You may reproduce materials available at this site for your own personal use and for non-commercial distribution. Annual Meeting/Annual Report | HIT REIT More than 12 pubs, restaurants or bars shut EVERY DAY last year Investors looking to sell alternative investments often have difficulty finding a buyer, and can suffer significant losses on the sale. 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). The REIT stopped all distributions in 2017. 4:25 pm 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. Financial advisors could earn commissions and dealer management fees going up to 10% for selling the HIT REIT. Holders of HIT REIT contingent value rights (CVRs) should reach out to the CVR agent Computershare Trust Company, N.A. 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. It was a risky investment from the beginning, because it did not have assets or own real estate properties. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. Stock Loss Recovery Lawyer. 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. The White Law Group Files Another Lawsuit Involving Hospitality Even worse, HIT REIT is now in bankruptcy. In May 2021, with $1.3 billion in debt, the REIT declared bankruptcy. 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. 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.. 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. 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. That figure represents a substantial decrease from the REITs original share price of $25/share. California-based REIT Sunstone Hotel Investors gave control of the Hilton Times Square to its special servicer, Torchlight Investors, in December. HIT was sold for $25 per share originally. Healthcare Trust Inc. REIT Lawsuits - Compensation & Help Investigating Potential Lawsuits involving Healthcare Trust Inc. Moreover, we will do our best to keep you updated and manage expectations along the way. 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. Now, Hospitality Investors Trust REIT investors have suffered significant losses. 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. HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. 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. 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. To learn more about The White Law Group visit www.whitesecuritieslaw.com. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. Please call us or use ourcontact formto request a Free Case Evaluation. 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. Shares were originally sold to most investors at $25 a share. Fill out this form for a FREE and prompt case evaluation. 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? Hospitality Investors Trust, Inc. is a real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout North America within the select service markets of the hospitality sector. Last April we reported that the REIT entered into forbearance agreements with the lenders under certain of its mortgage and mezzanine indebtedness. Contact us today for a FREE consultation. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. 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. Joe Peiffer, Responsible Attorney. 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. According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. Illiquid Investment Investors may have Recovery Options. We handle cases that change lives. 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 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. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. Further, the fund had not even identified any properties to acquire with the offering proceeds. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. Hospitality Investors Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. 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. 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? Since its inception, HIT REIT has had serious problems, which ultimately resulted in AR Capitals former CFO being sentenced to federal prison. 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. This means that investors could have suffered over 95% losses on their investment, or even worse. We do not charge any fees or costs unless you first recover. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them. Brookfield hotel REIT sues insurers for denying pandemic claims Fill out the form on this page and let us know what your experience was. 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 . Typically, we represent clients on contingency fee agreements. 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. Rosenheim - Wikipedia For more information on The White Law Group, visit. 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 Begins Bankruptcy Proceedings - The DI Wire Or you may email our attorneys directly, shareholder and attorney Michael Bixby may contacted at mbixby@levinlaw.com. This may be years after you have made your investment. 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 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. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. The lawsuit also alleges: negligence, breach of fiduciary duty, and negligent supervision. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. 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. He assumed the Investor Relations position at Valora Asset Management on january/2020. Thousands of investors who were sold HIT have suffered severe losses. 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. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. Soon after, in May 2021, a chapter 11 bankruptcy protection was filed by HIT. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. This law blog website is managed by MileMark Media. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. 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. 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. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. 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. 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, 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. 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. It seems that many brokers sold this to investors despite it not being suitable for them. 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. Speak with a lawyer today to learn more. Later, at Ita Bank, he supported expatriate clients (English and Spanish), working directly with Asset Allocation. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. Harion has an intensive course in Business Supplementary in Kaplan (Canada). Shares of the Healthcare Trust REIT were originally priced at $25 per share. 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. Hotel REIT Preps Deal to Give Brookfield Control in Bankruptcy 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. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. Hospitality investors must sell their shares on the secondary market to know the value of their shares. 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. Attorney Advertising. 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. The company primarily operates its hotels under a franchise or license agreement with various brands. About Hospitality Investors Trust, Inc. The asset management company holds all $441 million worth of its preferred equity. The properties are under the brand names Hilton, Hyatt, and Marriott. 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. There were numerous conflicts of interest within the trust. For more information on the firm, visit www.WhiteSecuritiesLaw.com. This meant that the fund had not had any net income and did not own any properties. These professionals are ethically bound to tell their clients about the risks associated with recommended investments. Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover. 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. 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. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. My in-laws lost their retirement funds to a dishonest broker. Drawn to recommending this REIT because of the high commissions associated with the transaction, brokers and financial advisors made unsuitable recommendations to many clients who lost a lot of money. Epiq11.com builds on a library of cases spanning two decades - the largest repository of such data in the industry outside of the federal court system. Contact us now for a free consultation! Non-traded REITs, like Hospitality Investors Trust often lack liquidity. The bankruptcy court must enter a confirmation order no later than June 23, 2021. A prospectus filed with the Securities and Exchange Commission by American Realty Capital Hospitality Trustthe entity now known as Hospitality Investors Trustin 2014 states that investments in the REITs common stock involve a high degree of risk. One of the primary risks described by the prospectus is the investments illiquidity. Even when a sale does transpire, the high fees commissions often diminish the investors total return. Ashford has created an Ashford App for the hospitality REIT investor community. Shares were originally sold for $25.00 each. 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. Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. 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. 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. Bankrupt Eagle Hospitality Says Two Part Owners Wrongly Took - WSJ 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. Brookfield apparently holds all of the outstanding Class C units, which are limited partner interests in the REITs operating partnership. 2015 by The White Law Group, LLC All rights reserved. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. 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. 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. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. The contingency fee we charge ranges from 20% to 40%. They must ensure that all recommendations are suitable for the investor. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. Unfortunately, many of the investors didnt even know the loss because they were both unaware of the risks of the investment and it is not traded on the exchanges. You may have a claim. Distributions can be paid from any source, including unlimited amounts from offering proceeds and borrowings. 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.. 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. We have a national team of attorneys and staff who look forward to speaking with you. 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 trouble with non-traded REITs, like Hospitality Investors Trust Inc., is that they are complex and inherently risky products.
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