4:25 pm Though COVID hit the hotel industry hard in 2020, Hospitality Investors Trusts share values had plummeted for years prior to the pandemic, and the for gross abuse of trust by an investor in 2018. We are the founder of Mass Torts Made Perfect. 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. 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. 2015 by The White Law Group, LLC All rights reserved. On May 19, 2021, Hospitality Investors Trust Inc., a non-traded REIT that owns a portfolio of hotel properties, 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). 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. The contingency fee we charge ranges from 20% to 40%. Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC HIT REIT and any non-traded REITs to investors. 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 continues to HIT REIT Files for Chapter 11 Bankruptcy Protection The White Law Group continues to investigate potential securities claims involving Blog, Current Investigations, Securities Fraud. Investigating Potential Lawsuits involving Healthcare Trust Inc. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. 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. 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. Many debts under the plan are to be satisfied in full, including those of general unsecured creditors. 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. Then, during a HIT REIT quarterly investor presentation in April of 2018, the company reported. Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. 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. 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. 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. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. 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). 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. This meant that the fund had not had any net income and did not own any properties. Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. 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. REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. Shares were originally sold for $25.00 per share. 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 a result, for a significant time period you may be unable to assess the value of your non-traded REIT investment and its volatility.. 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.. My in-laws lost their retirement funds to a dishonest broker. Non-traded REITs, like Hospitality Investors Trust often lack liquidity. We handle cases that change lives. 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. NEW ORLEANS | ROCHESTER | CLEVELAND | LOS ANGELES | SAN FRANCISCO | ST. 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Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. An REIT is a company that owns and operates large amounts of real estate. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. Hospitality Investors Trust, Inc. is a real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout North America within the select service markets of the hospitality sector. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. 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. The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. 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? 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. All rights reserved. Epiq11.com builds on a library of cases spanning two decades - the largest repository of such data in the industry outside of the federal court system. We have a national team of attorneys and staff who look forward to speaking with you. Shares of the Healthcare Trust REIT were originally priced at $25 per share. 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. 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.. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. 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 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 In December, Hospitality Investors Trust turned the cash payment to payment-in-kind to preserve liquidity. 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. The bankruptcy court must enter a confirmation order no later than June 23, 2021. Their investor toll-free number is 1-800-856-3352. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. Further, the fund had not even identified any properties to acquire with the offering proceeds. 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. Blog, Current Investigations. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. Scott is admitted to practice in New York and Florida and the firms FINRA arbitration attorneys represents investors nationwide. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. 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. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. If we take your case under a contingency fee arrangement, you wont owe our firm any legal fees unless we are able to recover money for you. Broker dealers are required to perform adequate due diligence on any investment they recommend. Did your Advisor Recommend a Hospitality REIT? Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? Eileen is involved in the firms securities practice and has over a decade of experience in the legal world. This field is for validation purposes and should be left unchanged. 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. 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 . How long will it take to resolve my lawsuit? 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. 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. The lawsuit, which has been filed by class-action law firm Hagens Berman, contests that Choice Hotels International, Hilton, Hyatt Hotels . 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. Ashford has created an Ashford App for the hospitality REIT investor community. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. Please. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. 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. Illiquid Investment Investors may have Recovery Options. Real estate investment trusts (REITs) arecomplex and inherently risky products. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. 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. 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. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. New Orleans, LA 70130 Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. Each engagement agreement includes the details of the fee arrangement. Healthcare Trust Inc. is a publicly registered non-traded REIT (real estate investment trust) that was sponsored by AR Global. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. In this case, the REIT is not traded on the exchanges. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. If so, you may be able to participate in a lawsuit. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Were investigating whether brokers or financial advisors recommended this REIT to their clients, even if it was not suitable for them. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders.
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