Acquisition Date: April 29, 2019

Location: Houston, TX

Submarket:  This Houston property is located in the Texas Medical Center (“TMC”), the world’s largest medical center consisting of 106,000 employees and 54 institutions¹. TMC welcomes more than 7.2 million visitors, hosts 10 million patient encounters per year and is the 8th largest business district in the U.S.² The hotel is also located adjacent to the NRG Park area, which hosts the annual Offshore Technology Conference, Houston Livestock Show & Rodeo, and numerous sporting events – including Houston Texans home football games, Super Bowls, and NCAA Tournament basketball games.

1. http://www.visithoustontexas.com/about-houston/texas-medical-center/
2. https://www.tmc.edu/about-tmc/facts-and-figures/

Property Type: 16-story hotel with 182 rooms with 4  1/2-story structured parking garage completed in 2019

Capitalization Rate: 7.2%

*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 year 1 pro-forma net operating income. 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. This rate applies to the property shown and does not reflect a return or distribution from Moody National REIT II, Inc.

This material does not constitute an offer to sell nor a solicitation of an offer to buy the securities referenced herein, which can only be made by the prospectus. This material must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of an investment in Moody National REIT II, Inc. A copy of the prospectus must be made available to investors in connection with this offering. Neither the Securities and Exchange Commission, the Attorney General of the State of New York, nor any other state regulators have approved or disapproved of our common stock, determined if the prospectus is truthful or complete or passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful. Securities offered by Moody Securities, LLC, Member FINRA/SIPC.
IMPORTANT RISK FACTOR DISCLOSURE
An investment in shares of common stock of Moody National REIT II, Inc. (REIT II) involves significant risks, including the following:

• REIT II has a limited operating history and there is no assurance that it will be able to successfully achieve its investment objectives.
• REIT II has a limited operating history and there is no assurance that it will be able to successfully achieve its investment objectives.
• No public trading market exists for shares of REIT II and it is not required to effectuate a liquidity event by a certain date. As a result, it will be difficult for stockholders to sell their shares of REIT II common stock.
• There are restrictions and limitations on the ability of a stockholder to have all or a portion of its shares of REIT II common stock repurchased under REIT II’s share repurchase program, and if a stockholder is able to have its shares repurchased pursuant to the share repurchase program, it may be for a price less than the price the stockholder paid for the shares and the then-current net asset value (NAV) of the shares.
• The price of REIT II shares may be adjusted periodically to reflect changes in the estimated value of its assets, and therefore, future adjustments may result in an offering price lower than the price a stockholder paid for its shares.
• The amount of distributions REIT II may make is uncertain. Distributions may exceed its earnings, particularly during the period before it has acquired a substantial portfolio of real estate assets. REIT II has paid distributions from the proceeds of its public offering, and may continue to pay distributions from the proceeds of its offerings or another category of funding that constitutes return of capital.
• REIT II’s public offering is considered to be a “blind pool” offering because you will not have the opportunity to evaluate its future investments prior to purchasing shares of REIT II common stock.
• REIT II’s public offering is a “best efforts” offering. If REIT II is not able to raise a substantial amount of capital in the near term, its ability to achieve its investment objectives could be adversely affected.
• There are limits on the ownership and transferability of REIT II’s shares. See “Description of Capital Stock—Restrictions on Ownership and Transfer” in the REIT II prospectus.
• REIT II relies on its advisor and its affiliates for its day-to-day operations and the selection of its investments.
• REIT II pays certain fees and expenses to its advisor and its affiliates. These fees were not negotiated at arm’s-length and therefore may be higher than fees payable to unaffiliated parties.
• REIT II’s advisor and other affiliates face conflicts of interest as a result of compensation arrangements, time constraints and competition for investments.
• If REIT II fails to maintain its qualification as a REIT and no relief provisions apply, its NAV per share and cash available for distribution to its stockholders could materially decrease

Date of First Use: May 15, 2019

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.