Procaccianti Hotel REIT, Inc. reported a net loss of $1.81 million for the first quarter of 2026, a significant increase from the $933,641 loss recorded in the same period of 2025. Total revenues for the quarter decreased to $5.11 million, down 12.5% from $5.85 million year-over-year. The decline in revenue was primarily driven by a 14.1% drop in room revenues, which fell to $4.48 million from $5.21 million, attributed to lower average daily rates (ADR) and occupancy rates across the company's hotel portfolio.
In terms of operational performance, the average occupancy rate for the portfolio decreased to 50.84% in January, 57.54% in February, and 64.19% in March 2026, compared to 56.02%, 67.86%, and 68.60% in the same months of 2025, respectively. The ADR also saw a decline, with the average rate dropping from $147.11 in March 2025 to $139.09 in March 2026. The company operates five select-service hotels with a total of 559 rooms across four states.
On the balance sheet, total assets decreased to $102.25 million as of March 31, 2026, down from $104.50 million at the end of 2025. The decline in assets was accompanied by a slight increase in total liabilities, which rose to $72.27 million from $71.75 million. Stockholders' equity also fell to $24.82 million from $27.65 million, reflecting the company's ongoing losses and distribution payments.
Strategically, Procaccianti Hotel REIT continues to focus on its portfolio of select-service hotels, with plans to maintain its operational structure through its external management agreement with Procaccianti Hotel Advisors, LLC. The company has also been active in its distribution reinvestment plan, raising approximately $2.47 million from the issuance of common stock in the first quarter of 2026. Looking ahead, the company anticipates ongoing challenges in the hospitality sector, including inflationary pressures and geopolitical uncertainties, which may impact future performance and distribution capabilities.
About PROCACCIANTI HOTEL REIT, INC.
Procaccianti Hotel REIT, Inc. is a Maryland-based real estate investment trust focused on acquiring, owning, and managing a diversified portfolio of hospitality properties across the U.S. It primarily invests in select-service, extended-stay, and full-service hotels, leasing them to third-party operators. The company aims to generate stable income, preserve capital, and maximize risk-adjusted returns through income-producing assets and strategic management.
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