Since its inception, HIT REIT has had serious problems, which ultimately resulted in AR Capitals former CFO being sentenced to federal prison. Brokers and financial advisors have a duty to the people they serve to make only suitable investment recommendations. If you are interested in a free and confidential case review, contact us at (800) 277-1193. Prior to the bankruptcy,HIT REITs estimated net asset valuehadcontinued to decline, andwas $8.35, as of December 31, 2019. Questions about our fee agreements are welcomed and encouraged. Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. Speak with a lawyer today to learn more. 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. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Fill out the form on this page and let us know what your experience was. The asset management company holds all $441 million worth of its preferred equity. 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. 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. 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. HIT was sold for $25 per share originally. 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. 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. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." This field is for validation purposes and should be left unchanged. 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. The most clear and obvious example is William Kahane, the chief executive officer of the trust. 7:18 pm Non-traded REITs are risky investments, but they may offer high commissions, so that brokers may have an incentive to get clients to buy shares. The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Did your broker recommend an investment in Hospitality Investors Trust Inc. (fka ARC Hospitality Trust)? 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. She received her law degree from American University in 2005. Hospitality Investors Trust, Inc. (HIT REIT) is a real estate investment trust (REIT) which owns a diversified portfolio of strategically-located hotel properties throughout the United States within the select service market of the hospitality sector. Brookfield . 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. NEW ORLEANS | ROCHESTER | CLEVELAND | LOS ANGELES | SAN FRANCISCO | ST. 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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. Attorney Advertising. It was a risky investment from the beginning, because it did not have assets or own real estate properties. and will not be transferable, except in limited instances such as the death of the holder. You should consult an attorney for individual advice regarding your own situation. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. 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. The trust. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust. 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. Contact information is provided below: Copyright 2023 Hospitality Investors Trust, Inc. All Rights Reserved. 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. Shares were originally sold to most investors at $25 a share. Illiquid Investment Investors may have Recovery Options. 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. 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.. After all, a non-traded REIT is considered to be a complex, illiquid, and high-risk investment, not suitable for many retail investors. Davids advocacy has generated major recoveries for consumers impacted by financial fraud. Hospitality Investors Trust, Inc. (HIT REIT) is non-traded real estate investment trust (REIT). Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment., We established the initial offering price on an arbitrary basis; as a result, the actual value of your investment may be substantially less than what you pay., There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, property manager, our sub-property manager, our sponsor, our dealer manager and our and their respective affiliates, which could result in decisions that are not in the best interests of our stockholders., We are obligated to pay fees to our advisor, which could be substantial and may result in our advisor recommending riskier investments., Taken together, these factors make Hospitality Investors Trust a highly risky investment that likely was not suitable for inexperience and/or conservative investors, especially those with liquidity needs and/or those who cannot afford to lose their principal. 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. As result, there have multiple lawsuits from Hospitality Investors. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisors sales practices and dealings with clients. Previously in January of 2017, the company had suspended distributions indefinitely, significantly harming investors. To learn more about The White Law Group visit www.whitesecuritieslaw.com. You should consult an attorney for individual advice regarding your own situation. Your inquiry will be immediately reviewed by one of our attorneys who handles securities litigation. 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? HIT REIT Shares were originally sold for $25.00 per share. Even when a sale does transpire, the high fees commissions often diminish the investors total return. Get free professional market insights and stock/ETF reports that contain actionable opportunities written by a former financial advisor and Capitalist who has been investing in the markets for 20+ years. 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. 2022 Peiffer Wolf Carr Kane Conway & Wise, LLP. There were numerous conflicts of interest within the trust. My in-laws lost their retirement funds to a dishonest broker. 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 a publicly registered, non-traded real estate investment trust whose initial offering became effective in 2014 and which declared bankruptcy in 2021. According to filings in the bankruptcy case, each share of Hospitality Investors Trust common stock will be canceled and exchanged for a right to receive contingent cash payments (CVR). 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. AR Capital is the now-infamous company that sponsored billions of dollars of non-traded REITs and other similar deals. 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. These increases were mainly a result . 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. 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. We have a national team of attorneys and staff who look forward to speaking with you. 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. You can access the Main Case Docket through the website maintained and maintained by theUnited States Bankruptcy CourtDistrict of Delaware. HIT is a non-traded REIT. 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. However, brokers and financial advisors who improperly recommended HIT or other similar products may be legally responsible for the losses suffered by their clients. Did your Advisor Recommend a Hospitality REIT? FINRA cautions investors to carefully consider the fact that these products are generally illiquid. Combined with other smaller fees and expenses, approximately 86% of an investors investment was actually being used for instruments by the Trust. 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. To review a summary of our fees and costs, click Fees & Costs. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. He assumed the Investor Relations position at Valora Asset Management on january/2020. For more information on The White Law Group, visitwww.whitesecuritieslaw.com. 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. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinoisand Seattle, Washington. Their investor toll-free number is 1-800-856-3352. Hospitality Investors Trust CEO Jonathan Mehlman. Further, some brokers allegedly sold the HIT REIT to retirees or elderly clients close to retirement. 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. There are two types of REITs: publicly traded and non-traded. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. Kahane is a director at Business Development Corporation of America, American Reality New York Recovery REIT, Inc., and several other American Reality companies. 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. As a result, for a significant time period you may be unable to assess the value of your non-traded REIT investment and its volatility.. 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. In fact, at first, it could not even point to the properties it intended to acquire or invest in, which means that brokers, advisors, and investors would have difficulty evaluating the REIT. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. 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. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. 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. Written by The White Law Group December 12, 2021 Non-traded REITs, like Hospitality Investors Trust often lack liquidity. The lure of high commissions is to blame, without detracting from the responsibility of the brokers who should have known better. If you believe you lost money because of unsuitable recommendations, including the addition of Hospitality Investors Trust REIT (HIT REIT) to your portfolio, it is important to take action. HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. Last April we reported that the REIT entered into forbearance agreements with the lenders under certain of its mortgage and mezzanine indebtedness. Central Trade & Transfer announced a selling price of 46 cents per HIT share in March 2021. 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. The White Law Group continues to investigate potential securities claims involving broker dealers who recommended Hospitality Investors Trust (HIT REIT) to investors. 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. This bankruptcy may be bad news for investors who were sold shares in HIT. 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 Inc. class action, Hospitality Investors Trust Inc. complaints, Hospitality Investors Trust Inc. investigation, Hospitality Investors Trust Inc. liquidation, Hospitality Investors Trust Inc. secondary sales. 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 . Free AlphaBetaStock's Cheat Sheet (No CC)! Shares were originally sold for $25.00 per share. 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.
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hospitality investors trust lawsuit