| Investments in Hotels |
Note 3 – Investments in Hotels The following table sets forth summary information regarding the Company’s investments in hotel properties as of June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | Contract | | | | Mortgage | | | | | | | | Ownership | | Purchase | | | | Debt | | Property Name | | Date Acquired | | Location | | Interest | | Price(1)(2) | | Rooms | | Outstanding | | Springhill Suites Wilmington | | 05/24/2017 | (1) | Wilmington, NC | | 51% | | $ | 18,000,000 | | 120 | | $ | 10,813,833 | | Staybridge Suites St. Petersburg | | 06/29/2017 | (1) | St. Petersburg, FL | | 51% | | $ | 20,500,000 | | 119 | | $ | 12,777,267 | | Hotel Indigo Traverse City | | 08/15/2018 | | Traverse City, MI | | 100% | | $ | 26,050,000 | | 107 | | $ | 15,600,000 | | Hilton Garden Inn Providence | | 02/27/2020 | | Providence, RI | | 100% | | $ | 28,500,000 | | 137 | | $ | 19,200,000 | | Cherry Tree Inn | | 07/30/2021 | | Traverse City, MI | | 100% | | $ | 15,000,000 | | 76 | | $ | 8,702,722 | |
| 1) | Represents the date and contract purchase price of PCF’s acquisition of the Springhill Suites Wilmington (the “Springhill Suites Wilmington”) and the Staybridge Suites St. Petersburg (the “Staybridge Suites St. Petersburg”). The Company exercised its option under an option agreement to purchase a 51% membership interest in PCF on March 29, 2018. |
| 2) | Contract purchase price excludes acquisition fees and costs. |
Investments in hotel properties consisted of the following as of June 30, 2026 and December 31, 2025: | | | | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | Land | | $ | 14,450,538 | | $ | 14,450,538 | Building and improvements | | | 89,866,077 | | | 89,727,618 | Furniture, fixtures, and equipment | | | 14,681,786 | | | 14,283,230 | Total cost | | | 118,998,401 | | | 118,461,386 | Accumulated depreciation | | | (27,901,741) | | | (26,000,577) | Property and equipment, net | | $ | 91,096,660 | | $ | 92,460,809 |
Depreciation expense for the three months ended June 30, 2026 and 2025 was $950,438 and $979,792, respectively. Depreciation expense for the six months ended June 30, 2026 and 2025 was $1,901,164 and $2,067,087, respectively.
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