Is Sotherly Hotels, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Sotherly Hotels, Inc. moved from expensive to fair. Based on the current metrics, the company appears to be undervalued. Key ratios include a P/E ratio of 34, a Price to Book Value of 0.74, and an EV to EBIT of 0.05, which suggest that the stock is trading at a discount relative to its earnings potential and asset value.
In comparison to peers, Sotherly Hotels, Inc. has a P/E ratio that is significantly higher than ACRES Commercial Realty Corp. at 7.22 and Strawberry Fields REIT, Inc. at 24.91, indicating a relative valuation discrepancy. The company's recent performance has been mixed, with a 1-month return of 160.58% compared to the S&P 500's 1.92%, but a 3-year return of -1.49% versus the S&P 500's 76.66%, highlighting volatility in its long-term performance.