According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. This meant that the fund had not had any net income and did not own any properties. All copies must include this copyright statement. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale. Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. Investigating Potential Lawsuits involving Healthcare Trust Inc. The lawsuit, which has been filed by class-action law firm Hagens Berman, contests that Choice Hotels International, Hilton, Hyatt Hotels . Prior Results do not guarantee a similar outcome. If so, you may be able to participate in a lawsuit. Real estate investment trusts (REITs) arecomplex and inherently risky products. Non-traded REITs are risky investments, but they may offer high commissions, so that brokers may have an incentive to get clients to buy shares. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Even when a sale does transpire, the high fees commissions often diminish the investors total return. Their investor toll-free number is 1-800-856-3352. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. 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.. They have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. 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? 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. The asset management company holds all $441 million worth of its preferred equity. Please disable your ad-blocker and refresh. Illiquid Investment Investors may have Recovery Options. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. 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 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. NEW YORK . Is this happening to you frequently? Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors 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 . 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 . Alternative investments such as Hospitality Investors Trust Inc. are illiquid. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. 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. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. The properties are under the brand names Hilton, Hyatt, and Marriott. 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. Written by The White Law Group December 12, 2021 These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. 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. Please call us or use ourcontact formto request a Free Case Evaluation. A broker or financial advisor who recommends unsuitable investments, or who does not take these factors into consideration, may bear some liability for losses. Now, Hospitality Investors Trust REIT investors have suffered significant losses. Further, the fund had not even identified any properties to acquire with the offering proceeds. Shares were originally sold to most investors at $25 a share. Yes. The Company operates as a public, non-traded real estate investment trust ("REIT"), meaning that it is: "public" because it is registered with the Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. 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. All copies must include this copyright statement. Blog, Current Investigations. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. 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. Those payments, which are not guaranteed, are reportedly set at a maximum amount of $6.00 a share and are generally not transferrable. A real estate investment trust (REIT) is a company that has income-producing real property. 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. Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. Hospitality Investors Trust CEO Jonathan Mehlman. 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. The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. 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. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. Both loans bear interest at 15 percent per year. These REITs include: If you invested in any of these REITs, or others, we may be able to help. Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. 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. 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. Written by The White Law Group August 25, 2021 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 contingency fee we charge ranges from 20% to 40%. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? Blog, Current Investigations. 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. An investments suitability for a particular client is based on a number of considerations, including the clients age, investment experience, risk tolerance, need for liquidity, and other factors. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. 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. 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. There are two types of REITs: publicly traded and non-traded. (504) 523-2434 To review a summary of our fees and costs, click Fees & Costs. 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. According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. 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. It seems that many brokers sold this to investors despite it not being suitable for them. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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. 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 its investigation please see the following: American Realty Capital Hospitality Trust Inc. Changes Name to Hospitality Investors Trust Inc. Hospitality Investors Trust Decreases NAV close to 40%, Hospitality Investors Trust (HIT REIT) Investment Losses, Bankruptcy updated. She received her law degree from American University in 2005. 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. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. The private REIT, which owns hotels branded by Hilton, Marriott and Hyatt, on Tuesday filed a lawsuit in New York against six insurers over a "sham investigation" meant to delay and deny up to. 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 is a publicly registered, non-traded real estate investment trust whose initial offering became effective in 2014 and which declared bankruptcy in 2021. 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. 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. Below are some of the emails and letters that our clients have sent us. HIT was originally a blind pool offering, further making the investment highly speculative. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. 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. 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. 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.