Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. 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. As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. Even when a sale does transpire, the high fees commissions often diminish the investors total return. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. You may have a claim. 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 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) Investment Losses. 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 . 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). HIT REIT Shares were originally sold for $25.00 per share. 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. HIT was originally a blind pool offering, further making the investment highly speculative. 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. Brokers who failed to conduct adequate due diligence or did not appropriately disclose the risk of HIT to their clients may be liable for the losses suffered as a result of their failure. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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? 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 this case, the REIT is not traded on the exchanges. Recent investor complaints against Boca Raton financial advisor Adam Brown (CRD# 4506309) allege that he breached his fiduciary duty and 2017 - 2023 Chase Carlson. 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. Typically, we represent clients on contingency fee agreements. Previously known as American Realty Capital Hospitality Trust, it came under fire for a 2017 investment deal that gave Brookfield substantial control over the company and led Hospitality Investors to suspend stockholder distributions. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. The White Law Group is investigating potential securities fraud claims involving broker-dealers improper recommendation that investors purchase high-risk non-traded REIT investments, like Hospitality Investors Trust(aka HIT REIT). Even worse, HIT REIT is now in bankruptcy. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. 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. 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. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). 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. Fill out this form for a FREE and prompt case evaluation. 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. According to the US Securities and Exchange Commission, [b]ecause they do not trade on a stock exchange, non-traded REITs involve special risks. 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. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. 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. 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 . Speak with one of our securities attorneys to learn more about recovering your losses. 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. HIT REIT, formerly known as American Realty Capital Hospitality Trust, Inc. is a non-traded real estate investment trust that acquires and owns hotels in the United States. 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," A new name hasn't given Hospitality Investors Trust a clean slate. Shares were originally sold to most investors at $25 a share. Investigating Potential Lawsuits involving Healthcare Trust Inc. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Get Free Stock Picks, Macro Market Events & Options Strategies. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. In June 2017, for instance, HITs NAV per share was estimated at $13.20 as of March 30th, 2017, a decline of approximately 38.6 percent year-over-year from the previous NAV of $21.48/share, according to The DI Wire. For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510. 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. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. 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. 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. 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. 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 CEO Jonathan Mehlman. Speak with a lawyer today to learn more. 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. 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. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Shares were originally sold for $25.00 per share. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. If you invested in Hospitality Investors Trust REIT you were recently advised that the company filed for Chapter 11 bankruptcy on May 19, 2021, and you are now facing the loss of a significant portion of your investment. If you invested in NorthStar Healthcare REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 or by filling out a Contact Form on this website. All rights reserved. While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. 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. 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. These loans have an interest rate of 15% per year. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . 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. High inflation and the cost . 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. 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). If you are interested in a free and confidential case review, contact us at (800) 277-1193. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. Please. Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. HIT REIT has yet to declare a Net Asset Value (NAV) for 2020. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. 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.. Attorney Advertising. 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. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. If you invested in HIT REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. Get a free and confidential consultation. A broker or financial advisor who recommends unsuitable investments, or who does not take these factors into consideration, may bear some liability for losses. You should consult an attorney for individual advice regarding your own situation. 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). HIT REIT is another stark reminder of how disastrous non-traded REITs can be for investors. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. NEW YORK . The company primarily operates its hotels under a franchise or license agreement with various brands. 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. Moreover, many illiquid REITs cannot be freely sold in the marketplace. The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. Yes. Investment Losses? 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. Real estate investment trusts (REITs) are. All copies must include this copyright statement. 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. 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. Read more about what judges say about us. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. 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. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. Both loans bear interest at 15 percent per year. Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. Unfortunately, the Hospitality Investors Trust was a high risk investment that carried a number of substantial risks. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. Please provide any additional information about your inquiry. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. Joe Peiffer, Responsible Attorney. Questions about our fee agreements are welcomed and encouraged. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. 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. Hospitality Investors is among a growing number of U.S. hotel companies that have considered bankruptcy to address challenges caused by the Covid-19 pandemic. The asset management company holds all $441 million worth of its preferred equity. 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. We handle cases that change lives. Brokers have an opportunity to earn high commissionssometimes as high as 15% onthe sale ofnon-traded REITs. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. Hospitality Investors Trust to be acquired by property giant through bankruptcy, Photo illustration of Brookfield Property Partners Brian Kingston (Brookfield, iStock). HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. 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. Healthcare Trust Inc. is a publicly registered non-traded REIT (real estate investment trust) that was sponsored by AR Global. To review a summary of our fees and costs, click Fees & Costs. Please call us or use ourcontact formto request a Free Case Evaluation. If you have an ad-blocker enabled you may be blocked from proceeding. The risks materialized and HIT REIT filed for bankruptcy in May 2021. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. We are the founder of Mass Torts Made Perfect. Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). TRevPOBs was $37.76 in FY 2022, compared to $35.13 in FY 2021, a 7.5% increase. 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 An REIT is a company that owns and operates large amounts of real estate. Hospitality Investors Trust Inc., which has stakes in 100 U.S. hotels, filed for bankruptcy protection with a prearranged plan that would hand the company over to Brookfield Asset Management Inc . 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. Is this happening to you frequently? 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. Real estate investment trusts (REITs) arecomplex and inherently risky products. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. Thousands of investors who were sold HIT have suffered severe losses. 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. 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. Our firms investigation has revealed that some brokers and financial advisors allegedly sold the HIT REIT as a conservative, safe, asset backed, or moderate risk investment. That figure represents a substantial decrease from the REITs original share price of $25/share. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). 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.