Hotel REIT Preps Deal to Give Brookfield Control in Bankruptcy
• Hospitality Investors Trust under forbearance amid talks
• REIT owns portfolio of about 100 hotels across United States
April 14, 2021 | Allison McNeely and Katherine Doherty | Bloomberg
Hospitality Investors Trust Inc. is nearing a deal that would hand control of the debt-laden hotel operator to Brookfield Asset Management as part of a pre-packaged bankruptcy, according to people with knowledge of the matter.
HIT, which owns about 100 hotels across the U.S., has been getting advice from law firm Proskauer Rose and investment bank Jefferies Financial Group Inc. on the restructuring talks, said the people, who asked not to be identified discussing confidential discussions. The real estate investment trust said in a regulatory filing last week that it was negotiating with Brookfield, its largest investor, over a potential Chapter 11 filing.
Representatives for Hospitality Investors Trust and Proskauer didn’t respond to a request for comment, while representatives for Brookfield and Jefferies declined to comment.
