American Hospitality Properties REIT and Sister REIT File for Chapter 11 Protection
The bankruptcy follows a May overhaul in which the Dallas hotel REIT ended its external management agreement and installed a new president.
October 9, 2026
American Hospitality Properties REIT, Inc. and certain of its subsidiaries filed voluntary Chapter 11 petitions on October 4, 2026, in the U.S. Bankruptcy Court for the Northern District of Texas, the Dallas-based hotel REIT disclosed in a report dated October 8.
The cases are being jointly administered under the lead caption In re American Hospitality Properties REIT, Inc., et al. In a separate report the same day, affiliate American Hospitality Properties REIT II, Inc., which co-owns certain hotels with the company through a joint venture, said it and certain of its subsidiaries had also filed, with their cases administered under the same docket.
Operations Continue Under Court Supervision
The company said the debtors continue to run their businesses and manage their properties as debtors-in-possession, subject to the bankruptcy court's oversight. In Chapter 11, a debtor-in-possession generally keeps control of its assets and day-to-day operations while it works toward a plan, with significant decisions requiring court approval. Shareholders typically rank behind secured and unsecured creditors in the order of recovery.
The disclosure left several questions open. It did not:
- identify which subsidiaries are part of the case
- quantify assets or liabilities, or name major creditors
- say whether a restructuring plan, sale process, or debtor-in-possession financing has been arranged
Court documents are being posted by the company's third-party claims agent.
A Leadership Overhaul in May
The bankruptcy follows a sweeping change in how the REIT is run. On May 20, 2026, the company terminated its management agreement with Phoenix American Hospitality, LLC, its external manager, with no termination fee payable. Its hotels continued to operate under existing hotel management agreements with a Phoenix affiliate.
That same day, chief executive W.L. Nelson resigned as CEO and director, and Jay Anderson stepped down as executive vice president, controller, and director before staying on as a consultant handling accounting and financial reporting. Joseph Reardon was named president and added to the board, and under a services agreement he also serves as president of American Hospitality Properties REIT II. The board appointed Paul Adams as an independent director charged with reviewing conflicts of interest, including related-party transactions. Reardon signed the bankruptcy notices for both REITs.
Limited Recent Financial Disclosure
American Hospitality Properties REIT was formed to invest in limited-service and upscale select-service hotels in the United States and raised capital from investors under Regulation A. The most recent financial report it has filed with the SEC is a semiannual report covering the six months ended June 30, 2022.
