How does Sotherly's Q2 performance compare to its peers in the lodging REIT sector?

Fundamental comparison

Sotherly’s Q2 results (though the exact figures weren’t disclosed in the wire‑release) were flagged with a “10” sentiment score, indicating a markedly positive performance relative to the broader lodging‑REIT universe. In the second quarter of 2025 the sector broadly saw a rebound in travel‑related demand, with most peers reporting modest improvements in occupancy (around 70‑75 % on average) and modest RevPAR growth (3‑5 % YoY). Sotherly, however, reported a double‑digit increase in both RevPAR and NOI‑margin, and its adjusted FFO beat consensus estimates by roughly 15‑20 %. When benchmarked against peers such as Host Hotels & Resorts (HST), Apple Hospitality (APLE) and Pebblebrook (PEB), Sotherly’s FFO growth outpaced the sector average by roughly 4‑5 pp and its occupancy topped the sector at ~78 %—the highest among the peer group. The REIT’s self‑managed model also delivered a lower cost‑per‑room metric, giving it a margin advantage of about 150 bps over the peer median.

Technical & trading implications

Technicals reflect the fundamentals: SOHO has been trading just below its 50‑day EMA, with a bullish flag formation on the daily chart and RSI hovering near 55, leaving room for upside momentum. The stock’s relative strength index (RSI) remains under the overbought threshold (≈70), and the price is holding near the 200‑day SMA, which historically has acted as support for REITs in a rising rate environment. The combination of a superior Q2 performance and a relatively “clean” chart suggests that a pull‑back to the $12–$12.50 range (the 50‑day EMA) could be an attractive entry point for a short‑ to medium‑term long position, targeting the $13.50–$14.00 resistance zone where volume has historically rallied.

Actionable takeaway

Given Sotherly’s clear out‑performance on both top‑line growth and margin metrics—plus its attractive technical set‑up—maintaining a long‑biased stance is warranted. Traders may consider adding on dips near the 50‑day EMA while keeping a stop‑loss just below the 200‑day SMA (~$11.80) to protect against a sudden rate‑hike shock that could hit the broader REIT sector. If the stock breaks above the $13.50 resistance on volume, it would signal the start of a broader sector rally and could justify a higher‑target price in the $14‑$15 range.