HIT REIT Investment Losses —
Have you invested in Hospitality Investors Trust, formerly known as American Realty Capital Hospitality Trust? Hospitality Investors Trust is a non-traded REIT, or real estate investment trust. Hospitality Investors Trust (or HIT REIT) invests in hotels properties throughout the country.
Because of the decreased revenues from the pandemic, many hotels have experienced financial issues. The Trust owns the Georgia Tech Hotel & Conference Center in Atlanta, and in February 2021, the REIT defaulted on the ground lease and entered into a forbearance agreement under the terms of the loan. Hospitality Investors Trust has been in discussions with investors, including the potential of bankruptcy.
According to the latest annual report filed by Hospitality Investors Trust, its estimated “book” value of its shares was lowered to $8.35 in 2020. However, this does not mean that investors could sell their shares for this value. In fact, some secondary markets have listed Hospitality Investors Trust shares as low as $0.35 per share, over 95% lower than the book value given by Hospitality Investors Trust.
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