Moody National REIT II Shareholders Approve Liquidation and Dissolution Plan
At its annual meeting, shareholders of Moody National REIT II Inc., a publicly registered non-traded real estate investment trust focused on hospitality properties, approved a plan to liquidate and dissolve the company. It also announced an agreement to sell a hotel property in Pennsylvania.
With the liquidation, the company seeks to sell its remaining assets, pay its debts, and distribute proceeds to shareholders. The vote to wind down operations easily passed with the following vote: 6,969,638 voted for; 396,274 voted against; and 219,149 abstained.
As of June 30, 2025, the REIT reported $171.2 million in total assets.
Formed in July 2014 to invest in a portfolio of select-service hospitality properties with popular brands including Marriott, Hilton and Hyatt, the company had long cited the COVID-19 pandemic as having an adverse impact on its financial condition and operating results.
In response to the pandemic, the REIT terminated its public offering of common stock in March 2020 and never resumed raising capital. It also indefinitely suspended the payment of distributions to stockholders and the operation of its share repurchase program.
Previously reported by AltsWire, the REIT’s board of directors approved the plan to liquidate on April 25, 2025. Stockholders were previously told that the company might fail to meet maturing debt obligations in the near term if steps toward liquidation were not approved and implemented. The REIT reported five loans with maturities this year, altogether comprising 50% of its unpaid principal balance.
At its Sept. 30 meeting, subsidiaries of the REIT also entered into a purchase and sale agreement with BNS Associates LLC, an unaffiliated buyer, to sell the Hampton Inn Philadelphia in Frazer, Pennsylvania, for $10.4 million, subject to standard closing adjustments. The sale is expected to close on or before Dec. 15.
Last month, the company entered into agreements to sell two additional properties. United International Group LLC agreed to purchase the Hyatt Place Germantown in Tennessee for $11 million, with closing planned for Oct. 15 or another mutually agreed date. In the largest of the three sales, Moody National REIT II agreed to sell the SpringHill Suites Seattle in Washington state to Legacy DTS LLC for $51 million, with closing expected by Dec. 2 or another mutually agreed date. The company said none of the three property sales are contingent upon the others.
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