Update 8/12/21

Goodman & Nekvasil, P.A., Law Office Announces a $126,734.700 Arbitration Award on Behalf of a HIT REIT Investor.

View the FINRA Award Details

View our Press Release

Hospitality Investors Trust REIT (HIT REIT) Bankruptcy: Call us Today to Recover Your Investment Losses.

We Represent HIT REIT Investors!

If you invested in HIT REIT, you have likely lost a substantial amount of money. The most recent secondary market trade for HIT REIT was for $.46/share, down from $1.25 last year. Our Firm already represents several investors who have lost a substantial amount of money in HIT REIT. We believe that HIT REIT may have been solicited to investors as part of an overall unsuitable portfolio that was designed to create substantial fees for brokers and brokerage firms.

Our Firm has been investigating HIT REIT for more than five years, and we have identified several events that have led to HIT REIT’s bankruptcy.

Timeline of Events Leading to HIT REIT’s Bankruptcy

Summer 2013: Hospitality Investors Trust begins selling shares as a public, non-traded REIT.

September 2014: REIT's sponsor announces investigation into accounting irregularities.

November 2014: Broker-dealer groups refuse to market HIT REIT as a result of the investigation into its finances.

December 2014: Founder and members of board of directors resign amid accounting probe.

March 2015: REIT's parent announces negative findings of audit committee's investigation.

November 2017: REIT sponsor's former chief financial officer is sentenced to 18 months in prison.

July 2019: Board members who resigned in December 2014 agree to pay $60 million to settle fraud charges with the SEC.

May 2021: HIT REIT files for bankruptcy.

What is HIT REIT?

American Realty Capital Hospitality Trust, Inc. (“HIT REIT”) was formed in July 2013 as a non-traded real estate investment which primarily invested in hotel properties. HIT REIT was organized and controlled by a larger company called AR Capital, who sponsored over $20 billion in deals. Almost immediately since its founding in July 2013, HIT REIT was plagued with serious problems. These problems ultimately resulted in Brian Block, AR Capital’s former CFO, being sentenced to eighteen months in federal prison. The broker-dealers who sold HIT REIT to their customers knew or should have known about through the due diligence process about these serious issues prior to the HIT REIT bankruptcy.

We Represent Investors Who Suffered Losses in American Realty Capital Hospitality Trust, Inc. a/k/a HIT REIT.

At Goodman & Nekvasil, we have years of experience in representing investors who have suffered losses from risky real estate investments such as American Realty Capital Hospitality Trust, Inc. a/k/a HIT REIT. For many investors who have lost their life savings, brokers breached their fiduciary duty by overconcentrating their clients’ assets in highly risky real estate investments that were unsuitable for the investors. Many high-risk real estate investments involve unusually high commissions, which encourage brokers to sell these securities even when they are inappropriate for clients. Investors can suffer devastating losses as a result of investments in the wrong real estate properties, and we have helped investors recover these losses.