The board of Hospitality Investors Trust Inc., a publicly registered non-traded REIT formerly known as American Realty Capital Hospitality Trust, had suspended the company’s share repurchase program, effective immediately.
The suspension will remain in effect unless and until the board takes further action to reactivate it, and the company noted that there is no assurance the program will be reactivated on its current terms, different terms or at all.
Late last year, the company adopted a share repurchase program with a repurchase price of $9.00 per share, approximately 35 percent lower than the company’s most recent net asset value per share of $13.87. While the board approved the program for shareholders who desired immediate liquidity, at the time it strongly recommended that investors not sell their shares.
Hospitality Investors Trust invests in select-service lodging properties in North America branded by premium national hotel brands. The REIT’s offering was declared effective in January 2014 and suspended sales activities in November 2015 after raising $903 million in investor equity, according to Summit Investment Research. As of the third quarter of 2018, the company’s $2.6 billion portfolio was comprised of 144 properties. The company severed ties with its external advisor, an affiliate of AR Global, and became self-managed on March 31, 2017.