The non-traded real estate investment trust is one of the latest non-traded REITs to experience financial difficulties and announce suspension of dividends.
The Sonn Law Group is investigating allegations into Hospitality Investors Trust. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.
Hospitality Investors Trust (HIT), formerly known as American Realty Capital Hospitality Trust, Inc., is a non-traded real estate investment trust (REIT) that acquires and owns hotels in the United States.
Non-Traded REITs are securities that do not trade on a public securities exchange. For this reason, Non-Traded REITs can be illiquid, meaning investors may be unable to sell their investments on demand. The underlying collateral of the REITs consists of income producing residential or commercial real estate. Typically, the commissions generated on Non-Traded REITs are higher than industry norm (approx. 7%) and the investments themselves may be subject to extreme volatility due to associated risk factors. Non-Traded REITs are only suitable for investors with a long-term investment horizon who are willing to accept higher levels of risk in their investments.
HIT suspended dividend distributions to investors in 2017, after which the value of shares plummeted from an original offering price of $25/share to less than $10/share. As of September 2019, the price per share of HIT dropped to $5/share.
If your advisor unsuitably recommended that you invest in HIT REIT and you lost money, you may be entitled to an award through FINRA Arbitration.
Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.