Drew Sims, chairman and CEO of SoTHERLY Hotels Inc. (NASDAQ: SOHO), joined REIT.com for a CEO Spotlight video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.
SoTHERLY focuses on the acquisition, renovation and repositioning of upscale full-service hotels in the southern United States. Most of the company’s properties operate under the Hilton Worldwide, InterContinental Hotels Group, and Starwood Hotels and Resorts brands.
Sims commented on SoTHERLY’s period of transition in 2015, which involved “upbranding” two existing hotels and launching a proprietary collection of hotels in Atlanta and Houston.
“We looked inward to try to create value for our shareholders,” Sims said.
Meanwhile, Sims noted that fundamentals in SoTHERLY’s core markets are “mixed.” Among the strongest markets are Tampa and Jacksonville, Florida; Wilmington, Delaware; and the suburbs of Washington, D.C., he said. Houston, however, “has suffered tremendously.”
Looking at the portfolio as a whole, Sims said the company has performed “very well,” with revenue per available room (RevPAR) in excess of 13 percent in the first quarter.
“We continue our quest to try to have hotels in every major Southern market, and we march down that path every day,” Sims said.