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. has handled claims involving HIT REIT and other similar products and can help you fight to recover your losses. It was a risky investment from the beginning, because it did not have assets or own real estate properties. 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. FINRA cautions investors to carefully consider the fact that these products are generally illiquid. Six of the hospitality industry's largest hotel companies are named in a new class-action lawsuit, which claims to have uncovered an antitrust scheme to reduce competition and raise consumer prices. Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. The amount we charge is based on how much we recover for you. The REIT price continued to decrease over the course of these announcements. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. 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. Soon after, in May 2021, a chapter 11 bankruptcy protection was filed by HIT. Since its inception, HIT REIT has had serious problems, which ultimately resulted in AR Capitals former CFO being sentenced to federal prison. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. There were numerous conflicts of interest within the trust. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. You should consult an attorney for individual advice regarding your own situation. 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. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. If your broker suggested Hospitality Investors Trust REIT, and it was not an appropriate investment for you, you may be eligible to file a class action. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. 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. 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. 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. Because no public trading market for our shares currently exists, the document warns, it will be difficult for our stockholders to sell their shares and, if our stockholders are able to sell their shares, it will likely be at a substantial discount to the public offering price.. Fill out the form on this page and let us know what your experience was. 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. 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. As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust . It owns a portfolio of a hundred properties across 29 states in the US. Questions about our fee agreements are welcomed and encouraged. Attorney Advertising. 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. 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. Hospitality Investors Trust to be acquired by property giant through bankruptcy, Photo illustration of Brookfield Property Partners Brian Kingston (Brookfield, iStock). Last April we reported that the REIT entered into forbearance agreements with the lenders under certain of its mortgage and mezzanine indebtedness. If you are one of these investors, we encourage you to reach out to one of the experienced investment fraud lawyers at Haselkorn & Thibaut for a no-charge assessment of your case for a potential claim for recovery of your losses. The asset management company holds all $441 million worth of its preferred equity. 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. Blog, Current Investigations. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. Eerily reminiscent of AFIN, VEREIT, and ARC NYC REIT, HIT REIT has experienced the same dramatic decrease in share prices for investors. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? Recent investor complaints against Boca Raton financial advisor Adam Brown (CRD# 4506309) allege that he breached his fiduciary duty and 2017 - 2023 Chase Carlson. 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. 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. Investigating Potential Lawsuits involving Healthcare Trust Inc. Blog, Current Investigations. 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. and will not be transferable, except in limited instances such as the death of the holder. 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. Did you lose money by following a brokers recommendation to invest in Hospitality Investors Trust REIT? 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. To review a summary of our fees and costs, click Fees & Costs. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Those payments, which are not guaranteed, are reportedly set at a maximum amount of $6.00 a share and are generally not transferrable. Hospitality Investors Trust Inc. class action, Hospitality Investors Trust Inc. complaints, Hospitality Investors Trust Inc. investigation, Hospitality Investors Trust Inc. liquidation, Hospitality Investors Trust Inc. secondary sales. 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. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. 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. 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. 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. This means that investors could have suffered over 95% losses on their investment, or even worse. Written by The White Law Group August 25, 2021 These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. 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. These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Hospitality Investors Trust investigation, Hospitality Investors Trust recovery options, Hospitality Investors Trust secondary sales, FINRA Lawsuit filed against Cetera Advisors. 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. 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. We have a national team of attorneys and staff who look forward to speaking with you. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. How to RecoverHospitality Investors Trust (HIT REIT)InvestmentLosses, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021. 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. The company notedthat it was trying to preserve liquidity in response to the coronavirus pandemicand in conjunction with actions taken by the companys franchisors temporarily suspending obligations of hotel owners to perform capital improvements and fund capital reserves,according to SEC filings. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. All copies must include this copyright statement. 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 is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. These REITs include: If you invested in any of these REITs, or others, we may be able to help. Broker dealers are required to perform adequate due diligence on any investment they recommend. Shares were originally sold for $25.00 each. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. 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. The lawsuit, which has been filed by class-action law firm Hagens Berman, contests that Choice Hotels International, Hilton, Hyatt Hotels . The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. 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.. If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm. 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. Did your Advisor Recommend a Hospitality REIT? 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. 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. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. 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. What is happening with Hospitality Investors Trust? 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. 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? Many debts under the plan are to be satisfied in full, including those of general unsecured creditors. A broker or financial advisor who recommends unsuitable investments, or who does not take these factors into consideration, may bear some liability for losses. HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. The REIT stopped all distributions in 2017. 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. Brokers have an opportunity to earn high commissionssometimes as high as 15% onthe sale ofnon-traded REITs. 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. Joe Peiffer, Responsible Attorney. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. 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. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Thus, the securities law firm of Peiffer Wolf Carr Kane & Conway (Peiffer Wolf) has begun another investigation into American Realty Capital (ARC). A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. 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. Our firm is investigating now. Brookfield . 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. 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. The maximumamountof payments made per CVR will not exceed$6.00and will not be transferable, except in limited instances such as the death of the holder. As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. Harion has an intensive course in Business Supplementary in Kaplan (Canada). 2015 by The White Law Group, LLC All rights reserved. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. The REIT explained in the filings that due to the impact of the coronavirus global pandemic on its business, the company expects it will no longer have sufficient cash on hand to continue to pay its current obligations during the first half of 2021. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Alternative investments such as Hospitality Investors Trust Inc. are illiquid. Please call us or use ourcontact formto request a Free Case Evaluation. Investors in Hospitality Investors Trust INC (HIT), earlier known as American Realty Capital Hospitality Trust (ARCHT), are facing significant losses, up to 95% of the amount invested. 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. Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. 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. Speak with a lawyer today to learn more. 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. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. Real estate investment trusts (REITs) are. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. Proskauer represented Hospitality Investors Trust in a series of restructuring transactions.Hospitality Investors Trust, Inc. ("HIT"), a public, SEC-registered real estate investment trust owning 100 hotels nationwide, This content is for members only. The White Law Group continues to investigate potential securities claims involving the liability brokerage firms may have for recommending Hospitality Investors Trust to its clients. Is this happening to you frequently? 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. For more information, please read our full disclaimer. For more information on the firm, visit www.WhiteSecuritiesLaw.com. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. 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 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. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. 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. If you or a loved one have suffered investment losses on your investment in Hospitality Investors Trust, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation. 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. This may provide some brokers with enough incentive to make unsuitable investment recommendations. In materials provided to shareholders, the company reportedly attributed the decline in part to higher exit capitalization rates due to an increase in the interest rate environment since the 2016 valuation., In May 2019, HITs board announced that it the REITs NAV/share was $9.21 as of December 31, 2018, an approximate 33.6 percent decrease compared to the previous $13.87 per share NAV, as of December 31, 2017, according to The DI Wire. For example, several executives in the trust have financial interests in other REITs and other non-traded business development companies. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. 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