Hello, and welcome to the Sotherly Hotels third quarter 2023 earnings call. My name is Alex, and I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press star one on your telephone keypad. If you'd like to remove your question, you may press star two. I'll now hand it over to Mack Sims, Vice President, Vice President of Operations. Please go ahead. Thank you, and good morning, everyone. If you did not receive a copy of the earnings release, you may access it on our website at sotherlyhotels.com. In the release, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. Any statements made during this conference call, which are not historical, may constitute forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained. Factors and risks that can cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today's press release and from time to time in the company's filings with the SEC. The company does not undertake a duty to update or revise any forward-looking statements. With that, I'll turn the call over to Scott. Thanks, Mack. Good morning, everyone. I'll start off today's call with a review of our portfolio's key operating metrics for the quarter. Looking at the third quarter results for the same-store portfolio, relative to 2019, third quarter RevPAR was up 1.7%, driven by ADR growth of 15%. Third quarter occupancy was down to 2019 by 11.6%, reflecting the significant upside for the portfolio moving forward. Year-to-date, RevPAR performance represents an increase of 1% over the same period in 2019, driven by a 13.9% increase in rate and an 11.3% decrease in occupancy. Looking at the third quarter results compared to Q2 2022, RevPAR performance represents an increase of 0.6% over prior year, driven by a 1.5% increase in rate and a 0.9% decrease in occupancy. Year-to-date, RevPAR increased 8.3% over the same period in 2022, driven by a 3.5% increase in occupancy and a 4.6% increase in rate. Overall, our portfolio's third quarter top-line results were generally in line with expectations. These results were characterized by further recovery of group and corporate demand, combined with the softening of leisure demand in certain markets. The softening of leisure demand was especially evident for our South Florida properties, which underperformed in terms of both occupancy and ADR compared to prior year. Recall that last year, South Florida was still benefiting from the revenge travel demand following the pandemic, as well as the reduction of outbound international travel due to COVID testing policies. This year, outbound international travel has grown significantly, whereas inbound international travel has only seen moderate improvement, leading to a net negative in leisure demand for the South Florida market. While the leisure segment was not as strong as last year, our hotels in this market continue to shift to a more normalized mix of business, with RevPAR growth from our group and corporate transient segments. Meanwhile, our Atlanta hotel's film and entertainment business contracts were heavily impacted during the third quarter by the entertainment industry strikes. The writers' strike was recently settled, and as of last night, the actors' strike was tentatively settled, which should dramatically improve the Georgian Terrace's growth prospects moving forward. Despite these market-related challenges, several of our hotels, driven by further improvement of group and business travel in the quarter, continued to perform historically well. Looking at some highlights across the portfolio, The DeSoto in Savannah continued its excellent performance during the quarter, outpacing both prior year and pre-pandemic levels, fueled by strong group business, which outpaced the comparable period in 2019 by nearly 45%. The property's third quarter RevPAR outperformed prior year by 5.2%, driven by a strong 8.9% increase in occupancy. The DeSoto easily outpaced the comparable period in 2019, with RevPAR improving 43.5%, fueled by significant rate growth of 23.6%. The property continues to improve its position among its competitive set, gaining 280 basis points in fair share during the quarter. The Hyatt Centric Arlington, fueled by continued recovery in group and corporate travel demand at the hotel, posted exceptional results for the third quarter. Group business has rapidly surpassed pre-pandemic levels, outperforming the third quarter of 2019 by 55%. Overall, the property outpaced prior year's RevPAR by nearly 19%, driven by an 11.7% increase in occupancy and a 6.6% increase in rate. The property's 7% increase in RevPAR versus the comparable period in 2019, demonstrates this hotel is fully recovered following a gradual post-pandemic ramp-up period. The property continued to be a standout among its competitive set, achieving a RevPAR index of over 130%, while gaining 550 basis points in share for the quarter. Hotel Ballast in Wilmington, North Carolina, continued to record strong results during the quarter, as improved group demand was coupled with continued strength from leisure demand. The property outpaced prior year RevPAR by 8.6%, fueled by a 3.6% increase in occupancy and a 4.8% increase in rate. The property achieved strong results versus competitive set, gaining 250 basis points in share during the quarter. And lastly, Hotel Alba in Tampa, fueled by a well-balanced mix of business, returned excellent results during the quarter. The hotel's RevPAR surpassed prior year by 11.6%, fueled by a 3.7% increase in occupancy and a 7.7% increase in rate. The Tampa market continues to be one of the top hotel markets in the country, and this hotel is a standout performer among its competitive set, achieving a RevPAR index