Lack of liquidity is often problematic for many investors. Thousands of investors who were sold HIT have suffered severe losses. The White Law Group, LLC Announces Potential Securities Claims All rights reserved. Brookfield hotel REIT sues insurers for denying pandemic claims 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. In most litigation matters, it is extremely difficult practically impossible to predict how long it will take to resolve a particular case. 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. Attorney Advertising. 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. The bankruptcy court must enter a confirmation order no later than June 23, 2021. and will not be transferable, except in limited instances such as the death of the holder. We can help you recover damages for these losses by pursuing your claim, on a contingent fee . TRevPOB was $52.60 in FY 2022, compared to $45.86 in FY 2021, a 14.7% increase. 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. SEC.gov | HOME for account-related questions. Even worse, HIT REIT is now in bankruptcy. She received her law degree from American University in 2005. Hospitality Investors Trust REIT began by selling its shares at $25, but the price has dramatically decreased in value. If distributions are declared and paid, the amount of the distributions paid may decrease or distributions may be eliminated at any time. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. These loans have an interest rate of 15% per year. In June 2017, for instance, HITs NAV per share was estimated at $13.20 as of March 30th, 2017, a decline of approximately 38.6 percent year-over-year from the previous NAV of $21.48/share, according to The DI Wire. Shareholders of the common stock will receive one CVR in exchange for each share of common stock. 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. All copies must include this copyright statement. Get Free Stock Picks, Macro Market Events & Options Strategies. These distributions could reduce the amount of capital invested in properties and could negatively impact the value of an investors investment.