centric Arlington (10) 47,534,606 48,990,136 Yes 10/1/2028 30 years 5.25 % Sheraton Louisville Riverside (11) — 10,947,366 Yes 12/1/2026 25 years 4.27 % The Whitehall (12) 14,226,067 14,551,671 None 2/26/2028 25 years PRIME plus 1.25 % Total Mortgage Principal Balance $ 321,895,316 $ 352,625,640 Deferred financing costs, net ( 1,480,779 ) ( 1,547,004 ) Unamortized premium on loan 67,566 92,247 Total Mortgage Loans, Net $ 320,482,103 $ 351,170,883 (1) The note amortizes on a 25 -year schedule after an initial interest-only period of one year and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (2) The note is subject to a pre-payment penalty until March 2024 . Prepayment can be made without penalty thereafter. (3) The note is subject to an exit fee of 0.75 % if prepaid on or after February 5, 2023. On July 15, 2021, we entered into a note modification agreement whereby the maturity date was extended from August 5, 2021 to May 5, 2022 . On April 28, 2022, we entered into an additional note modification agreement whereby the maturity date was extended from May 5, 2022 to May 5, 2023 . (4) The note bears a floating interest rate of 1 -month LIBOR plus 2.27 %, but we entered into a swap agreement to fix the rate at 5.237 % through July 31, 2023 . Under the swap agreement, notional amounts approximate the declining balance of the loan and we are responsible for any potential termination fees associated with early termination of the swap agreement. (5) The DoubleTree by Hilton Raleigh-Brownstone University was sold on June 10, 2022. (6) With limited exception, the note may not be prepaid prior to June 2025 . (7) With limited exception, the note may not be prepaid prior to February 2025 . (8) The note bears a floating interest rate of SOFR plus 2.75 % subject to a floor rate of 2.75 %; with monthly principal payments of $ 40,600 ; the note provides that the mortgage can be extended for two additional periods of one year each, subject to certain conditions. On July 11, 2022, we entered into a swap agreement to fix the rate at 5.576 %. The swap agreement reflects notional amounts approximate to the declining balance of the loan and we are responsible for any potential termination fees associated with early termination of the swap agreement. (9) The note amortizes on a 25 -year schedule after an initial interest-only period of one year and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. (10) Following a 5 -year lockout, the note can be prepaid with penalty in years 6 - 10 and without penalty during the final 4 months of the term. (11) The Sheraton Louisville Riverside was sold on February 10, 2022. (12) The note bears a floating interest rate of New York Prime Rate plus 1.25 %, with a floor of 7.50 %. |
Schedule of Future Mortgage Debt Maturities | Total future mortgage debt maturities, including with respect to any extensions of loan maturity, as of December 31, 2022 were as follows: December 31, 2023 53,555,486 December 31, 2024 38,069,572 December 31, 2025 116,084,892 December 31, 2026 58,588,970 December 31, 2027 1,757,220 December 31, 2028 and thereafter 53,839,176 Total future maturities $ 321,895,316 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Future Lease Payments | A schedule of minimum future lease payments for the following twelve-month periods is as follows: December 31, 2023 $ 675,927 December 31, 2024 678,300 December 31, 2025 683,348 December 31, 2026 673,413 December 31, 2027 342,503 December 31, 2028 and thereafter 13,512,577 Total $ 16,566,068 |
Preferred Stock and Units (Tabl
Preferred Stock and Units (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Preferred Stock And Units [Abstract] | |
Schedule of Series of Cumulative Redeemable Perpetual Preferred Stock | The following table sets forth our Cumulative Redeemable Perpetual Preferred Stock by series: Per Number of Shares Quarterly Annum Liquidation Issued and Outstanding as of Distributions Preferred Stock - Series Rate Preference December 31, 2022 December 31, 2021 Per Share Series B Preferred Stock 8.000 % $ 25.00 1,464,100 1,510,000 $ 0.500000 Series C Preferred Stock 7.875 % $ 25.00 1,346,110 1,384,610 $ 0.492188 Series D Preferred Stock 8.250 % $ 25.00 1,163,100 1,165,000 $ 0.515625 |
Schedule of Series of Cumulative Redeemable Perpetual Preferred Units | The following table sets forth our Cumulative Redeemable Perpetual Preferred Units by series: Per Number of Units Quarterly Annum Liquidation Issued and Outstanding as of Distributions Preferred Units - Series Rate Preference December 31, 2022 December 31, 2021 Per Unit Series B Preferred Units 8.000 % $ 25.00 1,464,100 1,510,000 $ 0.500000 Series C Preferred Units 7.875 % $ 25.00 1,346,110 1,384,610 $ 0.492188 Series D Preferred Units 8.250 % $ 25.00 1,163,100 1,165,000 $ 0.515625 |
Quarterly Distributions Declared and Payable by Operating Partnership | The following table presents the quarterly distributions by the Operating Partnership declared and payable per December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.500000 $ - $ - June 30, - - - September 30, - - - December 31, - - - The following table presents the quarterly distributions by the Operating Partnership declared and payable per Series C Preferred Unit and dividends by the Company declared and payable per share of Series C Preferred Stock, for the years ended December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.492188 $ - $ - June 30, - - - September 30, - - - December 31, - - - The following table presents the quarterly distributions by the Operating Partnership declared and payable per Series D Preferred Unit and dividends by the Company declared and payable per share of Series D Preferred Stock, for the years ended December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.515625 $ - $ - June 30, - - - September 30, - - - December 31, - - - |
Common Stock and Units (Tables)
Common Stock and Units (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Quarterly Stock Dividends and Unit Distributions Declared and Payable Per Common Stock/Unit | Common Stock Dividends and Unit Distributions – The following table presents the quarterly stock dividends and unit distributions by us declared and payable per common stock/unit for the years ended December 31, 2022, 2021, and 2020: Quarter Ended 2020 2021 2022 March 31, $ 0.130 $ - $ - June 30, - - - September 30, - - - December 31, - - - |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Shares Allocations are Accounted For Fair Value on The Date of Allocations | The share allocations are accounted for at fair value on the date of allocation as follows: December 31, 2022 December 31, 2021 Number of Shares Fair Value Number of Shares Fair Value Allocated shares 301,646 $ 545,979 247,606 $ 517,496 Committed to be released shares — — — — Total Allocated and Committed-to-be-Released 301,646 $ 545,979 247,606 $ 517,496 Unallocated shares 364,177 659,160 431,697 902,247 Total ESOP Shares 665,823 $ 1,205,139 679,303 $ 1,419,743 |
Indirect Hotel Operating Expe_2
Indirect Hotel Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Summary of Indirect Hotel Operating Expenses | Indirect hotel operating expenses consists of the following expenses incurred by the hotels: 2022 2021 2020 Sales and marketing $ 15,062,397 $ 11,684,933 $ 8,094,085 General and administrative 13,436,054 10,533,201 10,542,495 Repairs and maintenance 8,723,144 7,362,334 5,490,145 Utilities 5,649,716 5,309,637 4,817,508 Property taxes 5,254,075 6,131,271 7,014,472 Management fees, including incentive 4,377,814 3,620,071 1,822,359 Franchise fees 4,059,709 3,321,352 2,042,902 Insurance 4,082,551 3,596,153 3,097,245 Information and telecommunications 3,378,716 3,048,495 2,271,266 Other 787,391 492,798 294,831 Total indirect hotel operating expenses $ 64,811,567 $ 55,100,245 $ 45,487,308 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | The components of the provision for income taxes for the years ended December 31, 2022, 2021, and 2020 are as follows: Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Current: Federal $ — $ — $ ( 125,587 ) State 522,355 27,392 ( 6,054 ) 522,355 27,392 ( 131,641 ) Deferred: Federal 3,025,518 ( 149,704 ) ( 7,576,931 ) State 695,708 ( 38,580 ) ( 1,705,939 ) Subtotals 3,721,226 ( 188,284 ) ( 9,282,870 ) Change in deferred tax valuation allowance ( 3,721,226 ) 188,284 14,694,954 — — 5,412,084 $ 522,355 $ 27,392 $ 5,280,443 |
Reconciliation of Statutory Federal Income Tax Provision (Benefit) | A reconciliation of the statutory federal income tax provision (benefit) to the Company’s provision for income tax is as follows: Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Statutory federal income tax provision (benefit) $ 7,241,263 $ ( 5,987,572 ) $ ( 10,164,517 ) Federal tax impact of REIT election ( 3,255,236 ) 5,851,466 2,530,482 Statutory federal income tax provision (benefit) at TRS 3,986,027 ( 136,106 ) ( 7,634,035 ) Federal impact of PPP loan forgiveness ( 966,584 ) — — State income tax provision (benefit), net of federal provision (benefit) 1,224,138 ( 24,786 ) ( 1,780,476 ) Change in valuation allowance ( 3,721,226 ) 188,284 14,694,954 $ 522,355 $ 27,392 $ 5,280,443 |
Schedule of Significant Components of Deferred Tax Asset | The significant components of our deferred tax asset as of December 31, 2022 and 2021, are as follows: Year Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Deferred tax asset: Net operating loss carryforwards $ 10,744,121 $ 14,287,318 $ 14,409,321 Accrued compensation 425,575 338,033 108,646 Accrued expenses and other — 247,037 128,318 Intangible assets 10,092 28,627 48,670 Less: Valuation allowance ( 11,179,788 ) ( 14,901,015 ) ( 14,694,955 ) Total $ — $ — $ — |
Earnings (Loss) per Share and_2
Earnings (Loss) per Share and per Unit (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic Net Earnings (Loss) Per Share | The computation of the Company’s basic net earnings (loss) per share is presented below: Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Numerator Net income (loss) $ 33,959,848 $ ( 28,539,640 ) $ ( 53,682,905 ) Less: Net income allocated to participating share awards ( 113,405 ) — (1) — (1) Net (income) loss attributable to non-controlling interest ( 1,423,327 ) 2,318,166 4,489,341 Declared and undeclared distributions to preferred stockholders ( 7,634,219 ) ( 7,541,891 ) ( 8,755,642 ) Gain on extinguishment of preferred stock 64,518 361,476 — Net income (loss) attributable to common stockholders for EPS computation $ 24,853,415 $ ( 33,401,889 ) $ ( 57,949,206 ) Denominator Weighted average number common shares outstanding for basic EPS computation 17,802,772 15,531,684 14,312,049 Effect of dilutive participating securities: Unvested restricted shares — (1) — (1) — (1) Weighted average number common and common equivalent shares outstanding for diluted EPS computation 17,802,772 15,531,684 14,312,049 Basic net income (loss) per common share: Undistributed income (loss) $ 1.40 $ ( 2.15 ) $ ( 4.05 ) Total basic $ 1.40 $ ( 2.15 ) $ ( 4.05 ) Diluted net income (loss) per common share: Undistributed income (loss) $ 1.40 $ ( 2.15 ) $ ( 4.05 ) Allocation of participating share awards — (1) — (1) — (1) Total diluted $ 1.40 $ ( 2.15 ) $ ( 4.05 ) (1) Anti-dilutive, therefore not included. |
