Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. Hospitality Investors Trust REIT and its operating partnership filed petitions for bankruptcy and investors are filing lawsuits to recover losses. High inflation and the cost . AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. This may provide some brokers with enough incentive to make unsuitable investment recommendations. Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. Led by attorney Peter Mougey, the past President of the national securities bar PIABA, our Securities and Business Tort Department has represented more than 1,500 investment fraud victims across the country in state and federal court and securities industry arbitration. Combined with other smaller fees and expenses, approximately 86% of an investors investment was actually being used for instruments by the Trust. As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust . Copyright 1996-2023 | Policies & Disclaimers, Representing Personal Injury Clients Since 1955, Levin Papantonio Rafferty - Personal Injury Law Firm, Martindale-Hubbell Preeminent Woman Attorney, $380 Million in Environmental Pollution Case, How to Recover Losses in Hospitality Investors Trust REIT, Escambia County School District Hosts Special Workshop to Explore Social Media Litigation, Brian Barr Again Picks Up the Fight Against Skanska in Oral Arguments, The Risks of Overconcentration in Pot Stocks, Retirees Are Suing for Investment Losses Allegedly Caused by Quincy, IL Area Financial Advisor and Broker Jeff Kennedy. In December, Hospitality Investors Trust turned the cash payment to payment-in-kind to preserve liquidity. Have you suffered investment losses in a Hospitality (Non-traded) REIT? 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). For example, several executives in the trust have financial interests in other REITs and other non-traded business development companies. They must ensure that all recommendations are suitable for the investor. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. 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. How long will it take to resolve my lawsuit? We can help you recover damages for these losses by pursuing your claim, on a contingent fee . Hospitality Investors Trust CEO Jonathan Mehlman. The amount we charge is based on how much we recover for you. Healthcare Trust Inc. was originally known as American Realty Capital Healthcare Trust II, Inc. Healthcare Trust was a high risk investment, and it should have only been recommended to investors who could afford a complete loss of their investment. Some other risks described in the prospectus include: We have no prior operating history or established financing sources and will rely on our advisor to conduct our operations. and will not be transferable, except in limited instances such as the death of the holder. HIT is a non-traded REIT. Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. 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. You should consult an attorney for individual advice regarding your own situation. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. 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. 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. 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. Healthcare Trust Inc. REIT Lawsuits - Compensation & Help If you are interested in a free and confidential case review, contact us at (800) 277-1193. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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 can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. 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. 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 . 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. Hotel REIT Files Chapter 11 Plan to Hand Itself Over to Brookfield - WSJ Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? Hospitality Investors Trust Inc. Losses Investors may have claims. 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. Thus, investors and advisors were unable to evaluate the investment portfolio prior to the initial investment. Shares were originally sold for $25.00 per share. 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. 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. Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, includingTop 100 Super Lawyers in Northern California,Top Plaintiff Lawyers in California,The Best Lawyers in America, and ratedAV Preeminent(among the highest class of attorneys for professional ethics and legal skills). 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. An REIT is a company that owns and operates large amounts of real estate. Ashford Hospitality Trust gave up a portfolio of 13 hotels as it struggled to stem losses and fumbled with forbearance agreements in an effort to avoid defaults. Fill out this form for a FREE and prompt case evaluation. This meant that the fund had not had any net income and did not own any properties. 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 . Hospitality Investors Trust REIT Lawsuit Investigation - Gibbs Law Group In this case, the company attributed the decline to declining occupancy rates in the hospitality industry, higher labor and other costs, and increased hotel supply in certain markets which has further driven down the companys occupancy and rate estimates., Hospitality Investors Trusts NAV declined again in 2019. We provide confidential and free initial consultations and case reviews. 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. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. Lack of liquidity is often problematic for many investors. Or you may email our attorneys directly, shareholder and attorney Michael Bixby may contacted at mbixby@levinlaw.com. Joe Peiffer, Responsible Attorney. Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. 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. Blog, Current Investigations. Bankrupt Eagle Hospitality Says Two Part Owners Wrongly Took - WSJ How to RecoverHospitality Investors Trust (HIT REIT)InvestmentLosses, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. 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. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. 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. 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. 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. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. 1519 Robert C. Blakes Sr Dr, 1st Floor Investment Losses? 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 distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. ContactPeiffer Wolf today by filling out aContact Formon our website or by calling585-310-5140to schedule aFREE Case Evaluation. 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