Healthcare Trust Inc. is a publicly registered non-traded REIT (real estate investment trust) that was sponsored by AR Global. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. 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. 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. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. The amount we charge is based on how much we recover for you. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Fill out this form for a FREE and prompt case evaluation. The REIT primarily owns Hilton, Marriott and Hyatt brands. He worked in five different areas at Bradesco Bank, ending his activities at the FX Trading Desk. 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. Moreover, we will do our best to keep you updated and manage expectations along the way. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? 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). Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. Stock Loss Recovery Lawyer. Thus, the securities law firm of Peiffer Wolf has begun another investigation into any and all brokers and advisors who recommended HIT REIT to investors. Did you lose money by following a brokers recommendation to invest in Hospitality Investors Trust REIT? Blog, Current Investigations. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. He assumed the Investor Relations position at Valora Asset Management on january/2020. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. This law blog website is managed by MileMark Media. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. Brokers have an opportunity to earn high commissionssometimes as high as 15% onthe sale ofnon-traded REITs. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. 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. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. 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. 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. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. The White Law Group may be able to help you recover your financial losses by filing a. arbitration claim against the brokerage firm that sold you the investment. After all, the hospitality industry has taken a major hit during the pandemic. 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. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. An investments suitability for a particular client is based on a number of considerations, including the clients age, investment experience, risk tolerance, need for liquidity, and other factors. Please call us or use ourcontact formto request a Free Case Evaluation. A real estate investment trust (REIT) is a company that has income-producing real property. 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. 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 . Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. The Levin Papantonio Rafferty law firm is representing investors who were sold shares of the HIT REIT in claims to recover their losses. 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 is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. 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. 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. In this case, the REIT is not traded on the exchanges. Get free professional market insights and stock/ETF reports that contain actionable opportunities written by a former financial advisor and Capitalist who has been investing in the markets for 20+ years. Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). As result, there have multiple lawsuits from Hospitality Investors. She received her law degree from American University in 2005. 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. 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. 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. 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 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. Blog, Current Investigations. Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. These loans have an interest rate of 15% per year. These REITs include: If you invested in any of these REITs, or others, we may be able to help. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. 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. We provide confidential and free initial consultations and case reviews. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. HIT REIT Shares were originally sold for $25.00 per share. Did your Advisor Recommend a Hospitality 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. Investment Losses? Below are some of the emails and letters that our clients have sent us. 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. 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. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment., We established the initial offering price on an arbitrary basis; as a result, the actual value of your investment may be substantially less than what you pay., There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, property manager, our sub-property manager, our sponsor, our dealer manager and our and their respective affiliates, which could result in decisions that are not in the best interests of our stockholders., We are obligated to pay fees to our advisor, which could be substantial and may result in our advisor recommending riskier investments., Taken together, these factors make Hospitality Investors Trust a highly risky investment that likely was not suitable for inexperience and/or conservative investors, especially those with liquidity needs and/or those who cannot afford to lose their principal. 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.. A REIT is a real estate investment trust, that is, a group that owns income-producing real estate. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. Typically, we represent clients on contingency fee agreements. 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. 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. This is a national conference attended by 1,500 lawyers each year where we teach how to successfully handle lawsuits against the largest companies in the world. Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover. The trust. As result, there have multiple lawsuits from Hospitality Investors. Hospitality Investors Trust CEO Jonathan Mehlman. 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. 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. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. (504) 608-1465. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. 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. In addition, our investigation has revealed that some advisors who sold HIT REIT to their clients also sold other questionable or potentially unsuitable products to their clients. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. The most clear and obvious example is William Kahane, the chief executive officer of the trust. 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. Speak with a lawyer today to learn more. 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. To learn more about The White Law Group visit www.whitesecuritieslaw.com. 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. 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? All Rights Reserved. Shares were originally sold to most investors at $25 a share. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. Further, in February of 2019 the Board of Directors announced that it suspended the Companys Share Repurchase Program. 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. Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. NEW ORLEANS | ROCHESTER | CLEVELAND | LOS ANGELES | SAN FRANCISCO | ST. LOUIS | CHICAGO, Danny Chancellor and Brent Chancellor Investigation, Credit Suisse Greensill Capital Investigation, Roshan Perera Investment Loss Investigation, Equifax False credit report Investigation, Health Care Providers Data Breach lawsuits, Securities Industry Employment Disputes, FUTURES ARBITRATION & COMMODITIES LITIGATION, OPTIONSELLERS AND INTL FC STONE LAWSUIT, Nursing Home and Assisted Living Injuries, EXACTECH KNEE AND ANKLE IMPLANT RECALL, EzriCare and Delsam Pharmas Artificial Tears Lawsuits, Catholic Church and other Religious Institutions, Southern Baptist Convention Sexual Abuse, SHAREHOLDER RIGHTS / DERIVATIVE LITIGATION, Lyft enfrenta demanda colectiva por agresiones fsicas o sexuales que sufrieron pasajeros y conductores, Lyfts first safety report shows over 4,000 reports of sexual assault, Illinois woman joins lawsuits against Lyft for failure to protect passengers and drivers. the Company and its operating partnership, Hospitality Investors Trust Operating Partnership, L.P., a Delaware limited partnership (the "OP"), entered into a Restructuring Support Agreement (as may be subsequently amended or modified from time to time, the "RSA") with the Supporting Stockholder; WHEREAS, on May 19, 2021 Login to Read More Join Now PrintFriendly Author: Martina Bellini Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. Hospitality Investors Trust, Inc. is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout . After the bankruptcy plan becomes effective, Brookfield will provide a $25 million exit facility. 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). 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. 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. Investors in REITs hope to profit from regular cash distributions from the REITs income. If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. If you were sold GPB products or other illiquid private placements from KALOS CAPITAL and/or their former brokers , contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment . As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust . Fill out the form on this page and let us know what your experience was. The asset management company holds all $441 million worth of its preferred equity. 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. 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. Federal judge in our Chase lawsuit (resulting in $100 million settlement): They fought tooth and nail, down to the wire to achieve the best settlement that they could under the circumstances.. 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. 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. Shares were originally sold for $25.00 each. 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. This means that investors could have suffered over 95% losses on their investment, or even worse. Real estate investment trusts (REITs) arecomplex and inherently risky products. Broker dealers are required to perform adequate due diligence on any investment they recommend. 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. 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.
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