Computation of Basic Earnings (Loss) Per Unit | The computation of basic earnings (loss) per general and limited partnership unit in the Operating Partnership is presented below: Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Numerator Net income (loss) $ 33,959,848 $ ( 28,539,640 ) $ ( 53,682,905 ) Less: Net income allocated to participating unit awards ( 113,405 ) — (1) — (1) Declared and undeclared distributions to preferred unitholders ( 7,634,219 ) ( 7,541,891 ) ( 8,755,642 ) Gain on extinguishment of preferred units 64,518 361,476 — Net income (loss) attributable to unitholders for EPU computation $ 26,276,742 $ ( 35,720,055 ) $ ( 62,438,547 ) Denominator Weighted average number of units outstanding for basic EPU computation 19,266,320 17,186,789 16,065,499 Effect of dilutive participating securities: Unvested restricted units — (1) — (1) — (1) Weighted average number of equivalent units outstanding for diluted EPU computation 19,266,320 17,186,789 16,065,499 Basic net income (loss) per unit: Undistributed income (loss) $ 1.36 $ ( 2.08 ) $ ( 3.89 ) Total basic $ 1.36 $ ( 2.08 ) $ ( 3.89 ) Diluted net income (loss) per unit: Undistributed income (loss) $ 1.36 $ ( 2.08 ) $ ( 3.89 ) Allocation of participating unit awards — (1) — (1) — (1) Total diluted $ 1.36 $ ( 2.08 ) $ ( 3.89 ) (1) Anti-dilutive, therefore not included. |
Quarterly Operating Results -_2
Quarterly Operating Results - Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results | Quarters Ended 2022 March 31 June 30 September 30 December 31 Total revenue $ 38,352,603 $ 47,170,259 $ 39,212,695 $ 41,341,747 Total operating expenses 34,427,399 38,970,971 35,923,699 36,200,422 Net operating income 3,925,204 8,199,288 3,288,996 5,141,325 Net income (loss) ( 810,944 ) 27,605,359 1,972,563 5,192,870 Net income (loss) attributable to common shareholders ( 2,507,765 ) 24,269,449 112,680 3,092,456 Income (loss) per share attributable to common $ ( 0.15 ) $ 1.36 $ 0.01 $ 0.18 Income (loss) per share attributable to common $ ( 0.15 ) $ 1.36 $ 0.01 $ 0.18 Net income (loss) available to operating partnership unitholders ( 2,669,386 ) 25,799,389 61,586 3,198,559 Income (loss) per unit attributable to operating partnership unitholders– basic $ ( 0.14 ) $ 1.33 $ 0.00 $ 0.17 Income (loss) per unit attributable to operating partnership unitholders– diluted $ ( 0.14 ) $ 1.33 $ 0.00 $ 0.17 Quarters Ended 2021 March 31 June 30 September 30 December 31 Total revenue $ 22,635,532 $ 34,383,309 $ 35,493,126 $ 35,075,957 Total operating expenses 24,717,808 31,240,158 32,706,524 46,978,440 Net operating income (loss) ( 2,082,276 ) 3,143,151 2,786,602 ( 11,902,483 ) Net loss ( 7,575,624 ) ( 1,553,970 ) ( 2,528,221 ) ( 16,881,825 ) Net loss attributable to common shareholders ( 9,064,995 ) ( 2,810,603 ) ( 4,317,081 ) ( 17,209,210 ) Loss per share attributable to common shareholders– basic and diluted $ ( 0.62 ) $ ( 0.19 ) $ ( 0.27 ) $ ( 1.05 ) Net loss available to operating partnership unitholders ( 9,764,534 ) ( 2,990,241 ) ( 4,607,249 ) ( 18,358,031 ) Loss per unit attributable to operating partnership unitholders– basic and diluted $ ( 0.60 ) $ ( 0.18 ) $ ( 0.26 ) $ ( 1.02 ) |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | 14 Months Ended | ||||||||||
Feb. 03, 2023 USD ($) | Dec. 09, 2022 USD ($) | Jun. 29, 2022 USD ($) | Jun. 28, 2022 USD ($) | Jun. 10, 2022 USD ($) | Dec. 13, 2021 USD ($) | Apr. 16, 2020 | May 06, 2020 USD ($) | Dec. 31, 2022 USD ($) Room Hotel Resort shares | Dec. 31, 2021 shares | Aug. 24, 2022 shares | Nov. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Date of incorporation | Aug. 20, 2004 | ||||||||||||
Investment in number of hotels | Hotel | 10 | ||||||||||||
Rooms in hotel | Room | 2,786 | ||||||||||||
Number of independent hotels | Hotel | 3 | ||||||||||||
Date of commencement of business | Dec. 21, 2004 | ||||||||||||
Number of hotels acquired before commencement of business | Hotel | 6 | ||||||||||||
Interest reserves | $ 1,600,000 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Paycheck protection program loan amount | $ 268,309 | ||||||||||||
Commercial Unit of Hyde Resort & Residences and Hyde Beach House Resort & Residences [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Investment in number of hotels | Hotel | 2 | ||||||||||||
Hilton, DoubleTree and Hyatt Brands [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Number of hotels | Hotel | 7 | ||||||||||||
Operating Partnership [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Percentage of operating partnership owned | 95.80% | ||||||||||||
Promissory Note [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Paycheck protection program loan amount | $ 4,600,000 | ||||||||||||
Paycheck protection program loan term | 2 years | ||||||||||||
Paycheck protection program extension loan term | 5 years | ||||||||||||
Paycheck protection program loan interest rate | 1% | 1% | |||||||||||
Paycheck protection program loan repayment terms | Equal payments of principal and interest were to begin no later than 10 months following origination of the loan and are amortized over the remaining term of the loan | ||||||||||||
Promissory Note [Member] | Subsequent Event [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Paycheck protection program loan amount | $ 300,000 | ||||||||||||
Promissory Note [Member] | Operating Partnership [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Paycheck protection program loan amount | $ 10,700,000 | ||||||||||||
Mortgage Loans [Member] | DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Amortization Period | 30 years | ||||||||||||
Note Purchase Agreement [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Operating partnership purchase of senior notes | $ 20,000,000 | ||||||||||||
Note Modification Agreement [Member] | Mortgage Loans [Member] | Hotel Alba Tampa [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Increased principal balance | $ 25,000,000 | ||||||||||||
Extended maturity date | Jun. 30, 2025 | ||||||||||||
Extended maturity period | 2 years | ||||||||||||
Amortization Period | 25 years | ||||||||||||
Amortization payments | $ 40,600 | ||||||||||||
Operating Partnership guaranteed | 12,500,000 | ||||||||||||
Change in guaranty due to performance milestones | $ 6,250,000 | ||||||||||||
Fixed interest rate | 2.75% | ||||||||||||
Note Modification Agreement [Member] | Mortgage Loans [Member] | SOFR [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Excess Interest rate on mortgage debt | 2.75% | ||||||||||||
Hotel Management Agreement [Member] | Hyatt Centric Arlington and Our Town [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Number of hotels | Hotel | 10 | ||||||||||||
Number of condominium resort rental programs | Resort | 2 | ||||||||||||
Secured Notes [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Exit fee | $ 2,600,000 | ||||||||||||
Accrued interest paid | 20,000 | ||||||||||||
Interest reserves | 500,000 | $ 1,100,000 | |||||||||||
Payment of secured notes with cash in hand | 200,000 | ||||||||||||
Payment to investors | 8,300,000 | ||||||||||||
Principal payments | $ 5,600,000 | ||||||||||||
DoubleTree by Hilton Raleigh-Brownstone University Hotel [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Proceeds from sale of hotel property | $ 18,600,000 | $ 42,000,000 | |||||||||||
Net proceeds from from sale of hotel property | 19,800,000 | ||||||||||||
Principal payment of preferred stock | 13,300,000 | ||||||||||||
Accrued interest paid | 200,000 | ||||||||||||
DoubleTree by Hilton Raleigh-Brownstone University Hotel [Member] | Secured Notes [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Exit fee | $ 6,300,000 | ||||||||||||
Exit fee [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Interest reserves | $ 500,000 | ||||||||||||
Sheraton Louisville Riverside [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Proceeds from sale of hotel property | $ 11,500,000 | ||||||||||||
Net proceeds from from sale of hotel property | $ 0 | ||||||||||||
Common Stock [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Number of shares exchanged in agreement | shares | 395,086 | 151,281 | 30,393,995 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Number of shares exchanged in agreement | shares | 145,900 | ||||||||||||
Series C Preferred Stock [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Number of shares exchanged in agreement | shares | 208,500 | ||||||||||||
Series D Preferred Stock [Member] | |||||||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | |||||||||||||
Number of shares exchanged in agreement | shares | 36,900 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of hotel properties | $ 0 | $ 12,201,461 | |
Federal Deposit Insurance Corporation protection limits | 250,000 | ||
Un-amortized franchise fees | 241,038 | 294,390 | |
Amortization expense | $ 48,852 | 59,482 | $ 59,482 |
Accounting standards update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||
Minimum percentage of likelihood of realization of deferred tax assets | 50% | ||
Deferred tax assets valuation allowance percent | 100% | ||
Uncertain tax positions | $ 0 | ||
Compensation cost recognized | 998,424 | 689,547 | 754,111 |
Advertising cost | $ 2,200,000 | $ 2,000,000 | $ 1,400,000 |
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
Gain on involuntary conversion of assets | $ 1,763,320 | $ 588,586 | $ 179,856 |
Number of reportable segment | Segment | 1 | ||
ESOP [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Compensation cost recognized | $ 140,703 | 172,000 | 175,367 |
2013 Plan [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Shares issued under plan | shares | 745,160 | ||
Originally restricted shares issued under plan | shares | 316,333 | ||
Number of shares deregistered | shares | 4,840 | ||
Performance-based stock awards granted | shares | 0 | ||
2013 Plan [Member] | Executives, Directors and Employees [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Unrestricted shares issued under plan | shares | 45,000 | ||
Restricted shares issued under plan | shares | 700,160 | ||
2013 Plan [Member] | One Employee [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Stock award vesting period | 7 years | ||
Shares issued but not vested | shares | 45,000 | ||
2022 Long term incentive plan [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Service based stock awards granted | shares | 167,390 | ||
2022 Long term incentive plan [Member] | Employees and Directors [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Shares issued under plan | shares | 2,000,000 | ||
2013 and 2022 plan [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Compensation cost recognized | $ 871,466 | 517,546 | 548,894 |
Hotel, Other [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Lease revenue | $ 1,300,000 | $ 1,700,000 | $ 1,400,000 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax |
Hotel, Other [Member] | Hurricane [Member] | Houston, Texas and Tampa, Florida [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Insurance recoveries from business interruption | $ 62,010 | $ 200,000 | $ 85,517 |
Maximum [Member] | 2013 Plan [Member] | Employees and Directors [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted and performance stock awards permitted to grant to employees and directors | shares | 750,000 | ||
Buildings and Building Improvements [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 7 years | ||
