Our firm is investigating now. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching "Ashford." To review a summary of our fees and costs, click Fees & Costs. Investors were advised that they would receive $6 per share as contingent payment in lieu of their shares which would be canceled. All rights reserved. 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. Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, is sponsored by AR Global. Certifications and Licenses: CFP, Cambridge, CEA, CPA-20, CPA-10, PQO, FBB-100 and CA-300. Below are some of the emails and letters that our clients have sent us. More than 12 pubs, restaurants or bars shut EVERY DAY last year Unlike other reality companies, an REIT does not develop land to resell the land, but instead seeks to operate the prosperities as an investment. Hospitality Investors Trust Lawsuit In January 2014 sales activity continued under the company's name, but was suspended in November 2015. Non-traded REITs are known to be risky investments suitable only for a narrow band of investors. Hospitality Investors Trust Begins Bankruptcy Proceedings - The DI Wire Many debts under the plan are to be satisfied in full, including those of general unsecured creditors. 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 . If your financial advisor did not fully and/or accurately disclose the risks associated with an investment in HIT, including the products illiquidity and its stakeholders conflicts of interests, you may be entitled to a recovery. 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. 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. 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. These loans have an interest rate of 15% per year. Thus, the securities law firm of Peiffer Wolf Carr Kane & Conway (Peiffer Wolf) has begun another investigation into American Realty Capital (ARC). Bankrupt Eagle Hospitality Says Two Part Owners Wrongly Took - WSJ These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment. 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. New Orleans, LA 70130 High inflation and the cost . 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. Hospitality Investors Trust Inc. Losses Investors may have claims. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. The contingency fee amount is determined by the type of case, our estimate of how long it will take to resolve your case, and our estimate of the litigation costs we will advance in your case. 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). Ashford Hospitality Trust : Files Lawsuit Against Cygnus Capital To 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. 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. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. According to news reports, on May 13, the REITs executive officers and employees received $2.5 million in retention bonuses. For example, several executives in the trust have financial interests in other REITs and other non-traded business development companies. Jock Zonfrillo found dead after flying back from family holiday in If you invested in HIT REIT, Contact Peiffer Wolf for aFREE CONSULTATIONby calling585-310-5140of by filling out aContact Formon this website. Gibbs Law Groupsfinancial fraudandsecurities lawyershave more than two decades of experience prosecuting fraud. 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. Since then, the price of HIT has decreased dramatically, reaching an estimated net asset value of $9.21 per share in December 31, 2018. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. 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. Hospitality Investors Trust (HIT) Lawsuits - Compensation & Help 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 is under forbearance with its mezzanine loan lenders until June 30, according to Bloomberg News. 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 . The most clear and obvious example is William Kahane, the chief executive officer of the trust. HIT REIT Shares were originally sold for $25.00 per share. Investment Losses? HIT filed for Chapter 11 bankruptcy in May 2021, according to a report by The DI Wire. Attorney Advertising. Investigating Potential Lawsuits involving Healthcare Trust Inc. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them. 4:25 pm Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels. We are smart, experienced, and dedicated professionals who work tirelessly for our clients and take pride in the pursuit of justice on their behalf. 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 - how do I recover my losses? All copies must include this copyright statement. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Blog, Current Investigations. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality 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 . Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. You may have a claim. 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. Recommendations should be appropriate in light of the investors age, risk tolerance, net worth, and investment experience. Each engagement agreement includes the details of the fee arrangement. 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. According to Law360, the Hospitality Investors Trust received court approval for its Chapter 11 bankruptcy restructuring plans. 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. A chapter 11 restructuring plan was approved by a Delaware bankruptcy court in July 2021. 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. It was a risky investment from the beginning, because it did not have assets or own real estate properties. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. According to the filings, each share of Hospitality Investors Trust common stock outstanding is cancelled and exchanged for a right to receive contingent cash payments (CVR). 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. If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 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. 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. 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. HIT REIT, formerly known as American Realty Capital Hospitality Trust, Inc. is a non-traded real estate investment trust that acquires and owns hotels in the United States. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. Financial advisors could earn commissions and dealer management fees going up to 10% for selling the HIT 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. 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. for account-related questions. Please. Typically, we represent clients on contingency fee agreements. the real estate hospitality sector; as of September 30, 2017 the Company had acquired or had an interest in 148 hotel properties. Those payments, which are not guaranteed, are reportedly set at a maximum amount of $6.00 a share and are generally not transferrable. 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 . Fill out this form for a FREE and prompt case evaluation. Advisors and brokers who improperly recommended the HIT to their clients may be held liable for the losses. The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. The REIT reportedly acquires and owns hotels in North America and operates its hotels under a franchise or license agreement with various brands. This law blog website is managed by MileMark Media. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Or you may email our attorneys directly, shareholder and attorney Michael Bixby may contacted at mbixby@levinlaw.com. 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.