HOUSTON-Moody National REIT I Inc. launched its 2013 activities by entering into a purchase agreement with Silver Cos. of Florida to acquire the 127-room Hyatt Place in Germantown, TN. The Houston REIT, an affiliate of Moody National Cos., will pay $11.3 million at closing.
The buyer plans to pay for the hotel at 9161 Winchester Rd. with help from proceeds resulting from its ongoing public offering and approximately $7.6 million of indebtedness secured by the property, which opened for business in August, 2009. Germantown is a suburb of Memphis, and is close to FedEx‘s world headquarters, which is one reason, according to Brett Moody, that the hospitality asset appealed to the REIT.
“We like the idea of FedEx’s world headquarters being there. Thomas & Betts is also there, and there is a lot of Amazon (Inc.) activity in the area as well,” comments Moody, who is chairman, founder and CEO of Moody National Cos. “We have a strong relationship with Amazon through our Seattle properties, and we’ll look forward to continuing that relationship in the Memphis MSA.”
The hotel itself can accommodate extended visits; it offers amenities including Wi-Fi access, a heated outdoor pool, fitness center, a 24/7 guest kitchen and an on-site bakery café. “This isn’t really a full, extended-stay property, but it’s ideal for someone who might be staying two or three nights,” Moody observes.
Moody tells GlobeSt.com that the REIT is looking for premium-branded, select-service hotels in major metropolitan markets on both coasts and in the sunbelt areas. He also points out that the preference is for mint-condition, cash-flowing assets at steep discounts, especially in economies like the current one. Though there has been some economic improvement, “we don’t buy stories,” Moody observes. “We’d rather buy stabilized assets and anticipate improvement of the overall economy. We really haven’t come fully out of this recession.” He goes on to say that the REIT’s goal in 2013 is to, as he puts it, “deploy capital on a prudent basis.”