Hospitality Investors Trust, Inc., is a publicly registered, non-traded real estate investment trust (“REIT”). The trust filed for Chapter 11 bankruptcy in 2021 after stocks dropped to under $1 a share. Investors in Hospitality Investors Trust, Inc. (“HIT”) may have a valid claim and are encouraged to contact an attorney immediately to discuss their legal options.
Meyer Wilson has handled over 1,000 claims for aggrieved investors, recovering in excess of $350 million on behalf of clients nationwide. Non-traded REITs are notoriously high-risk investments that are most often unsuitable for retail investors. Individuals who were recommended or sold shares of HIT REIT as a safe, conservative investment may be able to recover losses.
If you sustained losses after investing in HIT REIT, the investor claims attorneys at Meyer Wilson might be able to help. Contact our office at (614) 532-4576 for a free, no-obligation consultation.
The Hospitality Investors Trust, Inc. was a non-traded real estate investment trust (“REIT”) that, according to its website, owned “a diversified portfolio of strategically-located hotel properties.” Investments were focused on the select-service market of the hospitality sector.
The trust, formerly known as American Realty Capital Hospitality Trust, filed for Chapter 11 bankruptcy in an effort to restructure its over $1 billion debt. A final decree was ordered on Jul 1, 2021. The value of the stock dropped substantially from its original price of $25 per share to less than $1. Investors are unlikely to recover their principal in light of the bankruptcy.
Several investors have alleged that when their broker or financial advisor recommended and sold investment in the Hospitality Investors Trust REIT, they made false or misleading statements. Some investors were informed that the investment was safe and conservative.
In truth, REITs are almost always unsuitable for the average investor as they present a high degree of risk and may be illiquid. These complex investments are best suited for sophisticated retail investors who are well-informed of the potential for loss of principal. Financial advisors and stockbrokers often recommend these products because of their high up-front commissions and fees, which many consumers are unaware of at the time of purchase.
HIT REIT investors may be able to recover losses through a FINRA arbitration claim. At Meyer Wilson, our attorneys have handled countless cases for investors who have sustained financial losses as a result of stockbroker misconduct, fraud, misrepresentation, or unsuitable recommendations.
If you are one of the thousands of investors who lost money after being recommended and sold HIT REIT, contact our office at (614) 532-4576. All consultations are free and without obligation to retain our services. Let the experienced investment fraud attorneys at Meyer Wilson evaluate your legal claim at no cost. Matters are handled on a contingency fee basis, meaning there are no fees unless we recover money on your behalf. Call now to get started.