Investors in Hospitality Investors Trust (“HIT”), also known as American Realty Capital Hospitality Trust or ARC Hospitality, may have FINRA arbitration claims, if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker or advisor.
HIT, a public, non-traded real estate investment trust (“REIT”) with a focus on hospitality properties in the United States, announced a 33.6% decrease in its net asset value (“NAV”) to $9.21 per share, following a share repurchase program in October, 2018 in which shares were purchased at $9.00 per share.
As a publicly registered non-traded REIT, HIT was permitted to sell securities to the investing public at large, including numerous unsophisticated retail investors who bought shares upon the recommendation of a broker or money manager. Original investors of HIT could purchase shares at $25.00 per share. However, the REIT’s estimated NAV is currently $9.21, and even worse, shares on the secondary market have reportedly been sold at prices between $3.75 and $3.99 a share.