Material Agreement (Form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

Amendment and Extension of Hotel Indigo Loan

On October 21, 2026, PHR TCI, LLC (the "Borrower"), a wholly owned subsidiary of Procaccianti Hotel REIT, L.P., the operating partnership of Procaccianti Hotel REIT, Inc. (the "Company"), entered into a First Omnibus Loan Modification Agreement (the "Modification Agreement") and an Amended and Restated Promissory Note (the "A&R Note") with Beacon Bank & Trust, as successor by merger to Berkshire Bank (the "Lender"), with respect to the existing mortgage loan made by the Lender to the Borrower on June 6, 2024 (the "Loan"), which is secured by the Hotel Indigo located at 263 West Grandview Parkway, Traverse City, Michigan (the "Hotel Indigo Property"). Pursuant to the Modification Agreement and the A&R Note, the maximum principal amount of the Loan was increased by $1,750,000, from $15,600,000 to $17,350,000. The outstanding principal balance of the Loan was $15,600,000 as of the effective date of the Modification Agreement, and the additional $1,750,000 will be advanced to the Borrower, subject to the satisfaction of certain conditions, to fund a portion of capital expenditures and renovations at the Hotel Indigo Property.

The Modification Agreement extends the initial maturity date of the Loan from June 6, 2027 to June 6, 2028. The Borrower has two options to extend the maturity date of the Loan by 12 months each, to June 6, 2029 and June 6, 2030, respectively, subject to the satisfaction of certain conditions, including a debt service coverage ratio of not less than 1.50:1 (based on amortizing debt service payments), the absence of any default or event of default, and the payment of an extension fee of $17,350 for each extension.

Under the A&R Note, the Loan bears interest at a fixed rate of 6.50% per annum through June 6, 2027 and, for the remainder of the initial term, at a fixed rate equal to 2.50% above the yield on U.S. Treasury securities adjusted to a constant maturity of one year. During each extension term, the Loan will bear interest at a fixed rate equal to 2.50% above such one-year Treasury yield, determined as of the first day of the applicable extension term and rounded to the nearest one-eighth of one percent. The Loan requires monthly payments of interest only through June 6, 2028, and thereafter monthly payments of principal and interest based on a 30-year amortization schedule. The Loan may be prepaid in whole or in part upon five days' prior written notice without a prepayment fee. In connection with the Modification Agreement, the Borrower paid the Lender a modification fee of $10,000.