Buildings and Building Improvements [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 39 years | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 3 years | ||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Recurring Assets and Liabilities Measured at Fair Value (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives Fair Value [Line Items] | ||
Investment in Hotel Properties, net | $ 365,070,725 | $ 375,885,224 |
Investment in Hotel Properties Held for Sale, net | 22,870,487 | |
Level 2 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Investment in Hotel Properties, net | 23,000,000 | |
Investment in Hotel Properties Held for Sale, net | 11,063,952 | |
Level 2 [Member] | Interest Rate Caps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate cap | 47 | |
Level 2 [Member] | Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest rate cap | 1,308,503 | (1,537,319) |
Level 2 [Member] | Mortgage Loans [Member] | ||
Derivatives Fair Value [Line Items] | ||
Debt instruments measured at fair value | $ (306,300,855) | $ (355,496,444) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Recurring Assets and Liabilities Measured at Fair Value (Parenthetical) (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives Fair Value [Line Items] | ||
Mortgage loans, net | $ 320,482,103 | $ 351,170,883 |
DoubleTree by Hilton Philadelphia Airport [Member] | ||
Derivatives Fair Value [Line Items] | ||
Loan rate swapped for fixed interest rate | 5.237% | 5.237% |
Hotel Alba Tampa [Member] | ||
Derivatives Fair Value [Line Items] | ||
Loan rate swapped for fixed interest rate | 5.576% | |
1-Month LIBOR | ||
Derivatives Fair Value [Line Items] | ||
Interest rate caps for loan | 3.25% | 3.25% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Minimum Future Lease Payments Receivable (Detail) | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
December 31, 2023 | $ 1,370,292 |
December 31, 2024 | 1,367,550 |
December 31, 2025 | 1,339,747 |
December 31, 2026 | 1,330,479 |
December 31, 2027 | 1,327,226 |
December 31, 2028 and thereafter | 19,575,361 |
Total | $ 26,310,655 |
Disposal of Assets - Summary Fi
Disposal of Assets - Summary Financial Information Presents Results of Operations of Company and Operating Partnership (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||
Pro forma revenues | $ 162,852,282 | $ 118,839,373 |
Pro forma operating expenses | 143,126,315 | 121,773,659 |
Pro forma operating expense (income) | 19,725,967 | 2,934,286 |
Pro forma net income (loss) | $ 7,090,465 | $ (21,984,647) |
Pro forma income (loss) per basic share | $ 0.40 | $ (1.42) |
Pro forma income (loss) per diluted share | 0.40 | (1.42) |
Pro forma income (loss) per basic unit | $ 0.37 | $ (1.28) |
Pro forma income (loss) per diluted unit | 0.37 | (1.28) |
Basic common shares | 17,802,772 | 15,531,684 |
Diluted common shares | 17,802,772 | 15,531,684 |
Basic units | 19,266,320 | 17,186,789 |
Diluted units | 19,266,320 | 17,186,789 |
Investment in Hotel Propertie_3
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net - Schedule of Investment in Hotel Properties, Net (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Investment in Hotel Properties, Gross | $ 530,144,730 | $ 523,923,207 |
Less: accumulated depreciation and impairment | (165,074,005) | (148,037,983) |
Investment in Hotel Properties, Net | 365,070,725 | 375,885,224 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in Hotel Properties, Gross | 60,934,859 | 60,395,168 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in Hotel Properties, Gross | 412,717,919 | 407,310,530 |
Right of Use Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in Hotel Properties, Gross | 5,199,845 | 5,711,607 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment in Hotel Properties, Gross | $ 51,292,107 | $ 50,505,902 |
Investment in Hotel Propertie_4
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | ||
Impairment of Real Estate | $ 0 | $ 12,201,461 |
Investment in Hotel Propertie_5
Investment in Hotel Properties, Net and Investment in Hotel Properties Held for Sale, Net - Schedule of Investment in Hotel Properties Held for Sale, Net (Detail) | Dec. 31, 2021 USD ($) |
Property, Plant and Equipment [Line Items] | |
Investment in Hotel Properties Held for Sale, Gross | $ 47,658,267 |
Less: accumulated depreciation and impairment | (24,787,780) |
Investment in Hotel Properties Held for Sale, Net | 22,870,487 |
Land and Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Investment in Hotel Properties Held for Sale, Gross | 5,799,197 |
Buildings and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Investment in Hotel Properties Held for Sale, Gross | 36,115,121 |
Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Investment in Hotel Properties Held for Sale, Gross | $ 5,743,949 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 09, 2022 USD ($) | Jun. 29, 2022 USD ($) | Jun. 28, 2022 | Jun. 10, 2022 USD ($) | Apr. 28, 2022 | Apr. 27, 2022 | Jul. 15, 2021 | Jul. 14, 2021 | Apr. 16, 2020 | May 06, 2020 USD ($) | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Mortgage loan outstanding balance | $ 320.5 | $ 351.2 | |||||||||||
Debt instrument, frequency of periodic payment | monthly | ||||||||||||
Secured Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Early repayment of senior debt using cash on hand | $ 0.2 | ||||||||||||
Note Purchase Agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Operating partnership purchase of senior notes | $ 20 | ||||||||||||
Double Tree By Hilton Raleigh Brownstone University Raleigh North Carolina [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Net proceeds from from sale of hotel property | $ 19.8 | ||||||||||||
Double Tree By Hilton Raleigh Brownstone University Raleigh North Carolina [Member] | Secured Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Release of interest reserves for debt extinguishment | 1.6 | ||||||||||||
Double Tree By Hilton Raleigh Brownstone University Raleigh North Carolina [Member] | Secured Notes [Member] | Secured Notes Principal Portion [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 13.3 | ||||||||||||
Release of interest reserves for debt extinguishment | 1.1 | ||||||||||||
Double Tree By Hilton Raleigh Brownstone University Raleigh North Carolina [Member] | Secured Notes [Member] | Secured Notes Exit Fee Portion [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 6.3 | ||||||||||||
Release of interest reserves for debt extinguishment | 0.5 | ||||||||||||
Double Tree By Hilton Raleigh Brownstone University Raleigh North Carolina [Member] | Secured Notes [Member] | Secured Notes Accrued Interest Portion [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 0.2 | ||||||||||||
Hotel Alba Tampa [Member] | Secured Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 8.3 | ||||||||||||
Release of interest reserves for debt extinguishment | 0.5 | ||||||||||||
Hotel Alba Tampa [Member] | Secured Notes [Member] | Secured Notes Principal Portion [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 5.6 | ||||||||||||
Hotel Alba Tampa [Member] | Secured Notes [Member] | Secured Notes Exit Fee Portion [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | 2.6 | ||||||||||||
Hotel Alba Tampa [Member] | Secured Notes [Member] | Secured Notes Accrued Interest Portion [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of debt | $ 0.1 | ||||||||||||
Mortgage Loans [Member] | The DeSoto [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Jul. 01, 2026 | ||||||||||||
Mortgage Loans [Member] | Double Tree By Hilton Jacksonville Riverfront | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Jul. 11, 2024 | ||||||||||||
Mortgage Loans [Member] | Double Tree By Hilton Laurel [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extended maturity date | May 05, 2023 | May 05, 2022 | May 05, 2022 | Aug. 05, 2021 | |||||||||
Debt instrument maturity date | May 05, 2023 | ||||||||||||
Mortgage Loans [Member] | DoubleTree by Hilton Philadelphia Airport [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Oct. 31, 2023 | ||||||||||||
Mortgage Loans [Member] | Double Tree By Hilton Raleigh Brownstone University | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Aug. 01, 2022 | ||||||||||||
Mortgage Loans [Member] | DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Oct. 01, 2025 | ||||||||||||
Mortgage Loans [Member] | Georgian Terrace [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Jun. 01, 2025 | ||||||||||||
Mortgage Loans [Member] | Hotel Alba Tampa [Member] | Note Modification Agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extended maturity date | Jun. 30, 2025 | ||||||||||||
Extended maturity period | 2 years | ||||||||||||
Mortgage Loans [Member] | Hyatt Centric Arlington [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Oct. 01, 2028 | ||||||||||||
Mortgage Loans [Member] | Sheraton Louisville Riverside [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Dec. 01, 2026 | ||||||||||||
Mortgage Loans [Member] | The Whitehall [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument maturity date | Feb. 26, 2028 | ||||||||||||
Promissory Note [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Paycheck protection program extension loan term | 5 years | ||||||||||||
Applications for loan forgiveness amount filed | $ 4.6 | $ 0.6 | |||||||||||
Paycheck protection program loan term | 2 years | ||||||||||||
Paycheck protection program loan interest rate | 1% | 1% | |||||||||||
Paycheck protection program loan repayment terms | Equal payments of principal and interest were to begin no later than 10 months following origination of the loan and are amortized over the remaining term of the loan | ||||||||||||
Paycheck protection program loan amount | $ 4.6 | ||||||||||||
Number of paycheck protection program loans | Loan | 3 | ||||||||||||
Paycheck protection program loan amount outstanding | $ 2.5 | $ 7.6 | |||||||||||
Promissory Note [Member] | Operating Partnership [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Paycheck protection program loan amount | $ 10.7 |
Debt - Schedule of Mortgage Deb
Debt - Schedule of Mortgage Debt Obligations on Hotels (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Mortgage loans | $ 321,895,316 | $ 352,625,640 |
Deferred financing costs, net | (1,480,779) | (1,547,004) |
Unamortized premium on loan | 67,566 | 92,247 |
Total Mortgage Loans, Net | 320,482,103 | 351,170,883 |
The DeSoto [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 31,219,022 | 32,148,819 |
Prepayment Penalties | Yes | |
Maturity Date | Jul. 01, 2026 | |
Amortization Provisions, Term | 25 years | |
Interest rate applicable to the mortgage loan | 4.25% | |
Double Tree By Hilton Jacksonville Riverfront | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 32,416,570 | 33,051,316 |
Prepayment Penalties | Yes | |
Maturity Date | Jul. 11, 2024 | |
Amortization Provisions, Term | 30 years | |
Interest rate applicable to the mortgage loan | 4.88% | |
Double Tree By Hilton Laurel [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 7,412,107 | 8,175,215 |
Prepayment Penalties | None | |
Maturity Date | May 05, 2023 | |
Amortization Provisions, Term | 25 years | |
Interest rate applicable to the mortgage loan | 5.25% | |
DoubleTree by Hilton Philadelphia Airport [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 39,413,672 | 40,734,077 |
Prepayment Penalties | None | |
Maturity Date | Oct. 31, 2023 | |
Amortization Provisions, Term | 30 years | |
