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. According to the REITs website, the company owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Shares in the REIT were originally sold at a price of $25/share, but their value declined in subsequent years. This means that investors could have suffered over 95% losses on their investment, or even worse. The bankruptcy could leave investors who were sold shares in HIT with no real recovery of their investments, and the bankruptcy will undoubtedly leave many investors with substantial losses. 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. If you have an ad-blocker enabled you may be blocked from proceeding. Have you suffered investment losses in a Hospitality (Non-traded) REIT? The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. 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. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. The REIT has reportedly decreased nearly 45% since its initial issuance. . Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. The White Law Group is investigating potential securities fraud claims against the broker dealers that improperly sold high risk non-traded REITs, like HIT REIT to investors. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. 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). 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. It can be extremely difficult to valuate or sell a non-traded REIT, especially as these shares are not listed on a national securities exchange. Hospitality Investors Trust Bankruptcy: Investors May Have Options Central Trade & Transfer announced a selling price of 46 cents per HIT share in March 2021. This may be years after you have made your investment. Hotel REIT Preps Deal to Give Brookfield Control in Bankruptcy Bankrupt Eagle Hospitality Says Two Part Owners Wrongly Took - WSJ 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 . The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. These increases were mainly a result . Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale. The contingency fee amount is determined by the type of case, our estimate of how long it will take to resolve your case, and our estimate of the litigation costs we will advance in your case. Hospitality Investors Trust Begins Bankruptcy Proceedings - The DI Wire Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). 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? Investigating Potential Lawsuits involving Healthcare Trust Inc. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. 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. 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. 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. In May 2021, with $1.3 billion in debt, the REIT declared bankruptcy. Read more about our results. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, L&L, Mitsubishi default on Plaza District office tower, Investors bet big on comeback for UK pubs, Manhattan hotel trades in biggest distressed lodging deal of pandemic. It seems that many brokers sold this to investors despite it not being suitable for them. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. 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. Firms that fail to do so, may be held responsible for any losses. Ashford Hospitality Trust : Files Lawsuit Against Cygnus Capital To Hospitality Investors Trust Inc. Fraud and/or Investment Loss - Wolper Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. 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. HIT was originally a blind pool offering, further making the investment highly speculative. The White Law Group may be able to help you recover your financial losses by filing aFINRAarbitration claim against the brokerage firm that sold you the investment. Hospitality Investors Trust, Inc. - HIT REIT How long will it take to resolve my lawsuit? Lack of liquidity is often problematic for many investors. 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 . The REIT primarily owns Hilton, Marriott and Hyatt brands. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. Investor Alert: Hospitality Trust Investors Bankruptcy 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. has handled claims involving HIT REIT and other similar products and can help you fight to recover your losses. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. CHICAGO, June 03, 2021 (GLOBE NEWSWIRE) -- The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended Hospitality Investors. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. Free AlphaBetaStock's Cheat Sheet (No CC)! 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. Investors are unlikely to recover much of the money they invested. 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 companys common stock, as of December 31, 2018. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. More than 12 hospitality venues have shut each day in Britain over the past year as they struggle with higher costs such as soaring energy prices, according to figures. Thousands of investors who were sold HIT have suffered severe losses. If you believe you lost money because of unsuitable recommendations, including the addition of Hospitality Investors Trust REIT (HIT REIT) to your portfolio, it is important to take action. 7:18 pm 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. Dedicated to the representation of investors in claims against their financial professional or brokerage firm, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. Selina Hospitality PLC Reports Fiscal 2022 Financial Results They must ensure that all recommendations are suitable for the investor. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." 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.