March 31, 2022 Comments Off on Recovery of Investment Losses in Watermark Lodging Trust  Blog, Current Investigations

Recovery of Investment Losses in Watermark Lodging Trust 

Recovery of Investment Losses in Watermark Lodging Trust, featured by top securities fraud attorneys, The White Law Group

Secondary Sales Price may Indicate Losses for Watermark Lodging Trust Shareholders

The White Law Group continues to investigate potential securities claims involving Watermark Lodging Trust, Inc., a non-traded REIT formed by the merger of Carey Watermark Investors 2 Inc. and Carey Watermark Investors.  

After the merger, the REIT declared its first post-merger net asset value (NAV) of $5.51 per Class A share and $5.45 per Class T share.  Original shares were sold for $10 each indicating nearly a 50% loss. 

In April 2020, we reported that the REIT had to close all of its hotels due to the Covid-19 global pandemic, and were generating no revenues while lockdown orders were in effect.  

According to new filings with the SEC, the REIT has declared Class A shares were valued at $6.29 per share, while Class T shares were valued at $6.22, as of December 31, 2021. The net asset value is calculated by taking the value of the company’s assets, less the estimated value of its liabilities, and dividing it by the number of shares outstanding. 

The REIT noted in the filings that the reason for the increase in the NAVs was “the appreciation in hotel appraised values, which was partially offset by operating losses since the prior NAV valuation date.” 

Despite the increase in NAV, the company’s shares are currently listed for sale on CTT Auctions, a secondary sales website, for just $4.75 per share.  

On March 18, 2020, due to the COVID-19 pandemic, the company announced that it was suspending future distributions on its common stock as well as  redemptions. 

Non-traded REITs are generally complex, high-risk investments and not suitable for every investor. They are also illiquid, meaning they are not traded on any market. Often investors find themselves in the situation of being unable to sell the investment when they are ready. If they are able to find a buyer, it is often at a reduced price.  (See: Did your Financial Advisor Recommend Investing in Non-Traded REITs?)

Filing a Complaint against your Brokerage Firm 

If you are concerned about your investment in Watermark Lodging Trust (fka Carey Watermark Investors I and II), the White Law Group may be able to help you.  For a free consultation with a securities attorney, please call 888-637-5510. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. 

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com. 

  

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