A nontraded hospitality real estate investment trust has made progress this quarter addressing $163 million in loan maturities past due or coming due over the next 12 months.
Moody National REIT II is dealing with debt maturities through refinancing and sales as revenue across its portfolio of 15 hotels has fallen this year, the company reported in its third-quarter earnings filing with the Securities and Exchange Commission.
At the same time, its expenses have risen due in large part to increased interest rates on loans that failed to pay off at maturity this year, according to the filing.
The REIT is under contract to sell its worst-performing property so far this year. The Courtyard Lyndhurst Meadowlands in New Jersey is contracted to sell for $21.3 million with the deal scheduled to close in early 2025, the REIT said.
The company reported that revenue for the 227-room hotel is down $2 million for the first nine months of this year versus the same time last year. Revenue through September was $3.33 million. The hotel is subject to a $17.2 million loan that was set to mature in September.
Overall hotel portfolio revenue was $61.6 million for the first nine months of this year versus $62.9 million for the same period last year, the REIT said.
In Houston, the company has a $26.9 million loan on its 182-room Residence Inn Houston Medical Center that was scheduled to mature last month. The unidentified lender agreed to temporarily forbear on any of its remedies while the REIT finalizes a refinancing, the company said.
Lastly, Moody National REIT II reported that it refinanced its 123-room Hampton by Hilton Inn Austin/Airport Area South without disclosing any financial details. The hotel was subject to an $11.5 million commercial mortgage-backed securities loan that paid off last week, according to CoStar data.
The Hilton Inn Austin loan had been scheduled to mature in January. After not paying off at maturity, the interest rate on the loan increased from 5.42% to 10.4%, according to the REIT’s quarterly report.
Brett Moody, president of Moody National REIT II, did not respond to CoStar News' request for additional information.