Blackstone to Acquire Procaccianti Hotel REIT

TL;DR

Blackstone is buying Procaccianti Hotel REIT, stock to be delisted.

AI Summary

Procaccianti Hotel REIT, Inc. announced on November 19, 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 first quarter of 2025, subject to customary closing conditions. This acquisition will result in the delisting of the company's common stock from the New York Stock Exchange.

Why It Matters

This acquisition by a major real estate investor like Blackstone could signal confidence in the hotel sector and potentially lead to significant changes in the management and strategy of the acquired properties.

Risk Assessment

Risk Level: medium — The acquisition is subject to closing conditions, and there's always a risk of the deal falling through or terms changing.

Key Players & Entities

• PROCACCIANTI HOTEL REIT, INC. (company) — Registrant
• Blackstone Real Estate (company) — Acquiring entity's affiliate
• November 19, 2024 (date) — Date of definitive agreement
• first quarter of 2025 (date) — Expected closing period

FAQ

Filing Documents

• tm2429038d1_8k.htm (8-K) — 26KB
• 0001104659-24-120968.txt ( ) — 189KB
• tmb-20241119.xsd (EX-101.SCH) — 3KB
• tmb-20241119_lab.xml (EX-101.LAB) — 33KB
• tmb-20241119_pre.xml (EX-101.PRE) — 22KB
• tm2429038d1_8k_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. Prorated Share Repurchases for 2024 Third 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: November 20, 2024 By: /s/ Gregory Vickowski Gregory Vickowski Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR