Dallas-based hotel REIT sold to retail investors files Chapter 11
American Hospitality Properties REIT filed Chapter 11 in Dallas on Oct. 4, four months after the SEC settled claims over two hotel funds.
American Hospitality Properties REIT, Inc., a Dallas-based hotel REIT sold to individual investors, filed for Chapter 11 with certain subsidiaries on Oct. 4, its own SEC filing shows.
The case sits in Dallas bankruptcy court, but the hotels do not. Press accounts place them in other states, and nothing we pulled ties them to Dallas-Fort Worth. For DFW owners and lenders, this is a Dallas court case, not a local asset sale.
Why it matters
The REIT’s Form 1-U, filed Oct. 8, lists principal offices at 14643 Dallas Parkway in Dallas. It says the company and certain subsidiaries filed voluntary petitions in the U.S. Bankruptcy Court for the Northern District of Texas. The cases are jointly administered as Case No. 26-80071 (SGJ). The debtors continue to operate as debtors-in-possession.
The filing gives no reason, no debtor count and no dollar figures. It does not mention the SEC.
On June 4 the SEC filed a settled action in federal court in the Northern District of Texas against Phoenix American Hospitality, LLC and William Lee Nelson. The SEC release concerns two hotel-focused investment funds and does not name the REIT. Bondoro, a secondary source, reports that Phoenix was the REIT’s former manager.
The numbers
The SEC alleges Phoenix and Nelson raised about $86 million from more than 2,000 retail investors in the two funds from March 2022 through July 2024.
It also alleges one fund claimed as many as 11 hotels while owning only a preferred equity interest in a single hotel until January 2024.
We could not verify petition-level asset and liability ranges, the debtor count or the lender claims reported by Bondoro. They are left out until the docket is pulled.
What’s next
First-day motions on cash collateral and payments come next on the docket. The schedules of assets and liabilities should show which lenders and franchisors hold claims and what investors are owed.
Retail REIT shareholders rank behind secured lenders in most bankruptcies. Recovery will turn on what the hotels fetch. For other Dallas-area filings, see our Dallas coverage.
On the record
What we checked ourselves, and where you can check it too.
- SEC filingThe REIT's own Form 1-U says the debtors filed voluntary Chapter 11 petitions on Oct. 4, 2026, jointly administered as Case No. 26-80071 (SGJ) in the Northern District of TexasView the filing on sec.gov
- Public recordThe SEC's June 4, 2026 settled complaint alleges about $86M was raised from more than 2,000 retail investors from March 2022 through July 2024View the record on sec.gov
On the record
- Primary recordSEC EDGAR, Form 1-UAmerican Hospitality Properties REIT current report disclosing the Chapter 11 petitions
- Primary recordSEC Litigation ReleaseSEC settled action against Phoenix American Hospitality, LLC and William Lee Nelson
- Primary recordSEC complaintComplaint, N.D. Tex. Civil Action No. 3:26-cv-01846
- Primary recordBondoro InsightsSecondary summary of the REIT bankruptcy filing