Is Sotherly Hotels, Inc. overvalued or undervalued?

As of 7 July 2025, Sotherly Hotels, Inc. has moved from a fair to attractive valuation grade. The company appears undervalued, with a P/E ratio of 34, a Price to Book Value of 0.74, and an impressive ROCE of 157.31%. In comparison, ACRES Commercial Realty Corp. has a P/E of 7.22, while Strawberry Fields REIT, Inc. boasts a higher P/E of 24.91, indicating that Sotherly Hotels is trading at a premium relative to some peers but may still offer value given its strong returns on capital.
Despite the lack of return data, Sotherly Hotels' recent price movement suggests potential upside, as it has reached a current price of 0.92, up from a previous close of 0.84. This performance may indicate that the market is beginning to recognize its attractive valuation amidst a competitive landscape.