According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. 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. 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. NorthStar Healthcare REIT Lawsuit | REIT Losses | Peiffer Wolf As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. 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. Is this happening to you frequently? If so, you may be able to participate in a lawsuit. Ashford Hospitality Trust : Files Lawsuit Against Cygnus Capital To Hospitality Investors Trust Inc. (HIT REIT) Lawsuit 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. The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. 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.. Rosenheim is a city in Bavaria, Germany.It is an independent city located in the centre of the district of Rosenheim (Upper Bavaria), and is also the seat of its administration.It is located on the west bank of the Inn at the confluence of the rivers Inn and Mangfall, in the Bavarian Alpine Foreland.It is the third largest city in Upper Bavaria with over 63,000 inhabitants. HIT was originally a blind pool offering, further making the investment highly speculative. Hospitality Investors Trust Inc. Losses Investors may have claims. One reason many brokers may have sold HIT REIT to their clients is because of the significant commissions paid to them as HIT charged high upfront fees and commissions. 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. Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. 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 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.. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy Hospitality Investors Trust, Inc. - HIT REIT All copies must include this copyright statement. The most clear and obvious example is William Kahane, the chief executive officer of the trust. 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. Fill out the form on this page and let us know what your experience was. Moreover, many illiquid REITs cannot be freely sold in the marketplace. Yes. 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.. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. 1519 Robert C. Blakes Sr Dr, 1st Floor Our firm is investigating now. Hotel REIT Files Chapter 11 Plan to Hand Itself Over to Brookfield - WSJ Hospitality Investors Trust (HIT) REIT Files Bankruptcy - Investor Alert 2015 by The White Law Group, LLC All rights reserved. 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. Eileen is involved in the firms securities practice and has over a decade of experience in the legal world. Login to Read More Join Now PrintFriendly Author: Martina Bellini The White Law Group, LLC Announces Potential Securities Claims AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. 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. KALOS CAPITAL Lawsuit Filed - Securities Lawyer 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. Entering text into the input field will update the search result below, high risk non-traded REITs, like HIT REIT. 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. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. 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. NEW YORK . 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. 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. 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. 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. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. 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. Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. Hospitality Investors Trust Inc. (HIT REIT) Investment Losses. 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. Hospitality Investors Trust - Overview, News & Competitors - ZoomInfo Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. Moreover, we will do our best to keep you updated and manage expectations along the way. 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. 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. All copies must include this copyright statement. Read more about our results. He assumed the Investor Relations position at Valora Asset Management on january/2020. 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 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. Hospitality Investors Trust Commences Bankruptcy Case Out of options, a struggling hospitality trust is handing over its control to Brookfield Asset Management through the bankruptcy process. My in-laws lost their retirement funds to a dishonest broker. All Rights Reserved. The company has yet to declare a Net Asset Value for 2020, but as of December 31, 2019, it was $8.35 per share, a 9.3% decrease from the 2018 NAV. 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). Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC HIT REIT and any non-traded REITs to investors. You also can request a free private and confidential evaluation by clicking Free & Confidential Consult. 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. Free AlphaBetaStock's Cheat Sheet (No CC)! 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. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. 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. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. The British-born chef reportedly flew home early from Rome, leaving his wife Lauren Fried, and their two young children, Alfie, five, and Isla, two, in the Eternal City. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. New Orleans, LA 70130 REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. Contact us today for a FREE consultation. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." It was a risky investment from the beginning, because it did not have assets or own real estate properties. 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. Contact us now for a free consultation! Speak with one of our securities attorneys to learn more about recovering your losses. Class-action lawsuit accuses six hotel companies of antitrust tactics 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 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 (504) 608-1465. 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. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. Investor Alert: Hospitality Trust Investors Bankruptcy 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 . Hospitality Investors Trust Investor Sues AR Global Abuse Trust 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. 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). On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. The White Law Group may be able to help you recover your financial losses by filing aFINRAarbitration claim against the brokerage firm that sold you the investment. Real estate investment trusts (REITs) are. 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. Selina Hospitality PLC Reports Fiscal 2022 Financial Results As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust . If your broker suggested Hospitality Investors Trust REIT, and it was not an appropriate investment for you, you may be eligible to file a class action. Unfortunately, it appears that the shareholders and investors who bought the Hospitality Investors Trust may be left with little or nothing after the restructuring. 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. 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. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. What is happening with Hospitality Investors Trust? 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. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. Please call us or use ourcontact formto request a Free Case Evaluation. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Please provide any additional information about your inquiry. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. 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. 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. We do not charge any fees or costs unless you first recover. Central Trade & Transfer announced a selling price of 46 cents per HIT share in March 2021. The contingency fee we charge ranges from 20% to 40%. The properties are under the brand names Hilton, Hyatt, and Marriott. For more information, please read our full disclaimer. 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. 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. Now, Hospitality Investors Trust REIT investors have suffered significant losses. Below are some of the emails and letters that our clients have sent us. Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy, HIT REIT Hospitality Investors Trust Losses, update April 8, 2021, Damian BairdSuspended from the Securities Industry, Peakstone NYSE Listing Disappoints Shareholders. Financial advisors could earn commissions and dealer management fees going up to 10% for selling the HIT REIT. Hospitality Investors Trust is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. The company reportedly decided not to make required capital reserve payments to the mortgage lender in April and May 2020 which resulted in events of default under the 92-Pack Loans. Written by The White Law Group December 12, 2021 The REIT has reportedly decreased nearly 45% since its initial issuance. 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. To contact us for a free confidential consult, you can call us at (800) 277-1193. As of December 31, 2019, it was listed at $8.35 per share, a 9.3% decrease from the 2018 NAV. Get Free Stock Picks, Macro Market Events & Options Strategies. This may be years after you have made your investment. . 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.