Moody National REIT II Inc. Breaks Escrow, Identifies Acquisition, Declares Distribution

Houston-based Moody National REIT II Inc., a publicly-registered non-traded real estate investment trust that intends to acquire select-service hotels in major markets across the US, has satisfied its minimum offering requirement of $2 million in its initial public offering and all subscription proceeds held in escrow have been released to the REIT.

In addition, the board of directors has authorized the REIT’s officers to pursue the acquisition of a hotel property located in Boston, MA, commonly known as the Hampton Inn Boston Logan Airport, from a third party seller. The board of directors also authorized an initial cash distribution payable to the REIT’s stockholders equal to an annualized distribution rate of 7 percent on the public offering price of $25.00 per share.

“Our investors desire a non-correlated, fixed income, inflationary hedge investment,” explains Brett Moody, chief executive officer and chairman of the REIT. “Moody National REIT II will continue to strive to deliver on each of those needs for our investors by deploying capital into premium branded select-service hotels nationwide.”

The acquisition of the Hampton Inn Boston is subject to significant conditions to closing, including: the assignment of the purchase agreement for the Hampton Inn Boston from Moody National REIT I to the REIT; the ability to raise sufficient additional offering proceeds in its public offering to fund the purchase price of the Hampton Inn Boston; the ability to obtain appropriate financing secured by the Hampton Inn Boston; and the absence of a material adverse change to the Hampton Inn Boston prior to the date of the acquisition. According to a prepared release, Boston includes several features which the REIT targets in selecting its investments, including multiple major universities, a number of world-renowned inpatient hospitals, and a skilled and growing workforce.

Moody National REIT II is sponsored by Moody National REIT Sponsor LLC, an affiliate of the Moody National Companies, a full-service commercial real estate company inclusive of mortgage, development, realty and title divisions. Founded in 1996, Moody National Companies has managed more than $2 billion in commercial real estate.

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