Procaccianti Hotel Reit's Business Segments

Procaccianti Hotel REIT, Inc., established in 2016 under Maryland law, is a real estate investment trust (REIT) focused on acquiring and owning a portfolio of hospitality properties, primarily select-service, extended-stay, and compact full-service hotels in the United States. As of December 31, 2025, the company held interests in five select-service hotel properties. It operates as a REIT for U.S. federal income tax purposes, which generally exempts it from federal income tax if it distributes qualifying dividends. The company conducts substantially all of its business through Procaccianti Hotel REIT, L.P., a Delaware limited partnership for which it serves as the sole general partner. It is externally managed by PHA, an affiliate of its sponsor, Procaccianti Companies, Inc. To maintain REIT status, the company leases its wholly owned hotels to taxable REIT subsidiary lessees (TRS Lessees), which contract third-party management companies, including TPG Hotels & Resorts, Inc. and its affiliates, to operate the hotels. The company has raised capital through private and public offerings and a distribution reinvestment plan by issuing various classes of common stock. It establishes an estimated per share net asset value (NAV) annually, determined by its board with input from PHA and an independent valuation firm. The NAV reflects real estate assets, liabilities, and equity interests and is allocated according to the company's charter provisions.