of 116.5% during the quarter. I will now turn the call over to Tony. Thank you, Scott. Reviewing performance for the period ended September 30th, 2023. For the quarter, total revenue was $39.2 million, representing a decrease of just 0.1% over the same quarter in the prior year. Year to date, total revenue was approximately $131.7 million, representing an increase of 5.6% over the same period last year. Hotel EBITDA for the quarter was approximately $7.6 million, representing a decrease of 23% from the same quarter in the last year. Year to date, hotel EBITDA was approximately $34.5 million, representing a decrease of just 0.2% from the same period in 2022. For the quarter, Adjusted FFO was approximately $88,000, representing a decrease of approximately $2.3 million from the same quarter a year ago. Year to date, Adjusted FFO was approximately $11.8 million, representing an improvement of $1.9 million over the same period last year. Please note that our Adjusted FFO excludes charges related to the early extinguishment of debt, gains and losses on derivative instruments, charges related to aborted or abandoned securities offerings, ESOP and stock compensation expense, as well as other items. Hotel EBITDA excludes these charges, as well as interest expense, interest income, corporate, general, and administrative expenses, the current portion of our income tax provision, and other items as well. Please refer to our earnings release for additional detail. Looking at our balance sheet. As of September 30th, 2023, the company had total cash of approximately $29.4 million, consisting of unrestricted cash and cash equivalents of approximately $19.2 million, as well as approximately $10.2 million, which was reserved for real estate taxes, capital improvements, and certain other items. At the end of the quarter, we had principal balances of approximately $320.8 million in outstanding debt at a weighted average interest rate of 5.41%. Approximately 83.5% of the company's debt carry a fixed rate of interest after taking into account the company's interest rate swap agreements. As we enter a more normalized operating environment, we anticipate capital expenditures to be more in line with historical norms and estimate capital expenditures to be announced to approximately $7.6 million for calendar year 2023. We're providing guidance with a forecast of anticipated results for the fourth quarter. Our guidance considers market conditions and accounts for current and expected performance within the portfolio. We're projecting total revenue in the range of $40.5 million-$42 million for the fourth quarter. Hotel EBITDA is projected in the range of $9.3 million-$9.6 million, and the year-over-year decrease in hotel EBITDA is largely due to a benefit received last year related to a recovery of a theft loss of $975,000, as well as an increase in the current year in insurance costs related to the renewal of our property casualty policies, and that amounts to about $590,000. Adjusted FFO is projected in the range of $1.2 million-$1.6 million, or $0.06-$0.08 per share. I will now turn the call over to Dave. Thank you, Tony. Good morning, everyone. Overall, the lodging industry's recovery and demand, which has been characterized by significant increases in ADR, flattened during the third quarter. Changes in lodging demand have been a market-by-market phenomenon, leading to mixed results for our portfolio in the quarter. On the one hand, several of our key properties performed historically well from a rate and RevPAR standpoint and maintain excellent prospects moving forward. In Tampa, Savannah, and Wilmington, continued strength in leisure demand, along with strong group business and business travel pickup, resulted in notable year-over-year gains. Meanwhile, market-specific factors stalled the recovery of three of our largest revenue-contributing assets, leading to results of those properties falling short of expectations during the quarter. Despite some market-related headwinds, we believe there's ample opportunity for occupancy growth at our hotels, as our portfolio's occupancy was still 670 basis points below 2019 levels during the third quarter. Specifically, looking at the slow-to-recover Philadelphia Airport submarket, our competitive set's occupancy was still 500 basis points below 2019 levels during the quarter. A stronger citywide event calendar for Philadelphia in 2024, combined with continued growth in business travel, should create compression in the market and provide a significant boost in demand at our hotel. Meanwhile, the Georgian Terrace, whose performance was dampened in the quarter by union strikes in the entertainment industry, is gaining traction in capturing new base business, which should diversify its mix of business and boost occupancy going forward. The recent settlement of both the writers and actor strikes should provide a much-needed demand boost for this hotel in the near future. In addition, weekend business at our urban market hotels, bolstered by professional and college sports, concerts, and other cultural events, is starting to normalize to pre-pandemic levels. Finally, while our Arlington, Virginia hotel has experienced tremendous improvement over the past year, we believe the occupancy gap of 630 basis points to 2019 during the quarter positions this hotel for outsized growth in the near term as business travel continues to improve. The continued recovery of group business was a key factor in the overall year-over-year growth of our portfolio during the quarter. During the quarter, group business gained 3% over the same quarter a year ago. Group business at the Hyatt Centric Arlington