As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. . Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. The REIT primarily owns Hilton, Marriott and Hyatt brands. Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Investors are unlikely to recover much of the money they invested. The REIT has reportedly decreased nearly 45% since its initial issuance. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); On May 19, 2021, the New York-based Hospitality Investors Trust filed for Chapter 11 bankruptcy to attempt to restructure its $1.3 billion debt. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. Rosenheim is a city in Bavaria, Germany.It is an independent city located in the centre of the district of Rosenheim (Upper Bavaria), and is also the seat of its administration.It is located on the west bank of the Inn at the confluence of the rivers Inn and Mangfall, in the Bavarian Alpine Foreland.It is the third largest city in Upper Bavaria with over 63,000 inhabitants. 2015 by The White Law Group, LLC All rights reserved. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them. Six of the hospitality industry's largest hotel companies are named in a new class-action lawsuit, which claims to have uncovered an antitrust scheme to reduce competition and raise consumer prices. Each engagement agreement includes the details of the fee arrangement. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. The REIT explained in the filings that due to the impact of the coronavirus global pandemic on its business, the company expects it will no longer have sufficient cash on hand to continue to pay its current obligations during the first half of 2021. In addition, our investigation has revealed that some advisors who sold HIT REIT to their clients also sold other questionable or potentially unsuitable products to their clients. The maximumamountof payments made per CVR will not exceed$6.00and will not be transferable, except in limited instances such as the death of the holder. Last December we told you that Hospitality Investors Trust Inc. (HIT REIT), a publicly registered non-traded REIT, amended its limited partnership agreement with its investment partner, Brookfield Strategic Real Estate Partners II Hospitality REIT II LLC. If you have an ad-blocker enabled you may be blocked from proceeding. Adam Corwin: Complaint Against MML Advisor Alleges Fraud, James Warring: EagleStone Wealth Advisor Faces $4.5mm Complaint, Chuck Timmerman: $400K Complaint Against US Bancorp Advisor, Adam Brown: WestPark Advisor Faces $351K Investor Complaint. Unfortunately, many of the investors didnt even know the loss because they were both unaware of the risks of the investment and it is not traded on the exchanges. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. Previously known as American Realty Capital Hospitality Trust, it came under fire for a 2017 investment deal that gave Brookfield substantial control over the company and led Hospitality Investors to suspend stockholder distributions. Hospitality Investors Trust, Inc. is a real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout North America within the select service markets of the hospitality sector. Unfortunately for investors, this sales price would represent a significant loss on their capital investment, as the original purchase price was $25.00 per share. Did your Advisor Recommend a Hospitality REIT? Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors. Every case is different, and we will do our best to provide you with an estimate based on your case and our experience with similar cases. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. Investors who have been sold the HIT REIT unsuitably and have lost money, as a result, could seek recovery through the FINRA (Financial Industry Regulatory Authority) arbitration process. Hospitality Investors Trust is negotiating a deal that would give Brookfield financial control over its 100 hotels as part of a possible Chapter 11 filing, Bloomberg News reported. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. We handle cases that change lives. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. Similar to American Finance Trust, Inc. (AFIN), VEREIT, and ARC NYC REIT, HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. The asset management company holds all $441 million worth of its preferred equity. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. Based on law firm verdicts and settlements exceeding $4 billion, our securities fraud lawyers are committed to seeking justice for the victims of investment fraud and misconduct. Entering text into the input field will update the search result below, high risk non-traded REITs, like HIT REIT. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. Their investor toll-free number is 1-800-856-3352. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. Distributions can be paid from any source, including unlimited amounts from offering proceeds and borrowings. (504) 608-1465. Even worse, HIT REIT is now in bankruptcy. The amount we charge is based on how much we recover for you. All Rights Reserved. Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. Read more about what judges say about us. Hospitality Investors Trust REIT was formed in July 2013 by AR Capital, a now-infamous company in the non-traded REIT space that has sponsored over $20 billion in deals. The White Law Group announces the filing of FINRA Lawsuit involving High Risk Non-Traded REITs and BDCs The White Law Group announces the Have you suffered investment losses in a Hospitality (Non-traded) REIT? According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. The White Law Group continues to investigate potential securities claims involving the liability brokerage firms may have for recommending Hospitality Investors Trust to its clients. We do not charge any fees or costs unless you first recover. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Hospital Investors Trust has faced a steady decline in its price in the last few years which has been further exacerbated on account of the impact of Covid-19 from March 2020 onwards. REITs like this are only suitable for savvy and wealthy investors, because these complex investment products are often risky and highly illiquid, meaning investors may be stuck and not able to access their money. In January of 2017, the company suspended its distributions and announced that it did not expect to pay distributions for the rest of the year. Shares were originally sold to most investors at $25 a share. Blog, Current Investigations. