National investment loss law firm Haselkorn & Thibaut continues to investigate brokerage and investment advisory firms and financial professionals that recommended or sold Hospitality Investors Trust (“HIT REIT”), formerly known as ARC Hospitality Trust Inc., to their customers following the REIT’s bankruptcy.
Investors who have suffered significant losses in Hospitality Investors Trust at the hands of their broker or advisor should contact the Investment Fraud Lawyers at 1-800-856-3352 to discuss their recovery options. All consultations are free, and they do not collect attorney’s fees unless we obtain a financial recovery for you.
Hospitality Investors Trust (HIT): Red Flags
Hospitality Investors Trust is classified as a publicly registered Non-Traded Real Estate Investment Trust (“REIT”) that was marketed as offering current income to investors with a conservative to moderate risk tolerance.
HIT REIT owned 100 hotel properties in 29 U.S. states and was initially sold at $25 per share, dropping to $8.35 per share by late 2019, and reaching $0.46 per share by March 2021. By May 2021, HIT REIT filed for Chapter 11 Bankruptcy protection in an attempt to restructure its $1.3 billion in unsecured debt.
HIT REIT Investment Losses? Haselkorn & Thibaut Offers Recovery Solutions
In Haselkorn & Thibaut’s opinion, one reason why brokers or advisors and their firms may have unsuitably marketed and sold HIT REIT to customers is due to the high commission and fees (of up to 10 percent) that could be earned off of each transaction.
Additionally, HIT REIT was a “blind pool” offering, meaning that the fund did not yet own any properties or significant assets, and had also not identified any properties to acquire with the offering proceeds. In Haselkorn & Thibaut’s opinion, this indicates that brokerage firms and their brokers or advisors were unable to conduct reasonable due diligence of the investment prior to making recommendations to customers.
Haselkorn & Thibaut has first-hand experience with the recovery of HIT investment losses and is currently representing Hospitality Investors Trust REIT investors in FINRA arbitration claims. Our firm is investigating full-service brokerage firms that recommended HIT and other illiquid, alternative investments to their customers.
Investors who own Hospitality Investors Trust (“HIT REIT”), or who have suffered investment losses due to unsuitable investment advice or other securities violations, are encouraged to contact the investment fraud lawyers, at 1-800-856-3352 or email [email protected] to discuss their recovery options.
All cases are taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
About Haselkorn & Thibaut
Haselkorn & Thibaut is a leading national securities law firm specializing in fighting for investors nationwide. With over 50 years of experience, the firm has recovered millions for investors and boasts a 98% success rate. Haselkorn & Thibaut has office locations in Florida, New York, North Carolina, Arizona, and Texas.
Haselkorn & Thibaut, P.A.
Lawrence L. Klayman, Esq.