Interest rate applicable to the mortgage loan | 2.27% | |
Double Tree By Hilton Raleigh Brownstone University | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 18,300,000 | |
Prepayment Penalties | Yes | |
Maturity Date | Aug. 01, 2022 | |
Interest rate applicable to the mortgage loan | 4% | |
DoubleTree Resort by Hilton Hollywood Beach [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 52,724,475 | 54,253,963 |
Maturity Date | Oct. 01, 2025 | |
Amortization Provisions, Term | 30 years | |
Interest rate applicable to the mortgage loan | 4.913% | |
Georgian Terrace [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 40,492,622 | 41,484,732 |
Maturity Date | Jun. 01, 2025 | |
Amortization Provisions, Term | 30 years | |
Interest rate applicable to the mortgage loan | 4.42% | |
Hotel Alba Tampa, Tapestry Collection by Hilton [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 24,756,400 | 17,383,397 |
Prepayment Penalties | None | |
Maturity Date | Jun. 30, 2025 | |
Interest rate applicable to the mortgage loan | 2.75% | |
Hotel Ballast Wilmington,Tapestry Collection by Hilton [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 31,699,775 | 32,604,948 |
Prepayment Penalties | Yes | |
Maturity Date | Jan. 01, 2027 | |
Amortization Provisions, Term | 25 years | |
Interest rate applicable to the mortgage loan | 4.25% | |
Hyatt Centric Arlington [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 47,534,606 | 48,990,136 |
Prepayment Penalties | Yes | |
Maturity Date | Oct. 01, 2028 | |
Amortization Provisions, Term | 30 years | |
Interest rate applicable to the mortgage loan | 5.25% | |
Sheraton Louisville Riverside [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | 10,947,366 | |
Prepayment Penalties | Yes | |
Maturity Date | Dec. 01, 2026 | |
Amortization Provisions, Term | 25 years | |
Interest rate applicable to the mortgage loan | 4.27% | |
The Whitehall [Member] | Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loans | $ 14,226,067 | $ 14,551,671 |
Prepayment Penalties | None | |
Maturity Date | Feb. 26, 2028 | |
Amortization Provisions, Term | 25 years | |
Interest rate applicable to the mortgage loan | 1.25% |
Debt - Schedule of Mortgage D_2
Debt - Schedule of Mortgage Debt Obligations on Hotels (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |||||
Apr. 28, 2022 | Apr. 27, 2022 | Jul. 15, 2021 | Jul. 14, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate caps for loan | 3.25% | 3.25% | ||||
DoubleTree by Hilton Philadelphia Airport [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan rate swapped for fixed interest rate | 5.237% | 5.237% | ||||
Mortgage Loans [Member] | The DeSoto [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 25 years | |||||
Interest-only payment period | 1 year | |||||
Period before maturity in which prepayment is allowed with out penalty | 120 days | |||||
Maturity Date | Jul. 01, 2026 | |||||
Interest rate applicable to the mortgage loan | 4.25% | |||||
Mortgage Loans [Member] | Double Tree By Hilton Jacksonville Riverfront | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 30 years | |||||
Prepayment date before maturity in which prepayment is allowed with penalty | 2024-03 | |||||
Maturity Date | Jul. 11, 2024 | |||||
Interest rate applicable to the mortgage loan | 4.88% | |||||
Mortgage Loans [Member] | Double Tree By Hilton Laurel [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 25 years | |||||
Extended maturity date | May 05, 2023 | May 05, 2022 | May 05, 2022 | Aug. 05, 2021 | ||
Maturity Date | May 05, 2023 | |||||
Interest rate applicable to the mortgage loan | 5.25% | |||||
Mortgage Loans [Member] | Double Tree By Hilton Laurel [Member] | Prepayment Penalty on or After February 5, 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Exit fee | 0.75% | |||||
Mortgage Loans [Member] | DoubleTree by Hilton Philadelphia Airport [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 30 years | |||||
Floating interest rate period | 1 month | |||||
Maturity Date | Oct. 31, 2023 | |||||
Interest rate applicable to the mortgage loan | 2.27% | |||||
Mortgage Loans [Member] | DoubleTree by Hilton Philadelphia Airport [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Excess Interest rate on mortgage debt | 2.27% | |||||
Mortgage Loans [Member] | DoubleTree by Hilton Philadelphia Airport [Member] | Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan rate swapped for fixed interest rate | 5.237% | |||||
Maturity Date | Jul. 31, 2023 | |||||
Mortgage Loans [Member] | Double Tree By Hilton Raleigh Brownstone University | ||||||
Debt Instrument [Line Items] | ||||||
Maturity Date | Aug. 01, 2022 | |||||
Interest rate applicable to the mortgage loan | 4% | |||||
Mortgage Loans [Member] | DoubleTree Resort by Hilton Hollywood Beach [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 30 years | |||||
Maturity Date | Oct. 01, 2025 | |||||
Prepayment date before maturity | 2025-06 | |||||
Interest rate applicable to the mortgage loan | 4.913% | |||||
Mortgage Loans [Member] | Georgian Terrace [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 30 years | |||||
Maturity Date | Jun. 01, 2025 | |||||
Prepayment date before maturity | 2025-02 | |||||
Interest rate applicable to the mortgage loan | 4.42% | |||||
Mortgage Loans [Member] | Hotel Alba Tampa, Tapestry Collection by Hilton [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity Date | Jun. 30, 2025 | |||||
Fixed interest rate | 2.75% | |||||
Debt instrument periodic payment | $ 40,600 | |||||
Interest rate applicable to the mortgage loan | 2.75% | |||||
Mortgage Loans [Member] | Hotel Alba Tampa, Tapestry Collection by Hilton [Member] | SOFR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Excess Interest rate on mortgage debt | 2.75% | |||||
Mortgage Loans [Member] | Hotel Alba Tampa, Tapestry Collection by Hilton [Member] | Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan rate swapped for fixed interest rate | 5.576% | |||||
Mortgage Loans [Member] | Hotel Ballast Wilmington,Tapestry Collection by Hilton [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 25 years | |||||
Interest-only payment period | 1 year | |||||
Period before maturity in which prepayment is allowed with out penalty | 120 days | |||||
Maturity Date | Jan. 01, 2027 | |||||
Interest rate applicable to the mortgage loan | 4.25% | |||||
Mortgage Loans [Member] | Hyatt Centric Arlington [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 30 years | |||||
Maturity Date | Oct. 01, 2028 | |||||
Debt instrument prepayment lockout period | 5 years | |||||
Debt instrument prepayment without penalty period during final term | 4 months | |||||
Interest rate applicable to the mortgage loan | 5.25% | |||||
Mortgage Loans [Member] | Hyatt Centric Arlington [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment penalty period | 6 years | |||||
Mortgage Loans [Member] | Hyatt Centric Arlington [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument prepayment penalty period | 10 years | |||||
Mortgage Loans [Member] | Sheraton Louisville Riverside [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 25 years | |||||
Maturity Date | Dec. 01, 2026 | |||||
Interest rate applicable to the mortgage loan | 4.27% | |||||
Mortgage Loans [Member] | The Whitehall [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amortization Period | 25 years | |||||
Maturity Date | Feb. 26, 2028 | |||||
Interest rate applicable to the mortgage loan | 1.25% | |||||
Mortgage Loans [Member] | The Whitehall [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Excess Interest rate on mortgage debt | 1.25% | |||||
Fixed interest rate | 7.50% |
Debt - Schedule of Future Mortg
Debt - Schedule of Future Mortgage Debt Maturities (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
December 31, 2023 | $ 53,555,486 | |
December 31, 2024 | 38,069,572 | |
December 31, 2025 | 116,084,892 | |
December 31, 2026 | 58,588,970 | |
December 31, 2027 | 1,757,220 | |
December 31, 2028 and thereafter | 53,839,176 | |
Total future maturities | $ 321,895,316 | $ 352,625,640 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2020 USD ($) | Sep. 26, 2019 USD ($) RenewalPeriod | Mar. 01, 2018 USD ($) RenewalPeriod | Dec. 31, 2019 USD ($) ft² | Feb. 28, 2017 USD ($) shares | Dec. 31, 2022 USD ($) ft² Hotel | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 29, 2016 USD ($) | |
Operating Leased Assets [Line Items] | |||||||||
Maximum amount allocated to purchase common stock under ESOP | $ 5,000,000 | ||||||||
Number of common stock, shares purchased | shares | 682,500 | ||||||||
Purchased common stock, value | $ 4,900,000 | ||||||||
Hotel Ballast [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
The DeSoto [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
DoubleTree by Hilton Brownstone-University [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
Double Tree by Hilton Jacksonville Riverfront [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
DoubleTree Resort by Hilton Hollywood Beach [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
Whitehall [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Georgian Terrace [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
DoubleTree by Hilton Philadelphia Airport [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Minimum [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Franchise fees of room revenues | 3% | ||||||||
Additional fees of gross revenues from the hotels | 3% | ||||||||
Franchise agreement expiry date | 2024-10 | ||||||||
Maximum [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Franchise fees of room revenues | 5% | ||||||||
Additional fees of gross revenues from the hotels | 4% | ||||||||
Franchise agreement expiry date | 2038-03 | ||||||||
Maximum [Member] | ESOP [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Borrowed amount | $ 5,000,000 | ||||||||
Chesapeake Hospitality [Member] | Individual Hotel Management Agreements [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Master management agreement expiration date | Mar. 31, 2035 | ||||||||
Number of wholly-owned hotels operated under master management agreement | Hotel | 10 | ||||||||
Number of condominium resort rental programs | Hotel | 2 | ||||||||
Expiry date of master management agreement | on March 31, 2035 and may be extended for up to two additional periods of five years each, subject to the approval of both parties | ||||||||
Hyatt Centric Arlington [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Monthly contribution of room revenues | 4% | ||||||||
Restricted cash reserve | amount equal to one-twelfth (1/12) of the annual real estate taxes due for the properties | ||||||||
Hyatt Centric Arlington [Member] | Franchise Agreement with Affiliate of Hyatt Hotels Corporation Operating as Hyatt Centric Arlington [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Rent expense | $ 501,042 | $ 232,588 | $ 153,019 | ||||||
Rental payments per year in base rent under ground lease | $ 50,000 | ||||||||
Ground lease percentage rent on gross rooms revenues in excess of thresholds | 3.50% | ||||||||
Initial term of ground lease expires year | 2025 | ||||||||
Number of renewal periods exercised under ground lease | RenewalPeriod | 5 | ||||||||
Duration period under ground lease for each renewal periods exercised | 10 years | ||||||||