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. These professionals are ethically bound to tell their clients about the risks associated with recommended investments. To review a summary of our fees and costs, click Fees & Costs. Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. We have a national team of attorneys and staff who look forward to speaking with you. In May 2021, with $1.3 billion in debt, the REIT declared bankruptcy. The most clear and obvious example is William Kahane, the chief executive officer of the trust. The recovery of millions of dollars of money lost by investors due to the negligent and fraudulent actions of some of the largest firms on Wall Street is a part of the work done by Haselkorn & Thibaut. Hospitality Investors Trust, Inc., formerly known as ARCHospitalityTrust Inc., (HIT REIT) is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout North America within the select service and full-service markets of the hospitality sector, according to its website. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investors age, risk tolerance, net worth, and investment experience. A broker or financial advisor who recommends unsuitable investments, or who does not take these factors into consideration, may bear some liability for losses. Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. The REIT stopped all distributions in 2017. Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? You should consult an attorney for individual advice regarding your own situation. According to Vanguard's lawsuit and as reported by Joseph DiStefano in a philly.com article, Schorsch and his associates overexaggerated earnings in reports, "convincing Vanguard and other professional investors to buy the stock, after certifying the company had solid financial controls and honest financial reporting." Hidden Hidden web source According to recent SEC filings, the board of Hospitality Investors Trust has approved an estimated net asset value (NAV) $9.21 per share for the companys common stock, as of December 31, 2018. Central Trade & Transfer announced a selling price of 46 cents per HIT share in March 2021. ContactPeiffer Wolf today by filling out aContact Formon our website or by calling585-310-5140to schedule aFREE Case Evaluation. Eileen is involved in the firms securities practice and has over a decade of experience in the legal world. HIT was originally a blind pool offering, further making the investment highly speculative. How to RecoverHospitality Investors Trust (HIT REIT)InvestmentLosses, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021. In May 2021, The Hospitality Investors Trust filed for Chapter 11 bankruptcy protection, which will almost certainly result in investors losing all or most of their principal. NEW YORK, June 11, 2021 (GLOBE NEWSWIRE) -- National investor fraud law firm, KlaymanToskes ("KT"), announces an investigation on behalf of investors in Hospitality Investors Trust ("HIT . Brokers who failed to conduct adequate due diligence or did not appropriately disclose the risk of HIT to their clients may be liable for the losses suffered as a result of their failure. Hospitality Investors Trust, Inc., formerly known as ARC Hospitality Trust Inc., ("HIT REIT") is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of "strategically-located hotel properties throughout North America within the select service and full-service markets of the hospitality sector," Investors in REITs hope to profit from regular cash distributions from the REITs income. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. The company reportedly decided not to make required capital reserve payments to the mortgage lender in April and May 2020 which resulted in events of default under the 92-Pack Loans. The White Law Group is investigating potential securities fraud claims against the broker dealers that improperly sold high risk non-traded REITs, like HIT REIT to investors. Bankrupt hotel chain Eagle Hospitality Real Estate Investment Trust alleged in a court filing that two of its big investors received $2.4 million in federal coronavirus aid on behalf of its Queen . New Orleans, LA 70130 This meant that the fund had not had any net income and did not own any properties. Are you concerned about Hospitality Investors Trust Inc. (HIT REIT) losses? Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. 1519 Robert C. Blakes Sr Dr, 1st Floor The White Law Group may be able to help you recover your financial losses by filing aFINRAarbitration claim against the brokerage firm that sold you the investment. What is happening with Hospitality Investors Trust? Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. The Company operates as a public, non-traded real estate investment trust ("REIT"), meaning that it is: "public" because it is registered with the Hospitality Investors Trust investigation, Hospitality Investors Trust recovery options, Hospitality Investors Trust secondary sales, FINRA Lawsuit filed against Cetera Advisors. Prior Results do not guarantee a similar outcome. On May 19, 2021, the New York-based Hospitality Investors Trust filed for Chapter 11 bankruptcy to attempt to restructure its $1.3 billion debt. He assumed the Investor Relations position at Valora Asset Management on january/2020. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. Contact us now for a free consultation! Questions about our fee agreements are welcomed and encouraged. While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). According to filings in the bankruptcy case, each share of Hospitality Investors Trust common stock will be canceled and exchanged for a right to receive contingent cash payments (CVR). For more information on The White Law Group, visitwww.whitesecuritieslaw.com. This means that investors could have suffered over 95% losses on their investment, or even worse. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. Some other risks described in the prospectus include: We have no prior operating history or established financing sources and will rely on our advisor to conduct our operations. