According to a recent therealdeal.com blog entry, RLJ Lodging Trust (REIT) “gave up to its lender a 438-room Marriott hotel near LaGuardia Airport that it acquired in 2007 for $69 million.” The deed-in-lieu transfer was executed on August 5th according to the article.
While this property was just one of 141 hotel properties under the RLJ Lodging Trust REIT as of June 31st according to therealdeal.com, it seems it is not good news for investors in the REIT whose shares as of the time of this post is being written sit at $13.44. $13.44 is up from a low of $11.70, but down from a high of $18.38 since its IPO in May. Much of this decline came in August when many REIT stocks took significant hits.
The White Law Group will continue to carefully monitor this situation and how it affects investors.
The White Law Group is currently representing many investors who own high-risk REITs in claims against the brokerage firm that recommended the investment. While REIT investments provide a legitimate way for smaller investors to be able invest in commercial real estate, REIT investments are not suitable for all investors. REITs often pay a higher commission to the brokers than traditional investments, which may, in some cases, explain the motivation for financial professionals in encouraging clients to invest in REITs.
Also, brokerage firms have a fiduciary duty to recommend only those investments that are appropriate for the investor in light of the investor’s age, net worth, investment experience, and investment objectives.
If you have questions about your investment in the RLJ Lodging Trust REIT call our Chicago office at 312/238-9650 for a free consultation.
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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.comTags: broker fraud, Chicago securities attorney, investment fraud, investment losses, investor protection, RLJ Lodging REIT losses recovery, RLJ Lodging Trust fraud, RLJ Lodging Trust investigation, RLJ Lodging Trust losses, RLJ Lodging Trust recovery, RLJ Lodging Trust scam, RLJ REIT loses hotel, securities arbitration, Securities Attorney, stock fraud, stock losses, The White Law Group, unethical practices Last modified: July 17, 2015