Moody National REIT II Announces $57.5M Sale of Nashville Embassy Suites

The sale to Reade Hotel Capital LLC is set to close by February 2025, pending conditions.

December 09, 2024

Transaction Overview

Moody National REIT II, Inc. has announced a major transaction involving the sale of its Nashville Embassy Suites hotel property to Reade Hotel Capital LLC. The agreed purchase price for the property, located at 1811 Broadway in Nashville, Tennessee, is $57.5 million. The sale agreement, effective as of December 2, 2024, reflects both parties’ commitment to complete the transaction by February 13, 2025, barring any adjustments to the timeline.

The agreement stipulates certain offsets and credits that could influence the final price, ensuring the terms align with customary market practices. While no guarantee exists that the sale will finalize under these terms, Moody REIT II has emphasized the strategic importance of this transaction in optimizing its portfolio.

Strategic Implications

As a Maryland-incorporated real estate investment trust, Moody REIT II focuses on hospitality properties to generate shareholder value. This sale represents a tactical move within the company’s broader asset management strategy, allowing it to leverage the growing demand for prime hospitality assets in thriving markets like Nashville.

The Embassy Suites Nashville property, known for its strategic location and robust performance, has likely benefited from the city’s dynamic tourism and business travel industries. This appeal aligns with the broader growth trends in the Nashville hospitality market.

Moody REIT II has its principal office on Katy Freeway in Houston, Texas, and is led by Brett C. Moody, who serves as CEO and President. The company remains focused on disciplined capital allocation, suggesting that proceeds from this transaction may be reinvested in new opportunities or used to strengthen its financial position.

Investors will watch closely for updates regarding the completion of this sale and potential announcements about the company's reinvestment plans, which are likely to impact its future growth trajectory.