American Hospitality Properties REIT, Inc. has filed for bankruptcy protection in Texas. The hotel investment company has investments in properties affiliated with Marriott and Hilton brands. American Hospitality Properties REIT, Inc. and 15 affiliates filed Chapter 11 petitions. The filing comes after the SEC brought a settled action involving the REITs’ former external manager.
Note: A Chapter 11 bankruptcy filing is a legal process that allows a business to reorganize its debts, restructure obligations, and continue operating while working toward financial stability. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.
American Hospitality Properties REIT, Inc. Files for Bankruptcy
PACER records show that the company filed its petition on October 4, 2026. Alan Tantleff, the company’s chief restructuring officer, signed the petition.
Filing records show that the company’s board approved the filing after considering its financial condition, liquidity needs, liabilities, contractual obligations, and other prospects. The board also authorized Vinson & Elkins LLP and FTI Consulting to serve as bankruptcy counsel and financial advisor, respectively.
According to Pacermonitor, American Hospitality Properties REIT II, Inc. also filed for Chapter 11 in the court on the same day. Fourteen other affiliated entities also filed separate Chapter 11 petitions:
- AHP Master Lease, LLC
- AHP REIT Port B LLC
- AHP RI Cape Canaveral, LLC
- AHP LP7 Bentonville, LLC
- AHP LP7 CY Baton Rouge, LLC
- AHP LP7 Fayetteville, LLC
- AHP LP7 FT Meyers, LLC
- AHP LP7 Jonesboro, LLC
- Lakemore-Phoenix Investment Platform B, LLC
- AHP LP7 Metairie, LLC
- PAH Charlotte Hospitality JV, LLC
- PAH Charlotte JV, LLC
- PAH Charlotte LLC
- AHP LP7 RI Baton Rouge, LLC
Highlights from the Petition
Court records show that American Hospitality Properties REIT, Inc. submitted a list of its largest unsecured creditors. The list includes Marriott International, Inc., with a claim of approximately $1.94 million for franchise fees.
Hilton Hotels Corporation is also listed, with a claim of approximately $191,364 for franchise fees.
The Chapter 11 petition further shows that the REIT had franchise-fee obligations involving both Marriott and Hilton. It does not indicate that either hotel company owns American Hospitality Properties REIT.
The records also name PAH Management for management fees, Spirit Realty LP for ground rent, and Deutsche Bank AG for a bank loan.
Key details of the filing include:
- Filing Date: October 4, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of Texas
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-80071-sgj11
- Estimated Assets: Between $0 and $50,000
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: 1-49
Phoenix American Hospitality Previously Managed the REITs
SEC filings show that Phoenix American Hospitality, LLC previously served as the external manager for both REITs. Both REITs terminated their management agreements with PAH effective May 20, 2026.
In addition, Nelson resigned as chief executive officer and director of both companies. In an official announcement, Joe Reardon was named president of both REITs.
Under a separate services agreement, American Hospitality Properties REIT provides American Hospitality Properties REIT II with administrative, management, and operations services.
The hotels continued operating under existing management agreements with a PAH affiliate, according to AltsWire.
Security Class Action Names the REITs
The AltsWire article shows that PAH and Nelson face SEC enforcement action for raising around $86 million from more than 2,000 retail investors. The funding was arranged between March 2022 and July 2024 through two hotel-focused investment vehicles.
According to the SEC, PAH and Nelson gave investors incorrect information about the number of hotels held by REIT I and the funds’ profits. REIT I had an investment in one hotel until January 2024. However, investors were told it had acquired around 11 hotels.
The SEC added that neither fund was making a profit during the period, despite statements that investors were receiving annualized distributions of up to 12%.
PAH and Nelson agreed to settle the matter without admitting or denying the SEC’s claims. Under the proposed settlement, PAH would pay $591,127 and Nelson would pay $118,225. Nelson would also be barred from serving as an officer or director for five years, subject to court approval.
As per Business Wire, investors who bought securities in either REIT between March 2022 and July 2024, have until November 16 to seek lead plaintiff status.
The bankruptcy proceedings could determine how the company handles its financial obligations as it faces ongoing legal and management developments.
