Procaccianti Hotel REIT, Inc. (PRXK) is a non-traded hotel REIT operating 559 rooms across 4 states as of December 31, 2025. Under a liquidation lens, recovery to equity is structurally negative and the MFFAIS model confirms a calculated liquidation value of approximately negative $45.6 million. The primary driver is the gap between haircutted real estate assets and face-value liabilities. Total assets are $104.5 million, dominated by net PP&E of $92.5 million (gross $118.5 million, accumulated depreciation $26.0 million). Applying a 50-70% recovery range to the hotel PP&E — consistent with hospitality asset liquidation norms where forced-sale discounts are material — yields haircutted PP&E of roughly $46-65 million. Cash of $7.2 million recovers at par; restricted cash of $3.7 million is partially encumbered and likely captures at par only if lender-released. Against this, total liabilities stand at $71.7 million at face value, led by long-term debt of $67.3 million (notes payable $66.7 million). Debt maturity concentration is noteworthy: $9.1 million due within 12 months and $38.3 million due in year four, suggesting near-term refinancing or payoff pressure is moderate but the four-year concentration is significant. At any PP&E haircut below roughly 80%, equity is underwater after clearing the debt stack. Noncontrolling interest of $3.7 million and redeemable NCI of $1.4 million sit ahead of or alongside common equity in the waterfall. Cumulative dividends of $25.0 million on the balance sheet reflect accrued preferred-like distributions that represent a senior equity claim. The filing also discloses a persistent and growing SRP (share repurchase program) backlog: 32,295 K-I share requests outstanding at year-end, up materially from 33,242 in the prior 10-Q filing, with the board repeatedly triggering the DRIP funding cap and only partially satisfying quarterly redemptions. On January 19, 2026, the Second Amended and Restated Advisory Agreement removed the August 2026 deadline for cessation of asset management fee accrual and interest on deferred acquisition and disposition fees, extending affiliate fee obligations with no cap date — a structural increase in the liability overhang not separately tagged in XBRL. The deferred tax asset went to zero ($0 vs. $299,084 prior year) as management concluded full valuation allowance is warranted. Net income for 2025 was $1.86 million vs. $2.07 million in 2024, a modest decline. Revenue grew slightly to $32.8 million from $31.9 million. Interest expense increased to $4.1 million from $3.7 million year-over-year, consistent with higher debt service on the $19.2 million of new notes proceeds drawn during the year offset by $16.7 million in repayments.
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