Exhibit 99.2
SOTHERLY HOTELS INC.
PROFORMA FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2013
| Sotherly Hotels Inc. Balance Sheet December 31, 2013 | Proforma Adjustments of Georgian Terrace | Proforma Balance Sheet | ||||||||||
ASSETS | ||||||||||||
Investment in hotel properties, net | $ | 202,645,633 | $ | 58,581,627 | (2)(3) | $ | 261,228,260 | |||||
Investment in joint venture | 2,446,039 | — | 2,446,039 | |||||||||
Cash and cash equivalents | 9,376,628 | (3,778,842 | )(1)(2)(5) | 5,597,786 | ||||||||
Restricted cash | 3,796,141 | 1,754,113 | (2) | 5,550,255 | ||||||||
Accounts receivable, net | 1,982,091 | 465,287 | (2) | 2,447,378 | ||||||||
Accounts receivable-affiliate | 101,439 | — | 101,439 | |||||||||
Prepaid expenses, inventory and other assets | 2,444,975 | 430,997 | (2) | 2,875,973 | ||||||||
Shell Island sublease, net | 240,196 | — | 240,196 | |||||||||
Deferred income taxes | 1,186,122 | — | 1,186,122 | |||||||||
Deferred financing costs, net | 3,820,838 | 606,965 | (1) | 4,427,803 | ||||||||
|
|
|
|
|
| |||||||
TOTAL ASSETS | $ | 228,040,102 | $ | 58,061,147 | $ | 280,101,251 | ||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Mortgage loans | $ | 160,363,549 | $ | 41,500,000 | (1) | $ | 201,863,549 | |||||
Bridge loan | — | 19,000,000 | (1) | 19,000,000 | ||||||||
Unsecured notes | 27,600,000 | — | 27,600,000 | |||||||||
Accounts payable and accrued liabilities | 7,650,219 | 591,618 | (2) | 8,241,838 | ||||||||
Advance deposits | 666,758 | — | 666,758 | |||||||||
Dividends and distributions payable | 588,197 | — | 588,197 | |||||||||
|
|
|
|
|
| |||||||
TOTAL LIABILITIES | 196,868,723 | 61,091,618 | 257,960,342 | |||||||||
Commitments and contingencies | — | — | — | |||||||||
EQUITY | ||||||||||||
Sotherly Hotels Inc. stockholders’ equity | ||||||||||||
Preferred stock, par value $0.01, 972,350 shares authorized, 0 shares issued and outstanding | — | — | — | |||||||||
common stock, par value $0.01, 49,000,000 shares authorized, 10,206,927 shares and 9,999,786 shares issued and outstanding at December 31, 2013 and 2012, respectively | 102,069 | — | 102,069 | |||||||||
Additional paid in capital | 57,534,113 | 65,181,640 | ||||||||||
Distributions in excess of retained earnings | (32,210,917 | ) | (2,370,719 | )(3)(4)(5) | (34,581,636 | ) | ||||||
|
|
|
|
|
| |||||||
Total Sotherly Hotels Inc. stockholders’ equity | 25,425,265 | (2,370,719 | ) | 23,054,546 | ||||||||
Noncontrolling interest | 5,746,114 | (452,560 | )(3)(4)(5) | 5,086,363 | ||||||||
|
|
|
|
|
| |||||||
TOTAL EQUITY | 31,171,379 | (3,030,471 | ) | 28,140,909 | ||||||||
|
|
|
|
|
| |||||||
TOTAL LIABILITIES AND EQUITY | $ | 228,040,102 | $ | 58,061,147 | $ | 286,101,251 | ||||||
|
|
|
|
|
| |||||||
| (1) | Financing proceeds of first mortgage and bridge loan |
| (2) | Acquisition of Georgian Terrace |
| (3) | Proforma depreciation |
| (4) | Proforma amortization of deferred financing charges |
| (5) | Proformaoperating income of the Georgian Terrace |
SOTHERLY HOTELS INC.
