Non-Traded REIT Causes Investor Losses of Up To Over 95%
Our non-traded real estate investment trust (non-traded REIT) lawyers are continuing to look into claims of losses by investors whose financial advisors marketed and sold shares in Hospitality Investors Trust (HIT REIT). This investment was previously named American Realty Capital Hospitality Trust (ARC Hospitality). Unfortunately, some may have lost up to 95% of their investment.
Please call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) at (800) 259-9010 and ask to schedule your free, no-obligation case assessment with one of our seasoned investment fraud lawyers.
HIT REIT Files for Bankruptcy, Share Price Falls
Originally sold for $25/share, Hospitality Investors Trust, which is a publicly registered non-traded REIT, has seen a decline in share price over the last few years. The economic reverberations from the COVID-19 pandemic beginning March 2020 didn’t help matters, seeing how much the hospitality industry was so negatively impacted. HIT REIT owns 100 hotel properties in 29 US states under the brands Marriott, Hyatt, and Hilton.
In March 2021, secondary market Central Trade & Transfer reported that Hospitality Investors Trust was selling at a share price of 46 cents. In May 2021, Hospitality Investors Trust Operating Partnership, LP filed for Chapter 11 bankruptcy protection.
HIT REIT Investors were told that their stocks would be canceled and they would be getting contingent cash payments of no more than $6/share. In July 2021, a bankruptcy court in Delaware approved the Chapter 11 restructuring plan.
Non-Traded REIT Was Unsuitably Sold To Many Investors
Hospitality Investors Trust is a high-risk, complex, illiquid investment and should never have been recommended to conservative investors, inexperienced investors, or retirees.
Unfortunately, some brokers unsuitably marketed and sold this non-traded REIT to customers who lacked the investing profile and risk tolerance level that would have allowed them to weather the losses that have ensued.
One reason for this could be the high commissions and dealer management fees of up to 10% that financial advisors earned from HIT REIT.
Seasoned HIT REIT Investment Fraud Law Firm
SSEK Law Firm has gone up against the largest US brokerage firms in FINRA arbitration, mediation, and litigation, recovering many millions of dollars for investors who sustained losses because of broker misconduct or negligence. Contact our Hospitality Investors Trust attorneys today.