HOUSTON—Two non-traded hotel REITs sponsored by a Moody National Cos. affiliate are finalizing plans to merge. Moody National REIT I Inc. and Moody National REIT II Inc. said Tuesday that the proposed deal, which followed a strategic review by special committees of both trusts, would see REIT I stockholders receive gross consideration of $11 per share of common stock.
CoStar Group reported Wednesday that based on the 13.2 million REIT I shares outstanding as of June 30, the merger would be valued at about $145 million, including $72 million in cash. REIT I will be given a go-shop period to seek out other potential buyers.
REIT I currently holds a portfolio of 14 assets, including 12 hotels and two notes receivable. The hotel portion of the REIT I portfolio consists of Marriott, Hilton and Hyatt select-service hotels located in major US metropolitan markets. REIT II acquires select-service hotels in major markets across the US.
In August 2015, a $1.725-billion deal for REIT I to acquire a 149-hotel portfolio from Goldman Sachs' Whitehall unit collapsed. “The capital markets pricing changed and made the deal less attractive,” Moody CEO Brett Moody told Crain's New York Business. The deal would have brought REIT I's assets under management to more than $2.5 billion.
The REIT I special committee was represented by counsel and financial advisors Vinson & Elkins LLP and FBR Capital Markets & Co, respectively. For REIT II's special committee, Venable LLP provided counsel and Houlihan Lokey Capital served as financial advisor.
HOUSTON—Two non-traded hotel REITs sponsored by a Moody National Cos. affiliate are finalizing plans to merge. Moody National REIT I Inc. and Moody National REIT II Inc. said Tuesday that the proposed deal, which followed a strategic review by special committees of both trusts, would see REIT I stockholders receive gross consideration of $11 per share of common stock.
CoStar Group reported Wednesday that based on the 13.2 million REIT I shares outstanding as of June 30, the merger would be valued at about $145 million, including $72 million in cash. REIT I will be given a go-shop period to seek out other potential buyers.
REIT I currently holds a portfolio of 14 assets, including 12 hotels and two notes receivable. The hotel portion of the REIT I portfolio consists of Marriott, Hilton and Hyatt select-service hotels located in major US metropolitan markets. REIT II acquires select-service hotels in major markets across the US.
In August 2015, a $1.725-billion deal for REIT I to acquire a 149-hotel portfolio from
The REIT I special committee was represented by counsel and financial advisors
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