PROFORMA FINANCIAL INFORMATION
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2013
| Sotherly Hotels Inc. For the year ended December 31, 2013 | Proforma Adjustments of Georgian Terrace | Proforma Statement of Operations | ||||||||||
REVENUE | ||||||||||||
Rooms department | $ | 62,837,422 | $ | 11,608,351 | (5) | $ | 74,445,773 | |||||
Food and beverage department | 22,054,209 | 6,536,189 | (5) | 28,590,398 | ||||||||
Other operating departments | 4,482,896 | 1,722,547 | (5) | 6,205,443 | ||||||||
|
|
|
|
|
| |||||||
Total revenue | 89,374,527 | 19,867,087 | 109,241,614 | |||||||||
EXPENSES | ||||||||||||
Hotel operating expenses | ||||||||||||
Rooms department | 17,210,445 | 3,555,858 | (5) | 21,766,303 | ||||||||
Food and beverage department | 14,066,145 | 5,260,642 | (5) | 19,326,787 | ||||||||
Other operating departments | 508,868 | 414,435 | (5) | 923,303 | ||||||||
Indirect | 33,683,486 | 6,111,687 | (5) | 39,795,173 | ||||||||
|
|
|
|
|
| |||||||
Total hotel operating expenses | 65,468,944 | 15,342,622 | 80,811,566 | |||||||||
Depreciation and amortization | 8,467,228 | 2,292,717 | (6) | 10,759,945 | ||||||||
Corporate general and administrative | 4,360,583 | 321,959 | (5) | 4,682,542 | ||||||||
|
|
|
|
|
| |||||||
Total operating expenses | 78,296,755 | 17,957,298 | 96,254,073 | |||||||||
|
|
|
|
|
| |||||||
NET OPERATING INCOME | 11,077,772 | 1,909,789 | 14,181,984 | |||||||||
Other income (expense) | ||||||||||||
Interest expense | (11,647,141 | ) | (4,940,260 | )(7) | (16,587,401 | ) | ||||||
Interest income | 17,914 | — | 17,914 | |||||||||
Equity income in joint venture | 453,700 | — | 453,700 | |||||||||
Realized and unrealized loss on warrant derivative | (2,205,248 | ) | — | (2,205,248 | ) | |||||||
Impairment of investment in hotel properties, net | (611,000 | ) | — | (611,000 | ) | |||||||
|
|
|
|
|
| |||||||
Net( loss) income before income taxes | (2,914,003 | ) | (3,030,471 | ) | (5,944,474 | ) | ||||||
Income tax provision | (1,521,182 | ) | — | (1,521,182 | ) | |||||||
|
|
|
|
|
| |||||||
Net (loss) income | (4,435,185 | ) | (3,030,471 | ) | (7,465,656 | ) | ||||||
Add: Net loss(income) attributable to the noncontrolling interest | 981,126 | (659,751 | ) | 1,640,877 | ||||||||
|
|
|
|
|
| |||||||
Net (loss)income attributable to the Company | $ | (3,454,059 | ) | $ | (2,370,719 | ) | $ | (5,824,778 | ) | |||
|
|
|
|
|
| |||||||
Net loss per share attributable to the Company | ||||||||||||
Basic and diluted | $ | (0.34 | ) | $ | (0.23 | ) | $ | (0.57 | ) | |||
Weighted average number of shares outstanding | ||||||||||||
Basic and diluted | 10,156,955 | 10,156,955 | 10,156,955 | |||||||||
| (1) | Financing proceeds of first mortgage and bridge loan |
| (2) | Acquisition of Georgian Terrace |
| (3) | Proforma depreciation |
| (4) | Proforma amortization of deferred financing charges |
| (5) | Proforma operating income of Georgian Terrace |
| (6) | Proforma depreciation |
| (7) | Proforma interest expense |