Moody National REIT I to Buy 149 Hotels for $1.73 Billion
Moody National REIT I Inc. (Moody), a public, non-traded REIT, has agreed to buy 149 limited-service hotels from Goldman Sachs Group Inc. (Goldman) for $1.73 billion, according to a Bloomberg report. Whitehall Street, Goldman’s real estate unit, is the seller.
Moody disclosed the agreement in its latest 10-Q calling the portfolio the Moody Project 149, but declined to mention the seller.
Brett Moody, Chief Executive Officer of Moody, told Bloomberg that the hotels are located across 32 states with a concentration in California, Arizona, Texas and the Northeast. He also said the REIT will spend close to $280 million in renovations across the properties.
The acquisition is pending typical closing conditions including the REIT’s ability to obtain financing. In its 10-Q, Moody says it plans to pay for the hotels with financing secured by the properties and cash available from its public offerings.
As of March 31, 2015, the REIT had raised total gross proceeds including its public offerings and DRIP of $124,490,794.