Hyde Beach House [Member] | Management Agreement for Parking Garage and Poolside [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Rent expense | $ 271,000 | 271,000 | 85,166 | ||||||
Annual payment | $ 270,100 | ||||||||
Initial term of agreement | 20 years | ||||||||
Lessee, operating lease expiration year | 2039 | ||||||||
Lessee, operating lease, existence of option to extend [true false] | true | ||||||||
Lessee, operating lease, option to extend | The initial term of the parking garage and cabana lease expires in 2039 and may be extended for four additional renewal periods of 5 years each. | ||||||||
Number of additional renewal periods | RenewalPeriod | 4 | ||||||||
Additional renewal of agreement | 5 years | ||||||||
Williamsburg Virginia [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Area of commercial space leased | ft² | 8,500 | ||||||||
Rent expense | $ 218,875 | ||||||||
Commencement date of agreement | Jan. 01, 2020 | ||||||||
Lease rent increase each successive period percentage | 3% | ||||||||
Tenant improvement allowance | $ 200,000 | ||||||||
The DeSoto Hotel Property [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Area of commercial space leased | ft² | 2,086 | ||||||||
Operating lease, expiring date | Oct. 31, 2006 | ||||||||
Expiration date three under renewal option second | Oct. 31, 2026 | ||||||||
Rent expense | $ 83,932 | 83,932 | 74,809 | ||||||
Hotel Alba Tampa, Tapestry Collection by Hilton [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Rent expense | $ 2,608 | 2,575 | 2,604 | ||||||
Commencement date of agreement | 2019-07 | ||||||||
Operating lease, expiring date | 2024-07 | ||||||||
Annual payment | $ 2,432 | ||||||||
Additional renewal of agreement | 5 years | ||||||||
8,500 Square Feet of Commercial Office Space [Member] | Williamsburg Virginia [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Rent expense | $ 223,607 | $ 223,607 | $ 223,607 | ||||||
Furniture, Fixtures and Equipment [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Financing arrangement expiration date | 2027-12 | ||||||||
Ninety Nine Year Operating Lease Property [Member] | Savannah Hotel Property [Member] | |||||||||
Operating Leased Assets [Line Items] | |||||||||
Operating lease, expiring date | Jul. 31, 2086 | ||||||||
Rental income recognized during period | $ 0 | ||||||||
Original lump sum rent payment received | $ 990 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Minimum Future Lease Payments (Detail) | Dec. 31, 2022 USD ($) |
Finance Lease Liabilities Payments Due [Abstract] | |
December 31, 2023 | $ 675,927 |
December 31, 2024 | 678,300 |
December 31, 2025 | 683,348 |
December 31, 2026 | 673,413 |
December 31, 2027 | 342,503 |
December 31, 2028 and thereafter | 13,512,577 |
Total | $ 16,566,068 |
Preferred Stock and Units - Add
Preferred Stock and Units - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Preferred Units [Line Items] | ||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, liquidation preference per share | $ 25 | $ 25 |
Preferred stock amount of undeclared and cumulative preferred dividends | $ 21.9 | |
Preferred units amount of undeclared and cumulative preferred dividends | $ 21.9 | |
Sotherly Hotels LP [Member] | ||
Preferred Units [Line Items] | ||
Preferred stock, liquidation preference per share | $ 25 | $ 25 |
Sotherly Hotels LP [Member] | 8.25% Series D Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred Units [Line Items] | ||
Preferred units, dividend rate percentage | 8.25% | |
Sotherly Hotels LP [Member] | 7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred Units [Line Items] | ||
Preferred units, dividend rate percentage | 7.875% | |
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred Units [Line Items] | ||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, liquidation preference per share | $ 25 | |
Preferred stock, shares issued | 1,163,100 | 1,165,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, dividend rate percentage | 8.25% | 8.25% |
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | Sotherly Hotels LP [Member] | ||
Preferred Units [Line Items] | ||
Preferred units, dividend rate percentage | 8.25% | 8.25% |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Preferred Units [Line Items] | ||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 |
Preferred stock, liquidation preference per share | $ 25 | |
Preferred stock, shares issued | 1,346,110 | 1,384,610 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, dividend rate percentage | 7.875% | 7.875% |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | Sotherly Hotels LP [Member] | ||
Preferred Units [Line Items] | ||
Preferred units, dividend rate percentage | 7.875% | 7.875% |
Preferred Stock and Units - Sch
Preferred Stock and Units - Schedule of Series of Cumulative Redeemable Perpetual Preferred Stock (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | ||
Preferred Stock, Liquidation Preference | $ 25 | $ 25 |
8.0% Series B Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred Stock, Per Annum Rate | 8% | 8% |
Preferred Stock, Liquidation Preference | $ 25 | |
Preferred Stock, Shares Issued | 1,464,100 | 1,510,000 |
Preferred Stock, Number of Shares Outstanding | 1,464,100 | 1,510,000 |
Preferred Stock, Quarterly Distributions Per Share | $ 0.500000 | |
7.875% Series C Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred Stock, Per Annum Rate | 7.875% | 7.875% |
Preferred Stock, Liquidation Preference | $ 25 | |
Preferred Stock, Shares Issued | 1,346,110 | 1,384,610 |
Preferred Stock, Number of Shares Outstanding | 1,346,110 | 1,384,610 |
Preferred Stock, Quarterly Distributions Per Share | $ 0.492188 | |
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred Stock, Per Annum Rate | 8.25% | 8.25% |
Preferred Stock, Liquidation Preference | $ 25 | |
Preferred Stock, Shares Issued | 1,163,100 | 1,165,000 |
Preferred Stock, Number of Shares Outstanding | 1,163,100 | 1,165,000 |
Preferred Stock, Quarterly Distributions Per Share | $ 0.515625 |
Preferred Stock and Units - S_2
Preferred Stock and Units - Schedule of Series of Cumulative Redeemable Perpetual Preferred Units (Detail) - Sotherly Hotels LP [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
8% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred Units [Line Items] | ||
Preferred Units, Per Annum Rate | 8% | |
Preferred Units, Liquidation Preference | $ 25 | |
Preferred Units, Number of Units Issued | 1,464,100 | 1,510,000 |
Preferred Units, Number of Units Outstanding | 1,464,100 | 1,510,000 |
Preferred Units, Quarterly Distributions Per Unit | $ 0.500000 | |
7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred Units [Line Items] | ||
Preferred Units, Per Annum Rate | 7.875% | |
Preferred Units, Liquidation Preference | $ 25 | |
Preferred Units, Number of Units Issued | 1,346,110 | 1,384,610 |
Preferred Units, Number of Units Outstanding | 1,346,110 | 1,384,610 |
Preferred Units, Quarterly Distributions Per Unit | $ 0.492188 | |
8.25% Series D Cumulative Redeemable Perpetual Preferred Units [Member] | ||
Preferred Units [Line Items] | ||
Preferred Units, Per Annum Rate | 8.25% | |
Preferred Units, Liquidation Preference | $ 25 | |
Preferred Units, Number of Units Issued | 1,163,100 | 1,165,000 |
Preferred Units, Number of Units Outstanding | 1,163,100 | 1,165,000 |
Preferred Units, Quarterly Distributions Per Unit | $ 0.515625 |
Preferred Stock and Units - Qua
Preferred Stock and Units - Quarterly Distributions Declared and Payable by Operating Partnership (Detail) - Sotherly Hotels LP [Member] | 3 Months Ended |
Mar. 31, 2020 $ / shares | |
8% Series B Cumulative Redeemable Perpetual Preferred Units [Member] | |
Class Of Stock [Line Items] | |
Preferred Stock, Quarterly Distributions Per Share | $ 0.500000 |
7.875% Series C Cumulative Redeemable Perpetual Preferred Units [Member] | |
Class Of Stock [Line Items] | |
Preferred Stock, Quarterly Distributions Per Share | 0.492188 |
8.25% Series D Cumulative Redeemable Perpetual Preferred Units [Member] | |
Class Of Stock [Line Items] | |
Preferred Stock, Quarterly Distributions Per Share | $ 0.515625 |
Preferred Stock and Units - Q_2
Preferred Stock and Units - Quarterly Distributions Declared and Payable by Operating Partnership (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
8.25% Series D Cumulative Redeemable Perpetual Preferred Stock [Member] | |
Class Of Stock [Line Items] | |
Preferred Stock, Quarterly Distributions Per Share | $ 0.515625 |
Common Stock and Units - Additi
Common Stock and Units - Additional Information (Detail) | 12 Months Ended | 14 Months Ended | 24 Months Ended | |||||||||||||||||||||||||
Nov. 01, 2022 shares | Aug. 23, 2022 shares | Aug. 18, 2022 shares | Jul. 01, 2022 shares | May 19, 2022 shares | Apr. 19, 2022 shares | Apr. 11, 2022 shares | Mar. 31, 2022 shares | Mar. 24, 2022 shares | Jan. 21, 2022 shares | Dec. 16, 2021 shares | Dec. 09, 2021 shares | Dec. 03, 2021 shares | Jun. 21, 2021 shares | Feb. 04, 2021 shares | Dec. 17, 2020 shares | Dec. 01, 2020 shares | May 01, 2020 shares | Feb. 23, 2020 shares | Jan. 01, 2020 shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 shares | Aug. 24, 2022 shares | Dec. 31, 2021 USD ($) $ / shares shares | Jul. 21, 2022 shares | May 23, 2022 shares | Feb. 15, 2022 shares | |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Common stock, shares authorized | 69,000,000 | 69,000,000 | 69,000,000 | |||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||||
Voting right | Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. | |||||||||||||||||||||||||||
Common stock, shares outstanding | 18,951,525 | 17,441,058 | 17,441,058 | |||||||||||||||||||||||||
Common stock exchange ratio | 1 | |||||||||||||||||||||||||||
Redemption of units in operating partnership | 0 | |||||||||||||||||||||||||||
Operating partnership units converted | 217,845 | 40,687 | 50,000 | |||||||||||||||||||||||||
Operating Partnership common units not owned | 825,188 | 1,133,720 | 1,133,720 | |||||||||||||||||||||||||
Unpaid common dividends and distributions amount to holders | $ | $ 2,088,160 | |||||||||||||||||||||||||||
Sotherly Hotels LP [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Operating Partnership common units outstanding | 19,776,713 | 18,574,778 | 18,574,778 | |||||||||||||||||||||||||
Fair market value | $ | $ 1,500,000 | $ 2,400,000 | $ 2,400,000 | |||||||||||||||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 208,500 | |||||||||||||||||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 145,900 | |||||||||||||||||||||||||||
Series D Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 36,900 | |||||||||||||||||||||||||||
Privately Negotiated Share Exchange Agreement [Member] | Series C Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 3,200 | 7,100 | 10,600 | 8,000 | 6,600 | 3,000 | 75,000 | 10,000 | 85,000 | |||||||||||||||||||
Privately Negotiated Share Exchange Agreement [Member] | Series B Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 13,000 | 11,000 | 5,000 | 4,000 | 5,900 | 7,000 | 100,000 | |||||||||||||||||||||
Privately Negotiated Share Exchange Agreement [Member] | Series D Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 1,900 | 35,000 | ||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | 32,681 | 100 | 15,000 | 57,687 | 488,952 | 308,532 | 32,781 | 561,639 | ||||||||||||||||||||
Number of shares exchanged in agreement | 395,086 | 151,281 | 30,393,995 | |||||||||||||||||||||||||
