hospitality investors trust lawsuit

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. Attorney Advertising. 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. All copies must include this copyright statement. NYC, NY, USA, June 3, 2021 / EINPresswire.com / -- Last week Hospitality Investors Trust and its operating partnership filed petitions for relief under Chapter 11 of the US Bankruptcy Code . My in-laws lost their retirement funds to a dishonest broker. These REITs include: If you invested in any of these REITs, or others, we may be able to help. Further, the fund had not even identified any properties to acquire with the offering proceeds. According to news reports, on May 13, the REIT's executive officers and employees received $2.5 million in retention bonuses. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. 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. 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. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. The bankruptcy could leave investors who were sold shares in HIT with no real recovery of their investments, and the bankruptcy will undoubtedly leave many investors with substantial losses. The distribution of payments also carries risk. 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. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); This field is for validation purposes and should be left unchanged. These increases were mainly a result . Hospitality Investors Trust, Inc. Corporate Goverance Committees and Charters. Contact our firm to learn more about your options. HIT REIT has yet to declare a Net Asset Value (NAV) for 2020. In this case, the REIT is not traded on the exchanges. ContactPeiffer Wolf today by filling out aContact Formon our website or by calling585-310-5140to schedule aFREE Case Evaluation. Even when a sale does transpire, the high fees commissions often diminish the investors total return. HIT REIT Shares were originally sold for $25.00 per share. To learn more about the firms investigation, please see: Hospitality Investors Trust Decreases NAV close to 40%. Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. Speak with one of our securities attorneys to learn more about recovering your 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, 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. Hospitality Investors Trust Inc (HIT REIT), formerly known as American Realty Capital Hospitality Trust (ARCHT), is a registered non-traded real estate investment trust. You should consult an attorney for individual advice regarding your own situation. 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. The HIT REIT made adjustments to bonuses for key executives, as well. The result is a long way from where the REIT started in 2014 when it raised $903 million from investors. The troubled Hotel REIT declared bankruptcy on May 19, 2021 after its unstructured debt ballooned to $1.3 billion, according to its filing. The REIT price continued to decrease over the course of these announcements. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. In January 2014 sales activity continued under the companys name, but was suspended in November 2015. 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. The recent filing by HIT REIT for bankruptcy protection in United St only increases the losses. 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. You should consult an attorney for individual advice regarding your own situation. 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. 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 lawsuit, which has been filed by class-action law firm Hagens Berman, contests that Choice Hotels International, Hilton, Hyatt Hotels . He assumed the Investor Relations position at Valora Asset Management on january/2020. For more information on The White Law Group, visit. 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.. 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. A new name hasn't given Hospitality Investors Trust a clean slate. 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.. 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," 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.. 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. If you were sold GPB products or other illiquid private placements from KALOS CAPITAL and/or their former brokers , contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment . Investment Losses? Further, in February of 2019 the Board of Directors announced that it suspended the Companys Share Repurchase Program. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. 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 . In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. Speak with a lawyer today to learn more. Read more about what judges say about us. Shares were originally sold for $25.00 per share. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. 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. Below are some of the emails and letters that our clients have sent us. 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. We are smart, experienced, and dedicated professionals who work tirelessly for our clients and take pride in the pursuit of justice on their behalf. Stock Loss Recovery Lawyer. The White Law Group continues to HIT REIT Files for Chapter 11 Bankruptcy Protection The White Law Group continues to investigate potential securities claims involving Blog, Current Investigations, Securities Fraud. 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. The attorneys and staff at Peiffer Wolf Carr Kane Conway & Wise produce top-quality work and our results speak for themselves. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. Their investor toll-free number is 1-800-856-3352. Even worse, HIT REIT is now in bankruptcy. Typically, we represent clients on contingency fee agreements. 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 companys common stock, as of December 31, 2018. 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. 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. Moreover, we will do our best to keep you updated and manage expectations along the way. Shares of the Healthcare Trust REIT were originally priced at $25 per share. 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. 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. 