Procaccianti Hotel REIT, Inc. said in August 2026 that investors who turned in share-repurchase requests for the quarter ended June 30, 2026 would receive only about 3% of the amount they requested, leaving most redemption requests unpaid.
The company’s SEC filings say 124 requests, covering about 461,938 shares, are still not fulfilled. This has raised new concerns for investors in this non-traded REIT, especially because many already face limited liquidity.
Investors who bought alternative investments such as non-traded REITs through a broker or financial adviser and are now dealing with losses or difficulty getting their money back may have options worth looking into.
What Happened With Procaccianti Hotel REIT’s Repurchase Program
Procaccianti Hotel REIT is a public, non-traded REIT that owns interests in five select-service hotels in four states, with 559 rooms in total. The company is run by an outside manager, Procaccianti Hotel Advisors, LLC, which is an affiliate of sponsor Procaccianti Companies, Inc. Because the shares are not listed on any national securities exchange, investors cannot just sell their shares on the open market. Instead, they rely on the company’s share-repurchase program if they want liquidity.
On August 26, 2026, the board said the share-repurchase program reached its funding limit for repurchase requests submitted during the quarter ended June 30, 2026. The program allows repurchases of up to 5.0% of the weighted average number of outstanding K, K-I, and K-T Shares for the relevant trailing period. It also limits available funding to distribution-reinvestment-plan (DRIP) proceeds or other funds the program allows. Because DRIP proceeds were not enough, most requests were paid at about a 3% proration, according to a SEC filing on the 2026 share-repurchase proration. Requests tied to a stockholder’s death were expected to be paid in full.
In its Form 10-Q, the company reported 124 outstanding, unfulfilled repurchase requests covering 410,144 Class K shares and 51,794 Class K-I shares. During the three months ended June 30, 2026, it repurchased only $195,642 of K Shares and $5,171 of K-I Shares.
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Financial Context and Related Advisory-Agreement Update
This is the financial background behind the limits:
- Total assets were $103,538,951 as of June 30, 2026, compared with total liabilities of $73,709,657, including $66,596,987 in mortgage notes payable.
- For the six months of 2026, revenue was $14,051,294, operating income was $1,338,227, and the net loss attributable to common stockholders was $1,124,602, as shown in the unaudited Form 10-Q.
- Through June 30, 2026, the company raised about $15.58 million in gross proceeds in its private offering and about $43.29 million in its public offering (including DRIP proceeds). The public offering ended on August 13, 2021.
Separately, on January 19, 2026, stockholders approved a Second Amended and Restated Advisory Agreement. The agreement removed the August 13, 2026 deadlines that would have stopped affiliated advisory-fee accruals and interest on deferred acquisition and disposition fees. Asset-management fees were $738,748 in 2025 and $372,468 for the six months ended June 30, 2026, as disclosed in SEC filings. The advisory agreement was renewed for another one-year term starting August 2, 2026.
How Meyer Wilson Werning Can Help
Meyer Wilson Werning represents investors nationwide who have suffered losses in non-traded REITs and other illiquid investments. The firm has more than 75 years of combined experience and has recovered more than $350 million for clients across the country over the last 26 years. We understand the problem investors face when they cannot access their own capital.
If your broker or financial adviser recommended Procaccianti Hotel REIT without fully explaining the liquidity risks and redemption limits, you may be able to seek a recovery through arbitration or other legal channels. Contact us today for a free and confidential consultation to discuss your options.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What happened with Procaccianti Hotel REIT’s 2026 share-repurchase requests?
On August 26, 2026, the board determined that available distribution-reinvestment-plan proceeds were insufficient to fund all requests for the quarter ended June 30, 2026. Requests related to a stockholder’s death were to be honored in full, while most remaining requests were subject to approximately 3% proration. This means the vast majority of investors who sought to redeem shares received only a small fraction of their requested amount.
How many Procaccianti Hotel REIT shares were awaiting repurchase as of June 30, 2026?
The company’s June 30, 2026 Form 10-Q reported 124 outstanding and unfulfilled requests covering 410,144 Class K shares and 51,794 Class K-I shares, approximately 461,938 shares in total. These unfulfilled requests carry forward unless withdrawn by the investor within the applicable period.
Is Procaccianti Hotel REIT traded on a public stock exchange?
No. Procaccianti Hotel REIT is structured as a public, non-traded REIT, meaning its shares are not listed on a national securities exchange. Investors cannot buy or sell shares on the open market, and the company has stated that it is not required to provide a liquidity event.
What is share redemption proration, and why does it matter?
Share redemption proration occurs when a non-traded REIT does not have enough available funds to honor all repurchase requests at once. The company prorates the available funding across eligible requests, so each investor receives only a fraction of the shares they asked to redeem. In this case, the approximately 3% proration means most investors received buybacks covering a very small portion of their total request.
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