How did SOHOO's Q4 2024 earnings surprise investors?

Sotherly Hotels Inc. (SOHO) experienced a notable decline in its stock price, reaching a 52-week low, amid challenging market conditions. Despite this, the company reported a 3.9% increase in Q3 2024 revenue, amounting to approximately $40.7 million. However, this fell short of the expected revenue, resulting in an earnings surprise of -500%, as the company's adjusted funds from operations (FFO) per share missed expectations by $0.03, coming in at a loss of $0.04 per share versus the consensus estimate of $0.01. This significant shortfall contributed to the earnings surprise, reflecting operational challenges and market conditions that impacted revenue and profitability.