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. Hospitality Investors Trust's $1.4 Billion Prepackaged Bankruptcy Proskauer represented Hospitality Investors Trust in a series of restructuring transactions.Hospitality Investors Trust, Inc. ("HIT"), a public, SEC-registered real estate investment trust owning 100 hotels nationwide, This content is for members only. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. This field is for validation purposes and should be left unchanged. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. 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. It was a risky investment from the beginning, because it did not have assets or own real estate properties. The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. HIT REIT Hospitality Investors Trust Losses update April 8, 2021 Possible bankruptcy Have you suffered losses investing Securities Investigation Hospitality Investors Trust Inc. Are you concerned about Hospitality Investors Trust Inc. losses? AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. 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). If you are interested in a free and confidential case review, contact us at (800) 277-1193. Get a free and confidential consultation. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. Unfortunately, the Hospitality Investors Trust was a high risk investment that carried a number of substantial risks. Contact us now for a free consultation! The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. Class-action lawsuit accuses six hotel companies of antitrust tactics This meant that the fund had not had any net income and did not own any properties. We have a national team of attorneys and staff who look forward to speaking with you. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. This may be years after you have made your investment. NorthStar Healthcare REIT Lawsuit | REIT Losses | Peiffer Wolf Investors in REITs hope to profit from regular cash distributions from the REITs income. If you have an ad-blocker enabled you may be blocked from proceeding. Is this happening to you frequently? 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. If you are concerned about Hospitality Investors Trust losses, The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment. The trust. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. These REITs include: If you invested in any of these REITs, or others, we may be able to help. An investor in Hospitality Investors Trust, a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, has filed a lawsuit claiming gross abuse of trust by certain company executives and directors, the former property managers and advisor, former sponsor AR Global, and AR Global's senior executives. Ashford has created an Ashford App for the hospitality REIT investor community. After the bankruptcy plan becomes effective, Brookfield will provide a $25 million exit facility. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. These professionals are ethically bound to tell their clients about the risks associated with recommended investments. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. This bankruptcy may be bad news for investors who were sold shares in HIT. These loans have an interest rate of 15% per year. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm. The White Law Group, LLC Announces Potential Securities Claims The White Law Group, LLC Announces Potential Securities Hospitality Investors Trust Losses - Investigation - The White Law Group Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. 4:25 pm There are two types of REITs: publicly traded and non-traded. Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. According to the US Securities and Exchange Commission, [b]ecause they do not trade on a stock exchange, non-traded REITs involve special risks. for account-related questions. Their investor toll-free number is 1-800-856-3352. Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. KALOS CAPITAL Lawsuit Filed - Securities Lawyer Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. High inflation and the cost . The company notedthat it was trying to preserve liquidity in response to the coronavirus pandemicand in conjunction with actions taken by the companys franchisors temporarily suspending obligations of hotel owners to perform capital improvements and fund capital reserves,according to SEC filings. Free AlphaBetaStock's Cheat Sheet (No CC)! As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust . (504) 608-1465. Illiquid Investment Investors may have Recovery Options. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. 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. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, L&L, Mitsubishi default on Plaza District office tower, Investors bet big on comeback for UK pubs, Manhattan hotel trades in biggest distressed lodging deal of pandemic. As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. Investment Losses? An REIT is a company that owns and operates large amounts of real estate. 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. 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. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. Healthcare Trust Inc. - HTI - Shareholder Lawsuits - The White Law A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. In January 2014 sales activity continued under the companys name, but was suspended in November 2015. HIT REIT believes that additional liquidity from a source other than property operations the company requires may not be available on favorable terms or at all., The company notes that the objective of the limited partnership amendment with Brookfield is to preserve the companys cash position as it continues discussions with the Brookfield investor regarding a holistic solution to the companys liquidity dilemma.. Our advisor has no operating history and is a newly formed entity which has no experience operating a public company., There is no guarantee that distributions will be paid. 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. Please provide any additional information about your inquiry. Hotel REIT Preps Deal to Give Brookfield Control in Bankruptcy Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. 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. Brookfield to Buy Hotel Operator Hospitality Investors Trust Recover Your Losses on Hospitality Investors Trust REIT The asset management company holds all $441 million worth of its preferred equity. Non-traded REITs, like Hospitality Investors Trust often lack liquidity. 2015 by The White Law Group, LLC All rights reserved. According to Central Trade & Transfer, a secondary market for non-traded REITs, shares of HIT REIT sold on March 31, 2021 for just $0.46 per share. Because no public trading market for our shares currently exists, the document warns, it will be difficult for our stockholders to sell their shares and, if our stockholders are able to sell their shares, it will likely be at a substantial discount to the public offering price.. 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. NEW YORK . If you invested in HIT REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. Speak with one of our securities attorneys to learn more about recovering your losses. 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). 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. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. According to the REITs website, the company owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Shares in the REIT were originally sold at a price of $25/share, but their value declined in subsequent years. The REITs bankruptcy plan involved the cancellation of common stock shares in exchange for shareholders right to receive nontransferable contingent cash payments not to exceed $6/share. If you or a loved one have suffered investment losses on your investment in Hospitality Investors Trust, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation. The trust doesnt have enough cash to fund its duties, and Brookfield, its largest investor, might be its only source of additional liquidity, the publication reported. New Orleans, LA 70130 Hospitality Investors Trust Inc. Fraud and/or Investment Loss - Wolper If you invested in a Healthcare Trust Inc. (ARC Healthcare Trust II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation. 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. HIT was sold for $25 per share originally. 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. 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. Hospitality Investors Trust REIT Shares Crash. Investors Staring at a Non-traded REITs are known to be risky investments suitable only for a narrow band of 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 . He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. Hotel REIT Files Chapter 11 Plan to Hand Itself Over to Brookfield - WSJ Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. Joe Peiffer, Responsible Attorney. Questions about our fee agreements are welcomed and encouraged. Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. The REIT stopped all distributions in 2017. The REIT price continued to decrease over the course of these announcements. Fill out the form on this page and let us know what your experience was. Blog, Current Investigations. Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation. Epiq 11 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. 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 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. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. The maximum amount of payments made per CVR will not exceed. Rosenheim - Wikipedia Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. Even worse, HIT REIT is now in bankruptcy. Usually that is not the case when dealing with legal matters but you guys (gals) rock., Ive always found them to be extraordinary counsel in terms of their preparation and their professionalism.. For more information on The White Law Group, visit. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). 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. 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. 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. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. Our law firm has been in existence for more than 65 years, and is recognized as one of the preeminent law firms in the United States. A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. HIT REIT has yet to declare a Net Asset Value (NAV) for 2020. Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. Investigating Potential Lawsuits involving Healthcare Trust Inc. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. Hospitality Investors Trust Inc. (HIT REIT) Lawsuit Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. 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. HIT REIT Lawsuit | Hospitality Investors Trust Losses | Peiffer W 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. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. 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. Investor Alert: Hospitality Trust Investors Bankruptcy 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. To learn more about the firms investigation, please see: Hospitality Investors Trust Decreases NAV close to 40%. 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. Healthcare Trust REIT Lawsuit Investigation AR Global's Healthcare Trust REIT decreases NAV per share; Investors lose thousands Our firm is investigating AR Global's Healthcare Trust, Inc. on behalf of REIT investors. 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. Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. They must ensure that all recommendations are suitable for the investor. Did your Advisor Recommend a Hospitality REIT? 1519 Robert C. Blakes Sr Dr, 1st Floor In materials provided to shareholders, the company reportedly attributed the decline in part to higher exit capitalization rates due to an increase in the interest rate environment since the 2016 valuation., In May 2019, HITs board announced that it the REITs NAV/share was $9.21 as of December 31, 2018, an approximate 33.6 percent decrease compared to the previous $13.87 per share NAV, as of December 31, 2017, according to The DI Wire. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. . Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. Copyright 2023 AlphaBetaStock.com All Rights Reserved | AlphaBetaStock.com is a financial news publisher that does not offer any personal financial advice or advocate the sale or purchasing of any investment/security. If you invested in HIT REIT and have lost part of your investment, not received your distributions, or remain stuck in the uncertain REIT, you may be eligible for monetary recovery. This field is for validation purposes and should be left unchanged. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. 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. Shares were originally sold to most investors at $25 a share. For more information, please read our full disclaimer. The bankruptcy plan, issued in June 2021, worsens the situation for investors, with only a potential for payouts, limited to $6 per share and not transferable. Shares were originally sold for $25.00 each. Are you concerned about Hospitality Investors Trust Inc. (HIT REIT) losses? 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 REIT has reportedly decreased nearly 45% since its initial issuance. Hospitality Investors Trust Inc. Losses Investors may have claims. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. Scott is admitted to practice in New York and Florida and the firms FINRA arbitration attorneys represents investors nationwide. Despite a number of significant red flags dating back many years, HIT continued to be sold to many clients around the country. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. 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. All copies must include this copyright statement. Brookfield has also reportedly agreed to provide a $65 million debtor-in-possession term loan to fund the REITs current obligations, including up to $10 million to fund interest payments and other approved expenses for the property-level mortgage loans, pending the Chapter 11 cases. Investment Losses? 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," 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. HIT REIT, formerly known as American Realty Capital Hospitality Trust, Inc. is a non-traded real estate investment trust that acquires and owns hotels in the United States. Investors in this real estate fund, formerly known as American Realty Capital Hospitality Trust, have seen their share values plummet, and a lawsuit, filed recently in federal court, charges malfeasance and seeks damages. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients behalf.
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