and The DeSoto in Savannah, Georgia, is tracking significantly above pre-pandemic levels. We see opportunities for continued growth of this segment moving forward, especially in Houston, Atlanta, and Atlanta, two slow-to-recover hotels that has historically had a large group component. We expect the recent improvement of return-to-office rates in these markets to positively impact demand for these hotels. Looking at our portfolio's group revenue picture, strong rates have driven our portfolio's total group revenue to near pre-pandemic levels, trailing 2019 third quarter group revenue by approximately 10%. However, the total number of group room nights trailed 2019 by nearly 26% during the third quarter, demonstrating there is still considerable runway for growth in this segment. Previously, we announced the reinstatement of quarterly dividend payments for our preferred shareholders. During the third quarter, we paid out a catch-up payment for our three series of preferred stock, decreasing the amount owed on the unpaid cumulative preferred dividend by approximately $1.9 million. Further reducing the unpaid preferred, the unpaid dividend, represents a key priority for the company. And so far this year, we have successfully refinanced the mortgage loans for our hotels in Houston and Laurel with favorable terms. As lending standards continue to tighten, we are focused on upcoming loan maturities for our portfolio. We are diligently working on restructuring options with the lender for our DoubleTree by Hilton Hotel in Philadelphia, who accommodated our request for a short-term extension on the loan. While loan terms have undoubtedly become less favorable for borrowers, we expect a resolution on this mortgage loan in the near future. Looking ahead, the loan maturity schedule for the portfolio is spread evenly over the next several years, with only one additional loan maturity coming in 2024. Despite a turbulent macro environment during the year, the lodging industry has demonstrated continued resilience, with additional growth anticipated for the near term. Looking ahead, we believe industry growth will be fueled by the corporate and group segments, with corporate travel providing the biggest opportunity for upside in 2024. Improvement in the corporate travel segment is predicated on return to office rates, which continue to trend positively, an encouraging sign for the industry. Looking specifically at our portfolio, 2023's group revenue is pacing 13% ahead of last year, while the business transient segment is pacing 6% ahead of last year. Overall, we are encouraged by the progress we are seeing in our operations, with Q4 RevPAR forecasted to range between 103% and 100% of fourth quarter last year. We remain cautiously optimistic that normalizing market conditions and encouraging booking trends will continue to fuel our portfolio's growth prospects moving forward. With that, operator, we can open the call up to questions. Thank you. As a reminder, if you'd like to ask a question, you can press star followed by one on your telephone keypad. If you'd like to remove your question, you may press star followed by two. Please ensure you're unmuted locally when asking your question. Our first question for today comes from Alexander Goldfarb, from Piper Sandler. Your line is now open. Please go ahead. Hey, morning down there. Just a few questions. The ramp-up of the staffing levels, are you back to now full staffing? And also, I'm assuming that the need to ramp the staffing up is because, at some point, presumably where we are, you know, in order to increase the profitability of the hotels with people checking in, they expect a certain level of staffing. So, I'm assuming that's why you had to raise it, even though it seemed to pressure margins. Is that a fair way to think about it? Yeah, that is exactly the right way to think about it. We're not completely staffed at 2019 levels yet. And as you saw, maybe some of the flattening out in the third quarter, you know, we have continued to staff up to provide additional services and amenities that we would normally provide. It did have a drag on margins. Yeah, Alex, I'll just add that, you know, food and beverage is the key component there. You know, we've really ramped up our food and beverage offerings to reopen those outlets to more normalized hours, which was not the case last year. And, you know, food and beverage, while it provides, you know, a revenue boost, it is, it's a less profitable piece of revenue for the hotel, so that does have a drag on margins. Right. Right. But obviously, people, if they're going to go travel, they, they expect those amenities. Exactly. What's going on in Houston? You talked about the South Florida weakness, you talked about, you know, Arlington. What's going on in Houston that The Whitehall continues to sort of be a laggard? Well, look, the market's not as healthy as it has been in the past. A lot of the CVB, and entertainment, and events just have not returned yet. At the same time, we've had some assets in the comp set around the hotel, in the metro market, that were either closed or under renovation. Those are back. And as some of the demand has returned to the market, a lot of that has initially gone to flagged hotels, and we're an independent asset. But, as soon as this market stabilizes... I mean, this hotel did very, very well prior to the pandemic, and I don't see why that's not gonna return. It's just slower to happen than, by comparison, what we've seen in Arlington, Virginia, in the metro D.C. market. ... Yeah, going back to the debt, and appreciate that you guys only have one loan in 2024, but, you know, we do see that