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. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Distributions can be paid from any source, including unlimited amounts from offering proceeds and borrowings. Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. This law blog website is managed by MileMark Media. For more information on The White Law Group, visit. Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. 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). 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. This may be years after you have made your investment. Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. These loans have an interest rate of 15% per year. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. There were numerous conflicts of interest within the trust. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. Hospitality Investors Trust REIT Lawsuit Investigation, Gender Discrimination against Transgender and Nonbinary People, Cole Credit Property Trust III (CCPT III). Have you suffered investment losses in a Hospitality (Non-traded) REIT? We are smart, experienced, and dedicated professionals who work tirelessly for our clients and take pride in the pursuit of justice on their behalf. Moreover, many illiquid REITs cannot be freely sold in the marketplace. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. Shares were originally sold for $25.00 per share. 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. Illiquid Investment Investors may have Recovery Options. Our securities attorneys are investigating Hospitality Investors Trust (HIT REIT) for potential legal claims on behalf of shareholders. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. To learn more about the firms investigation, please see: Hospitality Investors Trust Decreases NAV close to 40%. 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. Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We are a nationwide litigation law firm that represents individuals and entities who have been the victims of negligence, fraud or the misconduct of powerful interests. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. Later, at Ita Bank, he supported expatriate clients (English and Spanish), working directly with Asset Allocation. Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC HIT REIT and any non-traded REITs to investors. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. 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. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. My in-laws lost their retirement funds to a dishonest broker. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. 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 HIT REIT made adjustments to bonuses for key executives, as well. 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. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. Further, Hospitality Investors Trust, one of the investments allegedly recommended to the claimants, filed for Chapter 11 Bankruptcy on May 19, 2021 to restructure its $1.3 billion unsecured debt. The REIT has reportedly decreased nearly 45% since its initial issuance. 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.. HIT is a non-traded REIT. 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. 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. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. 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. HIT REIT Shares were originally sold for $25.00 per share. The REITs bankruptcy plan involved the cancellation of common stock shares in exchange for shareholders right to receive nontransferable contingent cash payments not to exceed $6/share. 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. Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. Contact us today for a FREE consultation. We have a national team of attorneys and staff who look forward to speaking with you. The trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products. 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. Free AlphaBetaStock's Cheat Sheet (No CC)! This meant that the fund had not had any net income and did not own any properties. Firms that fail to do so, may be held responsible for any losses. As result, there have multiple lawsuits from Hospitality Investors. The maximum amount of payments made per CVR will not exceed. Hospitality Investors Trust Inc. Losses Investors may have claims. 1519 Robert C. Blakes Sr Dr, 1st Floor Written by The White Law Group August 25, 2021 If you invested in a Healthcare Trust Inc. (ARC Healthcare Trust II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. 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.. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. According to the US Securities and Exchange Commission, [b]ecause they do not trade on a stock exchange, non-traded REITs involve special risks. 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). 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. Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. Fill out this form for a FREE and prompt case evaluation. REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. 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. 2015 by The White Law Group, LLC All rights reserved. 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. 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. In this case, the REIT is not traded on the exchanges. 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. 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. 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. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Carlson Law represents investors involved in claims against financial advisors and investment firms throughout the United States. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. 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. Shares of the Healthcare Trust REIT were originally priced at $25 per share. 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. 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. Despite a number of significant red flags dating back many years, HIT continued to be sold to many clients around the country. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. 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 . Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. 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). The recovery of millions of dollars of money lost by investors due to the negligent and fraudulent actions of some of the largest firms on Wall Street is a part of the work done by Haselkorn & Thibaut. 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. 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," TRevPOBs was $37.76 in FY 2022, compared to $35.13 in FY 2021, a 7.5% increase. Hospitality Investors Trust investigation, Hospitality Investors Trust recovery options, Hospitality Investors Trust secondary sales, FINRA Lawsuit filed against Cetera Advisors. The estimated current value of a share based on limited secondary trading values is less than $1, and HIT has now filed for bankruptcy. Investors are unlikely to recover much of the money they invested. Is this happening to you frequently? 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. 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. Read more about what judges say about us. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. Please disable your ad-blocker and refresh. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Blog, Current Investigations. 7:18 pm Eerily reminiscent of AFIN, VEREIT, and ARC NYC REIT, HIT REIT has experienced the same dramatic decrease in share prices for investors. The distribution of payments also carries risk. 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. 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. 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. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them. 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. Harion has an intensive course in Business Supplementary in Kaplan (Canada). Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. 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.. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. We provide confidential and free initial consultations and case reviews. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. 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. The REIT price continued to decrease over the course of these announcements. 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. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. It owns a portfolio of a hundred properties across 29 states in the US. Each engagement agreement includes the details of the fee arrangement. 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. Non-traded REITs, like Hospitality Investors Trust often lack liquidity. About Hospitality Investors Trust, Inc. He worked in five different areas at Bradesco Bank, ending his activities at the FX Trading Desk. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. Combined with other smaller fees and expenses, approximately 86% of an investors investment was actually being used for instruments by the Trust. All rights reserved. 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. The REIT stopped all distributions in 2017. 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. 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. (504) 523-2434 Ashford has created an Ashford App for the hospitality REIT investor community. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. Contact our firm to learn more about your options. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. If you are interested in a free and confidential case review, contact us at (800) 277-1193. Now, Hospitality Investors Trust REIT investors have suffered significant losses. 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? Further, the fund had not even identified any properties to acquire with the offering proceeds. 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. Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. 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. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. Both loans bear interest at 15 percent per year. 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 must sell their shares on the secondary market to know the value of their shares. Attorney Advertising. Thus, the securities law firm of Peiffer Wolf Carr Kane & Conway (Peiffer Wolf) has begun another investigation into American Realty Capital (ARC). Thus, investors and advisors were unable to evaluate the investment portfolio prior to the initial investment. This bankruptcy may be bad news for investors who were sold shares in HIT. Contact us now for a free consultation! Please provide any additional information about your inquiry. 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. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. (504) 608-1465. Unfortunately, the Hospitality Investors Trust was a high risk investment that carried a number of substantial risks. 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. 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. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (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). 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 company's common stock, as of December 31, 2018 . 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. According to filings in the bankruptcy case, each share of Hospitality Investors Trust common stock will be canceled and exchanged for a right to receive contingent cash payments (CVR). We handle cases that change lives. A new name hasn't given Hospitality Investors Trust a clean slate. Shares traded on CTT Auctions, a secondary market for non-traded REITs in September for $0.66 per share. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. This means that investors could have suffered over 95% losses on their investment, or even worse. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. Healthcare Trust Inc. is a publicly registered non-traded REIT (real estate investment trust) that was sponsored by AR Global. New Orleans, LA 70130 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. Thousands of investors who were sold HIT have suffered severe losses. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. Financial advisors could earn commissions and dealer management fees going up to 10% for selling the HIT REIT. 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. 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. 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. The most clear and obvious example is William Kahane, the chief executive officer of the trust. 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. The company attributed the decline not only to lower occupancy rates and higher labor costs, among other industry trends, but also to the companys sale of 20 properties that had been included in its prior NAV estimate and to lower estimated sale prices for properties under contract to be sold as compared to their corresponding estimated value included in the previous NAV calculation..

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