Blackstone to Acquire Procaccianti Hotel REIT

TL;DR

Blackstone is buying Procaccianti Hotel REIT, taking it private by Q4 2024.

AI Summary

Procaccianti Hotel REIT, Inc. announced on August 14, 2024, that it has entered into a definitive agreement to be acquired by an affiliate of Blackstone Real Estate. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. This acquisition will result in Procaccianti Hotel REIT, Inc. becoming a private entity.

Why It Matters

This acquisition signifies a major move by Blackstone into the hotel real estate sector, potentially impacting hotel valuations and investment strategies for other REITs.

Risk Assessment

Risk Level: medium — The acquisition is subject to customary closing conditions, which introduces a degree of uncertainty until completion.

Key Players & Entities

• Procaccianti Hotel REIT, Inc. (company) — The company being acquired.
• Blackstone Real Estate (company) — The acquiring entity.
• August 14, 2024 (date) — Date of the definitive agreement.
• fourth quarter of 2024 (date) — Expected closing period for the acquisition.

FAQ

Filing Documents

• tm2421807d1_8k.htm (8-K) — 26KB
• 0001104659-24-089976.txt ( ) — 189KB
• tmb-20240814.xsd (EX-101.SCH) — 3KB
• tmb-20240814_lab.xml (EX-101.LAB) — 33KB
• tmb-20240814_pre.xml (EX-101.PRE) — 22KB
• tm2421807d1_8k_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. Prorated Share Repurchases for 2024 Second 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: August 15, 2024 By: /s/ Gregory Vickowski Gregory Vickowski Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR