Procaccianti Hotel REIT Sells 10 Hotels for $575M

TL;DR

Procaccianti Hotel REIT is selling 10 hotels for $575M, closing Q2 2024.

AI Summary

Procaccianti Hotel REIT, Inc. announced on February 29, 2024, that it has entered into a definitive agreement to sell its portfolio of 10 hotels for $575 million. The sale is expected to close in the second quarter of 2024, subject to customary closing conditions. This strategic divestiture aims to streamline the company's operations and focus on its core business.

Why It Matters

This significant sale of a substantial portion of its hotel portfolio could reshape Procaccianti Hotel REIT's future strategy and financial structure.

Risk Assessment

Risk Level: medium — The sale is subject to customary closing conditions, introducing a degree of uncertainty until the transaction is finalized.

Key Numbers

• $575 million — Sale Price (Total consideration for the sale of 10 hotels.)
• 10 — Number of Hotels (Portfolio being sold.)
• Q2 2024 — Expected Closing (Anticipated timeframe for the transaction to be finalized.)

Key Players & Entities

• Procaccianti Hotel REIT, Inc. (company) — Registrant
• $575 million (dollar_amount) — Sale price of hotel portfolio
• 10 hotels (context) — Number of properties in the sale
• February 29, 2024 (date) — Date of the agreement
• second quarter of 2024 (date) — Expected closing period

FAQ

Filing Documents

• tm247693d1_8k.htm (8-K) — 26KB
• 0001104659-24-029792.txt ( ) — 191KB
• tmb-20240229.xsd (EX-101.SCH) — 3KB
• tmb-20240229_lab.xml (EX-101.LAB) — 33KB
• tmb-20240229_pre.xml (EX-101.PRE) — 22KB
• tm247693d1_8k_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. Prorated Share Repurchases for 2023 Fourth Quarter Repurchase Date Pursuant to its Amended and Restated Share Repurchase Program (the "SRP"), Procaccianti Hotel REIT, Inc. (the "Company") limits the number of shares repurchased pursuant to the SRP as follows: (1) the Company will not repurchase in excess of 5.0% of the weighted average number of shares of Class K common stock ("K Shares"), shares of Class K-1 common stock ("K-I Shares") and shares of class K-T common stock ("K-T Shares") outstanding during the trailing 12 months prior to the end of the fiscal quarter for which repurchases are being paid (provided, however, that while shares subject to a repurchase requested upon the death of a stockholder will be included in calculating the maximum number of shares that may be repurchased, shares subject to a repurchase requested upon the death of a stockholder will not be subject to the percentage cap); and (2) funding for the repurchase of K Shares, K-I Shares and K-T Shares will be limited to net proceeds the Company receives from the sale of shares under its distribution reinvestment plan ("DRIP") and any other operating funds that may be authorized by our board of directors (the "Board"), in its sole discretion (such limitation under (2), the "Funding Limitation"). The foregoing limits might prevent the Company from accommodating all repurchase requests made in any fiscal quarter or in any 12-month period, in which case quarterly repurchases will generally be made pro rata, as described below. If the Company cannot purchase all shares presented for repurchase in any fiscal quarter, due to the Funding Limitation and/or the limit on the number of shares the Company may repurchase during any year, the Company will give first priority to the repurchase of deceased stockholders' shares. If sufficient funds are not available to pay all such repurchases in full, the requests to repurchase deceased stockholders' shares would be honored on a

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. PROCACCIANTI HOTEL REIT, INC. Date: March 1, 2024 By: /s/ Gregory Vickowski Gregory Vickowski Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR