Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Shares were originally sold to most investors at $25 a share. We handle cases that change lives. Even worse, HIT REIT is now in bankruptcy. The lawsuit, which has been filed by class-action law firm Hagens Berman, contests that Choice Hotels International, Hilton, Hyatt Hotels . Harion has an intensive course in Business Supplementary in Kaplan (Canada). Hospitality Investors Trust (HIT), a non-trading REIT (formerly American Realty Capital Hospitality Trust), filed for Chapter 11 bankruptcy over the weekend leaving investors with massive losses. The bankruptcy court must enter a confirmation order no later than June 23, 2021. 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. Hospitality Investors Trust Bankruptcy: Investors May Have Options 2015 by The White Law Group, LLC All rights reserved. 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. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Hospitality Investors Trust investigation, Hospitality Investors Trust recovery options, Hospitality Investors Trust secondary sales, FINRA Lawsuit filed against Cetera Advisors. These increases were mainly a result . The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. In December, Hospitality Investors Trust turned the cash payment to payment-in-kind to preserve liquidity. Contact us now for a free consultation! All copies must include this copyright statement. 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 . Hospitality Investors Trust - Overview, News & Competitors - ZoomInfo Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. We do not charge any fees or costs unless you first recover. 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). As such, we believe that part of our role as attorney is to offer a supportive environment for our clients and to provide advice and support as we attempt to recover these investment losses. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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. 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. As of today, we have completed approximately one-half of our PIP program; we do not expect to reinstate distributions prior to the completion of all remaining PIPs, which is likely to continue for at least the next two years. Brookfield to Buy Hotel Operator Hospitality Investors Trust This meant that the fund had not had any net income and did not own any properties. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. Carlson Law represents investors involved in claims against financial advisors and investment firms throughout the United States. HIT REIT has yet to declare a Net Asset Value (NAV) for 2020. The risks materialized and HIT REIT filed for bankruptcy in May 2021. Hospitality Investors Trust to be acquired by property giant through bankruptcy, Photo illustration of Brookfield Property Partners Brian Kingston (Brookfield, iStock). 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. Our firm is investigating now. 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. There are two types of REITs: publicly traded and non-traded. The contingency fee we charge ranges from 20% to 40%. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. Have you suffered investment losses in a Hospitality (Non-traded) REIT? 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 Central Trade & Transfer, a secondary market for non-traded REITs, shares of HIT REIT sold for just $0.46 per share in 2021. To review a summary of our fees and costs, click Fees & Costs. How long will it take to resolve my lawsuit? Hospitality Investors Trust Losses - Investigation - The White Law Group Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). If your financial advisor did not fully and/or accurately disclose the risks associated with an investment in HIT, including the products illiquidity and its stakeholders conflicts of interests, you may be entitled to a recovery. Hospitality Investors Trust - how do I recover my losses? (504) 523-2434 . Hospitality Investors Trust (HIT) Lawsuits - Compensation & Help It owns a portfolio of a hundred properties across 29 states in the US. Hospitality investors must sell their shares on the secondary market to know the value of their shares. Contact us now for a free consultation! Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Class-action lawsuit accuses six hotel companies of antitrust tactics The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. Brookfield . Last April we reported that the REIT entered into forbearance agreements with the lenders under certain of its mortgage and mezzanine indebtedness. 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. This may provide some brokers with enough incentive to make unsuitable investment recommendations. 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. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. Investment Losses? 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. Further, HIT REIT said that lower estimates of occupancy, higher labor costs, and sales and marketing were offset by lower discount rate and capitalization rate estimates, driven by tightening market spreads and progress on its brand-mandated property improvement plans. The most clear and obvious example is William Kahane, the chief executive officer of the trust. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. About Hospitality Investors Trust, Inc. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. 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. If you believe you lost money because of unsuitable recommendations, including the addition of Hospitality Investors Trust REIT (HIT REIT) to your portfolio, it is important to take action. Hospitality Investors Trust is classified as a Non-Traded Real Estate Investment Trust ("REIT") that was touted as offering current income to investors with a conservative to moderate. Hospitality Investors Trust Bankruptcy (HIT) REIT - Investor Notice Despite a number of significant red flags dating back many years, HIT continued to be sold to many clients around the country. Prior Results do not guarantee a similar outcome. 