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. In May 2021, with $1.3 billion in debt, the REIT declared bankruptcy. 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. Investor Alert: Hospitality Trust Investors Bankruptcy Read more about what judges say about us. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. 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. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. 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. If you invested in Hospitality Investors Trust REIT you were recently advised that the company filed for Chapter 11 bankruptcy on May 19, 2021, and you are now facing the loss of a significant portion of your investment. Hospitality Investors Trust Inc. class action, Hospitality Investors Trust Inc. complaints, Hospitality Investors Trust Inc. investigation, Hospitality Investors Trust Inc. liquidation, Hospitality Investors Trust Inc. secondary sales. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. 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. For more information on The White Law Group, visit. Investors in Hospitality Investors Trust INC (HIT), earlier known as American Realty Capital Hospitality Trust (ARCHT), are facing significant losses, up to 95% of the amount invested. Federal judge in our Chase lawsuit (resulting in $100 million settlement): They fought tooth and nail, down to the wire to achieve the best settlement that they could under the circumstances.. Brokers, financial advisors, and brokerage firms who recommended HIT REIT knew or should have known of the risks and issues; brokers should never have sold HIT REIT to investors. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. Dedicated to the representation of investors in claims against their financial professional or brokerage firm, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. 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. the Company and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P., a Delaware limited partnership (the "OP"), entered into a Restructuring Support Agreement (as may be subsequently amended or modified from time to time, the "RSA") with the Supporting Stockholder; WHEREAS, on May 19, 2021 Shares were originally sold for $25.00 each. Hospitality Investors Trust Bankruptcy: Investors May Have Options Annual Meeting/Annual Report | HIT REIT Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Hospitality Investors Trust, Inc. - HIT REIT If so, you may be able to participate in a lawsuit. 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. That figure represents a substantial decrease from the REITs original share price of $25/share. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. The troubled Hotel REIT declared bankruptcy on May 19, 2021 after its unstructured debt ballooned to $1.3 billion, according to its filing. There were numerous conflicts of interest within the trust. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. Led by attorney Peter Mougey, the past President of the national securities bar PIABA, our Securities and Business Tort Department has represented more than 1,500 investment fraud victims across the country in state and federal court and securities industry arbitration. How long will it take to resolve my lawsuit? NEW ORLEANS | ROCHESTER | CLEVELAND | LOS ANGELES | SAN FRANCISCO | ST. LOUIS | CHICAGO, Danny Chancellor and Brent Chancellor Investigation, Credit Suisse Greensill Capital Investigation, Roshan Perera Investment Loss Investigation, Equifax False credit report Investigation, Health Care Providers Data Breach lawsuits, Securities Industry Employment Disputes, FUTURES ARBITRATION & COMMODITIES LITIGATION, OPTIONSELLERS AND INTL FC STONE LAWSUIT, Nursing Home and Assisted Living Injuries, EXACTECH KNEE AND ANKLE IMPLANT RECALL, EzriCare and Delsam Pharmas Artificial Tears Lawsuits, Catholic Church and other Religious Institutions, Southern Baptist Convention Sexual Abuse, SHAREHOLDER RIGHTS / DERIVATIVE LITIGATION, Lyft enfrenta demanda colectiva por agresiones fsicas o sexuales que sufrieron pasajeros y conductores, Lyfts first safety report shows over 4,000 reports of sexual assault, Illinois woman joins lawsuits against Lyft for failure to protect passengers and drivers. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Hospitality Investors Trust is a publicly registered, non-traded real estate investment trust whose initial offering became effective in 2014 and which declared bankruptcy in 2021. Brookfield to Buy Hotel Operator Hospitality Investors Trust All rights reserved. As result, there have multiple lawsuits from Hospitality Investors. Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). Contact us today for a FREE consultation. Moreover, we will do our best to keep you updated and manage expectations along the way. Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. 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. According to the filings, each share of Hospitality Investors Trust common stock outstanding is cancelled and exchanged for a right to receive contingent cash payments (CVR). Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, includingTop 100 Super Lawyers in Northern California,Top Plaintiff Lawyers in California,The Best Lawyers in America, and ratedAV Preeminent(among the highest class of attorneys for professional ethics and legal skills). Both loans bear interest at 15 percent per year. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. We are the founder of Mass Torts Made Perfect. Even worse, HIT REIT is now in bankruptcy. When a broker fails to fulfill these obligations, the firm that employs them may be held accountable for losses suffered by an investor to whom an unsuitable investment recommendation was made. Selina Hospitality PLC Reports Fiscal 2022 Financial Results 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. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Further, in February of 2019 the Board of Directors announced that it suspended the Companys Share Repurchase Program. The Securities and Business Litigation team at Levin, Papantonio, Rafferty, Proctor, Buchanan, OBrien, Barr & Mougey, P.A. 