Unrestricted shares issued | 136,281 | 2,250 | 167,390 | 37,428 | 175,268 | |||||||||||||||||||||||
Number of issued unit in Operating Partnership | 15,000 | 45,000 | ||||||||||||||||||||||||||
Restricted shares issued | 17,250 | 45,000 | 187,583 | |||||||||||||||||||||||||
Common Stock [Member] | Sotherly Hotels LP [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of issued unit in Operating Partnership | 15,000 | 15,000 | 127,583 | |||||||||||||||||||||||||
Common Stock [Member] | Privately Negotiated Share Exchange Agreement [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of shares exchanged in agreement | 140,130 | 178,800 | 153,504 | 116,640 | 120,875 | 96,900 | 620,919 | 69,500 | 1,542,727 |
Common Stock and Units - Quarte
Common Stock and Units - Quarterly Stock Dividends and Unit Distributions Declared and Payable Per Common Stock/Unit (Detail) | Mar. 31, 2020 $ / shares |
Sotherly Hotels LP [Member] | |
Class of Stock [Line Items] | |
Dividends payable amount per share | $ 0.130 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jul. 01, 2022 shares | May 19, 2022 shares | Dec. 16, 2021 shares | Jun. 04, 2021 USD ($) | Feb. 04, 2021 shares | Dec. 01, 2020 shares | May 01, 2020 shares | Apr. 01, 2020 | Jan. 01, 2020 USD ($) Hotel shares | Dec. 13, 2019 USD ($) ft² Resort Hotel | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 | Oct. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Operating Income (Loss) | $ 5,141,325 | $ 3,288,996 | $ 8,199,288 | $ 3,925,204 | $ (11,902,483) | $ 2,786,602 | $ 3,143,151 | $ (2,082,276) | $ 20,554,813 | $ (8,055,006) | $ (29,749,670) | |||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | shares | 32,681 | 100 | 15,000 | 57,687 | 488,952 | 308,532 | 32,781 | 561,639 | ||||||||||||||||
Common Stock [Member] | Chairman [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | shares | 32,681 | |||||||||||||||||||||||
Common Stock [Member] | Sibling of chairman [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | shares | 57,867 | 410,000 | ||||||||||||||||||||||
Common Stock [Member] | Trust in which Chairman has Potential Beneficial Interest [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Conversion of units in Operating Partnership to shares of common stock, shares | shares | 40,687 | 50,000 | ||||||||||||||||||||||
OTH Master Agreement [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Operating Income (Loss) | $ 250,000 | |||||||||||||||||||||||
Percentage of management fee due | 2.50% | 2.50% | ||||||||||||||||||||||
Management fee of gross revenues for first full fiscal year | 2% | 2% | ||||||||||||||||||||||
Management fee of gross revenues for second full fiscal year | 2.25% | 2.25% | ||||||||||||||||||||||
Management fee of gross revenues for every year thereafter | 2.50% | 2.50% | ||||||||||||||||||||||
Our Town Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Accounts receivable - affiliate | $ 300,000 | 200,000 | $ 300,000 | $ 200,000 | ||||||||||||||||||||
Accounts payable - affiliate | $ 1,300,000 | $ 1,000,000 | $ 1,300,000 | 1,000,000 | ||||||||||||||||||||
Guaranteed minimum incentive management fee in satisfaction of remainder of unrepaid management fee advances | 250,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | Master Agreement [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Number of rental programs | Resort | 2 | |||||||||||||||||||||||
Our Town Hospitality [Member] | Credit Agreement in Partial Satisfaction [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Working capital and management fee advances | $ 299,900 | |||||||||||||||||||||||
Chesapeake Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Expire date of remaining individual hotels | Apr. 01, 2020 | |||||||||||||||||||||||
Andrew M. Sims [Member] | Our Town Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Percentage of total outstanding ownership interests | 63% | 63% | ||||||||||||||||||||||
Andrew M. Sims [Member] | Chesapeake Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Percentage of total outstanding ownership interests | 19.30% | |||||||||||||||||||||||
David R. Folsom [Member] | Our Town Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Percentage of total outstanding ownership interests | 7% | 7% | ||||||||||||||||||||||
Andrew M. Sims Jr [Member] | Our Town Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Percentage of total outstanding ownership interests | 15% | 15% | ||||||||||||||||||||||
Our Town Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Area of office space subleased | ft² | 2,245 | |||||||||||||||||||||||
Sublease term | 5 years | |||||||||||||||||||||||
Additional renewal of agreement | 5 years | |||||||||||||||||||||||
Lessee, operating lease, existence of option to extend [true false] | true | |||||||||||||||||||||||
Lease payments due | $ 159,734 | 144,452 | ||||||||||||||||||||||
Maximum amount of credit available capped | 894,900 | |||||||||||||||||||||||
Total amount of advances | $ 894,900 | |||||||||||||||||||||||
Additional advances allowed | $ 0 | |||||||||||||||||||||||
Maturity date extended period | Dec. 31, 2026 | |||||||||||||||||||||||
Line of credit facility, interest rate at period | 3.50% | |||||||||||||||||||||||
Employee medical benefits paid | 2,700,000 | |||||||||||||||||||||||
Incentive management fees expense by related party | $ 300,000 | 300,000 | ||||||||||||||||||||||
Our Town Hospitality [Member] | December 31, 2021 [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Principal payments | 100,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | December 31, 2022 [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Principal payments | 100,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | December 31, 2023 [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Principal payments | 100,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | December 31, 2024 [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Principal payments | 100,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | December 31, 2025 [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Principal payments | 100,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | Maximum [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Working capital line of credit | $ 500,000 | |||||||||||||||||||||||
Our Town Hospitality [Member] | Master Agreement [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Base management fees earned by related party | 4,100,000 | 3,400,000 | ||||||||||||||||||||||
Our Town Hospitality [Member] | OTH Master Agreement [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Number of wholly owned hotels | Hotel | 10 | |||||||||||||||||||||||
Percentage of reduction in payable fees | 25% | |||||||||||||||||||||||
Termination fees due | $ 300,000 | 300,000 | ||||||||||||||||||||||
Our Town Hospitality [Member] | OTH Master Agreement [Member] | Maximum [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Initial working capital | $ 1,000,000 | |||||||||||||||||||||||
Chesapeake Hospitality [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Employee medical benefits paid | 3,200,000 | |||||||||||||||||||||||
Expire date of wholly-owned hotels | Jan. 01, 2020 | |||||||||||||||||||||||
Number of wholly-owned hotels expired | Hotel | 10 | |||||||||||||||||||||||
Termination fees paid | $ 200,000 | |||||||||||||||||||||||
Base management and administrative fees earned by related party | $ 0 | 0 | $ 241,332 | |||||||||||||||||||||
Incentive management fees expense by related party | 0 | 0 | (40,375) | |||||||||||||||||||||
Immediate Family Members of Chairman [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Total compensation for related parties | $ 605,163 | $ 462,809 | $ 464,218 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) | 2 Months Ended | 12 Months Ended | ||||
May 15, 2020 | Feb. 28, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 29, 2016 | |
Retirement Benefits [Abstract] | ||||||
Deferral equal to 3.0% of eligible employee compensation | 100% | |||||
Deferral equal to the next 2.0% of eligible employee compensation | 50% | |||||
Percentage of deferral equal to eligible employee compensation | 3% | |||||
Percentage of next specified deferral equal to eligible employee compensation | 2% | |||||
Percentage of discretionary contribution eligible employee compensation | 3% | |||||
Contribution for retirement plan | $ 75,631 | $ 53,474 | $ 42,841 | |||
Maximum amount allocated to purchase common stock under ESOP | $ 5,000,000 | |||||
Number of common stock, shares purchased | 682,500 | |||||
Purchased common stock, value | $ 4,900,000 | |||||
Total number of ESOP shares | 301,646 | 247,606 | ||||
Fair value of ESOP released from suspense account and recognized compensation cost | $ 545,979 | $ 517,496 | ||||
Compensation cost recognized | $ 140,703 | $ 172,000 | $ 175,367 | |||
Number of non committed, unearned ESOP shares | 364,177 | 431,697 | 509,069 | |||
Fair value of unallocated ESOP shares | $ 659,160 | $ 902,247 | ||||
Number of ESOP shares allocated | 301,646 | 247,606 | ||||
Number of ESOP shares committed to be released | 0 |
Retirement Plans - Summary of S
Retirement Plans - Summary of Shares Allocations are Accounted For Fair Value on The Date of Allocations (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | |||
Number of ESOP shares allocated | 301,646 | 247,606 | |
Number of ESOP shares committed to be released | 0 | ||
Total number of ESOP allocated and committed-to-be-released | 301,646 | 247,606 | |
Number of non committed, unearned ESOP shares | 364,177 | 431,697 | 509,069 |
Total number of ESOP shares | 665,823 | 679,303 | |
Fair value of ESOP allocated shares | $ 545,979 | $ 517,496 | |
Total fair value of ESOP allocated and committed-to-be-released | 545,979 | 517,496 | |
Fair value of ESOP unallocated shares | 659,160 | 902,247 | |
Total fair value of ESOP shares | $ 1,205,139 | $ 1,419,743 |
Indirect Hotel Operating Expe_3
Indirect Hotel Operating Expenses - Summary of Indirect Hotel Operating Expenses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | $ 64,811,567 | $ 55,100,245 | $ 45,487,308 |
Sales and Marketing [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 15,062,397 | 11,684,933 | 8,094,085 |
General and Administrative [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 13,436,054 | 10,533,201 | 10,542,495 |
Repairs and Maintenance [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 8,723,144 | 7,362,334 | 5,490,145 |
Utilities [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 5,649,716 | 5,309,637 | 4,817,508 |
Property Taxes [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 5,254,075 | 6,131,271 | 7,014,472 |
Management Fees, Including Incentive [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 4,377,814 | 3,620,071 | 1,822,359 |
Franchise Fees [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 4,059,709 | 3,321,352 | 2,042,902 |
Insurance [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 4,082,551 | 3,596,153 | 3,097,245 |
Information and Telecommunications [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | 3,378,716 | 3,048,495 | 2,271,266 |
Other [Member] | |||
Component Of Operating Cost And Expense [Line Items] | |||
Total indirect hotel operating expenses | $ 787,391 | $ 492,798 | $ 294,831 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ (125,587) | ||