the Philly hotel is extended to year-end this year before resolution. But if we take your average, you know, interest rates where they are, sort of in the mid-5s, I think you said, and take your total debt balance and, you know, adjust it for today's interest rates, that's like an extra $6 million, which would basically, you know, that does. You know, that's a big number, you know, given your earnings. So how are you guys thinking about balancing, you know, reducing your debt load versus, you know, the rising rates? It just seems to be tough math if we think about it. Obviously, you guys have, you know, continued to address this, but just want to hear how you're thinking about, you know, dealing with rising rates while the portfolio is still, you know, trying to work to get back to, you know, full, you know, all cylinders running. Well, as you mentioned, we get the Philadelphia loan worked out here this year, and then we're really only looking at one issue next year. I mean, I think if you look at our total leverage level, you've seen over the past couple of years, we have, we've adjusted down across both the preferred and the funded debt levels. I mean, we have to take each one of these on a property-by-property basis, and, I mean, our thesis would be, Alex, that going forward, we're gonna see some interest rate reductions next year, which we think will help lift the industry and the debt issues. The other thing to remember in my view is, what you said yesterday on your Bloomberg interview, is lenders are not eager to create problems right now, and, and that actually works in the favor of the borrower to extend out mortgages and deal with some of these interest rate increases, in the longer term. Do you want to add in, Tony? I think what I would add is that I think our expectation is as mortgages become due in 2025 and 2026-2027, we're not going to be looking at the same interest rate environment. And if we are, we're not going to be back down into inflation at 1.5%-2%. And so I think there's gonna be that as these mortgages mature and as our average weighted average interest rate on our debt rises, we're gonna see some amount of corresponding lift in ADR and hotel EBITDA to afford that. Okay, you— And you answered my next question, which was gonna be on, you know, bank willingness to work with you guys. But you obviously answered that because clearly the banks don't want to add to their CRE portfolio. So it sounds like they're doing what they can to adjust the balance and rate, so that way it's still a loan outstanding rather than they're taking possession. That seems to be the MO, right? Or otherwise. No, you're correct. That's correct. Okay. Listen, thanks a lot. Thanks, Alex. All right. Thank you, Alex. Thank you. As a reminder, if you would like to ask a question, you can press star one on your telephone keypad. Our next question comes from Jeff Hassania from HC Enterprise. Your line is now open. Please go ahead. All right. Good morning. Thank you for the transparency on your call. I sure appreciate it. I have two questions. The first question is dealing with the 11% drop in occupancy from the 2019 numbers, and you provided some rationale for that or what's occurred in general in the marketplace. Then you also described what you think in the future, in terms of market trends, are going to help that recover back to maybe that 2019 number. But so the first question around that is: Beyond just, you know, hoping the market conditions prevail, what are you doing proactively, as a company from a competitive landscape perspective, to help make sure that happens beyond just hoping the market conditions improve? That's the first question. The second question I'll just ask now as well: If you had to, you know, look forward and project some nominal operating conditions, you know, your sort of a best case kind of forecast or a nominal case forecast going forward, when would you anticipate a potential return of dividends to common shareholders? That's the second question. Well, the first question on the occupancy, I think it's pretty consistent across our industry. One of the things we need to do at the property level is to make sure that we're competing within our comp sets with the correct share, share capture. And that's something we challenge our management company to do, and that's probably the nearest piece of low-hanging fruit to try to capture some additional occupancy. As you saw or heard in our prepared remarks, we've all talked about the upside in occupancy, and some of that has to do with the recovery of group and business travel into the hotels, and that will lift group and lift revenue. It's not singular to Sotherly Hotels, this phenomenon with occupancy. Rate has been the driver of revenue over the recovery. I think to your second question, which was: When are we going to pay common dividends? As you're probably aware, we can't pay common dividends until we are caught up on any cumulative outstanding preferred dividends, and we are trying to pay those back. I can't tell you the pace or frequency or timeline to do that, but our management team is, we're significant shareholders, and we want a common dividend as bad as everybody else. I just, I can't give you the timeline on when that might happen. All right. I appreciate it. Thank you for the call. Thank you. Thank you. Thank you. At this time, we currently have no further questions, so I'll hand back to CEO Dave Folsom for any further remarks. No, thank you very much, operator, and thanks for everyone listening to our call, and we'll circle back next quarter. Thank you. Thank you for joining today's call. You may now disconnect your lines.