The Rhode Island-based hospitality REIT continues quarterly distribution payments at a 7% annualized rate amid ongoing share repurchase constraints.

April 29, 2026

Procaccianti Hotel REIT, Inc., the Cranston, Rhode Island-based non-traded real estate investment trust, has authorized the payment of quarterly distributions to its common stockholders and certain operating partnership unit holders for the first quarter of 2026.

According to a disclosure dated April 27, 2026, the company’s board of directors approved distributions for both Class K and Class K-I common shares that were outstanding as of March 31, 2026. The cumulative distributions accrued on a daily basis from January 1, 2026 totaled:

• Class K shares: $665,355 in aggregate accrued distributions
• Class K-I shares: $248,516 in aggregate accrued distributions

Each share class accrues distributions at a daily rate of approximately $0.0019, which reflects an annualized rate of 7% under the terms of the company’s charter.

Class K OP Unit Distributions

In a related action, the board, acting on behalf of the company in its capacity as general partner of Procaccianti Hotel REIT, L.P., the operating partnership, also authorized distributions to holders of Class K limited partnership units. These units are held by affiliate sellers — individuals with direct or indirect interests in the original seller of the Hilton Garden Inn property in Providence, Rhode Island, who are also direct or indirect owners of Procaccianti Companies, Inc., the company’s sponsor, and Procaccianti Hotel Advisors, LLC, its external advisor.

The accrued distribution on these units totaled $22,115 for the period running from the date of issuance through December 31, 2025, also reflecting the 7% annualized accrual rate. The Class K operating partnership units were originally issued in February 2020 as partial consideration for the company’s acquisition of the Hilton Garden Inn Providence property, with affiliate sellers receiving units rather than cash as their consideration in the transaction.

Context and Broader Implications

This latest distribution authorization is consistent with the company’s pattern of quarterly distribution payments throughout 2024 and 2025, which have been funded primarily through operating cash flow generated by its hotel properties as previously reported in the company’s annual results. The company maintains a five-property select-service hotel portfolio totaling 559 rooms across four states.

The distribution announcement comes as the company continues to navigate funding constraints under its share repurchase program, which has limited buyback activity due to insufficient distribution reinvestment plan proceeds. As recently disclosed, the company was only able to fulfill approximately 3.6% of remaining repurchase requests for the fourth quarter of 2025.

Distributions continue to accumulate pursuant to the company’s charter, with the board determining future distribution payments on a quarter-by-quarter basis.