State | $ 522,355 | $ 27,392 | (6,054) |
Total | 522,355 | 27,392 | (131,641) |
Deferred: | |||
Federal | 3,025,518 | (149,704) | (7,576,931) |
State | 695,708 | (38,580) | (1,705,939) |
Subtotals | 3,721,226 | (188,284) | (9,282,870) |
Change in deferred tax valuation allowance | (3,721,226) | 188,284 | 14,694,954 |
Deferred income taxes | 5,412,084 | ||
Income tax (benefit) provision | $ 522,355 | $ 27,392 | $ 5,280,443 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Income Tax Provision (Benefit) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax provision (benefit) | $ 7,241,263 | $ (5,987,572) | $ (10,164,517) |
Federal tax impact of REIT election | (3,255,236) | 5,851,466 | 2,530,482 |
Federal impact of PPP loan forgiveness | (966,584) | ||
State income tax provision (benefit), net of federal provision (benefit) | 1,224,138 | (24,786) | (1,780,476) |
Change in valuation allowance | (3,721,226) | 188,284 | 14,694,954 |
Income tax (benefit) provision | 522,355 | 27,392 | 5,280,443 |
TRS [Member] | |||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax provision (benefit) | $ 3,986,027 | $ (136,106) | $ (7,634,035) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Asset (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset: | |||
Net operating loss carryforwards | $ 10,744,121 | $ 14,287,318 | $ 14,409,321 |
Accrued compensation | 425,575 | 338,033 | 108,646 |
Accrued expenses and other | 247,037 | 128,318 | |
Intangible assets | 10,092 | 28,627 | 48,670 |
Less: Valuation allowance | $ (11,179,788) | $ (14,901,015) | $ (14,694,955) |
Earnings (Loss) per Share and_3
Earnings (Loss) per Share and per Unit - Additional Information (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Earnings Per Share [Abstract] | |||
Number of non-committed, unearned ESOP shares | 364,177 | 431,697 | 509,069 |
Earnings (Loss) per Share and_4
Earnings (Loss) per Share and per Unit - Computation of Basic Net Earnings (Loss) Per Share (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||||||||||
Net income (loss) | $ 5,192,870 | $ 1,972,563 | $ 27,605,359 | $ (810,944) | $ (16,881,825) | $ (2,528,221) | $ (1,553,970) | $ (7,575,624) | $ 33,959,848 | $ (28,539,640) | $ (53,682,905) |
Less: Net income allocated to participating share awards | (113,405) | ||||||||||
Net (income) loss attributable to non-controlling interest | 1,423,327 | (2,318,166) | (4,489,341) | ||||||||
Declared and undeclared distributions to preferred stockholders | (7,634,219) | (7,541,891) | (8,755,642) | ||||||||
Gain on extinguishment of preferred stock | 64,518 | 361,476 | |||||||||
Net income (loss) attributable to common stockholders for EPS computation | $ 24,853,415 | $ (33,401,889) | $ (57,949,206) | ||||||||
Denominator | |||||||||||
Weighted average number common shares outstanding for basic EPS computation | 17,802,772 | 15,531,684 | 14,312,049 | ||||||||
Weighted average number common and common equivalent shares outstanding for diluted EPS computation | 17,802,772 | 15,531,684 | 14,312,049 | ||||||||
Basic net income (loss) per common share: | |||||||||||
Undistributed income (loss) | $ 1.40 | $ (2.15) | $ (4.05) | ||||||||
Total basic | $ 0.18 | $ 0.01 | $ 1.36 | $ (0.15) | $ (1.05) | $ (0.27) | $ (0.19) | $ (0.62) | 1.40 | (2.15) | (4.05) |
Diluted net income (loss) per common share: | |||||||||||
Undistributed income (loss) | 1.40 | (2.15) | (4.05) | ||||||||
Total diluted | $ 0.18 | $ 0.01 | $ 1.36 | $ (0.15) | $ (1.05) | $ (0.27) | $ (0.19) | $ (0.62) | $ 1.40 | $ (2.15) | $ (4.05) |
Earnings (Loss) per Share and_5
Earnings (Loss) per Share and per Unit - Computation of Basic Earnings (Loss) Per Unit (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||||||||||
Net income (loss) | $ 5,192,870 | $ 1,972,563 | $ 27,605,359 | $ (810,944) | $ (16,881,825) | $ (2,528,221) | $ (1,553,970) | $ (7,575,624) | $ 33,959,848 | $ (28,539,640) | $ (53,682,905) |
Declared and undeclared distributions to preferred stockholders | (7,634,219) | (7,541,891) | $ (8,755,642) | ||||||||
Gain on extinguishment of preferred stock | $ 64,518 | $ 361,476 | |||||||||
Basic net income (loss) per unit: | |||||||||||
Undistributed income (loss) | $ 1.40 | $ (2.15) | $ (4.05) | ||||||||
Total basic | $ 0.17 | $ 0 | $ 1.33 | $ (0.14) | |||||||
Diluted net income (loss) per unit: | |||||||||||
Undistributed income (loss) | $ 1.40 | $ (2.15) | $ (4.05) | ||||||||
Total diluted | $ 0.17 | $ 0 | $ 1.33 | $ (0.14) | |||||||
Sotherly Hotels LP [Member] | |||||||||||
Numerator | |||||||||||
Net income (loss) | $ 33,959,848 | $ (28,539,640) | $ (53,682,905) | ||||||||
Less: Net income allocated to participating unit awards | (113,405) | ||||||||||
Declared and undeclared distributions to preferred stockholders | (7,634,219) | (7,541,891) | (8,755,642) | ||||||||
Gain on extinguishment of preferred stock | 64,518 | 361,476 | |||||||||
Net income (loss) attributable to unitholders for EPU computation | $ 26,276,742 | $ (35,720,055) | $ (62,438,547) | ||||||||
Denominator | |||||||||||
Weighted average number of units outstanding for basic EPU computation | 19,266,320 | 17,186,789 | 16,065,499 | ||||||||
Weighted average number of equivalent units outstanding for diluted EPU computation | 19,266,320 | 17,186,789 | 16,065,499 | ||||||||
Basic net income (loss) per unit: | |||||||||||
Undistributed income (loss) | $ 1.36 | $ (2.08) | $ (3.89) | ||||||||
Total basic | 1.36 | (2.08) | (3.89) | ||||||||
Diluted net income (loss) per unit: | |||||||||||
Undistributed income (loss) | 1.36 | (2.08) | (3.89) | ||||||||
Total diluted | $ 1.36 | $ (2.08) | $ (3.89) |
Quarterly Operating Results -_3
Quarterly Operating Results - Unaudited - Quarterly Operating Results (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 41,341,747 | $ 39,212,695 | $ 47,170,259 | $ 38,352,603 | $ 35,075,957 | $ 35,493,126 | $ 34,383,309 | $ 22,635,532 | |||
Total operating expenses | 36,200,422 | 35,923,699 | 38,970,971 | 34,427,399 | 46,978,440 | 32,706,524 | 31,240,158 | 24,717,808 | |||
Net operating income (loss) | 5,141,325 | 3,288,996 | 8,199,288 | 3,925,204 | (11,902,483) | 2,786,602 | 3,143,151 | (2,082,276) | $ 20,554,813 | $ (8,055,006) | $ (29,749,670) |
Net income (loss) | 5,192,870 | 1,972,563 | 27,605,359 | (810,944) | (16,881,825) | (2,528,221) | (1,553,970) | (7,575,624) | 33,959,848 | (28,539,640) | (53,682,905) |
Net income (loss) attributable to common shareholders | $ 3,092,456 | $ 112,680 | $ 24,269,449 | $ (2,507,765) | $ (17,209,210) | $ (4,317,081) | $ (2,810,603) | $ (9,064,995) | $ 24,966,820 | $ (33,401,889) | $ (57,949,206) |
Basic | $ 0.18 | $ 0.01 | $ 1.36 | $ (0.15) | $ (1.05) | $ (0.27) | $ (0.19) | $ (0.62) | $ 1.40 | $ (2.15) | $ (4.05) |
Diluted | $ 0.18 | $ 0.01 | $ 1.36 | $ (0.15) | $ (1.05) | $ (0.27) | $ (0.19) | $ (0.62) | $ 1.40 | $ (2.15) | $ (4.05) |
Net loss available to operating partnership unitholders | $ 3,198,559 | $ 61,586 | $ 25,799,389 | $ (2,669,386) | $ (18,358,031) | $ (4,607,249) | $ (2,990,241) | $ (9,764,534) | |||
Income (loss) per unit attributable to operating partnership unitholders- basic | $ 0.17 | $ 0 | $ 1.33 | $ (0.14) | |||||||
Income (loss) per unit attributable to operating partnership unitholders- diluted | $ 0.17 | $ 0 | $ 1.33 | $ (0.14) | |||||||
Loss per unit attributable to operating partnership unitholders– basic and diluted | $ (1.02) | $ (0.26) | $ (0.18) | $ (0.60) |
Subsequent Events- Additional I
Subsequent Events- Additional Information (Detail) - USD ($) | 12 Months Ended | 14 Months Ended | |||||||||||||||||||||
Mar. 15, 2023 | Feb. 26, 2023 | Feb. 09, 2023 | Feb. 03, 2023 | Jan. 27, 2023 | Jan. 23, 2023 | Jan. 12, 2023 | Aug. 23, 2022 | Aug. 18, 2022 | Apr. 19, 2022 | Apr. 11, 2022 | Mar. 31, 2022 | Mar. 24, 2022 | Dec. 13, 2021 | Dec. 09, 2021 | Dec. 03, 2021 | Jun. 21, 2021 | Feb. 23, 2020 | Jan. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 24, 2022 | |
Subsequent Event [Line Items] | |||||||||||||||||||||||
Debt instrument, frequency of periodic payment | monthly | ||||||||||||||||||||||
Series B Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 145,900 | ||||||||||||||||||||||
Series C Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 208,500 | ||||||||||||||||||||||
Series D Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 36,900 | ||||||||||||||||||||||
Privately Negotiated Share Exchange Agreement [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 13,000 | 11,000 | 5,000 | 4,000 | 5,900 | 7,000 | 100,000 | ||||||||||||||||
Privately Negotiated Share Exchange Agreement [Member] | Series C Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 3,200 | 7,100 | 10,600 | 8,000 | 6,600 | 3,000 | 75,000 | 10,000 | 85,000 | ||||||||||||||
Privately Negotiated Share Exchange Agreement [Member] | Series D Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 1,900 | 35,000 | |||||||||||||||||||||
Sheraton Louisville Riverside [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Proceeds from sale of hotel property | $ 11,500,000 | ||||||||||||||||||||||
Net proceeds from from sale of hotel property | $ 0 | ||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Restricted shares issued | 17,250 | 45,000 | 187,583 | ||||||||||||||||||||
Issuance of unrestricted shares | 2,250 | ||||||||||||||||||||||
Issuance of common stock awards, shares | 395,086 | 151,281 | 30,393,995 | ||||||||||||||||||||
Common Stock [Member] | Privately Negotiated Share Exchange Agreement [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance of common stock awards, shares | 140,130 | 178,800 | 153,504 | 116,640 | 120,875 | 96,900 | 620,919 | 69,500 | 1,542,727 | ||||||||||||||
Subsequent Events [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Paycheck protection program loan amount | $ 268,309 | ||||||||||||||||||||||
Payment of monthly installments | $ 56,809 | $ 13,402 | |||||||||||||||||||||
Debt instrument, date of first required payment | Mar. 01, 2023 | Mar. 06, 2023 | |||||||||||||||||||||
Subsequent Events [Member] | Series B Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividend paid per share | $ 0.50 | ||||||||||||||||||||||
Subsequent Events [Member] | Series C Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividend paid per share | 0.492188 | ||||||||||||||||||||||
Subsequent Events [Member] | Series D Preferred Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividend paid per share | $ 0.515625 | ||||||||||||||||||||||
Subsequent Events [Member] | The Whitehall [Member] | Mortgage Loans [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Extended maturity date | Feb. 26, 2028 | ||||||||||||||||||||||
Excess Interest rate on mortgage debt | 1.25% | ||||||||||||||||||||||
Floor interest rate | 7.50% | ||||||||||||||||||||||
Subsequent Events [Member] | Independent Directors [Member] | Common Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Restricted shares issued | 15,000 | ||||||||||||||||||||||
Subsequent Events [Member] | Directors, Officers, and Employees [Member] | Common Stock [Member] | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Restricted shares issued | 205,000 | ||||||||||||||||||||||
Issuance of unrestricted shares | 64,278 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation - Real Estate and Accumulated Depreciation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 321,895 | ||
Initial Costs, Land | 56,412 | ||
Initial Costs, Building & Improvements | 301,739 | ||
