Hotel REIT Files Bankruptcy With Brookfield to Take Control

Hospitality Investors Trust Inc. filed for bankruptcy with a deal in place that would have a Brookfield Asset Management affiliate take control of the hotel operator.

The real estate investment trust’s bankruptcy plan would pay creditors in full or reinstate their claims, court papers show. The Brookfield affiliate, which already owns all of HIT’s preferred shares, would get all of the company’s common shares.

HIT, which owns about 100 hotels across the U.S., “suffered the severe consequences of the novel coronavirus pandemic” and has been unable to tap capital markets, Chief Financial Officer Bruce Riggins wrote in a court declaration. ...