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. How long will it take to resolve my lawsuit? Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. If you invested in Hospitality Investors Trust REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. In this case, the REIT is not traded on the exchanges. 2015 by The White Law Group, LLC All rights reserved. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We are a nationwide litigation law firm that represents individuals and entities who have been the victims of negligence, fraud or the misconduct of powerful interests. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. As result, there have multiple lawsuits from Hospitality Investors. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. After the bankruptcy plan becomes effective, Brookfield will provide a $25 million exit facility. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. More than 12 hospitality venues have shut each day in Britain over the past year as they struggle with higher costs such as soaring energy prices, according to figures. Copyright 1996-2023 | Policies & Disclaimers, Representing Personal Injury Clients Since 1955, Levin Papantonio Rafferty - Personal Injury Law Firm, Martindale-Hubbell Preeminent Woman Attorney, $380 Million in Environmental Pollution Case, How to Recover Losses in Hospitality Investors Trust REIT, Escambia County School District Hosts Special Workshop to Explore Social Media Litigation, Brian Barr Again Picks Up the Fight Against Skanska in Oral Arguments, The Risks of Overconcentration in Pot Stocks, Retirees Are Suing for Investment Losses Allegedly Caused by Quincy, IL Area Financial Advisor and Broker Jeff Kennedy. Epiq11.com builds on a library of cases spanning two decades - the largest repository of such data in the industry outside of the federal court system. For more information, please read our full disclaimer. A prospectus filed with the Securities and Exchange Commission by American Realty Capital Hospitality Trustthe entity now known as Hospitality Investors Trustin 2014 states that investments in the REITs common stock involve a high degree of risk. One of the primary risks described by the prospectus is the investments illiquidity. Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover. Fill out this form for a FREE and prompt case evaluation. Drawn to recommending this REIT because of the high commissions associated with the transaction, brokers and financial advisors made unsuitable recommendations to many clients who lost a lot of money. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. HIT REIT Hospitality Investors Trust Losses update April 8, 2021 Possible bankruptcy Have you suffered losses investing (312) 238-9650 | Fax (312) 238-8950 | (888) 637-5510 | 125 S. Wacker Drive, Suite 300, Chicago, Illinois 60606The information you obtain at this site is not, nor is it intended to be, legal advice. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. Silver Law Group and Scott Silver aggressively pursued their losses until he got their money back., You and your entire staff have been wonderfully organized, professional and a delight to hear from. Then, during a HIT REIT quarterly investor presentation in April of 2018, the company reported. Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The company attributed the decline not only to lower occupancy rates and higher labor costs, among other industry trends, but also to the companys sale of 20 properties that had been included in its prior NAV estimate and to lower estimated sale prices for properties under contract to be sold as compared to their corresponding estimated value included in the previous NAV calculation.. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. Investigating Potential Lawsuits involving Healthcare Trust Inc. The Securities and Exchange Commission (SEC) states that non-traded REITs have particular risks such as lack of liquidity, share value transparency, distribution of funds, and conflicts of interest. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. Thousands of investors who were sold HIT have suffered severe losses. If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. On May 19, 2021, Hospitality Investors Trust Inc., a non-traded REIT that owns a portfolio of hotel properties, filed for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion . Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment., We established the initial offering price on an arbitrary basis; as a result, the actual value of your investment may be substantially less than what you pay., There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, property manager, our sub-property manager, our sponsor, our dealer manager and our and their respective affiliates, which could result in decisions that are not in the best interests of our stockholders., We are obligated to pay fees to our advisor, which could be substantial and may result in our advisor recommending riskier investments., Taken together, these factors make Hospitality Investors Trust a highly risky investment that likely was not suitable for inexperience and/or conservative investors, especially those with liquidity needs and/or those who cannot afford to lose their principal. Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC HIT REIT and any non-traded REITs to investors. For example, several executives in the trust have financial interests in other REITs and other non-traded business development companies. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Since its inception, HIT REIT has had serious problems, which ultimately resulted in AR Capitals former CFO being sentenced to federal prison. Get free professional market insights and stock/ETF reports that contain actionable opportunities written by a former financial advisor and Capitalist who has been investing in the markets for 20+ years. The bankruptcy could leave investors who were sold shares in HIT with no real recovery of their investments, and the bankruptcy will undoubtedly leave many investors with substantial losses. This may be years after you have made your investment. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. You may reproduce materials available at this site for your own personal use and for non-commercial distribution.
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