Only about 3.6% of outstanding repurchase requests will be fulfilled as reinvestment plan proceeds fall short of investor demand.

March 4, 2026

Board Confirms Funding Cap Reached for December 2025 Quarter

Procaccianti Hotel REIT, Inc., a Maryland-based hospitality-focused real estate investment trust headquartered in Cranston, Rhode Island, announced that its board of directors determined on March 2, 2026, that the company’s funding cap had been reached for share repurchase requests tied to the fourth quarter of 2025.

How the Repurchase Program Works

Under the company’s Amended and Restated Share Repurchase Program, buybacks are constrained by two key limits. First, the company cannot repurchase more than 5.0% of the weighted average number of its Class K, Class K-I, and Class K-T common shares outstanding over the prior 12 months. Second, repurchase funding is restricted to the net proceeds generated through the company’s distribution reinvestment plan, along with any additional operating funds the board may choose to authorize at its discretion.

Because net proceeds from the reinvestment plan were insufficient to cover all repurchase requests submitted for the quarter ending December 31, 2025, the company was unable to honor every request in full.

Priority System and Proration

The repurchase program establishes a clear priority system when available funds fall short of demand:

• First priority: Shares held by deceased stockholders, which will be repurchased in full.
• Second priority: Stockholders with qualifying disabilities or those facing involuntary hardships such as bankruptcy.
• Third priority: Requests to fully liquidate small accounts holding 100 shares or fewer.
• Remaining requests: Fulfilled on a pro rata basis.

For this quarter, the company reported that no repurchase requests fell within the disability, hardship, or small-account priority categories. After fulfilling deceased stockholder repurchases in full, the remaining requests will be honored at a proration rate of approximately 3.6%.

Any unfulfilled repurchase requests will automatically carry forward to future repurchase periods unless a stockholder withdraws the request at least five business days before the next scheduled repurchase date.

Broader Implications for Investors

The disclosure highlights ongoing liquidity challenges that can affect investors in non-traded REITs, where share repurchase programs serve as a primary mechanism for stockholders seeking to exit their positions. With demand for repurchases far exceeding available funding, the vast majority of shareholders who requested buybacks will receive only a small fraction of what they sought, underscoring the limited liquidity available to investors in this type of vehicle.