Date of Acquisition: October 15, 2015
Location: Austin, TX
Submarket: Prominently located off of I-35 and 51st Street, the hotel benefits from its close proximity to the University of Texas campus, Dell Children’s Hospital, Seton Medical Corporate headquarters, and the Texas State Capitol. Austin was ranked consecutively by Forbes magazine as the #1 and #2 fastest growing city in the nation in 2014 and 2015 respectively. 1,2
Property Type: 112 suite Hotel opened in 2014
Capitalization Rate: 8%
*Capitalization rate was calculated at time of acquisition and does not reflect a return or distribution of the REIT itself. We calculate the capitalization rate for a real property by dividing net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income is determined using the reforecasted net operating income for year-end 2015. For purposes of this calculation, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation.
Notice to Investors: This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. This sales and advertising literature must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. An offering is made only by the prospectus.
Notice to New York Investors: This advertisement is not an offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. The Attorney General of the State of New York has not passed on or endorsed the merits of this offering.
IMPORTANT RISK FACTOR DISCLOSURE: All information in this brochure should be reviewed with a Moody National REIT II, Inc. (“REIT II”) prospectus which includes information on charges, expenses and other important information about the offering. Please read the prospectus carefully before making an investment to learn more about the risks of investing in REIT II. These risks include, but are not limited to, the following: •REIT II has a limited operating history, and there is no assurance that REIT II will be able to successfully achieve its investment objectives.•Because there is no public trading market for shares of the common stock of REIT II and REIT II is not obligated to effectuate a liquidity event by a certain date, it will be difficult for stockholders to sell their shares. If you are able to sell your shares, you will likely sell them at a substantial discount.•There are restrictions and limitations on your ability to have all or a portion of your shares of common stock repurchased under REIT II’s share redemption program, and if you are able to have your shares repurchased pur-suant to the share redemption program, it may be for a price less than the price you paid for the shares and the then current value of the shares.•The price of shares may be adjusted periodically to reflect changes in the net asset value of REIT II’s assets and therefore future adjustments may result in an offering price lower than the price you paid for the shares.•This is a “blind pool” offering and stockholders will not have the opportunity to evaluate the investments of REIT II prior to purchasing shares of its common stock.•REIT II depends upon its advisor, property manager and sub-property manager and their affiliates to conduct its operations and this offering. Adverse changes in the financial health of its advisor, property manager and sub-property manager or their affiliates could cause its operations to suffer. We will pay substantial fees to our advisor, which were not determined on an arm’s-length basis.REIT II’s advisor and other affiliates will face conflicts of interest as a result of compensation arrangements, time constraints and competition for investments and for tenants, which could result in actions that are not in the best interests of REIT II’s stockholders.•This is a “best efforts” offering. Our ability to raise money and aceive our investment objectives depends on the ability of Moody Securities, LLC to successfully market this offering.The amount of distributions REIT II makes, if any, is uncertain. Distributions may exceed REIT II’s earnings, particularly during the period before REIT II has acquired a substantial portfolio of real estate assets. Distributions have been paid from other sources such as borrowings, offering proceeds or deferral of fees and expense reimbursements by REIT II’s advisor, in its sole discretion. REIT II has not established a limit on the amount of proceeds from this offering that may be used to fund distributions. Portions of the distributions that REIT II makes may represent a return of capital to you, which will lower your tax basis in REIT II’s shares.•If REIT II fails to qualify as a REIT, it would adversely affect its operations and ability to make distributions to stockholders because we will be subject to U.S. federal income tax at regular corporate rates with no ability to deduct distributions made to our stockholders.•REIT II plans to invest primarily in premier-brand, select-service hotel properties that are located in major metropolitan markets in select U.S. geographic regions. A more focused investment portfolio is inherently more risky than a more diversified portfolio. As a result, its results of operations may be adversely affected by a downturn in the hospitality sector or adverse economic developments in the geographic regions in which it invests.REIT II, Inc. is sponsored by Moody National REIT Sponsor, LLC, which is indirectly owned and controlled by Brett C. Moody. Moody National REIT Sponsor, LLC is an affiliate of Moody Securities, LLC, which is the dealer manager for this offering. Moody Securities, LLC is a member of FINRA/SIPC.
Date of First Use: June 27, 2016
Please read the prospectus carefully before making an investment to learn more about the risks of investing in Moody National REIT II, Inc. These risks include, but are not limited to, the following: (1) no public trading market for the shares of the common stock of Moody National REIT II, Inc.; (2) there is no assurance that Moody National REIT II, Inc. will be able to successfully achieve its investment objectives; (3) there is no guarantee Moody National REIT II, Inc. will ever complete a liquidity event by a certain date; (4) substantial fees are paid to the advisor, which were not determined on an arm’s-length basis; (5) the advisor and other affiliates will face conflicts of interest as a result of compensation arrangements, time constraints and competition for investments and for tenants; (6) the amount of distributions paid, if any, is uncertain and distributions may be paid from other sources such as borrowings, offering proceeds or deferral of fees and expense reimbursements by the advisor; and (7) if Moody National REIT II, Inc. fails to qualify as a REIT, it would adversely affect its operations and ability to make distributions to stockholders.