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 Inc. class action, Hospitality Investors Trust Inc. complaints, Hospitality Investors Trust Inc. investigation, Hospitality Investors Trust Inc. liquidation, Hospitality Investors Trust Inc. secondary sales. Recovery of Hospitality Investors Trust Inc. (HIT REIT) Losses. On May 19, 2021,thecompanyfiled for Chapter 11 bankruptcy in Delaware to restructure its $1.3 billion unsecured debt. Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation. According to Central Trade & Transfer, a secondary market for non-traded REITs, shares of HIT REIT sold on March 31, 2021 for just $0.46 per share. To review a summary of our fees and costs, click Fees & Costs. The most clear and obvious example is William Kahane, the chief executive officer of the trust. TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. About Hospitality Investors Trust, Inc. Brookfield . and will not be transferable, except in limited instances such as the death of the holder. As a result, investors have filed lawsuits against financial advisor and their broker-dealers for the sale of Hospitality Investors Trust . Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. As result, there have multiple lawsuits from Hospitality Investors. 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. This meant that the fund had not had any net income and did not own any properties. The bankruptcy court must enter a confirmation order no later than June 23, 2021. Our firm is investigating now. 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. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Thus, the securities law firm of Peiffer Wolf has begun another investigation into any and all brokers and advisors who recommended NorthStar Healthcare REIT to investors. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. Illiquid Investment Investors may have Recovery Options. This bankruptcy may be bad news for investors who were sold shares in HIT. The risks materialized and HIT REIT filed for bankruptcy in May 2021. Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Real estate investment trusts (REITs) are. Bachelor in International Trade, post graduate in Financial Engineering (FIA-SP) and MBA candidate in Economics. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. Hospitality Investors Trust, Inc. is a publicly registered non-traded real estate investment trust which owns a diversified portfolio of strategically-located hotel properties throughout . 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 . The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." Its self-tender offer (that is, an offer to buy its own shares) set a much lower price for shares. 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 have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result. Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, is a non-traded REIT. In December, Hospitality Investors Trust turned the cash payment to payment-in-kind to preserve liquidity. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. 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. To learn more about The White Law Group visit www.whitesecuritieslaw.com. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. Lack of liquidity is often problematic for many investors. 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. Later, at Ita Bank, he supported expatriate clients (English and Spanish), working directly with Asset Allocation. 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. 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. For example, the Trust charged 10% of the investment for selling commissions and dealer manager fee. Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product. The Securities and Business Litigation team at Levin, Papantonio, Rafferty, Proctor, Buchanan, OBrien, Barr & Mougey, P.A. 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 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. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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. 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 . Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. 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. Each engagement agreement includes the details of the fee arrangement. Our firms investigation has revealed that some brokers and financial advisors allegedly sold the HIT REIT as a conservative, safe, asset backed, or moderate risk investment. There are two types of REITs: publicly traded and non-traded. How did so many retail investors, including retirees and seniors, come to hold shares of the REIT? These loans have an interest rate of 15% per year. 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. Have you suffered investment losses in a Hospitality (Non-traded) REIT? This law blog website is managed by MileMark Media. Hospitality Investors Trust is a publicly-registered, non-traded REIT, formerly called American Realty Capital Hospitality Trust (ARC Hospitality Trust). 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. High inflation and the cost . 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. 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. 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. Real estate investment trusts (REITs) arecomplex and inherently risky products. 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. 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. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. Hospitality Investors Trust is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. 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. Brookfield has also reportedly agreed to provide a $65 million debtor-in-possession term loan to fund the REITs current obligations, including up to $10 million to fund interest payments and other approved expenses for the property-level mortgage loans, pending the Chapter 11 cases. REITs collect money from investors, then use it to buy properties such as hotels, shopping centers, apartment buildings, or office buildings. They must ensure that all recommendations are suitable for the investor. Like other non-traded REITs, HIT posed significant risks to investors, including the potential for the entire loss of investment. 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. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients.
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