Moody National REIT II Sells Two Texas Hotel Properties

The REIT's asset sales are part of its strategic portfolio realignment, targeting long-term growth.

December 20, 2024

Sale of Residence Inn Grapevine

The first transaction involves the Residence Inn Grapevine, located at 2020 State Highway 26 in Grapevine, Texas. Moody National REIT II entered into a purchase agreement with MCR Hotel Acquisitions, LLC for a total price of $22.5 million. Subject to customary offsets and credits, the sale is expected to close by the end of January 2025. The agreement stipulates standard closing conditions, and the company has indicated there is no guarantee of finalizing the sale on the outlined terms.

Residence Inn Austin Transaction

Similarly, the REIT has signed an agreement to sell the Residence Inn Austin, located at 1209 E 51st Street, for $20.5 million. The buyer, MCR Hotel Acquisitions, LLC, is the same as for the Grapevine property. The two sales are independent of each other, and the closing of one deal does not depend on the other. The Austin property transaction is also expected to finalize by January 2025, pending fulfillment of all contractual conditions.

Strategic Implications of the Sales

Moody National REIT II's decisions to divest the Residence Inn properties align with its broader strategic objectives of streamlining its asset base and optimizing financial returns. By selling these Texas hotel assets, the company may aim to focus resources on other investment opportunities that promise greater alignment with its long-term goals. These moves come as part of a broader trend in the hospitality sector, where firms are realigning portfolios amid shifting market dynamics.

Broader Market Context

Despite macroeconomic uncertainties, the transactions underscore ongoing investor confidence in the hospitality sector, particularly in thriving markets like Texas. The $43 million combined sale price highlights the resilience of hotel valuations in the state. Moody National REIT II's strategy to liquidate non-core assets demonstrates its proactive approach to navigating the evolving real estate landscape and capitalizing on favorable market conditions.