Procaccianti Hotel REIT, Inc. reported a net income of $1.86 million for the fiscal year ending December 31, 2025, a decrease from $2.07 million in the previous year. The company generated total revenues of approximately $28.55 million, reflecting a modest increase of 1.5% from $28.13 million in 2024. This growth was primarily driven by an increase in average daily room rates (ADR), which rose to $197.66, up from $192.25 in the prior year. The company’s funds from operations (FFO) for 2025 were reported at $5.01 million, compared to $5.22 million in 2024, indicating a slight decline in operational performance.
In terms of operational metrics, Procaccianti Hotel REIT maintained a portfolio of five select-service hotel properties with a total of 559 rooms across four states. The average occupancy rate for the year was 70.80%, an increase from 71.52% in 2024. However, individual property performance varied, with the Hilton Garden Inn Providence showing a notable increase in both occupancy and ADR, while the Staybridge Suites St. Petersburg experienced declines in both metrics. The company also reported a total outstanding indebtedness of approximately $67.41 million as of December 31, 2025, which did not exceed the 300% limit of its net assets.
Strategically, the company refinanced the mortgage note for the Hilton Garden Inn Providence in July 2025, securing a fixed interest rate of 6.10% through July 2030. Additionally, Procaccianti Hotel REIT continued to offer shares through its Distribution Reinvestment Plan (DRIP), raising $821,480 in proceeds during 2025. The board of directors established an estimated per share net asset value (NAV) of $10.17 for K Shares and K-I Shares, and $7.14 for A Shares as of March 31, 2025.
Looking ahead, the company anticipates challenges in the hospitality sector due to ongoing economic uncertainties, including inflation and geopolitical tensions, which may impact business travel recovery. Despite these challenges, the company remains focused on providing stable income for stockholders through cash distributions and maximizing risk-adjusted returns on investments. The board of directors will continue to evaluate distribution policies on a quarterly basis, with the expectation of maintaining distributions from operating cash flows.
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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