The company claims the decrease in value was due to the sales of 20 hotels that were included in the previous NAV calculation, lower estimated sale prices for properties under contract to be sold as compared to their corresponding estimated value included in the previous NAV calculation. The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. 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 . 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 For more information on the firm, visit www.WhiteSecuritiesLaw.com. 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.. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. You should consult an attorney for individual advice regarding your own situation. Did you lose money by following a brokers recommendation to invest in Hospitality Investors Trust REIT? How to RecoverHospitality Investors Trust (HIT REIT)InvestmentLosses, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. Investors in REITs hope to profit from regular cash distributions from the REITs income. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? Those payments, which are not guaranteed, are reportedly set at a maximum amount of $6.00 a share and are generally not transferrable. 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. 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. Thus, the securities law firm of Peiffer Wolf Carr Kane & Conway (Peiffer Wolf) has begun another investigation into American Realty Capital (ARC). Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). If so, the (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. You may have a claim. 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? Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. Investment Losses? The trust. All copies must include this copyright statement. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. Moreover, we will do our best to keep you updated and manage expectations along the way. Our law firm has been in existence for more than 65 years, and is recognized as one of the preeminent law firms in the United States. This means that investors could have suffered over 95% losses on their investment, or even worse. Hospitality Investors Trust is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. 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. Brokers have an opportunity to earn high commissionssometimes as high as 15% onthe sale ofnon-traded REITs. A broker also has an ethical obligation to consider an investors risk tolerance, age, investment experience, and net worth when determining whether a certain investment is suitable for the client. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. 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. These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. Investors in this real estate fund, formerly known as American Realty Capital Hospitality Trust, have seen their share values plummet, and a lawsuit, filed recently in federal court, charges malfeasance and seeks damages. In December, Hospitality Investors Trust turned the cash payment to payment-in-kind to preserve liquidity. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Shares were originally sold for $25.00 each. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). My in-laws lost their retirement funds to a dishonest broker. 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. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. 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. This bankruptcy may be bad news for investors who were sold shares in HIT. High inflation and the cost . Is this happening to you frequently? Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. 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). Contact us now for a free consultation! In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. The risks materialized and HIT REIT filed for bankruptcy in May 2021. Further, Hospitality Investors Trust, one of the investments allegedly recommended to the claimants, filed for Chapter 11 Bankruptcy on May 19, 2021 to restructure its $1.3 billion unsecured debt. 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. If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. What is happening with Hospitality Investors Trust? Our advisor has no operating history and is a newly formed entity which has no experience operating a public company., There is no guarantee that distributions will be paid. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Below are some of the emails and letters that our clients have sent us. 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 negotiating a deal that would give Brookfield financial control over its 100 hotels as part of a possible Chapter 11 filing, Bloomberg News reported. This may provide some brokers with enough incentive to make unsuitable investment recommendations. Yes. Despite a number of significant red flags dating back many years, HIT continued to be sold to many clients around the country. 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. These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. 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. 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. Carlson Law represents investors involved in claims against financial advisors and investment firms throughout the United States. The bankruptcy court must enter a confirmation order no later than June 23, 2021. To review a summary of our fees and costs, click Fees & Costs. Hospitality Investors Trust to be acquired by property giant through bankruptcy, Photo illustration of Brookfield Property Partners Brian Kingston (Brookfield, iStock). Copyright 2023 AlphaBetaStock.com All Rights Reserved | AlphaBetaStock.com is a financial news publisher that does not offer any personal financial advice or advocate the sale or purchasing of any investment/security. The REIT has reportedly decreased nearly 45% since its initial issuance. Drawn to recommending this REIT because of the high commissions associated with the transaction, brokers and financial advisors made unsuitable recommendations to many clients who lost a lot of money. 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. 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. According to the US Securities and Exchange Commission, [b]ecause they do not trade on a stock exchange, non-traded REITs involve special risks. 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. Then, during a HIT REIT quarterly investor presentation in April of 2018, the company reported. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. About Hospitality Investors Trust, Inc. It was a risky investment from the beginning, because it did not have assets or own real estate properties. 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 troubled Hotel REIT declared bankruptcy on May 19, 2021 after its unstructured debt ballooned to $1.3 billion, according to its filing. Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. 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. Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. 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. 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. 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 . 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. Contact our firm to learn more about your options. The company primarily operates its hotels under a franchise or license agreement with various brands. 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. Login to Read More Join Now PrintFriendly Author: Martina Bellini 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. 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. Joe Peiffer, Responsible Attorney. It seems that many brokers sold this to investors despite it not being suitable for them. 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. 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. 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. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. The loan was modified to include a new repayment schedule and waive any default from a bankruptcy filing. 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, 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. Eerily reminiscent of AFIN, VEREIT, and ARC NYC REIT, HIT REIT has experienced the same dramatic decrease in share prices for investors. 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. has handled claims involving HIT REIT and other similar products and can help you fight to recover your losses. Hospitality Investors Trust, Inc., formerly known as ARC Hospitality Trust 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," 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. 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. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? For more information on The White Law Group, visit. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Unfortunately for investors, this sales price would represent a significant loss on their capital investment, as the original purchase price was $25.00 per share. When a broker fails to fulfill these obligations, the firm that employs them may be held accountable for losses suffered by an investor to whom an unsuitable investment recommendation was made. Have you suffered investment losses in a Hospitality (Non-traded) REIT? Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. If you suffered financial loss because your broker recommended HIT or any other similar programs to you, you may have a right to file a claim to recover your losses. Speak with a lawyer today to learn more. Recent investor complaints against Boca Raton financial advisor Adam Brown (CRD# 4506309) allege that he breached his fiduciary duty and 2017 - 2023 Chase Carlson.
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