Soreide Law Group is reviewing possible investor lawsuits against financial advisors and securities brokers who may have recommended Watermark Lodging Trust Inc. Namely, Watermark Lodging Trust suspended dividends, suspended its redemption program, and is trading in the secondary market for a fraction of its offering price.
Evidently, Watermark Lodging Trust is a non-traded REIT created by a merger between Carey Watermark Investors 1 (“CW 1”) and Carey Watermark Investors CW 2 (“CW 2”) on April 13, 2020. The internally-managed REIT supposedly contains a portfolio of lodging assets and aims to take advantage of current and future opportunities in the lodging industry. WLT’s objective is to produce attractive, risk adjusted returns and long-term growth in value.
Evidently, on March 18, 2020, WLT announced a temporary suspension of distributions. The move was made in light of reduced travel demand and other financial setbacks relating to the coronavirus pandemic. Evidently, half of the hotels under WLT’s umbrella suspended operations. Reportedly, the remainder of properties which are still operational are at limited capacity. Not only that, but the Board of Directors suspended a redemption program which has effectively precluded investors from selling their shares.
As of December 31, 2018, Class A shares and Class T shares both have a net asset value of $11.41, the company reports. However, shares in the secondary market have sold for under $4.00 per share according to Central Trade & Transfer. Notably, investors who purchased shares at the offering price of $10.00 per share could face substantial losses by selling the shares on the secondary market.
Non-traded REITS are illiquid investments since there is no public marketplace for you to freely purchase and sell your units. Not surprisingly, this is a serious concern for investors who require liquidity. Secondly, fees or commissions on these investments are typically high, and early redemptions can erode your returns. Thirdly, although non-traded REITs try to produce attractive income, there are no guaranteed distributions. Not only that, but non-traded REIT distributions can come from principal.
Some financial advisors fail to recommend investments which are suitable for investors based on their risk tolerance, investment objectives and liquidity needs. Some of these professionals are driven solely by the commissions or fees that they can generate. Further, some financial advisors might negligently misrepresent the risks or the terms of investing in these products. These types of sales practice violations serve as a basis for you to sue your financial advisor to recover your investment losses.
Sustained losses because of investing in Watermark Lodging Trust because of your financial advisor? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to the misconduct of securities brokers and financial advisors.
Summit Brokerage and Independent Financial Group each appear on a pending customer claim naming Gilbert Conrad (CRD 2746778). Both claims are unproven allegations. His BrokerCheck report also lists settled disputes at Arkadios Capital and Independent Financial Group.
On August 6, 2026, a customer filed a $400,000 FINRA arbitration naming Chad McQuade (CRD 5436281) and Northwestern Mutual. The claim involves outside, third-party real estate investments. It is pending, and McQuade disputes it in a written response.
Christopher Miller (CRD 4044818) has a customer dispute on BrokerCheck that settled on October 7, 2026 for $50,901. The disclosure lists Emerson Equity as the firm.
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