Procaccianti Hotel REIT Inc., a publicly registered non-traded real estate investment trust sponsored by privately-held real estate firm Procaccianti Companies Inc., has sent a letter to shareholders on the status of the outstanding mortgage debt on its real estate properties.
Springhill Suites in Wilmington, North Carolina – The property continues to be in compliance with the original loan obligations and all required payments have been made as agreed.
Staybridge Suites in St. Petersburg, Florida – The property continues to be in compliance with the original loan obligations and all required payments have been made as agreed. In August 2020, the REIT received a written waiver of all debt service coverage testing for the tests due for the period beginning June 2020 through the remainder of 2020.
Hotel Indigo in Traverse City, Michigan – In April 2020, the REIT received a deferral of the obligations to make interest payments from lender Citizens Bank for three months. As of September 29, 2020, the company said that the property was able to generate sufficient income to repay the deferred interest in full and is in compliance with the original loan obligations and all required payments have been made as agreed.
Hilton Garden Inn in Providence, Rhode Island – In April 2020, the REIT received a deferral of the obligations to make interest payments from lender East Boston Savings Bank for six months.
Under this deferral arrangement, the deferred interest payments were required to be repaid in 12 monthly installments commencing April 2021. In addition, debt service coverage ratio tests are waived through the end of 2020, and the company said that the loan is currently in compliance.
As previously reported by The DI Wire, Procaccianti Hotel REIT reopened its share repurchase program in July. Citing the global COVID-19 pandemic, the REIT’s board temporarily suspended the company’s offering and distribution reinvestment program in early April, and the share repurchase program in late March. In June, the company resumed the offering, which was extended until August 14, 2021, while the DRIP resumed on June 21, 2020.
Procaccianti Hotel REIT’s $550 million initial public offering launched in August 2018 to invest in hospitality properties consisting primarily of select-service, extended-stay, and compact full-service hotel properties throughout the United States. The company owned interests in four select-service hotels with a total of 483 rooms, as of June 30, 2020. As of August 2020, the company had raised $27.6 million in investor equity.