Home News Moody National REIT II Suspends Offering, Distributions, Repurchases Amid COVID-19 Pandemic

Moody National REIT II Suspends Offering, Distributions, Repurchases Amid COVID-19 Pandemic

Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, has implemented a number of changes, citing decreased demand for hotel properties during the global coronavirus (COVID-19) pandemic.

Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, has implemented a number of changes, citing decreased demand for hotel properties during the global coronavirus (COVID-19) pandemic.

The REIT’s board temporarily suspended the company’s public offering and distribution payments, effective immediately. The distribution reinvestment plan and share repurchase program will be suspended, effective April 6, 2020.

According to a letter to shareholders, “The board approved the foregoing actions based on the rapidly deteriorating demand across the hotel sector, which is expected to continue to negatively impact bookings and occupancy levels at the company’s properties, stemming from the social distancing, travel restrictions and other policies implemented to combat the COVID-19 pandemic.”

The REIT’s board and management plan to evaluate the REIT’s financial condition and the overall economic environment to determine an appropriate time to reinstate the public offering, distributions, the DRIP and the SRP.

Moody National REIT II completed its merger with Moody National REIT I in September 2017, and as of the third quarter of 2019, owned a $447.4 million investment portfolio, comprised of 15 hotels and securities totaling $5.2 million.

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