INVESTOR PRESENTATION REITWeek 2019 ABOUT ABOUT SOTHERLY HOTELS - PowerPoint PPT Presentation

INVESTOR PRESENTATION REITWeek 2019

ABOUT

ABOUT SOTHERLY HOTELS At Sotherly Hotels, we believe guests are the heart of every hotel—so we make true Southern hospitality the heart of everything we do. Every Sotherly Hotel delivers a uniquely authentic local experience that lets guests see, feel, taste and enjoy our cities to their fullest. Generations of experience have taught us that guests want their hotel to feel like a natural extension of the city — to seamlessly blend like a front porch into a Southern night sky. They want to feel like “locals,” not visitors. And that's exactly what we do. From first hellos to fond farewells, our trademark Southern charm is woven into every experience, making guests feel so connected to and refreshed by our cities’ cultures that they’ll feel right at home. Because they are. Our guests are like family, and our passion for turning moments into memories is the promise we make that keeps them coming back time and time again. And at the end of the day, we believe happy guests make for happy shareholders.

NON-GAAP FINANCIAL MEASURES This presentation included disclosure of non-GAAP measures, including funds from operations (“FFO”), adjusted FFO (“AFFO”), earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA and hotel EDITDA. The Company considers FFO, AFFO, EBITDA, adjusted EBITDA and hotel EBITDA to be key supplemental measures of the Company’s performance, and they should be considered along with, but not as alternatives to, net income as a measure of the Company’s operating performance. None of FFO, AFFO, EBITDA, adjusted EBITDA and hotel EBITDA represent cash generated from operating activities determined by GAAP and BOARD & BARREL @ HOTEL BALLAST WILMINGTON should not be considered as alternatives to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. None of FFO, AFFO, EBITDA, adjusted EBITDA and hotel EBITDA are measures of the Company’s liquidity, nor are FFO, AFFO, EBITDA, adjusted EBITDA and hotel EBITDA indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions. Please refer to the Company’s filings with the SEC and its earnings releases, which are available at www.sotherlyhotels.com, for disclosure of the Company’s net income, for reconciliations of FFO, AFFO, EBITDA, adjusted EBITDA and hotel EBITDA to net income and for additional detail on the Company’s use of non-GAAP measures. PART & PARCEL @ THE WHITEHALL HOUSTON

FORWARD-LOOKING STATEMENTS This presentation includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Although the Company believes that the expectations and assumptions reflected in the forward- looking statements are reasonable, these statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond the Company’s control. Therefore, actual outcomes and results may differ materially from what is expressed, forecasted or implied in such forward-looking statements. Economic conditions generally and the real estate market specifically, management and performance of the Company’s hotels, plans for hotel renovations, financing plans, supply and demand for hotel rooms in the Company’s current and proposed HYDE RESORT & RESIDENCES market areas, the Company’s ability to acquire additional properties and the risk that potential acquisitions may not perform in accordance with expectations, legislative/regulatory changes, including changes to laws governing taxation of real estate investment trust and competitions, and other factors may affect the Company’s future results, performance and achievements. These risks and uncertainties are described in greater detail under “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation and does not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. DOUBLETREE RESORT HOLLYWOOD BEACH

MANAGEMENT TEAM • Chairman & CEO – Sotherly Hotels Inc. • Served as Chairman & CEO since IPO in 2004 • President of MHI Hotel Services from 1995–2004 ANDREW SIMS VP of Finance and Development for MHI Hotel Services from 1988–1995 • Chairman & CEO • Father, Edgar Sims Jr., founded company as Maryland Hospitality in 1957 • Bachelor of Science in Commerce from Washington & Lee University • President, COO & Director – Sotherly Hotels Inc. • Vice President of Paragon Real Estate (2005) • Investment Banker, BB&T Capital Markets (2001–2005); lead underwriter on SOHO’s IPO in 2004 DAVE FOLSOM • Commissioned officer in the U.S. Marine Corps President & COO • Bachelor of Science from U.S. Naval Academy • M.B.A. – Georgetown University CFO & Vice President – Sotherly Hotels Inc. • • CFO of SwissFone, Inc. (2001–2005) TONY DOMALSKI • Spent several years in public accounting firm • 30 years as a Certified Public Accountant Chief Financial Officer • Bachelor of Science in Finance and Accounting from the University of Maryland

INDEPENDENT BOARD OF DIRECTORS • Former Commanding General, First Marine Expeditionary Force with the U.S. Marine Corps from 1994 - 1996; 39-y • Commander in Chief, U.S. Central Command from 1997 – 2000 GEN. ANTHONY ZINNI • Former Chairman, BAE Systems • Consultant in areas of defense, military, national security and foreign policy • Founder & CEO of H. Walker Enterprises, a manufacturer and distributer of meat products • Owner of Herschel’s Chicken and Ribs Kitchen HERSCHEL J. WALKER • Former NFL player and college standout and winner of the Heisman Trophy • Lead Independent Director and Chairman of the Nominating, Corporate Governance and Comp. Committee • Founding Partner of Weinberg & Stein EDWARD S. STEIN • Harvard College (A.B. 1968) and the University of Virginia School of Law (J.D. 1974) • Zollinger Professor of Finance at the William and Mary Mason School of Business • Former professor at the Cornell University School of Hotel Administration • Serves on editorial board of Cornell Hotel and Restaurant Administration Quarterly G. SCOTT GIBSON IV • Published academic research in leading hospitality, real estate, and finance journals and press • Bachelor of science and doctor of philosophy in finance from Boston College • Chief Legal Office and Director of Compliance Services of the National Association of State Boards of Accountancy (NASBA) • Served as the general counsel for Sirrom Capital Corporation from 1996 – 1999 MARIA L. CALDWELL • Practiced law with Bass, Berry & Sims and Gibson, Dunn & Crutcher • Juris Doctor Degree from Duke University School of Law and bachelor of arts degree from Fairfield University

PORTFOLIO

PORTFOLIO OVERVIEW The Whitehall DoubleTree by Hilton Laurel DoubleTree by Hilton Hyde Resort & Residences 9 13 1 5 Houston, TX (Miami, FL MSA )* Raleigh Brownstone (Washington, DC MSA) DoubleTree by Hilton 8 The Georgian Terrace Hotel Alba 10 6 14 14 Hyde Beach House 2 Tampa, FL Jacksonville Riverfront Atlanta, GA 1 (Under Development) 7 11 9 4 The DeSoto Sheraton Louisville Hyatt Centric Arlington 3 7 11 Savannah, GA (Washington, DC MSA) Riverside 2 3 10 DoubleTree by Hilton Resort Hotel Ballast DoubleTree by Hilton 8 4 4 12 1 Hollywood Beach Wilmington, NC Philadelphia Airport (Miami, FL MSA) 6 1 1 Source: Filings of Sotherly Hotels Inc.