7:18 pm One reason many brokers may have sold HIT REIT to their clients is because of the significant commissions paid to them as HIT charged high upfront fees and commissions. In May 2021, with $1.3 billion in debt, the REIT declared bankruptcy. A non-traded REIT seeks to restructure $1.3 billion in unsecured debt, What Strong Gold Says About The Weak Dollar: An In-Depth Analysis On Gold Prices, Investors Watch For Earnings, Budget Battle and Recession Signs (Weekly Cheat Sheet), Yield Curve Signals Recession, Bud Loses $5B & Gold Makes New Highs (Weekly Cheat Sheet). Did your Advisor Recommend a Hospitality REIT? 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 company's common stock, as of December 31, 2018 . Written by The White Law Group December 12, 2021 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. 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. 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. To contact us for a free confidential consult, you can call us at (800) 277-1193. All too often, investors trying to exit or access their money are faced with two bad options: sell the shares directly back to the sponsor at a heavily discounted price or sell the shares for pennies on the dollar through the limited secondary markets. The company has yet to declare a Net Asset Value for 2020, but as of December 31, 2019, it was $8.35 per share, a 9.3% decrease from the 2018 NAV. 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.. The bankruptcy plan merely provides a contingent value right to shareholders that provides the potential for future payments that is dependent on the reorganized companies performance. Their investor toll-free number is 1-800-856-3352. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. Read more about what judges say about us. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Hospitality Investors Trust, Inc. (HIT REIT) is a real estate investment trust (REIT) which owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Distributions can be paid from any source, including unlimited amounts from offering proceeds and borrowings. 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. TRevPOBs was $37.76 in FY 2022, compared to $35.13 in FY 2021, a 7.5% increase. Please. 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. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. It seems that many brokers sold this to investors despite it not being suitable for them. Recent investor complaints against Boca Raton financial advisor Adam Brown (CRD# 4506309) allege that he breached his fiduciary duty and 2017 - 2023 Chase Carlson. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." 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. Ashford Hospitality Trust : Files Lawsuit Against Cygnus Capital To Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. 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. Those payments, which are not guaranteed, are reportedly set at a maximum amount of $6.00 a share and are generally not transferrable. HIT is a non-traded REIT. Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. Investors in REITs hope to profit from regular cash distributions from the REITs income. ContactPeiffer Wolf today by filling out aContact Formon our website or by calling585-310-5140to schedule aFREE Case Evaluation. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. 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Or you may email our attorneys directly, shareholder and attorney Michael Bixby may contacted at mbixby@levinlaw.com. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. 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. HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. Our firms investigation has revealed that some brokers and financial advisors allegedly sold the HIT REIT as a conservative, safe, asset backed, or moderate risk investment. Recover Your Losses on Hospitality Investors Trust REIT If you have an ad-blocker enabled you may be blocked from proceeding. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . The White Law Group, LLC Announces Potential Securities Claims The result is a long way from where the REIT started in 2014 when it raised $903 million from investors. Moreover, we will do our best to keep you updated and manage expectations along the way. Hospitality Investors Trust (HIT) REIT Files Bankruptcy - Investor Alert 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. HIT REIT Losses Updated May 5, 2020 - The White Law Group 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. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. How to Recover Hospitality Investors Trust (HIT REIT) Investment Losses Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. These REITs include: If you invested in any of these REITs, or others, we may be able to help. The Securities and Business Litigation team at Levin, Papantonio, Rafferty, Proctor, Buchanan, OBrien, Barr & Mougey, P.A. The REIT price continued to decrease over the course of these announcements. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. In January 2014 sales activity continued under the companys name, but was suspended in November 2015. HIT was originally a blind pool offering, further making the investment highly speculative. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. Fill out the form on this page and let us know what your experience was. Thus, the securities law firm of Peiffer Wolf has begun another investigation into any and all brokers and advisors who recommended NorthStar Healthcare REIT to investors. Indeed, the prospectus reiterates, You should purchase these securities only if you can afford a complete loss of your investment., HITs board of directors reduced the REITs net asset valueits total assets minus its total liabilitiesseveral times in recent years. 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.. According to filings, each share of Hospitality Investors Trust common stock outstanding will be cancelled and exchanged for a right to receive contingent cash payments (CVR). Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka 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 unsecured debt. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. 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. 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.
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