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. The White Law Group may be able to help you recover your financial losses by filing aFINRAarbitration claim against the brokerage firm that sold you the investment. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. After the bankruptcy plan becomes effective, Brookfield will provide a $25 million exit facility. Investors who have been sold the HIT REIT unsuitably and have lost money, as a result, could seek recovery through the FINRA (Financial Industry Regulatory Authority) arbitration process. According to the US Securities and Exchange Commission, [b]ecause they do not trade on a stock exchange, non-traded REITs involve special risks. Hospitality Investors Trust Bankruptcy: Investors May Have Options Hospitality Investors Trust Inc. Losses Investors may have claims. She received her law degree from American University in 2005. Last December we told you that Hospitality Investors Trust Inc. (HIT REIT), a publicly registered non-traded REIT, amended its limited partnership agreement with its investment partner, Brookfield Strategic Real Estate Partners II Hospitality REIT II LLC. Blog, Current Investigations. Even worse, HIT REIT is now in bankruptcy. Healthcare Trust Inc. was originally known as American Realty Capital Healthcare Trust II, Inc. Healthcare Trust was a high risk investment, and it should have only been recommended to investors who could afford a complete loss of their investment. The White Law Group continues to Hospitality Investors Trust, Inc. (HIT REIT) 2021 Lawsuit *UPDATED* Did your broker recommend an investment in Hospitality Investors Trust Blog, Current Investigations, Securities Fraud. Alternative investments such as Hospitality Investors Trust Inc. are illiquid. 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.. 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. TRevPOBs was $37.76 in FY 2022, compared to $35.13 in FY 2021, a 7.5% increase. We provide confidential and free initial consultations and case reviews. 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 company primarily operates its hotels under a franchise or license agreement with various brands. 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. 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. Lack of liquidity is often problematic for many investors. 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. Hospitality Investors Trust (HIT) is a publicly registered non-traded real estate investment trust (REIT), formerly known as American Realty Capital Hospitality Trust.

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