Is Sotherly Hotels, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Sotherly Hotels, Inc. moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 34, a price to book value of 0.74, and an EV to EBITDA of 0.03. In comparison, ACRES Commercial Realty Corp. has a P/E of 7.22, while Strawberry Fields REIT, Inc. shows a much higher P/E of 24.91, indicating that Sotherly is positioned more attractively within its peer group.
Despite a strong return of 163.03% over the past month compared to the S&P 500's 1.92%, Sotherly's long-term performance has lagged, with a 3-year return of -0.56% versus the S&P's 76.66%. This suggests that while the recent performance is impressive, the overall valuation remains cautious.