Written by The White Law Group• March 30, 2020• 7:28 pm• Blog, Current Investigations

Procaccianti Hotel REIT Securities Investigation UPDATED 2021

Procaccianti Hotel REIT Securities Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Procaccianti Hotel REIT – Suspends SRP due to Coronavirus (COVID-19) Pandemic

Have you suffered losses investing in Procaccianti Hotel REIT? If so, the securities attorneys at The White Law group may be able to help you to recover your losses through FINRA Arbitration.

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Procaccianti Hotel REIT Inc., a publicly registered non-traded REIT, has reportedly suspended its share repurchase program (SRP), due to the negative impact of the COVID-19 global pandemic on its portfolio.

According to filings with the SEC, The company said that the suspension will be temporary and that once the SRP fully reopens, any unprocessed requests will automatically roll over unless a stockholder withdraws the request five business days before to the next repurchase date.

At this point, the REIT reportedly intends to pay quarterly distributions for the first quarter of 2020 with operating cash flow, however, the board will make determinations on future distributions on a quarter-by-quarter basis, according to SEC filings.

Update on September 8, 2021 – Secondary Sales Price – $4.25 per Share

According to Central Trade and Transfer, a secondary marketplace for non-traded REITs, shares of Procaccianti Hotel REIT were recently listed for sale for just $4.25 per share. This may indicate significant losses for investors as the original offering price was $10.00 per share.

On June 9, 2021, the Company’s board of directors determined an estimated NAV per share of all classes of the Company’s capital stock, each calculated as of March 31, 2021, as follows: (i) $9.85 per K Share, (ii) $9.77 per K-I Share, (iii) $9.85 per K-T Share, (iv) $0.00 per A Share, and (v) $0 per B Share and revised the public offering share prices, according to a 10-Q filing on June 30, 2021.

According to the filings on June 30, 2021,the company stated that since the beginning of March 2020, the Company has experienced significant declines in occupancy and revenue per available room (“RevPAR”) associated with COVID-19 throughout its hotel portfolio, which “has had a negative impact on the Company’s operations and financial results. The full financial impact of the reduction in hotel demand caused by the pandemic cannot be reasonably estimated at this time due to uncertainty as to its severity and duration.”

The company reportedly filed a Form D to raise capital from investors in 2016. The total offering amount was purportedly $162,250,000.

Recovery of Investment Losses

The White Law Group is investigating FINRA arbitration claims involving broker dealers who may have improperly recommended non-traded REITs to investors.

Brokerage firms are required to perform due diligence on any investment they recommend. They must ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.