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.. If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. In May 2021, The Hospitality Investors Trust filed for Chapter 11 bankruptcy protection, which will almost certainly result in investors losing all or most of their principal. 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. 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 . NEW YORK . (504) 523-2434 The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. The result is a long way from where the REIT started in 2014 when it raised $903 million from investors. Did you lose money by following a brokers recommendation to invest in Hospitality Investors Trust REIT? 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. All rights reserved. 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. After the bankruptcy plan becomes effective, Brookfield will provide a $25 million exit facility. 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. Please provide any additional information about your inquiry. The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. The British-born chef reportedly flew home early from Rome, leaving his wife Lauren Fried, and their two young children, Alfie, five, and Isla, two, in the Eternal City. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. Investment Losses? These loans have an interest rate of 15% per year. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. HIT REIT has yet to declare a Net Asset Value (NAV) for 2020. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. Hospitality Investors Trust CEO Jonathan Mehlman. 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. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). The troubled Hotel REIT declared bankruptcy on May 19, 2021 after its unstructured debt ballooned to $1.3 billion, according to its filing. These REITs include: If you invested in any of these REITs, or others, we may be able to help. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. 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. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. That figure represents a substantial decrease from the REITs original share price of $25/share. 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 HIT REIT made adjustments to bonuses for key executives, as well. Did your Advisor Recommend a Hospitality REIT? . The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. This meant that the fund had not had any net income and did not own any properties. Please disable your ad-blocker and refresh. On May 19, 2021, Hospitality Investors Trust, Inc. ("HIT") and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P. (the "OP" and, together with HIT, the "Debtors," and, together with their subsidiaries, the "Company"), entered into a restructuring support agreement (the "RSA") with Brookfield Strategic Real Estate The risks materialized and HIT REIT filed for bankruptcy in May 2021. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. 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. 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. Blog, Current Investigations. HIT was originally a blind pool offering, further making the investment highly speculative. 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. Their investor toll-free number is 1-800-856-3352. 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 Inc. (HIT REIT) Files Chapter 11 Bankruptcy, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021, Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Now, Hospitality Investors Trust REIT investors have suffered significant losses. Thus, investors and advisors were unable to evaluate the investment portfolio prior to the initial investment. 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. 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). It owns a portfolio of a hundred properties across 29 states in the US. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale. Please. Typically, we represent clients on contingency fee agreements. 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. 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.. Contact us today for a FREE consultation. About Hospitality Investors Trust, Inc. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. Investors are unlikely to recover much of the money they invested. 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. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. Hospital Investors Trust has faced a steady decline in its price in the last few years which has been further exacerbated on account of the impact of Covid-19 from March 2020 onwards. 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. Both loans bear interest at 15 percent per year. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. Firms that fail to do so, may be held responsible for any losses. 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. Questions about our fee agreements are welcomed and encouraged. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. Eerily reminiscent of AFIN, VEREIT, and ARC NYC REIT, HIT REIT has experienced the same dramatic decrease in share prices for investors. For more information on The White Law Group, visit. 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. 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 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. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. For more information, please visit our About Us section. This may be years after you have made your investment. 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.. 4:25 pm In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. 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. The REIT has reportedly decreased nearly 45% since its initial issuance. As result, there have multiple lawsuits from Hospitality Investors. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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 . Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. NYC, NY, USA, June 3, 2021 / EINPresswire.com / -- Last week Hospitality Investors Trust and its operating partnership filed petitions for relief under Chapter 11 of the US Bankruptcy Code . Have you suffered investment losses in a Hospitality (Non-traded) REIT? 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). Non-traded REITs, like Hospitality Investors Trust often lack liquidity. 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 Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." and will not be transferable, except in limited instances such as the death of the holder. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. Many debts under the plan are to be satisfied in full, including those of general unsecured creditors. 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 . AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. 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. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust .
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