Is Sotherly Hotels, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Sotherly Hotels, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its valuation ratios, including a P/E ratio of 34, a Price to Book Value of 0.74, and an EV to EBIT of 0.05. In comparison to peers, ACRES Commercial Realty Corp. has a P/E of 7.22, while Strawberry Fields REIT, Inc. shows a P/E of 24.91, indicating that Sotherly's valuation is relatively high within its peer group.
Despite the fair valuation, Sotherly Hotels has shown impressive short-term performance, with a 1-week return of 138.12% compared to the S&P 500's 0.71%, and a year-to-date return of 127.61% against the S&P 500's 16.30%. However, over longer periods, such as 3 years and 5 years, the company has underperformed relative to the S&P 500, which suggests caution for potential investors.