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. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. 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. Our firm is investigating now. 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. Did your Advisor Recommend a Hospitality REIT? Thus, the securities law firm of Peiffer Wolf Carr Kane & Conway (Peiffer Wolf) has begun another investigation into American Realty Capital (ARC). A new name hasn't given Hospitality Investors Trust a clean slate. The troubled Hotel REIT declared bankruptcy on May 19, 2021 after its unstructured debt ballooned to $1.3 billion, according to its filing. 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. 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. The result is a long way from where the REIT started in 2014 when it raised $903 million from investors. Every case is different, and we will do our best to provide you with an estimate based on your case and our experience with similar cases. The HIT REIT made adjustments to bonuses for key executives, as well. 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). For more information on the firm, visit www.WhiteSecuritiesLaw.com. 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. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. Get Free Stock Picks, Macro Market Events & Options Strategies. Hospitality Investors Trust REIT Shares Crash. Investors Staring at a Investor Alert: Hospitality Trust Investors Bankruptcy Hospitality Investors Trust Inc is currently in bankruptcy and trying to restructure its debt. 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. 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.. . Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Carlson Law represents investors involved in claims against financial advisors and investment firms throughout the United States. Investors in REITs hope to profit from regular cash distributions from the REITs income. 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. Brookfield will provide a $25 million exit facility to Hospitality Investors Trust once the bankruptcy plan has been in place. Please call us or use ourcontact formto request a Free Case Evaluation. 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 Trust, a non-traded real estate investment trust (REIT), initially offered its shares at $25. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. Hospital Investors Trust Inc financed its first $1.3 billion bonds under Chapter 11 bankruptcy filed a claim for the securities. Hospitality Investors Trust, Inc. - HIT REIT Shareholders of the common stock will receive one CVR in exchange for each shareof commonstock. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. After all, the hospitality industry has taken a major hit during the pandemic. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. All copies must include this copyright statement. If you have invested in Hospitality Investors Trust Inc. and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Did you lose money by following a brokers recommendation to invest in Hospitality Investors Trust REIT? 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 Investor Sues AR Global Abuse Trust The firm has filed numerous claims on behalf of investors who have suffered losses investing in Hospitality Investors Trust. Investors in HIT REIT will see their stock canceled and trade for the right to contingent cash payments. 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. This may provide some brokers with enough incentive to make unsuitable investment recommendations. 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). 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. Fill out this form for a FREE and prompt case evaluation. This is a national conference attended by 1,500 lawyers each year where we teach how to successfully handle lawsuits against the largest companies in the world. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. Illiquid Investment Investors may have Recovery Options. Contact our firm to learn more about your options. 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. NEW YORK, June 11, 2021 (GLOBE NEWSWIRE) -- National investor fraud law firm, KlaymanToskes ("KT"), announces an investigation on behalf of investors in Hospitality Investors Trust ("HIT . Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. 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.. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. Contact us now for a free consultation! Healthcare Trust Inc. REIT Lawsuits - Compensation & Help 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. Each engagement agreement includes the details of the fee arrangement. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. At the moment an investor purchased HIT, they were automatically at a significant disadvantage due to the fees and commissions charged. In May 2021, The Hospitality Investors Trust filed for Chapter 11 bankruptcy protection, which will almost certainly result in investors losing all or most of their principal. All Rights Reserved. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). Healthcare Trust Inc. is a publicly registered non-traded REIT (real estate investment trust) that was sponsored by AR Global. To contact us for a free confidential consult, you can call us at (800) 277-1193. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Shares were originally sold to most investors at $25 a share. 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. Epiq 11 The REIT has reportedly decreased nearly 45% since its initial issuance. Brookfield hotel REIT sues insurers for denying pandemic claims 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. 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. Shares were originally sold for $25.00 each. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. He worked in five different areas at Bradesco Bank, ending his activities at the FX Trading Desk. Now, Hospitality Investors Trust REIT investors have suffered significant losses. Thousands of investors who were sold HIT have suffered severe losses. According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. 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. Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. 1519 Robert C. Blakes Sr Dr, 1st Floor These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. 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. If you invested in Hospitality Investors Trust REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website. The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. 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. 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. Even worse, HIT REIT is now in bankruptcy. The updated NAV has decreased 33.6 percent since the previous valuation of $13.87 per share NAV in December 31, 2017. AR Capital has been subjected to significant regulatory action and fines and the former CFO was even sentenced to federal prison. All rights reserved. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. REIT Investors have won several securities litigations involving financial institutions with the intention of recovering from their securities losses. We provide confidential and free initial consultations and case reviews. NEW ORLEANS | ROCHESTER | CLEVELAND | LOS ANGELES | SAN FRANCISCO | ST. 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We do not charge any fees or costs unless you first recover. 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 .