HIT REIT – Hospitality Investors Trust Losses – update April 8, 2021 – Possible bankruptcy
Have you suffered losses investing in Hospitality Investors Trust (HIT REIT) at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
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. The company primarily operates its hotels under a franchise or license agreement with various brands.
The Net Asset Value (NAV) for HIT REIT has reportedly decreased by 45% since initial issuance. The NAV is now $13.87, down from the $25 initial purchase price. Further, the REIT suspended distributions in January 2017.
According to SEC filings, on February 28, 2019, Hospitality Investors Trust, Inc. announced that its Board of Directors had suspended the Company’s Share Repurchase Program. This suspension became effective immediately upon the filing of this Current Report on Form 8-K and will remain in effect unless and until the Board takes further action to reactivate the SRP. There can be no assurance the SRP will be reactivated on its current terms, different terms or at all, according to the 8K report.
Update on April 8, 2021 – Possible Bankruptcy – Decrease in NAV– Secondary Sales Price $0.46/Share
Investors looking to sell non-traded REITs, like HIT REIT, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Unfortunately for investors, Central Trade & Transfer, secondary market for non-traded REITs, recently sold shares of HIT REIT for just $0.46 per share on March 31, 2021. This may indicate significant losses to investors, as the original offering price was $25.00 per share.
More bad news for investors –The Net Asset Value (NAV) for HIT REIT has reportedly decreased again to $8.35 per share, as of December 31, 2019. The previous valuation (at the end of 2018) was $9.21 per share — a 33.6% decrease since the previous valuation in December 2017 of $13.87.
According to new filings with the SEC, the company reported that its lenders have agreed to extend the expiration date of the forbearance period relating to its mortgage loan, while the REIT considers a pre-packaged Chapter 11 bankruptcy.
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended HIT REIT and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.
For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.
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 Franklin, Tennessee.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.
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