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. 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. He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. Levin Papantonio Rafferty may be able to help you recover your losses in the Hospitality Investors Trust. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Shares were originally sold to most investors at $25 a share. Our lawyers provide free confidential case evaluations, and we never charge any fees or costs unless you first recover. Hospitality Investors Trust no longer has sufficient cash fund its obligations and Brookfield is the only likely provider of additional liquidity, according to its 2020 annual report. Hospitality Investors Trust CEO Jonathan Mehlman. for account-related questions. This may be years after you have made your investment. Please disable your ad-blocker and refresh. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. 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. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Our firm is investigating now. 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. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. 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. Yes. This field is for validation purposes and should be left unchanged. The Securities and Exchange Commission (SEC) states that non-traded REITs have particular risks such as lack of liquidity, share value transparency, distribution of funds, and conflicts of interest. Healthcare Trust REIT Lawsuit Investigation AR Global's Healthcare Trust REIT decreases NAV per share; Investors lose thousands Our firm is investigating AR Global's Healthcare Trust, Inc. on behalf of REIT investors. The Securities and Business Litigation team at Levin, Papantonio, Rafferty, Proctor, Buchanan, OBrien, Barr & Mougey, P.A. Stock Loss Recovery Lawyer. Even when a sale does transpire, the high fees commissions often diminish the investors total return. Hospitality Investors Trust REIT was formed in July 2013 by AR Capital, a now-infamous company in the non-traded REIT space that has sponsored over $20 billion in deals. 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. Did your Advisor Recommend a Hospitality REIT? 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. Each engagement agreement includes the details of the fee arrangement. In December, Hospitality Investors Trust turned the cash payment to payment-in-kind to preserve liquidity. 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. These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. 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. 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. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. This field is for validation purposes and should be left unchanged. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. 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 is among a growing number of U.S. hotel companies that have considered bankruptcy to address challenges caused by the Covid-19 pandemic. Their lawyers are currently representing investors and are looking into the claims of many investors who have lost money in this investment. Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. Real estate investment trusts (REITs) are. 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. 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). HIT REIT Shares were originally sold for $25.00 per share. The maximum amount of payments made per CVR will not exceed. These professionals are ethically bound to tell their clients about the risks associated with recommended investments. Harion has an intensive course in Business Supplementary in Kaplan (Canada). FINRA cautions investors to carefully consider the fact that these products are generally illiquid. Now, Hospitality Investors Trust REIT investors have suffered significant losses. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. 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. 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. If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm. You should consult an attorney for individual advice regarding your own situation. Recent investor complaints against Boca Raton financial advisor Adam Brown (CRD# 4506309) allege that he breached his fiduciary duty and 2017 - 2023 Chase Carlson. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. This means that investors could have suffered over 95% losses on their investment, or even worse. 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. They have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? Investment Losses? Contact our firm to learn more about your options. 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. Or you may email our attorneys directly, shareholder and attorney Michael Bixby may contacted at mbixby@levinlaw.com. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. 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. In May 2021, with $1.3 billion in debt, the REIT declared bankruptcy. 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.. Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. As of April 2020, the company had 100 residential assets that had an overall value of 2Bn. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. Usually that is not the case when dealing with legal matters but you guys (gals) rock., Ive always found them to be extraordinary counsel in terms of their preparation and their professionalism.. According to an April report by The DI Wire, the REITs board lowered the NAV to $8.35/share as of December 31, 2019. How long will it take to resolve my lawsuit? 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 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? 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. Investors are unlikely to recover much of the money they invested.