The non-traded REIT offloaded properties in Texas and South Carolina, with nearly all of the purchase price covered through debt assumption and related-party loan credits rather than cash.

March 16, 2026

Moody National REIT II, Inc., a Maryland-based real estate investment trust headquartered in Houston, has completed the sale of three hotel properties to an entity affiliated with the company’s own sponsor and adviser. The transaction, which closed on March 6, 2026, carried a total purchase price of $18.85 million.

The Properties

The three hotels involved in the deal are:

• Hampton Inn Austin/Airport Area South in Austin, Texas
• Hampton Inn Houston I-10W Energy Corridor in Houston, Texas
• Hyatt Place North Charleston in North Charleston, South Carolina

All three were sold to Moody EC Development, LLC, a Texas limited liability company with ties to the REIT’s sponsor.

Deal Structure

A significant portion of the purchase price — roughly $18.05 million — was satisfied through the buyer’s assumption of outstanding mortgage debt already secured by the hotels. The remaining balance was not paid in cash but instead credited against amounts the REIT owes under a series of related-party loans from Moody National Capital, LLC, another company affiliate. Even after that credit, the REIT still owes more than $20 million on those related-party notes.

Related-Party Considerations

The related-party nature of the transaction is notable. In non-traded REITs, deals between the company and entities connected to its sponsor can raise questions about whether the terms reflect fair market value, since the buyer and seller share common affiliations. The disclosure did not reference an independent valuation or fairness opinion, though the full terms are laid out in a Membership Interest Purchase Agreement dated March 5, 2026, attached as an exhibit.

Financial Implications

The disposition reduces Moody National REIT II’s hotel portfolio and its associated debt load, but the company remains significantly leveraged through its obligations to affiliated lenders. The structure of the deal — in which almost all of the purchase price went toward debt assumption and related-party loan credits rather than generating free cash — suggests the REIT may be working through financial pressures in its portfolio.

Moody National REIT II is led by Chief Executive Officer and President Brett C. Moody. The REIT has no securities listed on a national exchange.