Sotherly Hotels Inc. (NASDAQ:SOHO) (the “Company”) today announced that it has withdrawn its 2020 Guidance provided on February 27, 2020 due to the significant number of corporate group cancellations and ongoing corporate travel policy restrictions related to COVID-19.
The Company’s initial guidance issued on February 27, 2020 considered minimal impact from the COVID-19 outbreak. However, governmental travel advisories, increased travel restrictions from corporations, and significant airline flight cancellations are expected to adversely impact the Company’s financial results for Q1 2020 and the year as a whole.
Dave Folsom, President and CEO of the Company commented, “We are closely monitoring the COVID-19 outbreak and are working with our management teams to minimize the impact of the outbreak to the extent possible and to ensure the safety of our guests. The Company and lodging industry in general have seen a substantial amount of corporate group-related cancellations and sharp decline in transient business travel due to concerns about COVID-19. As a result, we have chosen to withdraw our initial guidance until we can fully analyze the situation. Due to the developing nature of the situation surrounding COVID-19, we will wait until the situation stabilizes prior to issuing new guidance.”