HOUSTON — Moody National REIT I Inc. has signed a contract to acquire a 149-hotel portfolio from a third-party seller for an aggregate purchase price of $1.73 billion, excluding acquisition costs. Multiple media outlets are reporting that Goldman Sachs Group Inc. is selling the portfolio to the non-traded REIT through its Whitehall Street funds.
The portfolio includes 14,000 units spread across 32 states, with a large concentration of hotels in California, Arizona, Texas and the Northeast. The majority of the portfolio consists of Marriott and Hilton branded select-service hotels.
“This is a great concentration of assets in key states which will benefit from several years remaining in the expanding hotel cycle,” said Brett Moody, Moody National REIT I’s CEO and chairman. “These are well-branded and well-managed assets.”
While a bulk of the Marriott and Hilton assets have undergone renovations (Courtyard Refreshing Business, Residence Inn Gatehouse Re-Inventions and Hampton Inn Forever Young Initiative), the REIT plans to accelerate and complete all remaining brand required renovations.
The acquisition of the portfolio is subject to substantial conditions to closing, including the REIT’s ability to obtain financing for the acquisition.
Houston-based Moody National REIT I owns select-service hotels in major markets across the United States. The REIT is sponsored by Moody REIT Sponsor LLC, an affiliate of the Moody National Cos., which is a full-service commercial real estate company inclusive of mortgage, development, realty and title divisions. Founded in 1996, Moody National Cos. has managed over $2 billion in commercial real estate.
— John Nelson