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 Begins Bankruptcy Proceedings - The DI Wire Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. Unfortunately, the Hospitality Investors Trust was a high risk investment that carried a number of substantial risks. Gibbs Law Groupsfinancial fraudandsecurities lawyershave more than two decades of experience prosecuting fraud. Hospitality Investors is among a growing number of U.S. hotel companies that have considered bankruptcy to address challenges caused by the Covid-19 pandemic. (504) 523-2434 In June 2017, for instance, HITs NAV per share was estimated at $13.20 as of March 30th, 2017, a decline of approximately 38.6 percent year-over-year from the previous NAV of $21.48/share, according to The DI Wire. Harion has an intensive course in Business Supplementary in Kaplan (Canada). If your broker suggested Hospitality Investors Trust REIT, and it was not an appropriate investment for you, you may be eligible to file a class action. PDF ARC Lawsuit - The DI Wire Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover. The White Law Group, LLC Announces Potential Securities Claims Entering text into the input field will update the search result below, high risk non-traded REITs, like HIT REIT. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, has filed for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). Further, the fund had not even identified any properties to acquire with the offering proceeds. A new name hasn't given Hospitality Investors Trust a clean slate. Lack of liquidity is often problematic for many investors. This may be years after you have made your investment. New Orleans, LA 70130 It can be extremely difficult to valuate or sell a non-traded REIT, especially as these shares are not listed on a national securities exchange. Read more about our results. This meant that the fund had not had any net income and did not own any properties. Hospitality Investors Trust Inc. Fraud and/or Investment Loss - Wolper Please disable your ad-blocker and refresh. 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. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). 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 . and will not be transferable, except in limited instances such as the death of the holder. The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. Healthcare Trust Inc. was originally known as American Realty Capital Healthcare Trust II, Inc. Healthcare Trust was a high risk investment, and it should have only been recommended to investors who could afford a complete loss of their investment. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. 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. They are illiquid investments, which means that if you need to sell an asset to raise money quickly, you may not be able to do so with shares of a non-traded REIT. Moreover, it can be difficult to determine the value of a share of a non-traded REIT. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Rosenheim - Wikipedia Contact us now for a free consultation! Yes. The trust. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. 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 unsecured debt. The maximum amount of payments made per CVR will not exceed $6.00 and will not be transferable, except in limited instances such as the death of the holder. The White Law Group may be able to help you recover your financial losses by filing a. arbitration claim against the brokerage firm that sold you the investment. This law blog website is managed by MileMark Media. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Hospitality Investors Trust Inc. Losses Investors may have claims. The distribution of payments also carries risk. This field is for validation purposes and should be left unchanged. Is this happening to you frequently? HIT was sold for $25 per share originally. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. The amount we charge is based on how much we recover for you. More than 12 pubs, restaurants or bars shut EVERY DAY last year He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. has handled claims involving HIT REIT and other similar products and can help you fight to recover your losses. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Investigating Potential Lawsuits involving Healthcare Trust Inc. All copies must include this copyright statement. This may provide some brokers with enough incentive to make unsuitable investment recommendations. Were investigating whether brokers or financial advisors recommended this REIT to their clients, even if it was not suitable for them. Illiquid Investment Investors may have Recovery Options. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. The company primarily operates its hotels under a franchise or license agreement with various brands. In this case, the REIT is not traded on the exchanges. Blog, Current Investigations. The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. Last April we reported that the REIT entered into forbearance agreements with the lenders under certain of its mortgage and mezzanine indebtedness. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Hospitality Investors Trust REIT Investigation - Class Actions Lawsuits Real estate investment trusts (REITs) arecomplex and inherently risky products. The company claims the decrease in value was due to the sales of 20 hotels that were included in the previous NAV calculation, lower estimated sale prices for properties under contract to be sold as compared to their corresponding estimated value included in the previous NAV calculation. We are smart, experienced, and dedicated professionals who work tirelessly for our clients and take pride in the pursuit of justice on their behalf. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Contact our firm to learn more about your options. CHICAGO, June 03, 2021 (GLOBE NEWSWIRE) -- The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended Hospitality Investors. HIT REIT Losses Updated May 5, 2020 - The White Law Group This is a national conference attended by 1,500 lawyers each year where we teach how to successfully handle lawsuits against the largest companies in the world. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. They must ensure that all recommendations are suitable for the investor. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. Have you suffered investment losses in a Hospitality (Non-traded) REIT? If you have invested in Hospitality Investors Trust Inc. and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
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