Brookfield Takes Over Hospitality Investors After Reorg Plan OK’d

Hospitality Investors Trust Inc., a real estate investment trust with stakes in 100 hotels driven into bankruptcy by the pandemic, won court approval of its reorganization plan that will pay creditors in full.

Under the plan, the REIT’s preferred equity holder—Brookfield Strategic Real Estate Partners II Hospitality REIT II LLC—will see its pre-bankruptcy stake canceled but will take 100% of the equity in the company emerging from Chapter 11.

Common equity investors will receive one “contingent value right” of the post-bankruptcy company for each share of their pre-bankruptcy interest. These CVRs will mature in five or seven years, at ...