These professionals are ethically bound to tell their clients about the risks associated with recommended investments. Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. We do not charge any fees or costs unless you first recover. Hospitality Investors Trust - Overview, News & Competitors - ZoomInfo HIT was sold for $25 per share originally. Hospitality investors must sell their shares on the secondary market to know the value of their shares. Is this happening to you frequently? Healthcare Trust Inc. REIT Lawsuits - Compensation & Help Hospitality Investors Trust's $1.4 Billion Prepackaged Bankruptcy This field is for validation purposes and should be left unchanged. HIT is a non-traded REIT. Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). 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. Typically, we represent clients on contingency fee agreements. . 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. Thousands of investors who were sold HIT have suffered severe losses. This means that investors could have suffered over 95% losses on their investment, or even worse. NEW YORK . 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. 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. Ashford Hospitality Trust gave up a portfolio of 13 hotels as it struggled to stem losses and fumbled with forbearance agreements in an effort to avoid defaults. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. If you have an ad-blocker enabled you may be blocked from proceeding. Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. TRevPOBs was $37.76 in FY 2022, compared to $35.13 in FY 2021, a 7.5% increase. 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. Hospitality Investors Trust Bankruptcy: Investors May Have Options 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. Hospitality Investors Trust no longer has sufficient cash fund its obligations and Brookfield is the only likely provider of additional liquidity, according to its 2020 annual report. Fill out the form on this page and let us know what your experience was. Hospitality Investors Trust REIT Investigation - Class Actions Lawsuits 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. HIT was originally a blind pool offering, further making the investment highly speculative. Hospitality Investors Trust (HIT) REIT Files Bankruptcy - Investor Alert Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. HIT REIT Lawsuit | Hospitality Investors Trust Losses | Peiffer W 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. Hospitality Investors Trust, Inc. - HIT REIT 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.. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Brokers have an opportunity to earn high commissionssometimes as high as 15% onthe sale ofnon-traded REITs. Further, the fund had not even identified any properties to acquire with the offering proceeds. 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. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. The White Law Group continues to Hospitality Investors Trust, Inc. (HIT REIT) 2021 Lawsuit *UPDATED* Did your broker recommend an investment in Hospitality Investors Trust Blog, Current Investigations, Securities Fraud. 1519 Robert C. Blakes Sr Dr, 1st Floor 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 REIT primarily owns Hilton, Marriott and Hyatt brands. Shares were originally sold to most investors at $25 a share. Hospitality Investors Trust REIT Lawsuit Investigation - Gibbs Law Group Shareholders of the common stock will receive one CVR in exchange for each share of common stock. These loans have an interest rate of 15% per year. 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. The REIT has reportedly decreased nearly 45% since its initial issuance. It seems that many brokers sold this to investors despite it not being suitable for them. 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. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. 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! For more information on The White Law Group, visit. 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. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. In fact, at first, it could not even point to the properties it intended to acquire or invest in, which means that brokers, advisors, and investors would have difficulty evaluating the REIT. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. A new name hasn't given Hospitality Investors Trust a clean slate. HIT REIT Losses Updated May 5, 2020 - The White Law Group Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Prior Results do not guarantee a similar outcome. Speak with a lawyer today to learn more. The White Law Group is investigating potential securities fraud claims involving broker-dealers improper recommendation that investors purchase high-risk non-traded REIT investments, like Hospitality Investors Trust(aka HIT REIT). As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. 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. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. 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. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. 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 . Shares were originally sold for $25.00 each. As result, there have multiple lawsuits from Hospitality Investors. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. Eerily reminiscent of AFIN, VEREIT, and ARC NYC REIT, HIT REIT has experienced the same dramatic decrease in share prices for investors. 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.. 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. Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. 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). Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. SEC.gov | HOME 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. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. 4:25 pm The company primarily operates its hotels under a franchise or license agreement with various brands. KALOS CAPITAL Lawsuit Filed - Securities Lawyer 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 Seattle, Washington. 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. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. For more information about The White Law Group call our Chicago office at 312-238-9650 or visit us on the web at http://www.whitesecuritieslaw.com.
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