Costs Capitalized Subsequent to Acquisition, Land | 4,523 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 110,979 | ||
Gross Amount at End of Year, Land | 60,935 | ||
Gross Amount at End of Year, Building & Improvements | 412,718 | ||
Gross Amount at End of Year, Total | 473,653 | $ 509,620 | $ 508,153 |
Accumulated Depreciation & Impairment | $ (130,311) | ||
The DeSoto - Savannah, Georgia [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | The DeSoto – Savannah, Georgia | ||
Encumbrances | $ 31,219 | ||
Initial Costs, Land | 600 | ||
Initial Costs, Building & Improvements | 13,562 | ||
Costs Capitalized Subsequent to Acquisition, Land | 865 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 21,368 | ||
Gross Amount at End of Year, Land | 1,465 | ||
Gross Amount at End of Year, Building & Improvements | 34,930 | ||
Gross Amount at End of Year, Total | 36,395 | ||
Accumulated Depreciation & Impairment | $ (15,471) | ||
Date of Construction | 1968 | ||
Date Acquired | 2004 | ||
The DeSoto - Savannah, Georgia [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
The DeSoto - Savannah, Georgia [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree by Hilton Jacksonville Riverfront - Jacksonville, Florida [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree by Hilton Jacksonville Riverfront – Jacksonville, Florida | ||
Encumbrances | $ 32,416 | ||
Initial Costs, Land | 7,090 | ||
Initial Costs, Building & Improvements | 14,604 | ||
Costs Capitalized Subsequent to Acquisition, Land | 520 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 7,610 | ||
Gross Amount at End of Year, Land | 7,610 | ||
Gross Amount at End of Year, Building & Improvements | 22,214 | ||
Gross Amount at End of Year, Total | 29,824 | ||
Accumulated Depreciation & Impairment | $ (10,316) | ||
Date of Construction | 1970 | ||
Date Acquired | 2005 | ||
DoubleTree by Hilton Jacksonville Riverfront - Jacksonville, Florida [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Jacksonville Riverfront - Jacksonville, Florida [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree by Hilton Laurel - Laurel, Maryland [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree by Hilton Laurel – Laurel, Maryland | ||
Encumbrances | $ 7,412 | ||
Initial Costs, Land | 900 | ||
Initial Costs, Building & Improvements | 9,443 | ||
Costs Capitalized Subsequent to Acquisition, Land | 71 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 5,900 | ||
Gross Amount at End of Year, Land | 971 | ||
Gross Amount at End of Year, Building & Improvements | 15,343 | ||
Gross Amount at End of Year, Total | 16,314 | ||
Accumulated Depreciation & Impairment | $ (6,935) | ||
Date of Construction | 1985 | ||
Date Acquired | 2004 | ||
DoubleTree by Hilton Laurel - Laurel, Maryland [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Laurel - Laurel, Maryland [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree by Hilton Philadelphia Airport - Philadelphia, Pennsylvania [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree by Hilton Philadelphia Airport – Philadelphia, Pennsylvania | ||
Encumbrances | $ 39,414 | ||
Initial Costs, Land | 2,100 | ||
Initial Costs, Building & Improvements | 22,031 | ||
Costs Capitalized Subsequent to Acquisition, Land | 435 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 7,168 | ||
Gross Amount at End of Year, Land | 2,535 | ||
Gross Amount at End of Year, Building & Improvements | 29,199 | ||
Gross Amount at End of Year, Total | 31,734 | ||
Accumulated Depreciation & Impairment | $ (13,830) | ||
Date of Construction | 1972 | ||
Date Acquired | 2004 | ||
DoubleTree by Hilton Philadelphia Airport - Philadelphia, Pennsylvania [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree by Hilton Philadelphia Airport - Philadelphia, Pennsylvania [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach Florida [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach, Florida | ||
Encumbrances | $ 52,724 | ||
Initial Costs, Land | 22,865 | ||
Initial Costs, Building & Improvements | 67,660 | ||
Costs Capitalized Subsequent to Acquisition, Land | 634 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 9,107 | ||
Gross Amount at End of Year, Land | 23,499 | ||
Gross Amount at End of Year, Building & Improvements | 76,767 | ||
Gross Amount at End of Year, Total | 100,266 | ||
Accumulated Depreciation & Impairment | $ (15,696) | ||
Date of Construction | 1972 | ||
Date Acquired | 2015 | ||
DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach Florida [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
DoubleTree Resort by Hilton Hollywood Beach - Hollywood Beach Florida [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Georgian Terrace - Atlanta, Georgia [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Georgian Terrace – Atlanta, Georgia | ||
Encumbrances | $ 40,493 | ||
Initial Costs, Land | 10,128 | ||
Initial Costs, Building & Improvements | 45,386 | ||
Costs Capitalized Subsequent to Acquisition, Land | (1,168) | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 9,307 | ||
Gross Amount at End of Year, Land | 8,960 | ||
Gross Amount at End of Year, Building & Improvements | 54,693 | ||
Gross Amount at End of Year, Total | 63,653 | ||
Accumulated Depreciation & Impairment | $ (12,982) | ||
Date of Construction | 1911 | ||
Date Acquired | 2014 | ||
Georgian Terrace - Atlanta, Georgia [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Georgian Terrace - Atlanta, Georgia [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Hotel Alba Tampa, Tapestry Collection by Hilton - Tampa, Florida [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Hotel Alba Tampa, Tapestry Collection by Hilton – Tampa, Florida | ||
Encumbrances | $ 24,756 | ||
Initial Costs, Land | 4,153 | ||
Initial Costs, Building & Improvements | 9,670 | ||
Costs Capitalized Subsequent to Acquisition, Land | 1,777 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 26,026 | ||
Gross Amount at End of Year, Land | 5,930 | ||
Gross Amount at End of Year, Building & Improvements | 35,696 | ||
Gross Amount at End of Year, Total | 41,626 | ||
Accumulated Depreciation & Impairment | $ (12,983) | ||
Date of Construction | 1973 | ||
Date Acquired | 2007 | ||
Hotel Alba Tampa, Tapestry Collection by Hilton - Tampa, Florida [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Hotel Alba Tampa, Tapestry Collection by Hilton - Tampa, Florida [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Hotel Ballast Wilmington, Tapestry Collection by Hilton - Wilmington, North Carolina [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Hotel Ballast Wilmington, Tapestry Collection by Hilton – Wilmington, North Carolina | ||
Encumbrances | $ 31,700 | ||
Initial Costs, Land | 785 | ||
Initial Costs, Building & Improvements | 16,829 | ||
Costs Capitalized Subsequent to Acquisition, Land | 1,139 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 15,248 | ||
Gross Amount at End of Year, Land | 1,924 | ||
Gross Amount at End of Year, Building & Improvements | 32,077 | ||
Gross Amount at End of Year, Total | 34,001 | ||
Accumulated Depreciation & Impairment | $ (16,319) | ||
Date of Construction | 1970 | ||
Date Acquired | 2004 | ||
Hotel Ballast Wilmington, Tapestry Collection by Hilton - Wilmington, North Carolina [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Hotel Ballast Wilmington, Tapestry Collection by Hilton - Wilmington, North Carolina [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Hyatt Centric Arlington - Arlington, Virginia [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Hyatt Centric Arlington - Arlington, Virginia | ||
Encumbrances | $ 47,535 | ||
Initial Costs, Land | 191 | ||
Initial Costs, Building & Improvements | 70,369 | ||
Costs Capitalized Subsequent to Acquisition, Land | 79 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 1,792 | ||
Gross Amount at End of Year, Land | 270 | ||
Gross Amount at End of Year, Building & Improvements | 72,161 | ||
Gross Amount at End of Year, Total | 72,431 | ||
Accumulated Depreciation & Impairment | $ (9,032) | ||
Date Acquired | 2018 | ||
Hyatt Centric Arlington - Arlington, Virginia [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Hyatt Centric Arlington - Arlington, Virginia [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
The Whitehall - Houston, Texas [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | The Whitehall – Houston, Texas | ||
Encumbrances | $ 14,226 | ||
Initial Costs, Land | 7,374 | ||
Initial Costs, Building & Improvements | 22,185 | ||
Costs Capitalized Subsequent to Acquisition, Land | 171 | ||
Costs Capitalized Subsequent to Acquisition, Building & Improvements | 7,453 | ||
Gross Amount at End of Year, Land | 7,545 | ||
Gross Amount at End of Year, Building & Improvements | 29,638 | ||
Gross Amount at End of Year, Total | 37,183 | ||
Accumulated Depreciation & Impairment | $ (15,615) | ||
Date of Construction | 1963 | ||
Date Acquired | 2013 | ||
The Whitehall - Houston, Texas [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
The Whitehall - Houston, Texas [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Hyde Resort & Residences [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Hyde Resort & Residences | ||
Initial Costs, Land | $ 226 | ||
Initial Costs, Building & Improvements | 4,290 | ||
Gross Amount at End of Year, Land | 226 | ||
Gross Amount at End of Year, Building & Improvements | 4,290 | ||
Gross Amount at End of Year, Total | 4,516 | ||
Accumulated Depreciation & Impairment | $ (651) | ||
Date of Construction | 2016 | ||
Date Acquired | 2017 | ||
Hyde Resort & Residences [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Hyde Resort & Residences [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years | ||
Hyde Beach House Resort & Residences [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Description | Hyde Beach House Resort & Residences | ||
Initial Costs, Building & Improvements | $ 5,710 | ||
Gross Amount at End of Year, Building & Improvements | 5,710 | ||
Gross Amount at End of Year, Total | 5,710 | ||
Accumulated Depreciation & Impairment | $ (481) | ||
Date of Construction | 2019 | ||
Date Acquired | 2019 | ||
Hyde Beach House Resort & Residences [Member] | Minimum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 3 years | ||
Hyde Beach House Resort & Residences [Member] | Maximum [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Life on Which Depreciation is Computed | 39 years |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Real Estate and Accumulated Depreciation (Parenthetical) (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Aggregate cost of our real estate assets for federal income tax | $ 468.9 |
Schedule III - Real Estate an_4
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Real Estate and Accumulated Depreciation (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Real Estate | ||
Beginning Balance | $ 509,620,000 | $ 508,153,000 |
Improvements | 6,916,000 | 2,147,000 |
Disposal of Assets | (42,883,000) | (680,000) |
Ending Balance | 473,653,000 | 509,620,000 |
Reconciliation of Accumulated Depreciation | ||
Beginning Balance | 129,895,000 | 111,758,000 |
Current Expense | 13,462,000 | 14,474,000 |
Impairment of Real Estate | 0 | 12,201,461 |
Disposal of Assets | (13,046,000) | (8,538,000) |
Ending Balance | $ 130,311,000 | $ 129,895,000 |