ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sotherly Hotels's annualizedNet Income for the quarter that ended in Sep. 2025 was $-22.0 Mil.
Sotherly Hotels's average Total Assets over the quarter that ended in Sep. 2025 was $411.2 Mil. Therefore, Sotherly Hotels's annualized ROA % for the quarter that ended in Sep. 2025 was -5.34%.
The historical rank and industry rank for Sotherly Hotels's ROA % or its related term are showing as below:
SOHO'
s ROA % Range Over the Past 10 Years
Min: -10.25 Med: 0.28 Max: 7.72
Current: -0.06
During the past 13 years, Sotherly Hotels's highest ROA % was 7.72%. The lowest was -10.25%. And the median was 0.28%.
SOHO's ROA % is not ranked
in the REITs industry.
Industry Median: 3.18
vs SOHO: -0.06
Sotherly Hotels (NAS:SOHO) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Sep. 2025) net income data. The Revenue data used here is four times the quarterly (Sep. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Sotherly Hotels ROA % Related Terms
Sotherly Hotels ROA % Historical Data
* Premium members only.
The historical data trend for Sotherly Hotels's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Hotel & Motel subindustry, Sotherly Hotels's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sotherly Hotels ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Sotherly Hotels's ROA % distribution charts can be found below:
* The bar in red indicates where Sotherly Hotels's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Sotherly Hotels (SOHO) has a ROA % of -5.34% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sotherly Hotels and its competitors.
Is Sotherly Hotels' ROA % too high?
Sotherly Hotels' current ROA % is -5.34%. Overall, Sotherly Hotels has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Sotherly Hotels' ROA % compare to AHT and IHT?
Sotherly Hotels' ROA % of -5.34% can be compared against companies in the REITs industry. The industry median ROA % is 3.18. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.18, based on 940 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sotherly Hotels and its competitors. For the REITs industry, the median ROA % is 3.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotherly Hotels's current ROA % is -5.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotherly Hotels stock overvalued right now?
Sotherly Hotels (SOHO) has a current ROA % of -5.34%. The stock's GF Value™ is $1.36, compared to a current price of $2.25 — trading 65.4% above its estimated fair value. The current ROA % is -5.34%. Sotherly Hotels' overall GF Score™ is 45/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Sotherly Hotels (SOHO), the current ROA % is -5.34% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sotherly Hotels (SOHO) Overvalued in 2026?
Based on GuruFocus' analysis, Sotherly Hotels stock appears to be overvalued.
The current stock price of $2.25 is trading 65.4% above its estimated GF Value™ of $1.36.
Key valuation signals for SOHO:
ROA %: -5.34%
GF Value™: $1.36 vs. price of $2.25 (65.4% above fair value)
No single metric tells the full story. See the SOHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sotherly Hotels Inc is engaged in Hotel operations. The company is a self-managed and self-administered lodging real estate investment trust that was formed to own, acquire, renovate, and reposition full-service, upscale, and upper-upscale hotel properties located in primary markets in the mid-Atlantic and southern United States. It generates revenue through the rooms, food, beverage, and other services. Geographically, the group has its presence in the regions of Florida, Georgia, Indiana, Maryland, North Carolina, Pennsylvania, Texas, and Virginia.
45GF Score
Get the complete analysis for SOHO
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