Procaccianti Hotel REIT, Inc. has amended the terms of a loan secured by its Hotel Indigo property in Traverse City, Michigan. The amendment, executed on October 21, 2026, involves the Borrower, PHR TCI, LLC, a wholly owned subsidiary of the REIT, and Beacon Bank & Trust, the lender.
The modification agreement increases the maximum principal amount of the loan from $15.6 million to $17.35 million. The additional $1.75 million is intended to fund capital expenditures and renovations at the property. The loan interest rate is fixed at 6.50% per annum through June 6, 2027. For the remainder of the initial term, the rate will be set at 2.50% above the yield on one-year U.S. Treasury securities. Monthly interest-only payments are required through June 6, 2028, after which principal and interest payments will be made on a 30-year amortization schedule.
The maturity date of the loan has been extended from June 6, 2027, to June 6, 2028. The Borrower has the option to extend the maturity date by an additional 12 months twice, subject to specific conditions including a debt service coverage ratio of at least 1.50:1 and the payment of an extension fee of $17,350 for each extension. The REIT also paid a modification fee of $10,000 and reaffirmed its obligations as guarantor under the loan agreement.
In other business, the Company's board of directors authorized the payment of distributions for its Class K common stock and Class K-I common stock. The distributions, which reflect an annual accrual rate of seven percent, will be paid on or about November 4, 2026, to stockholders of record as of November 3, 2026. The board also authorized distributions for Class K limited partnership units held by Affiliate Sellers of a Hilton Garden Inn property.
