PROCACCIANTI HOTEL REIT, INC. 8-K

What Happened

• Procaccianti Hotel REIT, Inc. (PRXA) said on its 8-K that on July 27, 2026 the board — including all independent directors — authorized renewal of the Second Amended and Restated Advisory Agreement with Procaccianti Hotel Advisors, LLC for a one-year term beginning August 2, 2026.
• The company also updated the “Suitability Standards” in its Class K and Class K‑I public offering prospectus for California stockholders who elect to participate in the distribution reinvestment plan (DRIP). The new standards apply on and after August 4, 2026.

Key Details

• Advisory agreement renewed by mutual consent for a one-year term commencing August 2, 2026.
• Advisor: Procaccianti Hotel Advisors, LLC; renewal authorized July 27, 2026 with approval from all independent directors.
• New California suitability tests for Class K / K‑I DRIP participation (effective Aug 4, 2026):
  • Either a liquid net worth of at least $350,000; or
  • Gross annual income of at least $100,000 and a net worth of at least $100,000.
• California investors’ maximum investment in the common stock through the plan cannot exceed 10% of the investor’s net worth (excluding primary residence, home furnishings and automobiles).

Why It Matters

• The advisory agreement renewal means the company will continue to be managed by its current advisor, providing continuity in operations and oversight for at least the next year.
• The updated California suitability rules tighten eligibility for local investors who want to reinvest distributions via the DRIP — some California holders may no longer qualify or may be limited in how much they can invest. California-based Class K and K‑I shareholders should check their eligibility before electing to participate.